Artificial intelligence (AI) has significantly influenced various industries, including the global sports betting sector. Bettors are now equipped with a wealth of information, enabling them to make more informed wagering decisions. Simultaneously, operators are leveraging AI technology to enhance odds calculations and derive data-driven insights. However, David Borish, a longtime AI strategist, expresses concerns about the complexities and ethical considerations tied to AI's integration into sports betting.
According to Borish, while AI's advancements have transformed sports betting, they also present certain risks. "The rapid advancement of AI has revolutionized various industries, and sports betting is no exception," he noted. Bettors can utilize detailed statistics and analytics to make informed wagers based on current information and historical data, rather than relying solely on instinct. Yet, this influx of information can lead to overconfidence. Bettors may risk more than they can afford in pursuit of a potential big win, leading to a cycle of chasing losses that can exacerbate financial difficulties.
Additionally, Borish warns about the danger of decision-making homogeneity resulting from excessive reliance on AI. He argues that as AI becomes the dominant tool for analysis, diverse betting strategies may diminish, potentially leading to a stagnation in market dynamics. "This lack of diversity could decrease opportunities for significant outperformance by bettors, and in the extreme, might lead to markets simply mimicking each other,” he said. Furthermore, the collection and processing of sensitive user information by AI models raises significant data privacy and security concerns. While AI can help identify problematic betting behaviors, it could also unintentionally enhance addictive tendencies by tailoring experiences based on user habits.
The Responsible Gaming Council (RGC) shares Borish’s apprehensions. Melissa Toney-Williams, RGC's Associate Director of Prevention Programs, acknowledged AI's prominence in the gambling industry. "RGC is looking to explore and understand both how operators and bettors are using it in this space," she stated. The organization emphasizes the importance of educating bettors about the various facets of sports betting. “We want people to understand it doesn’t matter what tools they have; there will always be uncontrollable factors," Toney-Williams added. This shift in mindset aims to help bettors recognize the unavoidable risks of gambling.
While AI's role in sports betting is a contentious issue, some industry stakeholders remain hesitant to publicly discuss it. Four operators, in addition to the Alcohol and Gaming Commission of Ontario, either did not respond to interview requests or declined to comment after showing initial interest. However, the Ontario Lottery and Gaming Corporation (OLG) addressed the topic, ensuring the integrity of markets for their offerings. "We have oversight of our service providers' processes to provide ourselves comfort that we are supporting the integrity of the sports we offer," they stated. The OLG also highlighted its use of AI and machine modeling to protect players by identifying risky betting behavior and implementing targeted interventions when needed.
Nonetheless, Borish believes the slippery slope of AI in sports betting is becoming increasingly precarious. "Absolutely, and I think it’s only getting more slippery," he remarked, highlighting the rapid improvements in large language models. The unpredictability surrounding AI's evolution can create challenges for bettors, who may mistakenly believe AI provides them with a superior advantage. Operators, equipped with the same information and superior resources, can effectively leverage AI to optimize their operations and enhance profitability.
Borish points out that sportsbooks possess firsthand insights into their customers' betting habits, making it possible to identify and address potential problem gamblers. However, this capability also raises concerns regarding manipulation and the pressure on operators to stay ahead of technological advancements that could lead to AI fraud. As an AI strategist for Trace3, a consulting firm focused on AI, data, cloud, and cybersecurity, Borish recognizes the importance of safeguarding sensitive data within the financial aspects of sports betting. "There’s a lot more at stake here, and well, there’s going to be some interesting times to say the least," he remarked, suggesting that the evolving landscape of AI in sports betting presents both opportunities and challenges that necessitate careful consideration.
