New Study Warns Casinos to Regulate AI or Risk Player Harm

Artificial intelligence is making its way deeper into casino operations, from managing tables to monitoring player behavior. However, a new study warns that without proper oversight, the technology could create more harm than help.


Good to know

  • AI is being used in casinos for surveillance, marketing, and player monitoring.
  • Experts are calling for independent audits and developer training on ethical use.
  • Current regulations around AI in gambling are minimal or unclear.

A recent academic paper, published in the International Journal of Hospitality & Tourism Administration, raises concerns about the growing use of AI in the gambling industry. The study, titled “Identifying Risks and Ethical Considerations of AI in Gambling: A Scoping Review,” calls for action before AI-driven systems go unchecked.

AI systems… could identify and target players susceptible to addiction.

Nasim Binesh from the University of Florida and Kasra Ghaharian from the University of Nevada, Las Vegas, co-authored the study. They argue that AI tools, while useful for catching fraud and detecting early signs of gambling addiction, also pose serious risks if used irresponsibly.

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“AI systems, which are designed to optimise profit, could identify and target players susceptible to addiction, pushing them deeper into harmful behaviours,” said Dr. Binesh in a statement from the University of Florida. She warned that without controls, casinos could use AI to exploit vulnerable customers rather than protect them.

The authors recommend several steps to safeguard ethical use. These include appointing independent auditors to review AI systems and offering proper training to developers, especially in handling populations that might be at risk.

Regulation Lags Behind Innovation

Currently, few formal rules govern how AI is used in gambling, both in the United States and abroad. While some groups have started to address this, progress remains slow.

In March, the International Gaming Standards Association’s Ethical AI Standards Committee announced plans to create a best-practices framework to help regulators keep pace with new AI developments in the gaming space.

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According to Dr. Binesh, the need for clear guidelines is urgent. “It is not just a recommendation; it is imperative for the future of ethical gambling,” she said. AI can benefit the industry if applied correctly—but left unchecked, it could also become a tool for harm.

The post New Study Warns Casinos to Regulate AI or Risk Player Harm appeared first on iGaming.org.

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