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AI's Two-Pronged Impact on Sports Gambling Raises Ethical and Practical Concerns
Pictured: AI can do many things, from editing writing and presentations, to creating schedules and analyzing data. Photo by Matt Grahn / Norwich Bulletin / USA TODAY NETWORK via Imagn Images.

Artificial intelligence (AI) has rapidly been adopted by sportsbook operators worldwide, including some of our best sports betting sites, with positive and negative impacts. Although AI provides gamblers with improved information and analytical tools for smart bets and allows operators to enhance odds calculations, AI strategist David Borish warns that its application to sports betting is a "double-edged sword."

The application of AI provides gamblers with sophisticated team and player information, enabling them to place bets based on current information and historical trends instead of intuition. However, this type of information overload is risky. In comments to The Canadian Press, Borish said that gamblers can become too cocky and place bets they cannot afford and potentially create a loss-chasing habit.

He also refers to the danger of market homogenization due to reliance on AI. With AI being the default tool for analysis, decision-making within the betting world could become homogenous, and market diversity driving market forces may erode. This homogeneity would reduce the scope for significant profits and leave us with a reality where markets effectively resemble each other.

Moreover, AI models' storage and processing of enormous amounts of user-sensitive information pose serious data privacy and security concerns. While AI can identify adverse betting behaviors, it can also inadvertently promote addictive behavior by serving user preferences and inclinations.

The Responsible Gambling Council (RGC) recognizes the gambling industry's extensive employment of AI and actively demystifies its applications by operators and players. The RGC emphasizes the education of players about the application of AI as a tool, stressing that there are always some unexpected elements. 

They support a balanced approach, which makes the players aware of the inherent danger of losing, regardless of the perceived advantages. Responsible gambling is an important tenet for our best sports betting apps.

Sensitive topic

While AI grows more high-profile in sports wagering, it has become a rare topic in the industry that no one seems eager to discuss in public. The Canadian Press said it had contacted several operators and the Alcohol and Gaming Commission of Ontario, all of which declined to comment.

The Ontario Lottery and Gaming Corp. (OLG) saw the importance of market integrity and the protection of consumers. They have claimed to have surveillance of service provider processes, work with leagues to detect suspicious play, and utilize AI for responsible gambling programs, including detecting problem behavior and providing targeted assistance.

Borish contends that the increasing sophistication of AI models creates a "slippery slope" driven by efficiency and cost-saving motivations. He warns against uncertainty risks due to rapid AI development.

Industry insiders caution gamblers not to put too much faith in the value obtained from AI since sportsbooks also have access to advanced AI technology and allocate more resources to its utilization. Operators also possess information regarding user activity in the form of login time, betting amount, and win/loss record. 

Conversely, there are apprehensions about potential manipulation and operators needing to develop AI fraud detection systems. Borish understands the importance of data security. He cites the added dangers of the sports wagering industry, where money changes hands. Borish sees a convergence of "interesting times" in the future interaction of AI and sports betting.