Expert says AI’s presence in sports betting is double-edged sword

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This article was published 01/04/2025 (558 days ago), so information in it may no longer be current.

Artificial intelligence has become an important part of business operations globally, including the sports betting industry. 

Bettors have more information at their fingertips to make more informed decisions, while operators can integrate AI technology to provide better odds calculations and data-driven insights.

However, longtime AI strategist David Borish feels artificial intelligence in sports betting is a double-edged sword.

“The rapid advancement of AI has revolutionized various industries and sports betting is no exception,” Borish said. “However, the adoption of AI in sports betting also presents a complex set of challenges and ethical considerations that must be carefully navigated.”

Implementing AI gives bettors more details and team and player statistics/analytics to theoretically make more informed decisions. Wagers can be made based upon up-to-date information and historical trends, rather than intuition with limited facts or background.

But with that come inherent risks.

Bettors can become so flushed with information they wager beyond their means, confident of landing the big score. If that doesn’t happen, the player could continue wagering to make up for it, creating the potential for further losses.

Borish also said a reliance on AI creates the threat of homogenization as well as data privacy and security concerns.

“As AI becomes the go-to analysis method, decision-making may converge, reducing the diversity of approaches that make markets dynamic,” he said. “This lack of diversity could decrease opportunities for significant outperformance by bettors and, in the extreme, might lead to markets simply mimicking each other.

“As AI models process and store vast amounts of sensitive user information — including financial data — the risks of breaches and unauthorized access become significant concerns. And while AI-powered systems can help identify patterns of problematic betting behaviour and provide targeted interventions, they can also inadvertently fuel addictive tendencies by honing in on user preferences and habits.”

Something not lost upon the Responsible Gaming Council.

“AI is obviously very present when it comes to the gambling sector right now,” said Melissa Toney-Williams, the RGC’s Associate Director, Prevention Programs. “RGC is looking to explore and understand both how operators and bettors are using it in the space.

“What we generally focus on is educating bettors in general … the reason is it (AI) can be used as another tool in the arsenal with a group of people who already feel they have the skills, knowledge and expertise.”

That also means educating bettors about all facets of sports betting.

“We want people to understand it doesn’t matter what you feel you have as a tool, the reality is even within that context there are going to be things, and will always be things, that may be out of your control,” Toney-Williams said. “So it’s the mindset we’re looking to shift for people to understand if you’re going to bet there’s always going to be the risk of losing.

“So when you’re going to play, just keep a few things in mind to kind of keep you centred and (understand) why you’re playing that game so you don’t get sucked in and you don’t start to bet more aggressively … so you don’t always rely on things you believe are going to give you the edge when they may not.”

AI in sports betting might be a hot-button topic, but some in the industry appear uncomfortable discussing it publicly. Four operators along with the Alcohol and Gaming Commission of Ontario either didn’t respond to interview requests or declined comment after initially expressing an interest to do so.

One organization willing to address the matter was the Ontario Lottery and Gaming Corp. It said “the integrity of the markets is paramount for our product and our customers.”

“We have oversight of our service providers processes to provide ourselves comfort that we are supporting the integrity of the sports we offer,” it said in a statement. “We also partner with leagues and third-party partners to support the detection of suspicions play.

“More importantly, we use AI and machine modelling to protect our players. We leverage AI to support our responsible gambling programs by detecting at risk play behaviour. By analyzing complex patterns in player data, we take the necessary steps to support the player as needed, through targeted interactions to provide the right RG support.”

Still, Borish feels AI in sports betting presents a slippery slope.

“Absolutely and I think it’s only getting more slippery,” said Borish, who’s based in New York. “The reason is better, faster cheaper and so the large language models are getting better by the day.

“There’s a lot of that uncertainty right now, which is not fun.”

Industry insiders caution bettors against thinking AI gives them an insurmountable edge. Not only do sportsbooks have access to the same information/platforms, they also have more resources to invest into making AI work best for them.

Borish points out operators also have first-hand knowledge on when their online account holders log on, what games they play and how often and whether they’re up or down. There have been suggestions AI also opens the door for sportsbooks to identify and target potentially problem gamblers.

Conversely, some industry officials fear the potential for manipulation and an increased onus on operators to get ahead of the technology and find ways to detect potential AI fraud.

That’s something Borish is keenly aware of as the AI strategist for Trace3, a technology consulting organization specializing in AI, data, cloud and cybersecurity. It’s also the official AI consultant of the NFL’s Denver Broncos.

“One of the biggest parts of their business is helping these Fortune 100 and 500 companies protect and secure their data with all of the things happening right now,” he said. “Now, you’re talking about an industry that doesn’t want just data, this (sports betting) is an industry where there’s money involved.

“There’s lot more at stake here and, well, there’s going to be some interesting times to say the least.” 

This report by The Canadian Press was first published April 1, 2025.