Artificial intelligence (AI) is transforming the gambling industry at an unprecedented pace, influencing everything from personalised marketing to fraud detection and even game algorithms. With these advancements come significant risks—legal, regulatory, and ethical—that require careful governance from company boards. Effective oversight of AI is now a critical component of responsible corporate leadership, especially as regulations like the EU AI Act and emerging U.S. frameworks demand higher accountability for businesses leveraging AI technologies.
The complex relationship between AI and the gambling industry means that any misuse or regulatory breach could result in legal repercussions and severe damage to the industry’s reputation. For instance, if AI tools are misused to target vulnerable customers or manipulate betting odds, the consequences could be catastrophic, both from a compliance perspective and for consumer trust. Therefore, boards must adopt a proactive stance in understanding how AI is deployed within their organisations.
Boards must ensure that AI strategies are aligned with ethical standards and responsible gambling frameworks. AI has the potential to enhance customer experience through personalised offerings, but unchecked, it could also intensify gambling-related harms. Board members should ask the right questions: How is AI being trained? What data is being used? Is there transparency in AI decision-making? Are the AI tools compliant with international regulations?
Adopting a “Noses In, Fingers Out” approach—where boards stay informed about AI risks without micromanaging operations—ensures that the leadership provides the necessary oversight while allowing management to execute day-to-day functions effectively. This balance will enable companies to harness AI’s power responsibly, driving innovation without compromising ethical or regulatory integrity.
Another significant point for gambling boards to consider is AI’s role in data collection and analysis. AI systems often rely on vast amounts of personal data, and as privacy laws tighten, including the General Data Protection Regulation (GDPR) in Europe, any misuse of this data could result in hefty fines. Boards must establish robust data governance policies and ensure there’s transparency around how AI systems interact with customer data.
Education is crucial. As AI technologies evolve, boards need ongoing training to stay informed about new risks, opportunities, and regulatory developments. Having a board that is well-versed in AI will help mitigate the chances of falling afoul of complex regulations while also ensuring that AI enhances operational efficiency rather than driving risk.
The gambling industry has always been under intense scrutiny, especially regarding its impact on problem gambling. With AI, there’s the risk that poorly governed systems could inadvertently exacerbate gambling harms. Boards must take a proactive stance on responsible gambling, ensuring AI doesn’t just maximise profits but also mitigates potential harms by identifying at-risk users and offering interventions.
So, as AI becomes an integral part of the gambling ecosystem, corporate boards must take their oversight responsibilities seriously. By staying informed, asking the right questions, and ensuring ethical compliance, boards can help navigate the development of AI, protecting their businesses from risks while leveraging the immense opportunities that AI presents.
