Australian regulator highlights swift AI integration in gambling sector

(AsiaGameHub) –   The Australian Communications and Media Authority (ACMA) has drawn attention to the rapidly expanding adoption of artificial intelligence across Australia’s gambling sector, pointing out that operators are increasingly integrating AI into core business operations ranging from odds calculation to player profiling.

Per the report, AI is widely applied to personalize marketing efforts, detect suspicious behavior, and identify players facing risks of gambling-related harm. While these tools can boost protection for players, the regulator has raised questions over whether their primary purpose centers on safety, or on driving user engagement and revenue growth.

The research found that operators are rolling out AI across multiple customer interaction points. For instance, Sportsbet operates an AI chatbot that handles more than one-third of all customer queries with roughly 94% accuracy. In the meantime, Tabcorp has formed a partnership with Mindway AI to analyze player behavior and flag at-risk users via tools referred to as “virtual psychologists.”

Betting markets have also been impacted by AI as it transforms how odds are priced. More advanced predictive technologies now analyze real-time data covering player injuries and in-play betting trends, meaning far less manual work is required for betting odds calculation. According to Betfair Australia, the use of AI can deliver a 22% improvement in odds accuracy, while Fanatics has upgraded its algorithm capabilities through its acquisition of Banach Technologies, a firm specializing in algorithmic trading and live odds services.

To a certain extent, AI is also used for fraud detection, transaction monitoring, and identity verification through analysis of biometric data and official documents. However, the ACMA has noted that the emergence of new betting worker agent models powered by “agentic AI” – or autonomous systems that can run without direct human supervision – poses a growing regulatory challenge, especially when it comes to accountability.

In addition, the ACMA has voiced concerns that AI tools may accidentally facilitate illegal gambling activity. Multiple investigations revealed that some of the most popular general-purpose chatbots, including ChatGPT and Grok, occasionally guide users to unlicensed offshore gambling markets or provide methods to bypass regulatory safeguards.

These issues cast doubt on whether existing legislation, such as the Interactive Gambling Act 2001, is capable of addressing these emerging problems. The ACMA has stated that this report aims to offer an overview of possible policy options but is not designed to trigger immediate reform, though it acknowledged that the rapid uptake of AI is already testing the boundaries of current regulatory systems.