Australian Regulator Says Gambling Companies Are Using AI to Target Players

AI enables gambling companies to study player behaviour in real time and react almost instantly. While these companies have used customer data and targeted marketing for years, AI allows them to do it much faster, on a larger scale, and with much greater accuracy than before.

This includes tracking how often a user logs in, how much they deposit, what games they prefer, and how they respond to previous offers. Based on that information, AI systems can create and send personalised bonuses like free spins, deposit matches, or similar, designed to bring players back.

Instead of sending the same promotion to everyone, operators can now target offers to specific users based on their habits and spending patterns. For example, a player who regularly uses online pokies may receive casino bonuses, while a sports bettor could be shown boosted odds before a major match.

While having personalised bonuses is not necessarily harmful, this level of targeting has become one of the biggest concerns for regulators, especially when promotions are aimed at users who may already be gambling heavily or who are struggling with problem gambling or gambling addiction.

In a recent report published by ACMA, the regulatory body says that the problem is not the technology itself, but how operators may use it. They said that they are worried that bookmakers are more likely to use AI to improve profits rather than protect customers:

“While AI can be applied to support player safety, its commercial deployment may prioritise increased engagement and revenue generation over harm minimisation.”

Gambling companies already compete heavily for player attention, so this, according to ACMA, is a major concern. The report also claims that the current uses of AI could make harmful player behaviour even worse:

“Stakeholders have raised concerns that, in practice, some applications of AI, such as promoting gambling, may intensify harmful gambling behaviours.”

One example raised by the regulator is AI-powered chatbots that now provide betting information and suggestions to punters. They mention a specific AI Assistant that provides information on selected racing and sporting events.

ACMA also finds it problematic that gambling providers “often describe personalisation as a way to improve user engagement and excitement”; however, the same systems can create additional risks for vulnerable players.

There are also privacy concerns, as these systems rely on large amounts of personal data, including playing and spending habits. Although AI can also be used to detect fraud and identify signs of problem gambling earlier, the regulator’s main concern is that AI for commercial use is advancing faster than AI for consumer protection.

ACMA acknowledged in the report that, despite the concerns, AI can also be used in positive ways if applied responsibly. For example, the same systems used to track consumer behaviour for marketing can also identify early signs linked to problem gambling. These may include longer playing time, repeated losses, chasing losses, larger deposits, or other signs that are often linked with irresponsible gambling.

If operators used these systems for player protection purposes, they could detect these patterns faster when compared to having human staff review accounts manually, which would allow them to step in and promote responsible gambling tools to players instead of tailored promotions.

On paper, that sounds like the perfect solution; however, in practice, critics see it as wishful thinking unless stricter rules force operators to prioritise player safety over revenue.

ACMA notes in the report that Australia’s current gambling framework, built around the Interactive Gambling Act 2001, was created long before modern AI technologies became part of the industry, and the current law doesn’t specifically account for systems that can analyse massive amounts of player behaviour data in real time.

As an example, ACMA pointed to Spain, where the Directorate General for the Regulation of Gambling (Spain’s regulatory body) is developing its own AI system to monitor player behaviour across licensed operators in real time.

For now, it remains unclear whether ACMA and other regulators will seek to restrict AI systems in their current form or demand greater transparency in how they are used.