The Australian Communications and Media Authority (ACMA) this week published research on artificial intelligence (AI) use in the gambling sector, realing that gambling operators are swiftly integrating AI technologies across multiple aspects of their operations.
Primary operations using AI include marketing to personalise betting offers and to detect and mitigate suspicious activity. Tools are also helping identify individuals who are potentially experiencing gambling-related harm.
This development represents a major shift in how gambling products are marketed and monitored within Australia’s regulatory landscape.
Operators deploy AI across customer touchpoints
While the technology presents benefits for player safety, the Australian regulator cautioned that commercial priorities might favour increasing player engagement and revenue rather than strictly minimising harm.
For example, the study, which scanned AI use across leading operators, found Sportsbet had deployed an AI chatbot responsible for handling over one-third of customer enquiries autonomously. The Flutter-owned operator reported an accuracy rate of approximately 94%.
Similarly, Tabcorp collaborated with Mindway AI to implement behavioural analytics tools. These systems act as “virtual psychologists” and analyse betting behaviour to flag at-risk users.
How AI is rewiring the wagering engine
AI-powered predictive analytics have also reshaped how operators price their betting markets. Licensed wagering providers have long relied on machine learning for odds setting, but the technology has become more advanced.
AI has enabled operators to process live inputs such as player injuries and in-play betting patterns with minimal human intervention. Betfair Australia reported a 22% improvement in odds accuracy attributable to AI.
PointsBet’s parent Fanatics also made its ambitions concrete with the $43 million acquisition of algorithmic trading firm Banach Technologies in 2021. The company focuses on live wagering and odds setting.
In addition to pricing accuracy, AI has enabled operators to reliably price a growing range of micro-markets and player-specific outcomes.
Australian regulator flags AI as a frontline tool against fraud
The ACMA report further highlighted gambling operators’ growing interest in AI beyond marketing and betting purposes.
Powered by AI, real-time analytics has enabled wagering platforms to continuously monitor transactions and player behaviour. This allows operators to identify potential fraud, money laundering or account misuse much more effectively.
In addition to streamlining processes, AI has facilitated identity verification processes with smart document analysis and biometrics to reduce instances of fake or multiple player accounts.
Underpinning all of these changes is what ACMA flagged as perhaps the most consequential development – agentic AI. Autonomous systems can chain predictive and generative capabilities together without human oversight.
From the regulator’s perspective, attributing responsibility for outcomes becomes considerably more complex. The question of accountability remains unanswered when a system operates autonomously throughout the entire customer journey.
Conversely, AI has also been found to contribute to the growth of the black market as a recent investigation by Investigate Europe reported general-purpose AI chatbots on the market, such as ChatGPT and Grok, frequently directed users towards unlicensed offshore gambling websites. In some cases, the chatbots also provided guidance on bypassing age verification and self-exclusion schemes.
Rules under pressure as AI outpaces regulatory framework
The Interactive Gambling Act 2001 primarily underpins the current gambling regulatory framework in Australia. The ACMA said it was not in the position to consider modern, advanced AI technologies when drafting the framework.
it said these emerging AI uses are putting the rules to the test. As an example, the report flagged that the Directorate General for the Regulation of Gambling in Spain was developing its own AI system to monitor behaviour across licensed operators in real time.
The ACMA clarified that the report sought to inform policy dialogue and was not an immediate call for legislative reform.
Original article: https://igamingbusiness.com/tech-innovation/australian-regulator-ai-adoption-gambling/
