A recently published study has examined how the use of Artificial Intelligence in gambling carries its own risks – ethical and otherwise
A study by UF researcher Nasim Binesh, PhD, MBA, an assistant professor in the UF College of Health & Human Performance’s Department of Tourism, Hospitality & Event Management has examined the use of artificial intelligence in the gambling industry, and the implications that this may have for consumers and regulation.
AI in Gambling – Is It Set to Safeguard Consumers or Exploit Them?
The researcher has argued that there is scant regulation on how AI should be used in specific industries in the United States in particular, arguing that the European Union, for example, is already ahead regulation-wise and with the European Union AI Act in particular.
The study was also co-authored by Kasra Ghaharian, PhD, the director of research for the University of Nevada, Las Vegas International Gaming Institute, who also offered input into the matter. Ghaharian argued that AI systems could be a double-edged sword.
Much of the industry is talking about reducing harm by analyzing player behavior, but according to Ghaharian, the opposite is also true:
“AI systems, which are designed to optimize profit, could identify and target players susceptible to addiction, pushing them deeper into harmful behaviors.”
Binesh is of a similar opinion, highlighting these risks just as well and arguing that AI could as easily be used to not stem, but exacerbate, gambling-related harm and problems.
More Research into AI and Consumer Behavior & Data
To get a better idea of which way the industry would choose, Binesh intends to specifically focus on researching gambling consumer data, and specifically how AI can be used to uncover early signs of additive behavior by screening social media, for example.
The potential ill that can come out of the use of AI in the gambling industry may be attributable to the lack of proper regulation, Binesh seems to think.
“Ironically, the lack of AI regulation could stifle the very innovation it seeks to foster. Ethical controversies and backlash against these unregulated practices might lead to more restrictive policies and hinder AI advancement. These types of unregulated environments can also deter responsible innovators who are crucial for sustainable and ethical industry growth,” she wrapped up.
AI has already been popping into mainstream sports betting space as well as prediction markets. Although not yet fully clear, a partnership between xAI and Kalshi is possibly in the works and very close to realization.
