AI AND GAMBLING

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Expected Reading Time | 4 Minutes

Last Updated: September 24, 2024

Unless your last few years have been spent living under a tree or you have furloughed your access to the internet, you won’t have failed to hear about the advances in artificial intelligence (AI).

The AI floodgates opened when OpenAI released ChatGPT at the back end of 2022 and for the first time, everyone had access to an AI in a way which the majority of us had never see before. We can ask the ChatGPT AI an unlimited amount of questions and it is helping people in ways previously unknown.

Although AI is still in its infancy, the gambling industry has been making competent use of AI technology for over a decade and it continues to revolutionise the industry.

ARTIFICIAL INTELLIGENCE AND BETTING ODDS

Multiple gambling operators/bookmakers have been deploying AI programmes for a while now. Almost all bookmakers use AI algorithms in order to create betting odds. The reasons? First of all, the algorithms make exploiting betting odds pretty much impossible. They ensure that the odds are made in such a way that punters cannot make multiple bets which will guarantee profit no matter the outcome. Additionally, advancements in AI mean that operators are safe against live betting exploitation.

In the past, it was possible for punters to attend live sporting events such as tennis matches and make bets during the match. Punters exploited the slight delay of early AI betting programmes after a point was played, whereby they would bet on the outcome of a point after already knowing what the outcome would be. In tennis, the AI programmes relied on the umpire tapping his tablet in order to update the point/betting odds. Punters were able to use the few seconds delay of a slow umpire to exploit the algorithm.

First and foremost, operators used AI in order to save money and improve their services. This was happening over a decade ago, making the gambling industry one of the first pioneers of AI technology.

AI APPLICATIONS

So then, gambling operators first used AI in order to improve their own product, cut down costs and ensure that they were less open to exploitation from smart gamblers. Recently however, new AI models have been geared towards aiding customers and giving them a better and more enjoyable gambling experience.

Online poker giants PokerStars have developed their own AI tool used to assist in developing poker skills. The tool is used in accordance with players’ hand history and provides details on past hands and betting decisions. Players can use this information to find errors or misjudgements in their play. The AI also provides tools designed to assist with future performance.

Then you have companies such as StatsPerform which offer numerous AI tools designed to be used by players to develop betting strategies. They also work directly with operators where the AI studies player trends which allow the operators to make certain products more marketable.

AI can also be used to keep new customers safe from gambling harm. For example, it can be used to meet requirements for early addiction detection. AI tools can already track customers spending and betting patterns and are automated to highlight when a customer may be at risk. Once this happens, operators are required by law to step in and ensure that the customer is safe.

The most successful AI applications within gambling will do a twofold job – they will both improve the customers experience and ensure each customer is having a lot of fun whilst simultaneously ensuring that the customer is safe from any potential gambling harm.

REGULATORY CHANGES COMBINING WITH AI

As aforementioned, the UK gambling industry is heavily regulated which means that any AI tools the UKGC licensed operators use will need to comply with the regulations already in place. In addition, operators will need to ensure that any third party clients they work with, offer comprehensive protections.

International law firm Bird and Bird have spoken about the importance of contracts and liability where AI and gambling are concerned, they say:

“From a consumer perspective, operators will need to ensure that the policies customers agree to allow them to use AI in the manner envisaged by the operator.

“This may include extensive data rights in their privacy policies and terms of use. Such contracts will need to clearly define the player and operator’s rights concerning AI applications, and operators should ensure these contracts are future proofed though this may be challenging in such a quickly evolving area.”

The United Kingdom is in a unique position where considerable regulation changes are taking place as we speak. Whilst we are still awaiting the full picture of what is to come, it does put the UK in an ideal place when it comes to incorporating AI within online gambling systems and online gambling laws.