According to a BBC report this week, the gambling industry’s embrace of artificial intelligence (AI) has raised significant concerns.

The report focuses on the experiences of Danny Cheetham, who began gambling at local bookies at the age of 18 and soon transitioned to online games. Cheetham, now 34, recalls setting alarms for 4am on payday, anxiously waiting to gamble as soon as his salary hit his account. By 8am, he found himself seeking loans to survive the month.

The latest wave of AI has provided gambling firms with a new tool, which they claim enhances the customer experience. However, Cheetham and others are skeptical. While acknowledging that the technology undoubtedly enhances user engagement, they argue that it also has the potential to deepen addiction. The ethical dilemma here is whether the pursuit of profit is being prioritised over the welfare of individuals prone to addiction.

Enhancing user experience or deepening addiction

Scotty McKeever, whose firm EquinEdge uses AI at its core, dismisses such concerns. EquinEdge uses AI to analyse data such as horse performance, track conditions, and jockey and trainer statistics. It crunches this data to generate a metric, such as the probability that a particular horse will win. The hard work has been carried out by AI, but gamblers must still decide how to interpret that metric – which is, as EquinEdge describes it, “the fun part.”

“AI has made it easier than ever before to offer consumers the kind of data and analysis that used to be the province of pros,” says McKeever. He does not believe that the application of AI will make any difference to problem gambling, arguing that it’s a disease no different than any other addiction.

Many other firms are using AI to tailor the experience for gamblers. Betby, for example, supplies technology to gambling firms and uses AI to personalise the betting experience and predict churn and lifetime value. Danil Emelyanov, head of AI at Betby, (pictured above), says the company’s recently launched AI tools allow it to “prioritise relevant content for users based on their past activity, current actions, similarities with behaviourally close customers, and prevailing sports trends.”

Ethical Dilemma

Like EquinEdge, Betby provides additional information about specific events to help customers make informed decisions on their wagers too, presenting recommendations to users. But as well as offering the gambler more of what they want, the AI is also being developed to recognise “key behavioural shifts” that might indicate the customer has a problem. That might be repeated losses or loss chasing, impulsive behaviour, and overall spending.

Betby’s algorithms depend on data such as user account activity, frequency of bets, amounts wagered, and types of bets placed. “From this data, the technology can identify key traits which could indicate problem gambling or fraudulent behaviour,” says Emelyanov.

Cheetham, who got help and is now debt-free and studying for a Masters in AI, says the use of AI in addressing problem gambling does offer “a ray of hope”. “If employed ethically and effectively, this technology could indeed be a critical step in combating gambling addiction,” he says.

However, others are less sure. The report ends on a note of caution, suggesting that while AI has the potential to revolutionise the gambling industry, it must be used responsibly. The ethical implications of its use, particularly in relation to problem gambling, must be carefully considered. As the industry continues to evolve, the debate around the use of AI in gambling is likely to intensify.

———-Stop Press: The next SiGMA Africa Summit takes place in Cape Town between 11-13 March !  SiGMA Africa event kicks off in Cape Town, South Africa on the 11 March. Building on the success of its inaugural edition in Nairobi, Kenya, in January 2023, SiGMA Group recognizes the need to foster collaboration and innovation within the industry.