{"id":11869,"date":"2025-03-16T23:30:35","date_gmt":"2025-03-17T03:30:35","guid":{"rendered":"https:\/\/jolt.richmond.edu\/?p=11869"},"modified":"2025-05-17T12:10:19","modified_gmt":"2025-05-17T16:10:19","slug":"game-changing-tech-and-regulations","status":"publish","type":"post","link":"https:\/\/blog.richmond.edu\/jolt\/2025\/03\/16\/game-changing-tech-and-regulations\/","title":{"rendered":"Game Changing Tech and Regulations"},"content":{"rendered":"

Game Changing Technology and Regulations:<\/strong> How AI is Reshaping Online Sports Betting and What the U.S. May <\/em>Do About It<\/strong><\/h2>\n

By: Chelsea Mojica<\/p>\n

\"\"<\/u><\/strong><\/p>\n

Since its legalization, online sports betting has made its mark on professional sports.[1]<\/a> Sports betting is an activity that allows gamblers to predict the outcomes of future sporting events in conjunction with monetary wagers.[2]<\/a> Bookmakers\u2014teams comprised of sports experts, analysts, and statisticians\u2014set the initial betting odds for the public, relying on complex mathematical calculations, statistical models, and historical data.[3]<\/a> The lower the probability of an event happening, the bigger the potential monetary reward.[4]<\/a> When the sporting event begins, the odds may fluctuate, similar to the stock market.[5]<\/a> However, odds can lack uniformity among sportsbooks, allowing bettors to receive more cash rewards through some sportsbooks than others.[6]<\/a> Consequently, AI has integrated itself into the betting world in an attempt to expedite and protect an arduous odds-making process.[7]<\/a><\/p>\n

<\/p>\n

Similarly, most AI systems work in a three-step pattern: AI systems (1) gather data from users, (2) compare it with existing data using a plethora of technological processes, and (3) produce an answer or result.[8]<\/a> AI\u2019s ability to quickly regurgitate information is why sportsbooks are implementing its systems into their businesses.[9]<\/a> In fact, the sports betting market is estimated to generate more than $221.1 billion between 2025 to 2029 thanks to AI.[10]<\/a><\/p>\n

Sportsbooks are using AI to predict potential game outcomes and assist in the odds-making process, picking up patterns that bookmakers may not have noticed before.[11]<\/a> Furthermore, AI systems are increasingly being used to identify and prevent fraudulent activities, such as Sportradar\u2019s Fraud Detection System (\u201cFDS\u201d).[12]<\/a> AI is also being used as a safeguard, analyzing bettors\u2019 gambling behavior and\u2014by comparing other bettors\u2019 data\u2014detecting early signs of gambling addiction.[13]<\/a> Through some sportsbooks, AI-generated chatbots are available to help bettors make better choices, answer queries about sports events, or even explain betting rules.[14]<\/a><\/p>\n

However, the surge of AI in sports betting poses notable legal and ethical considerations. \u201cAI models can learn and remember specific data points, meaning that, if they are open source, users\u2019 sensitive personal information \u2013 like financial data \u2013 could be included in the code.\u201d[15]<\/a> As such, AI can inadvertently leak users\u2019 private data.[16]<\/a> Additionally, some scholars argue that AI in sports betting may actually increase <\/em>problem gambling rather than decrease it.[17]<\/a> Since AI can only use the information inputted into its system, AI does not take into account any information beyond what is available, including emotions and situational awareness of the game.[18]<\/a> Therefore, AI can create inaccurate \u201cpredatory scenarios\u201d in which \u201cpeople who are already vulnerable because of mental health issues or a gambling addiction could be manipulated or targeted without their knowledge.\u201d[19]<\/a><\/p>\n

Despite the high traction of online sports betting and AI use in the United States, we do not have a comprehensive federal data protection law that safeguards bettors\u2019 sensitive information.[20]<\/a> It is particularly challenging to protect bettors\u2019 information and mitigate gambling addiction when sports betting regulations and rules vary between states.[21]<\/a><\/p>\n

However, on September 12, 2024, Representative Paul Tanko and Senator Richard Blumenthal reintroduced the Supporting Affordability and Fairness with Every Bet Act (the \u201cSAFE Bet Act\u201d) to combat \u201cproblem gambling\u201d in the country.[22]<\/a> The bill regulates three key areas of sports betting: advertising, affordability, and artificial intelligence.[23]<\/a> The SAFE Bet Act would ban the use of AI to \u201ctrack player\u2019s gambling habits and individual promotions,\u201d prohibit \u201csportsbooks from advertising during live sporting events that are intended to induce gambling with \u201cno sweat,\u201d or \u201cbonus\u201d type bets,\u201d and limit customer deposits to five in a 24-hour period.[24]<\/a> Additionally, the bill would \u201cmandate gambling operators ensure customers who wager more than $1,000 can afford to do so.\u201d[25]<\/a> If the SAFE Bet Act is enacted, its effects could undermine the Supreme Court\u2019s monumental 2018 holding in Murphy v. NCAA<\/em>.[26]<\/a> Furthermore, the outright prohibition of AI use in sports betting could disconcert the booming technology industry.<\/p>\n

Comparatively, Congresswoman Andrea Salinas and Senator Richard Blumenthal have reintroduced the Gambling Addiction Recovery, Investment, and Treatment Act (the \u201cGRIT Act\u201d) which would use federal funding for \u201cstudying, preventing, and treating gambling addiction\u201d across the country.[27]<\/a> Unlike the SAFE Bet Act, the National Council on Problem Gambling\u2014the country\u2019s oldest and largest nonprofit organization on gambling issues\u2014explicitly supports the legislation\u2019s enactment.[28]<\/a> \u201cHowever, as a Democrat-led bill, the Act is unlikely to pass under a Trump government. Any plan to rely on general funds rather than gambling-specific dollars likely further lessens its chances.\u201d[29]<\/a> Regardless of whether these respective bills pass under the current administration, many agree that the rise of AI use in sports betting has ethical and legal concerns that must be addressed soon to protect bettors from privacy breaches and assuage problem gambling across the United States.<\/p>\n

Link to Image Source:<\/u><\/strong> https:\/\/media.licdn.com\/dms\/image\/v2\/D5612AQF9gmxjjTWwHQ\/article-cover_image-shrink_720_1280\/article-cover_image-shrink_720_1280\/0\/1700062854088?e=2147483647&v=beta&t=SFpFKG_XCsvGX_9hEKlwuGS1onxAwIsTLi2Iaot_m2E<\/a><\/p>\n

[1]<\/a> In 2018, the Supreme Court held that states may legalize sports betting, inherently striking down the Professional and Amateur Sports Protection Act. See <\/em>Murphy v. NCAA, 584 U.S. 453, 485 (2018).<\/p>\n

[2]<\/a> Jason Logan, How to Bet on Sports: Sports Betting Explained<\/em>, Covers (Aug. 30, 2024), https:\/\/www.covers.com\/guides\/how-to-bet-on-sports.<\/p>\n

[3]<\/a> Earnest Horn, How Do Sportsbooks Set Odds?<\/em>, Bettors Insider (Mar. 15, 2024, 2:07 PM), https:\/\/www.bettorsinsider.com\/news\/2024\/03\/15\/how-do-sportsbooks-set-odds.<\/p>\n

[4]<\/a> Id.<\/em><\/p>\n

[5]<\/a> Compare<\/em> Ryan Knuppel, How Predictive Analytics for Sports Betting is Changing<\/em>, Knup Sports (Feb. 2, 2025), https:\/\/knupsports.com\/how-predictive-analytics-for-sports-betting-is-changing\/ (\u201c[T]he odds and implied probability rates associated with those odds are subject to change at any time without prior warning to reflect what\u2019s happening in those events.\u201d), with <\/em>Adam Hayes, How Does the Stock Market Work?<\/em>, Investopedia (Oct. 18, 2024), https:\/\/www.investopedia.com\/articles\/investing\/082614\/how-stock-market-works.asp (\u201cWhen stock prices rise, it often signals investor confidence in the economy, while falling prices may indicate concerns about economic stability.\u201d).<\/p>\n

[6]<\/a> Horn, supra <\/em>note 3.\u00a0 \u00a0<\/em><\/p>\n

[7]<\/a> Neil Sahota, The Game Changer: How AI Is Transforming The World Of Sports Gambling<\/em>, Forbes (Feb. 11, 2024, 10:00 AM), https:\/\/www.forbes.com\/sites\/neilsahota\/2024\/02\/11\/the-game-changer-how-ai-is-transforming-the-world-of-sports-gambling\/.<\/p>\n

[8]<\/a> Cole Stryker & Mark Scapicchio, What is generative AI?<\/em>, IBM (Mar. 22, 2024), https:\/\/www.ibm.com\/think\/topics\/generative-ai.<\/p>\n

[9]<\/a> Sahota, supra<\/em> note 7.<\/p>\n

[10]<\/a> Infiniti Research, Inc., Sports Betting Market to grow by USD 221.1 Billion (2025-2029), drive by the digital revolution. Report with market evolution powered by AI \u2013 Technavio<\/em>, PR Newswire (Jan. 29, 2025, 5:27 PM), https:\/\/www.prnewswire.com\/news-releases\/sports-betting-market-to-grow-by-usd-221-1-billion-2025-2029-driven-by-the-digital-revolution-report-with-market-evolution-powered-by-ai—technavio-302362922.html.<\/p>\n

[11]<\/a> Understanding AI Sports Betting<\/em>, Jobs in Sports (Dec. 23, 2024), https:\/\/blog.jobsinsports.com\/2024\/12\/23\/ai-in-sports-betting\/\/.<\/p>\n

[12]<\/a> See <\/em>Sahota supra<\/em> note 7.<\/p>\n

[13]<\/a> See<\/em> Sahota supra<\/em> note 7; see also <\/em>Vincenzo Giuffr\u00e9, The use of AI in the regulated gambling sector<\/em>, DLA Piper (July 3, 2023), https:\/\/www.dlapiper.com\/es-pr\/insights\/publications\/law-in-tech\/the-use-of-ai-in-the-regulated-gambling-sector (explaining that AI can compare data of known problem gamblers and use it to identify bettors at risk of problem gambling, even at an \u201cearly stage,\u201d and flag \u201clarge number of bets on an unlikely outcome.\u201d).<\/p>\n

[14]<\/a> See <\/em>iGB Editorial Team, Exploring the potential and pitfalls of AI in sports betting<\/em>, iGamingBusiness (Oct. 30, 2023), https:\/\/igamingbusiness.com\/tech-innovation\/artificial-intelligence\/exploring-the-potential-and-pitfalls-of-ai-in-sports-betting\/.<\/p>\n

[15]<\/a> Id. <\/em><\/p>\n

[16]<\/a> Id. <\/em><\/p>\n

[17]<\/a> Ziv Chen, Is AI the Future of US Sports Betting?<\/em>, Sportsbook Review (Jan. 2, 2025, 2:10 PM), https:\/\/www.sportsbookreview.com\/news\/ai-sports-betting-impact-jan-2-2025\/#:~:text=While%20more%20accurate%20odds%20and,an%20increase%20in%20problem%20gambling.<\/p>\n

[18]<\/a>\u00a0 iGB Editorial Team, supra <\/em>note 14. \u00a0<\/strong><\/p>\n

[19]<\/a> Chen, supra <\/em>note 17 (quoting Timothy Fong, co-director of the UCLA Gambling Studies Program).<\/p>\n

[20]<\/a> See <\/em>Gulshan Kumar, A Guide to Sports Betting Laws and Regulations in the United States<\/em>, SDLC Corp (Dec. 11, 2024), https:\/\/sdlccorp.com\/post\/a-guide-to-sports-betting-laws-and-regulations-in-the-united-states\/.<\/p>\n

[21]<\/a> iGB Editorial Team, supra <\/em>note 14; see Murphy, <\/em>584 U.S. at 485.<\/p>\n

[22]<\/a> Jessica Golden, U.S. lawmakers introduce bill to put regulations on sports betting operators<\/em>, CNBC (Sept. 13, 2024, 12:57 PM), https:\/\/www.cnbc.com\/2024\/09\/13\/federal-bill-regulations-sports-betting-operators-safe-bet-act.html.<\/p>\n

[23]<\/a> Id. <\/em><\/p>\n

[24]<\/a> Id. <\/em><\/p>\n

[25]<\/a> Id. <\/em><\/p>\n

[26]<\/a> See Murphy, <\/em>584 U.S. at 485.<\/p>\n

[27]<\/a> Robyn McNeil, GRIT Act: Push for Federal Funding to Gambling Addiction Programs Resumes for 2025<\/em>, Richmond Times Dispatch (Feb. 12, 2025), https:\/\/richmond.com\/sports\/betting\/grit-act-federal-funding-gambling-addiction-programs-2025\/article_b5365b7e-bc76-50e7-baeb-00f033228567.html.<\/p>\n

[28]<\/a> Pat Evans, GRIT Act Reintroduced Using US Sports Betting Excise Tax Funds<\/em>, Legal Sports Rep. (Feb. 11, 2025), https:\/\/www.legalsportsreport.com\/224557\/grit-act-sports-betting-2025-reintroduced\/ (including the Oregon Council on Problem Gambling and Connecticut Council on Problem Gambling as supporters of the GRIT Act.).<\/p>\n

[29]<\/a> McNeil, supra <\/em>note 27.<\/p>\n","protected":false},"excerpt":{"rendered":"

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