AI Technologies Rapidly Transform Australia’s Gambling Market

The Australian Communications and Media Authority (ACMA) recently introduced research examining how artificial intelligence is being integrated across licensed brands. AI instruments are currently assisting operators with personalised advertising, detecting suspicious transactions, and recognising consumers who may be vulnerable to gambling-related harm.

According to the regulator, these technologies are significantly changing how casino services are promoted and supervised in the Australian market.

Operators Increase Focus on Automation

The ACMA acknowledged that artificial intelligence can improve player protection initiatives. However, the organisation also warned that many businesses may prioritise stronger engagement and higher profits over harm reduction.

Several major operators were highlighted in the report as examples of the industry’s evolving approach. Sportsbet has implemented a generative AI chat that can independently process more than one-third of customer support requests. As stated by the company, the system currently achieves approximately 94% accuracy.

Tabcorp collaborated with Mindway AI to introduce behavioural analytics software created to recognise potentially harmful gambling patterns. These instruments analyse customers' playing habits and flag users considered to be at risk.

AI Changes the Structure of Betting Markets

Smart solutions have also transformed how sportsbooks calculate rates and react to events in real time. Although bookmakers have relied on machine-learning technologies for years, modern AI systems now process considerably larger volumes of real-time information with minimal human input.

As a result, online platforms can automatically analyse factors such as:

• player injuries;
• match developments;
• in-play betting trends in real time.

This allows sportsbooks to update markets more quickly while enhancing pricing precision. Betfair Australia revealed that automated models ameliorated odds calculation by around 22%.

The ACMA’s research also referenced the 2021 acquisition of Banach Technology by Fanatics for $43 million. The company specialises in setting coefficients and live wagering solutions.

As AI systems continue to evolve, operators are increasingly able to offer highly detailed betting options, including dynamic micro-markets and player-specific outcomes.

Fraud Detection and Verification

The ACMA investigation also highlighted the growing importance of automated systems in compliance and security operations. Real-time analytics tools now allow platforms to continuously monitor transactions and customer behaviour.

Consequently, operators can more effectively identify the following:

• potential fraud;
• money laundering activity;
• suspicious account usage.

Artificial intelligence is also streamlining identity checks through advanced document validation and biometric data, reducing cases of fake profiles and multi-account activity.

The report gave particular attention to the rise of agentic AI systems. These technologies combine predictive and generative capabilities while operating with limited human supervision. According to the regulator, this creates increasing uncertainty about accountability as digital assistants autonomously make decisions across the player experience.

Concerns Over Grey Market

The report also noted that AI may unintentionally contribute to the growth of unlicensed gambling activity. Results from Investigate Europe's research revealed that certain general-purpose solutions, such as ChatGPT and Grok, occasionally advise punters to use illegal casinos. Some systems reportedly also offered guidance on bypassing age-verification requirements and self-exclusion mechanisms.

Australia’s current legal framework remains largely based on the Interactive Gambling Act 2001. The regulator acknowledged that the legislation was introduced long before the rise of modern automated tools and may not fully address current industry developments.

The organisation pointed to international initiatives as examples of potential approaches, including Spain’s efforts to develop live-monitoring systems to supervise licensed brands in real time.

Despite identifying multiple challenges, the ACMA explained that the publication is intended to support future policy discussions rather than announce immediate legislative changes.