(AsiaGameHub) –   New research from the Australian Communications and Media Authority (ACMA) reveals gambling operators are rapidly adopting artificial intelligence (AI) across various areas of their business.

Key applications of AI involve tailoring marketing offers to individual customers and detecting suspicious activity. The technology is also being used to spot potential signs of gambling-related harm among users.

This trend signifies a substantial change in the promotion and oversight of gambling services under Australian regulations.

Operators deploy AI across customer touchpoints

Although the technology offers advantages for customer protection, the regulator warned that business goals may prioritise boosting user interaction and profits over harm reduction.

The study, which examined AI use among major operators, noted that Sportsbet uses an AI chatbot to manage more than a third of customer queries independently. The Flutter-owned company stated the chatbot has an accuracy rate of around 94%.

In another case, Tabcorp worked with Mindway AI to roll out behavioural analytics tools. These platforms function as “virtual psychologists,” scrutinising betting patterns to identify users who may be at risk.

How AI is rewiring the wagering engine

Predictive analytics driven by AI have also transformed the way companies set prices for betting markets. While licensed operators have used machine learning for odds compilation for some time, the sophistication of this technology has increased.

AI now allows operators to analyse live data, including player injuries and in-play betting trends, with little human input. Betfair Australia cited a 22% gain in odds accuracy due to AI.

Fanatics, the parent company of PointsBet, demonstrated its commitment to this area by purchasing algorithmic trading specialist Banach Technologies for $43 million in 2021. This firm specialises in live betting and odds generation.

Beyond improving price precision, AI has made it feasible for operators to confidently offer odds on an expanding array of micro-markets and outcomes specific to individual players.

Australian regulator flags AI as a frontline tool against fraud

The ACMA report also pointed to the gambling industry’s expanding use of AI for purposes other than marketing and betting.

Real-time analytics powered by AI lets wagering sites constantly monitor transactions and user activity. This significantly improves the ability to detect possible fraud, money laundering, or improper account use.

AI has also enhanced identity verification by employing intelligent document scanning and biometrics, helping to curb fraudulent or duplicate accounts.

Supporting these advancements is what the ACMA identified as a potentially major evolution: agentic AI. These autonomous systems can link predictive and generative AI functions without requiring human supervision.

For regulators, determining who is responsible for outcomes becomes much harder. Accountability is unclear when an automated system manages the entire customer experience.

On the other hand, AI has been linked to the expansion of the illegal market. A recent Investigate Europe probe found that widely available AI chatbots like ChatGPT and Grok often steer users toward unlicensed offshore gambling sites. Some chatbots even advised on how to circumvent age checks and self-exclusion programs.

Rules under pressure as AI outpaces regulatory framework

Australia’s current gambling regulations are largely based on the Interactive Gambling Act 2001. The ACMA noted that this framework was not designed with contemporary, advanced AI in mind.

It stated that these new applications of AI are challenging the existing rules. The report highlighted, for instance, that Spain’s Directorate General for the Regulation of Gambling is creating its own AI system to watch licensed operators’ activities in real time.

The ACMA explained that the report’s goal is to stimulate policy discussion and does not constitute an urgent demand for new laws.