The Risks Related to AI’s Impact on Online Gambling – 71% Are Afraid of AI Scams, 62% Worry About Data Privacy

risks related to AI's impact on gambling
The Risks of Integrating AI in Online Gambling

No one can deny the fact that AI is changing a lot of industries. Ever since it became popular among the average internet user, AI has been the topic of discussion all the time. Some people love it and embrace the new tech, whereas others are much more skeptical and have a good reason for it.

Speaking of being sceptical, shows that more than 71% of people who took part in a survey said that they are scared of AI scams. A lot of you may find this percentage higher, but users who have had to deal with AI scams know that this is not a joke. “Almost every internet user has encountered an AI scam attempt at least once in the last two years. They come in various forms, and some people have even trained AI models to call people on their mobile phones. It is becoming even harder to trust someone you do not know”, said Veselin from NB.

Scams aside, many businesses use AI for many different tasks, including iGaming companies. There are many positives related to using AI and its power, but some users are afraid that the new tech can be dangerous. Let’s review some of the problems AI may cause and what else people are worried about.

AI problems inforgraphic

Other dangers of AI

As mentioned, many people have said that they fear AI scams because they are easy to replicate. Besides that, it seems like users are also afraid of the so-called Deepfakes because that’s what answered 69% of them.

Deepfakes are videos where a famous person “says” things that this person hasn’t said. This is achieved thanks to AI; some of them are so good that it’s almost impossible to tell it is fake. In fact, the only thing that gives it away is the information itself because most famous people would not say something like that.

The same percentage of people who are scared of Deepfakes are also worried about online abuse. AI can be used to send emails, make phone calls, and do many other things that can be very annoying. The worst thing is that it’s almost impossible to fight it.

AI hallucinations are another thing that people are worried about, and for a good reason. Even some of the best AI models, such as ChatGPT, are “guilty” of coming up with information that is just inaccurate. Some users can instantly tell when AI is hallucinating, but others have problems and often trust information that is not correct.

Next, around 62% of participants in the survey are worried about their Data privacy. In my opinion, this has to be the biggest issue for all of us because AI is using the data we provide about is without us knowing what’s happening. There is a lot of information about corporations selling the data to advertisers, but this is just one of the potential issues.

Lastly, 60% of people believe that AI could be biased. In other words, they believe that the AI model could credit a specific fact or a certain opinion, and it will not be objective.

AI and Online Gambling – Security

Like most other online industries, online gambling is one of the businesses where big corporations will rely on AI in the future. In fact, even some big companies today are leveraging AI for online betting by providing things such as risk-assessment tools and using the new tech to analyze odds. Those things are good, but we also need to address some of the potential issues that come along with AI.

AI betting strategy

As mentioned, 62% of people are worried about the security of their data when using AI, so it’s no surprise this is also a problem among online bettors. While it’s true that the new tech can be beneficial, since users do not know what kind of AI the site is using, they have no idea what’s happening with their data.

The reason why this is a problem is because clients need to share a lot of sensitive information with the bookie/casino. When registering, bettors must provide details about their names, occupation, gender, location, and more. On top of that, clients often have to share everything about their banking details, including how they’ve earned their money.

All of this data is sensitive, and users want to know that it is secure. Unsurprisingly, all bookies and casinos say it is because they use different encryption tools. However, no one knows what will happen when AI becomes the new norm for online security.

The odds and casino games’ RTP might not be as good as before

Since we are on online gambling and how AI can change it, we must address the odds and RTP. Nowadays, most bookmakers do not rely on complicated AI tech to determine their odds. Instead, they use formulas and real people who analyze the margins and loads of data.

Of course, this will change as AI becomes more mainstream, so it’s no surprise some people do not feel safe about what is to come. There are a lot of bettors who believe AI can provide them with better odds because it’s an algorithm and there is no human factor. Others, however, fear AI will be biased and the odds won’t be as good as before.

The situation with casino games is even more complicated. Today, most games have an RTP, a percentage revealing how likely it is to win something. A lot of casino software providers probably use AI to help them with the RTP, but once casinos start using the tech, the percentage might drop even more.

Lower RTP is not good news for online gamblers because they will have fewer chances of winning. No one knows if that will happen, but the fact that it is a possibility is more than enough for some people.

Responsible Gambling – It may be even harder to stay safe

The fact that online gambling is growing has positives, such as the fact that more people have jobs and countries earn a lot more from taxes. As you probably know, gambling taxes are among the highest in the world, so places where iGaming is legal can earn a lot of money.

Sadly, the growing popularity of bookmakers and casinos also has drawbacks. One of them is that more people have gambling problems and can’t control how much time and money they spend while playing. To battle this issue, most websites offer different kinds of responsible gambling tools, but even they may not be powerful enough to help once AI takes over.

Augmented reality (AR), in combination with artificial intelligence (AI), will offer a next-level betting experience. We believe that a couple of years from now, people will be able to place bets completely differently than today. Instead of wagering on specific live matches and watching them in real time, users will be able to use their phones and see all of the markets in front of their eyes in real time.

The new AR tech will change how people punt and play casino games, especially with VR glasses on. A lot of users will decide to give the new tech a try, which is where they could find themselves in trouble. AR and AI together will make gambling and wagering a lot more interesting, so players have to be a lot more careful and even more responsible when wagering.

How can the iGaming industry welcome AI and minimize all risks associated with it?

law and order hammer

The answer here is simple – regulations. Some leading gambling commissions, such as the one in Malta, the UK, and other places, will have to introduce new gambling laws. The latter must focus on the usage of AI and should include strict rules that all iGaming operators must adhere to.

The only problem with the new gambling laws is that it will become much harder for operators to follow them. We expect this to cost them money one way or another, which means that we, the clients, will have to pay the price. In this case, we may have to pay to use the site’s services, have access to lower odds, and more.

Some operators will most likely decide to offer two types of platforms – Standard and AI. This will give bettors the opportunity to pick the option they prefer.

It will be very interesting to follow the future of online gambling once AI takes over. Only a few operators use it as of yet, and the tech itself is not ready to replace humans in day-to-day operations. However, this will change soon.

Kristiyan Kyulyunkov
Kristiyan KyulyunkovKristiyan Kyulyunkov specializes in bookmakers’ analyses. He has years of experience betting online and always keeps an eye on the different operators. His tasks in Nostrabet include writing, editing and publishing expert reviews.

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