Artificial intelligence can help betting platforms detect problem gamblers, but powerful AI tools could instead be deployed to increase profits, says a new report from Australia’s Online Gambling Regulator.
The Australian Communications and Media Authority (ACMA), which oversees the interactive gambling sector, released new research on Tuesday into how AI is disrupting the sector.
It found that licensed betting providers across Australia were “increasingly using AI tools” to develop existing odds-making strategies and develop new features.
Machine learning models, considered “traditional” AI, have long been used in the field to determine odds for races and sporting events.
However, ACMA found that more sophisticated odds-generating models and generative AI technologies are spilling over into the field, which raised $12.45 billion from Australians in 2024.
New uses for AI include developing customized promotions, artificially generated marketing content, and, in some cases, detecting harmful behavior.
It named Mindway AI, a Danish tech company that develops systems that analyze problem gambling behavior and alert betting platforms.
ASX-listed Tabcorp, which accounts for about a quarter of Australia’s online betting market, entered into a partnership with Mindway AI in 2023.
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Entain, which operates Australian gambling websites Ladbrokes and Neds, has also partnered with Mindway AI to develop a risk detection tool.
Still, ACMA said bookmakers may be more inclined to rely on AI to improve profits.
“Although AI can be applied to support player safety, commercial deployments are likely to prioritize increased engagement and revenue generation over harm minimization.”
“Stakeholders have expressed concern that some applications of AI, such as promoting gambling, may actually intensify harmful gambling behavior,” it added.
Outlining this possibility, ACMA said AI-powered chatbots are now providing betting advice to bettors.
According to the company, the Sportsbet AI assistant will provide information on carefully selected races and sporting events (although a disclaimer tells users that “Sportsbet does not guarantee accuracy and will not be liable for any losses arising from AI responses”).
ACMA also highlighted the prospects for gambling platforms that use AI for special betting transactions based on a gambler’s history and profile.
Betting platforms have long offered users tailored odds to their preferences and favorite teams, but ACMA has found evidence that AI could accelerate the way bookmakers develop offers for specific users.
“Gambling providers often describe personalization as a way to improve user ‘engagement’.
And I’m excited.”
“However, some stakeholders have expressed concerns that increased personalization could increase the risk of harmful gambling behavior.
“Personalization can therefore pose challenges.”
ACMA was quick to point out that the report was not a thorough investigation into how Australian bookmakers use AI, and its findings were drawn from public statements, company notices, academic research and other publicly available material.
Still, ACMA’s research shows that “while AI is bringing efficiencies across these sectors, its adoption is also increasing calls for stronger governance, transparency, and safeguards from stakeholders, including researchers and consumer advocates.”
You can read the report here.
