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    What are the risks and dangers AI poses to modern gambling?

    news thumbnail image

    Taking a closer look at the dark side of AI and the threats and risks it brings to the online gambling industry.

    With artificial intelligence and its influence on the gambling industry, there is a lot to take into consideration, especially the benefits AI brings to the table. However, it's not all sunshine and rainbows!

    To understand AI's overall impact on the gambling industry, one must consider its pros and cons. On this page, we take a closer look at the darker side of AI and how it can change the game for the market and players in general.

    Exploiting player behaviour

    There’s no denying the capability of AI. It can analyse and predict player behaviour with extreme precision. It collects all your data from player habits to preferences and betting patterns, allowing online casinos to provide you with tailored marketing strategies and gaming experiences.

    This may be good as it improves the experience while enhancing player engagement, but on the other hand, it’s concerning how it can be used to encourage players to wager and deposit more.

    AI can be used to identify vulnerable users, and in the case of shady platforms or illegal casinos, it can be used to exploit players at the risk of developing or deepening gambling addiction.

    Algorithmic bias and fairness

    Fairness is believed to be the cornerstone of gambling, and authorities and providers are taking great care to create an even safer betting experience for players. However, AI-powered algorithms can create biases in gaming systems.

    The machine learning models that determine the game outcomes, odds settings, and risk assessments use historical data to power their predictions. Should this data contain biases, then AI could reinforce or amplify the already existing inequalities.

    You may have automated risk assessment tools that unfairly categorise a player as high risk simply based on location, spending habits, or incomplete patterns. This can eventually result in unjust restrictions, including withheld winnings and reduced betting limits.

    AI-driven games can be tailored to favour certain types of players, which will have a bigger impact on fairness towards all gamblers. If we’re not careful, these algorithmic biases could destroy trust in gambling platforms.

    Data security & privacy

    AI makes use of player data, which also creates some privacy concerns, as gambling platforms continuously collect personal data and financial information, betting histories, and behavioural analytics.

    It’s a treasure chest of sensitive information. The big worry is that if it is improperly stored or misused, this could lead to severe consequences for players.

    With data breaches and cyberattacks in online casinos being this common (Remember how hackers stole $41 million from Stake Casino?), AI can either be a defensive mechanism or a weak point. These systems can predict and combat fraudulent activity, but some weaknesses in machine learning algorithms and data storage methods can open the gates to cyberattacks.

    On top of that, there is very little transparency in how player data is stored or who has access to it, which could leave players vulnerable and exposed.

    Responsible Gambling & Play Safe

    Regulatory challenges

    AI is being integrated rapidly into the iGaming industry framework, and while there are laws to protect players from unfair practices, they don’t always include the risks that come with AI technology.

    This means regulatory bodies now sit with the task of addressing AI transparency (and quickly at that!), ensuring operators disclose how AI algorithms influence everything from the odds to the outcomes.

    Laws should be implemented to prevent these systems from encouraging problem gambling or targeting vulnerable players. On top of that, regulators must implement stricter privacy policies and cybersecurity measures. Algorithm auditing also has to be mandated to ensure fairness and eliminate possible bias.

    So, what do you think, are AI tools helping or harming humanity? There's a flip side to everything, surely! AI has brought great opportunities to the gambling industry and increased potential risks and problems. If these risks are not addressed and removed early on, they can have a huge negative impact on operators, players, and the industry.

    Leave us a review on Trustpilot!

    Published: May 21, 2025

    Anything incorrect or missing?

    Let us know
    Deni avatar image

    Article by Deni

    CasinoWow Contributor

    Hi, I’m Deni and I am here to ensure you have all the information you need to make informed decisions about online casinos and games and, of course, have fun while doing it. I do so through in-depth research and a keen eye for detail resulting in comprehensive reviews and engaging articles. Let’s explore the iGaming world together!

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