Researchers Call for Urgent Oversight of AI in Gambling Operations

more embedded in gambling, concerns over its ethical use are gaining urgency. A recent academic study highlights the potential risks posed by unregulated AI systems, warning that these tools could do more harm than good if left unchecked.

Co-authored by Dr. Nasim Binesh of the University of Florida and Dr. Kasra Ghaharian of the University of Nevada, Las Vegas, the study was published in the International Journal of Hospitality & Tourism istration. It identifies major ethical concerns surrounding AI’s role in the gambling sector, which is on track to sur $876 billion globally by 2026.

“The potential for AI to exacerbate gambling harms and exploit vulnerable individuals is a stark reality that demands immediate and informed action,” said Binesh. “The study’s call for the clear use of AI guidelines is not just a recommendation; it is imperative for the future of ethical gambling.”

AI’s Dual Nature: Innovation or Exploitation?

Binesh and Ghaharian categorized the ethical issues they uncovered into six key areas: explainability, exploitation, algorithmic flaws, consumer rights, ability, and human oversight. These concerns underscore how AI—depending on how it’s used—can either serve as a safeguard or a weapon in gambling environments.

“AI’s potential to enhance consumer protection by identifying at-risk behaviors and intervening appropriately is well acknowledged,” Binesh noted. “Yet, without regulation, these technologies could be underused or misapplied, missing critical interventions and failing to mitigate harms with gambling.”

To address these challenges, the study proposes several ethical practices: independent audits of AI systems, developer training for work involving vulnerable populations, transparency in AI-generated gaming outcomes, and disclosure of how consumer data is collected and used.

Current Rules Fall Short of Industry Needs

At present, few laws directly regulate AI in gambling. Existing efforts, such as the U.S. Blueprint for an AI Bill of Rights and the EU’s AI Act, offer only broad guidance and do not address sector-specific concerns. In March 2025, the International Gaming Standards Association’s Ethical AI Standards Committee announced it would begin developing a framework tailored to gambling, though this is still in early stages.

“Ironically, the lack of AI regulation could stifle the very innovation it seeks to foster,” Binesh said. “Ethical controversies and backlash against these unregulated practices might lead to more restrictive policies and hinder AI advancement. These types of unregulated environments can also deter responsible innovators who are crucial for sustainable and ethical industry growth.”

As AI continues to shape experiences and business models across the gambling world, experts argue that now is the time to implement strong safeguards.

“AI systems, which are designed to optimize profit, could identify and target players susceptible to addiction, pushing them deeper into harmful behaviors,” Binesh warned.

Looking forward, Binesh plans to expand her research by investigating how AI can use consumer data—such as social media activity—to flag early warning signs of gambling-related harm. With the 2025 regulators, researchers, and consumers alike.

Source:

“Unregulated AI Use in Gambling Sector Prompts Urgent Ethical Warnings”, news.worldcasinodirectory.com, May 23, 2025