Entertainment and Media Guide to AI

AI in entertainment & media part 2 icon - film marker icon

Read time: 6 minutes

Just as in the field of sports, the already data- and tech-rich domain of gambling has been exploring the increased use of AI for many years now, including use cases as diverse as fraud, player protection and profiling and personalization. In this section, we explore some of these trends and developments.

Autores: Elle Todd Casey H. Yang Sam Hill

AI has a significant presence in several areas of the gambling and sports betting industry, from addressing fraud and safety issues to use for automated betting and customer profiling. Gambling and sports betting companies and online platforms use AI in these areas to improve the user experience and gain an edge on competitors.


According to TransUnion’s report, fraud in the online betting sector rose over 50% in the first quarter of 2022 when compared to the same period in the previous, with promotion fraud the most prevalent form. AI is fast becoming an important weapon in the fight against this trend and the criminals involved.

One example is the use of AI for on boarding customers through more advanced “know your customer” and money laundering checks. Such products can also include AI facial recognition technology to speed up user identification assessments, just as users are becoming more used to uploading documents and selfies from a phone in other industries, including online banking. This can help to check that users are who they say they are and reduce fraudulent behavior, including users seeking to set up multiple accounts to effect bonus abuse, chip dumping or “gnoming,” which is often found in poker, where multiple accounts may be deployed to deliberately lose in order to help another account win.

A further example is the deployment of AI to look for patterns of suspicious behavior during the course of play. Here, the well-known value of AI in analyzing large and multiple datasets at speed comes into its own with the development of algorithms trained to look for irregularities or markers of suspicious activity based on past knowledge of similar events.

Safe gambling

As operators around the world come under increasing regulatory and governmental pressure to protect users who may be at risk of financial, emotional or physical harm, AI presents one option for increasing the sophistication of the range of checks that can be carried out. Again, the value that AI has in terms of looking at patterns of behavior in order to help predict or flag potential risks presents huge potential for the analysis of “markers of harm.” Various operators have, therefore, been investing in technologies using AI in this area.

Whilst incredibly useful, developments in this area are not without their challenges. For example, the increased data collection on potentially vulnerable individuals puts operators in somewhat of a Catch-22 situation in that they want and are required to protect individuals from gambling harm but, at the same time, don’t want to inhibit their privacy rights. Further, with increased AI regulation on the horizon in many parts of the world, such as the EU’s focus on safety uses of AI as “high risk,” this may mean that operators that wish to use such technologies will be subject to higher scrutiny and regulation, although currently the focus in the draft is more on safety components in certain products.

What is clear from these developments is that AI presents a potentially powerful tool to protect individuals but also that there is a demonstrable need for regulators to help clarify the parameters of such use so that operators have clear guidelines and guardrails to help them invest and move forward with such technologies.

Key takeaways
  • The rise of AI in gambling presents itself as both a risk, notably through fraud and use of bots, and an opportunity including protections for player safety and identification technologies