A new study released by the Australian Communications and Media Authority (ACMA) shows that licensed wagering providers are no longer using AI only as a back-office experiment. The technology is now present across customer service, trading, marketing, compliance, and player monitoring.
AI Has Moved Into the Core of Betting Operations
According to ACMA, licensed wagering providers are increasingly utilizing AI in their daily operations. Among the benefits cited in the report are:
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Suspicious activity detection;
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Spotting harmful betting patterns;
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Handling of routine customer requests;
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Sharper personalization;
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Better retention;
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More precise commercial targeting.
The regulator notes that the industry has adopted AI quickly, yet the balance between business efficiency and harm reduction remains unsettled.
In its study, ACMA refers to Sportsbet as an example. The operator introduced an AI chatbot that reportedly resolved more than one-third of customer queries. According to Sportsbet, the accuracy rate reached roughly 94%.
Elsewhere, Tabcorp worked with Mindway AI on behavioural analytics tools designed to identify customers who may be at risk of gambling harm.
Pricing, Fraud Checks, and Micro-Markets Are Changing Too
The report also points to AI’s growing role in odds-setting. Machine learning has been used in trading models for years, but the newer shift is speed and scale. Operators can now process live data, including injuries and in-play betting signals, with less manual intervention than before.
Among licensed wagering providers, Betfair Australia reported improved odds accuracy by 22% after implementing AI. ACMA further notes that newer systems help operators price and manage a wider range of markets in real time, including specialized micro-bets and player-based outcomes.
There is also clarity on the commercial direction in corporate strategy. ACMA also points to Banach Technologies, acquired in a US$43 million deal by PointsBet (which the report identifies as being owned by Fanatics). Banach specializes in live betting technology and pricing, two aspects of business where AI plays a critical role.
Apart from pricing, operators are now employing AI for fraud detection, anti-money laundering monitoring, and identity verification. Through real-time behavioral analysis, document review, and biometrics, duplicate accounts and unusual behavior can be minimized. For operators, this results in faster screening and reduced manual efforts.
Accountability Is Becoming the Harder Question
The report particularly focuses on agentic AI, which refers to systems capable of acting autonomously in various functions. This raises a more difficult question for regulation. As decisions become automated through the customer journey, accountability is becoming more difficult to assign.
The legal environment governing gambling in Australia is still heavily reliant on the provisions set out under the Interactive Gambling Act 2001. The report suggests current oversight is being tested by newer AI applications, but ACMA stops short of calling for immediate law reform.
There are other risks that apply not only to licensed operators. Separate reporting by Investigate Europe found that mainstream AI chatbots like ChatGPT and Grok pointed users toward unlicensed offshore gambling platforms. In some cases, they also suggested ways around self-exclusion schemes and age restrictions. This is one example of how AI may expand risk both outside and inside regulated environments.
Bottom Line
AI is no longer an afterthought for gambling policy. In Australia, it is beginning to influence how companies interact with customers, how prices are set, and how compliance is ensured. The next policy discussion will probably focus more on where AI control ends and who remains accountable.
