UNLV Study Puts Prediction Markets at Center of Gambling AI

Artificial intelligence is starting to shape more of the gambling business, and new research from UNLV puts prediction markets near the center of that change. The study also points to live dealer products as another area worth watching.

Good to Know

• UNLV and KPMG found prediction markets were one of the most common themes in gambling AI product coverage.
• More than 80% of companies reviewed used some form of generative AI, but far fewer had adopted agentic AI.
• AI powered virtual hosts could pressure parts of the live dealer business, although the long term effect is still unclear.

Prediction Markets Sit Near the Front of Gambling AI Development

A new report from the International Gaming Institute at the University of Nevada Las Vegas, produced with KPMG, says prediction markets are becoming a core theme in gambling AI product development. The 113 page State of AI in Gaming 2026 comes from the AI Research Hub and aims to give the industry a benchmark for how AI is being used across global gaming.

Researchers reviewed 151 news articles and other datasets tied to AI in gaming. Product innovation stood out as a key theme, and more than a third of product focused publications centered on prediction markets and live dealer opportunities.

Simo Dragicevic, cofounder of AiR Hub and executive editor of the report, told iGaming.org:

“When we analysed the trade publications in the context of AI and product innovation, two topics that were covered on multiple occasions were Live Dealer and Prediction Markets. With Prediction Markets, there’s a draw to Agentic AI technology to make autonomous decisions, like selecting events, creating markets, and settling outcomes.”

The report draws a clear line between generative AI and agentic AI. Generative AI creates or improves content. Agentic AI goes further and can plan, decide, and act with limited or no human input. According to the study, more than 80% of companies reviewed had adopted some form of generative AI. Far fewer had rolled out agentic AI.

That gap matters because prediction markets appear to rely on both. The report points to Slips, an AI startup using agentic AI discovery tools to build “micro-contents” around trending events. In that setup, AI scans for trends, creates markets, and settles outcomes without human intervention. Researchers also referenced the Kalshi partnership with xAI around Grok technology.

Live dealer gambling was the other product area that kept showing up. The report said AI powered virtual hosts could challenge traditional studio models because they cost less to operate and do not depend on human dealers or physical studio limits. For now, though, the direction is still open. Virtual hosts could compete with live dealer products, or both formats could grow side by side.

Dragicevic said:

“For Live Dealer there is a very interesting development happening, where foundational models are beginning to take center stage in product development. We also noticed some senior talent migration to this emerging Live Dealer AI opportunity. However, at this point, it’s too early to state if this will disrupt the existing Live Dealer model or become a new vertical in itself.”

The study also reviewed 115 regulators and 83 companies across the international gaming sector. That broader review found uneven adoption and uneven implementation across the market, which helps explain why some AI use cases are developing faster than others.

Kasra Ghaharian, editor in chief of the report and IGI director of research, said:

“Society is at an inflection point with AI, and until now there has been no rigorous, independent baseline for understanding where the gambling industry stands. The State of AI in Gaming is designed to fill that gap, serving as an essential resource for operators, regulators, researchers, and every stakeholder navigating the adoption, return on investment, and responsible integration of AI within the gambling industry.”

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