Beyond ChatGPT: 5 Ways Artificial Intelligence is Already Shaping Gambling and Sports Betting Predictions

Home » Beyond ChatGPT: 5 Ways Artificial Intelligence is Already Shaping Gambling and Sports Betting Predictions

In a field characterized by probabilities, the potential applications of artificial intelligence in the realms of gambling and sports betting prediction are vast.

Traditional brick-and-mortar casinos are resorting to substantial mergers and acquisitions with online platforms to stay competitive and adapt their businesses amidst the widespread adoption of artificial intelligence. Data from the American Gaming Association reveals that some states that have not legalized mobile casino sports betting are experiencing declining revenues year after year, lagging behind the rest of the industry.

Initially, there was uncertainty regarding the utilization of AI tools like ChatGPT in gameplay to outperform humans in casino games, both in land-based and online poker, which heavily rely on innate human attributes such as intuition and body language. However, this perception changed in 2017 when research published in Science demonstrated that AI software could defeat professional poker players in a game of heads-up no-limit poker. Despite the promise it holds, the gambling and sports betting industry’s increasing reliance on AI, from marketing to player targeting, has not been exempt from criticism.

Promoting responsible gambling

1. To address the issue of gambling disorders that affect around 5.7 million Americans, AI technology empowers online gambling providers and betting platforms to monitor potentially addictive behaviors.

AI can continually analyze data points to predict instances of self-reported problem gambling. For instance, the gambling software platform Slotegrator asserts that AI can facilitate responsible gambling by identifying players who are increasingly spending excessive time on betting, reversing their money withdrawals, or engaging in “loss chasing” (continuing to gamble in an attempt to recover lost money from previous games and bets).

Despite the availability of ChatGPT and similar AI tools, some Americans still engage in unlawful gambling activities. In 2022, nearly half of the American population participated in online slots or table games offered by illegal online casinos. Although each state with legal gambling has its own regulatory body responsible for oversight and penalizing industry violations, such as deceptive advertising promotions that falsely advertise “free” or “risk-free” bets, susceptible gamblers are still being targeted with such offers.

These types of bets have been proven to significantly impact individuals with gambling addictions. In some instances, such as in Ohio, users were required to first lose or risk their own money before being eligible for the so-called “free” or “risk-free” bet.

The influence of AI on sports betting

Beyond ChatGPT: 5 Ways Artificial Intelligence is Already Shaping Gambling and Sports Betting Predictions

Personalized user experience

2. Online gambling and sports betting companies are leveraging AI algorithms to enhance predictions and deliver personalized gaming experiences tailored to individual preferences. This approach keeps players engaged through varying levels of difficulty, engaging narratives, or a wide range of options, similar to the customization provided by streaming platforms like Netflix.

Generative AI models, including ChatGPT, can even assist fantasy sports enthusiasts by suggesting players to include in their dream teams. In the future, AI might also enable the creation of innovative betting scenarios, such as participating in crypto casinos or attending celebrity life events.

Despite the potential benefits, it is important to note that ChatGPT and AI are still in their early stages of development. Personalized content generated through these technologies may be coherent but nonsensical, outright hallucinatory, prone to glitches, or even susceptible to security attacks such as memory corruption, without alerting the user.

Tailored marketing strategies

3. AI represents a significant advantage for marketers in the industry. By leveraging AI and machine learning, online casino sites can customize their marketing strategies, optimize search results, and automatically generate landing pages that incorporate relevant keywords. This allows them to reach a broader audience by advertising on popular websites, which AI can help identify more efficiently.

Furthermore, companies can use ChatGPT and other AI tools to better understand and adapt to their customers’ evolving needs over time. For example, they can notify fans about predictions or odds at specific points during a game or provide highlights for sports betting enthusiasts. Retailers can take advantage of dynamic pricing and incentives to encourage continued engagement, utilizing AI’s ability to segment the market and provide customized marketing strategies.

AI and combating fraud and misuse

Beyond ChatGPT: 5 Ways Artificial Intelligence is Already Shaping Gambling and Sports Betting Predictions

Tailored marketing strategies

4. As online betting activities surge, accompanied by varying levels of regulatory oversight and enforcement, the risks associated with cybersecurity, fraud, and money laundering increase.

However, online casino software developers are well-positioned to address these challenges through the utilization of AI and machine learning, with adequate funding supporting the development of solutions that can identify and combat schemes like synthetic ID fraud.

Through innovative software, it is reportedly possible to detect bots in real-time with 99.8% accuracy by monitoring game interactions and identifying anomalies. Researchers have also successfully trained machine learning algorithms to predict cheating patterns in multiplayer online games.

Despite these advances in AI for detecting hackers and scammers, keeping up with increasingly sophisticated online threats that continuously evolve to evade detection remains a significant challenge. TransUnion reported a 50.1% increase in suspected digital fraud attempts in the gambling industry when comparing quarterly data from 2022 year-over-year. Additionally, several online gambling sites experienced fraud issues in the same year, including incidents of “credential stuffing,” where hackers utilized compromised login information to gain unauthorized access.

Internal management for betting companies

5. AI algorithms can be programmed to enhance the profitability of casino gaming companies in various ways. These include automating customer service, interpreting and utilizing extensive datasets, and efficiently managing cash flow to generate profits.

Fortunately, despite concerns expressed by 77% of individuals in a Forbes Advisor survey regarding potential job losses resulting from AI, a 2020 report from the World Economic Forum projected the creation of 12 million net-new jobs to support the development and implementation of AI and machine learning models. However, only time will reveal the true impact of AI proliferation on the future of work and the realm of online casinos.


This study involved an examination of research papers, news articles, and industry commentaries to distill the top five impacts of AI tools, such as ChatGPT, on the betting industry, while also considering their pros and cons.


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