Australian Communications and Media Authority (ACMA) has highlighted the fast-growing use of artificial intelligence across Australia’s gambling industry, noting that operators are increasingly embedding AI into core business functions from odds-setting to player profiling.
According to the report, AI is widely used to personalise marketing, detect suspicious activity, and identify players at risk of gambling harm. While these tools can enhance player protection, the regulator questioned whether their primary purpose is safety or driving engagement and revenue.
The study found that operators are deploying AI across multiple customer touchpoints. For example, Sportsbet uses an AI chatbot that handles over one-third of customer enquiries with around 94% accuracy. Meanwhile, Tabcorp has partnered with Mindway AI to analyse player behaviour and flag at-risk users using tools described as “virtual psychologists.”
Betting markets have also been affected by AI through changing the way they are priced. More sophisticated predictive technologies now analyse real-time data on injury and live betting trends, so much less needs to be done manually in regard to appraising betting odds. According to Betfair Australia, 22% better odds accuracy can be produced by using AI, and Fanatics has enhanced its algorithm capabilities through its purchase of Banach Technologies, a company that specializes in algorithmic trading and live odds.
AI is being used to some degree in fraud detection, transaction monitoring, and identity verification through the use of biometrics and documents analysis. However, the ACMA raised that the emergence of new methods of betting worker agents through “agentic AI,” or autonomous systems that can operate without direct human supervision, present a growing dilemma for regulations to manage, particularly in relation to accountability.
Additionally, the ACMA has expressed concerns that AI tools could inadvertently assist in illegal gambling. Some investigations revealed that some of the most popular generalized chatbots – including ChatGPT and Grok – at times directed their users to unlicensed offshore gambling markets or provided methods to circumvent regulatory safeguards.
These issues bring into question whether existing legislation, such as the Interactive Gambling Act 2001, will be capable of addressing these matters. The ACMA has indicated that this report intends to provide an overview of potential policy options but is not designed to trigger immediate reform, but acknowledged that the rapid pace of AI use is already testing the limits of current regulatory systems.
