The Australian Communications and Media Authority (ACMA) has released new research revealing the rapid adoption of artificial intelligence (AI) in the gambling industry. Operators are increasingly incorporating AI technologies into various facets of their business operations.
AI is primarily being utilized for marketing, enabling personalized betting offers, as well as for detecting and addressing suspicious behaviors. These tools also play a role in identifying individuals who may be facing gambling-related issues.
This shift indicates a significant change in the marketing and monitoring of gambling products within Australia’s regulatory environment.
Gambling operators are deploying AI across multiple customer engagement points. While this technology may improve player safety, ACMA has warned that the commercial emphasis could lean towards maximizing player engagement and revenue, rather than strictly focusing on reducing harm.
In a study examining top operators, Sportsbet was noted for implementing an AI chatbot that autonomously manages over a third of customer inquiries, achieving an accuracy rate of approximately 94%. Similarly, Tabcorp has partnered with Mindway AI to introduce behavioral analytics tools that serve as "virtual psychologists," analyzing betting behaviors to identify users who are at risk.
AI-driven predictive analytics are transforming how operators set their betting markets. Wagering providers have traditionally relied on machine learning for odds-setting, but the technology has progressed significantly. AI now allows operators to analyze live data—such as player injuries and live betting patterns—with minimal human intervention. Betfair Australia reported a notable 22% increase in odds accuracy linked to these AI advancements.
PointsBet’s parent company Fanatics took a decisive step by acquiring algorithmic trading firm Banach Technologies for $43 million in 2021, emphasizing live wagering and odds-setting capabilities. Additionally, AI has improved operators' ability to price a wider array of micro-markets and player-specific outcomes accurately.
The ACMA report also noted that gambling operators are increasingly interested in leveraging AI beyond marketing and betting purposes. With AI-enabled real-time analytics, wagering platforms can continuously monitor transactions and player behavior, substantially enhancing their ability to detect fraud, money laundering, and account misuse.
Moreover, AI has streamlined identity verification processes, utilizing smart document analysis and biometrics to combat fraudulent or duplicate player accounts. Central to these developments is the rise of agentic AI, autonomous systems that can execute predictive and generative tasks without human oversight. This evolution complicates the issue of responsibility for outcomes, as accountability becomes less clear when a system operates independently throughout the user's experience.
Conversely, AI has been implicated in facilitating the growth of the black market. A recent investigation by Investigate Europe found that general-purpose AI chatbots, including ChatGPT and Grok, often directed users towards unlicensed offshore gambling sites and, in some cases, provided information on evading age verification and self-exclusion mechanisms.
The regulatory framework for gambling in Australia, primarily established under the Interactive Gambling Act 2001, does not adequately account for contemporary AI technologies, according to ACMA. This gap in the regulations is becoming increasingly evident as new AI applications test existing rules. For instance, the Directorate General for the Regulation of Gambling in Spain is reportedly developing an AI system to monitor behaviors across licensed operators in real time.
The ACMA emphasized that this report aims to foster policy discussions rather than serve as an immediate call for legislative reform.
