ACMA Outlines AI Concerns as Australian Gambling Operators Expand Use

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Australia’s communications regulator has highlighted both benefits and risks as licensed wagering operators in the country rapidly integrate AI into key areas of their businesses.

The new report from the Australian Communications and Media Authority (ACMA) outlines four key areas where AI is changing how online gambling providers operate. These are predictive analytics and odds-setting, personalized marketing, the detection of harmful or fraudulent behavior, and content creation, alongside new features like immersive AI chatbots. 

Sportsbet, for example, has introduced a chatbot that acts like an AFL commentator and resolves over a third of customer queries, with reported accuracy of 94%, while Betfair Australia says AI has improved the accuracy of its odds by 22%.

The report notes:

From both a consumer and regulatory perspective, AI systems offer potential benefits. For example, AI models can identify behavioural patterns associated with gambling harm and intervene earlier. AI tools are also being employed to detect fraud and suspicious betting activity.

However, the report continues:

[The ACMA report] finds that the use of AI presents regulatory challenges and risks. While AI can be applied to support player safety, its commercial deployment may prioritise increased engagement and revenue generation over harm minimisation. Stakeholders have raised concerns that, in practice, some applications of AI, such as promoting gambling, may intensify harmful gambling behaviours.

The findings of the report will inform the ACMA’s work under the Interactive Gambling Act 2001 as regulators around the world assess how to balance innovation with stronger consumer safeguards in an increasingly AI-driven gambling market.