Artificial intelligence can help betting platforms detect problem gamblers, but powerful AI tools may be deployed to boost profits instead, says a new report from Australia’s online gambling regulator. The Australian Communications and Media Authority (ACMA), which monitors the interactive gambling sector, on Tuesday published new research on how AI is disrupting the sector. It found licensed wagering providers across Australia are “increasingly using AI tools” to develop their existing odds-making strategies and develop new features. Machine learning models, considered ‘traditional’ AI, have long been used in the sector to determine odds for races and sporting events. But ACMA found more advanced odds-making models, and generative AI technologies, are rippling through a sector that collected $12.45 billion from Australians in 2024. Smarter business news. Straight to your inbox. For startup founders, small businesses and leaders. Build sharper instincts and better strategy by learning from Australia’s smartest business minds. Sign up for free. * indicates required Email Address * By continuing, you agree to our Terms & Conditions and Privacy Policy. Newer uses for AI include developing tailored promotions, artificially-generated marketing content, and, in some cases, detecting harmful behaviour. It singled out Danish tech firm Mindway AI, which develops systems that analyse problematic gambling behaviour and alert betting platforms. ASX-listed Tabcorp, which is responsible for about a quarter of Australia’s online wagering market, in 2023, penned a partnership with Mindway AI. Related Article Block Placeholder Article ID: 304490 A financial teardown of Laurence Escalante’s $5 billion gambling empire Jason Andrew Entain, which operates Australian gambling websites Ladbrokes and Neds, has also developed risk detection tools in partnership with Mindway AI. Even so, ACMA said bookmakers may be more inclined to task AI with boosting their bottom line: “While AI can be applied to support player safety, its commercial deployment may prioritise increased engagement and revenue generation over harm minimisation.” “Stakeholders have raised concerns that, in practice, some applications of AI, such as promoting gambling, may intensify harmful gambling behaviours,” it added. To outline this potential, ACMA said AI-powered chatbots now offer betting advice to punters. Sportsbet AI Assistant provides information on select racing and sporting events, the company says (although a disclaimer tells users “Sportsbet does not guarantee accuracy and accepts no liability for losses arising from AI responses”). ACMA also highlighted the prospect of betting platforms using AI for special betting deals based on a gambler’s history and profile. Betting platforms have long offered odds tailored to a user’s preferences, or even their favourite team, but ACMA found evidence AI could turbocharge how bookmakers develop offers for specific users. “Gambling providers often describe personalisation as a way to improve user ‘engagement’and ‘excitement’,” it said. “However, some stakeholders have raised concerns that greater personalisation may increase the risk of harmful gambling behaviours. “For this reason, personalisation can raise challenges.” ACMA was quick to note the report was not an exhaustive examination of how bookmakers in Australia are using AI, and that its findings were drawn from public statements, company notices, academic research, and other publicly available materials. Even so, the ACMA research shows “while AI is delivering efficiencies across these sectors, its adoption is also prompting calls from stakeholders” — including researchers and consumer advocates — “for stronger governance, transparency and safeguards.” You can read the report here. Stay in the know Never miss a story: sign up to SmartCompany’s free daily newsletter and find our best stories on LinkedIn.