How AI and AR could increase the risk of problem gambling for online sports betting

Sometimes referred to as the crack cocaine of gambling, electronic gaming machines (EGMs) such as slot machines allow bets to be placed as quickly as once every 2.5 seconds, delivering a fast and immersive gaming experience. Similar features are now being used to transform online sports betting, significantly increasing the risk of problem gambling.

Sports betting is one of the most popular forms of gambling in the UK. Traditionally, people placed sports bets in the same way they play the national lottery: betting on the final result of a match or race during the week and often waiting until the weekend to find out the outcome of the event.

But our recent research indicates that the online environment has massively transformed sports betting. It has now become instantly accessible, offering many features and betting options that present a significantly greater risk of addiction than in the past.

And with technology rapidly advancing, the future of sports betting could be even more worrisome as gambling companies look to artificial intelligence (AI) and augmented reality (AR) to enhance their offerings.

More harmful sports betting has been linked to new features that are similar to those found in EGMs. Countless in-game and micro-sports bets can now be placed on the shortest intervals within a sporting event, such as a bet on the next free kick in football. Although not as fast as EGMs, the increased speed at which in-game sports bets can now be placed is linked to problem gambling.

Another similarity between EGMs and online sports betting involves losses disguised as wins. This happens when a player receives a payout that is less than their original bet, but still celebrates with visual and audio feedback, making it feel like a win.

The profit feature also allows players to settle bets early, often for less than the original stake, to minimize potential losses. This is particularly beneficial for bookmakers when large sums are involved and could also disguise general losses as wins. Using the money withdrawal feature is also associated with problem gambling.

Sports betting in the near future

It is possible to see how sports betting products that include AI and AR could evolve before they are commercially available by analyzing patents. This is a useful strategy for researchers like us because potential areas of harm can be identified before new products hit the market.

Our recent research has identified three patents that aim to add augmented reality (AR) to the sports betting experience. AR typically uses glasses or mobile phones to overlay computer-generated images onto a player’s view of the real world. Large technology companies such as Apple (Apple Vision) and Samsung (Galaxy Glass) are currently racing to incorporate augmented reality into many aspects of our daily lives, with the potential for very positive results such as when they use information to surgeons during operations, for example, or to maintenance staff repairing complex equipment.

But integrating AR with sports betting could have disastrous consequences. In a sports betting context, this would likely involve pointing the glasses or phone at a live sporting event either on TV or at the stadium and having real-time betting odds displayed in your field of view as the event unfolds. Research shows that immersion is pivotal in fueling problem gambling behaviors and disengagement from an AR sports betting session could be very challenging.

We have also identified three patents that aim to introduce competitive in-game sports betting between players rather than against bookmakers. These patents involve people joining online tournaments, and competing for rewards based on entry fees and betting pools. Leaderboards track bettor rankings, and players can communicate with each other in a poker-like fashion.

However, introducing such competition in online sports betting could exacerbate bias when a person makes poor betting decisions in response to loss or pressure. This can be exacerbated when gamblers can chat and tease each other. The companies involved in the above patents did not respond to requests for comment.

Bookmakers are already using AI to improve predictions and matchmaking processes. The UK government is aware of the risks associated with AI, but regulating this rapidly growing technology will continue to be difficult.

Regulation and policy

Game regulation is notorious for its lack of foresight. The Gambling Act 2005 was only revised this year to recognize the growth of online gambling, which has been around for almost 20 years. So while more forward-looking regulation and policy are needed to protect consumers from the harmful development of sports betting, the uncertainty and complexity surrounding new sports betting technologies only adds to the challenge of regulating this industry.

But there are current harms that researchers and policymakers do understand. Our research shows that reducing the speed and ease of online sports betting makes the most sense.

However, regulatory measures should not interfere with the freedoms of those who play safely. Australia provides a good example: regulations there allow in-game bets, but legally require them to be made via phone call rather than instantly via apps or websites. This provides friction for the good of public health, rather than a complete restriction.

Thanks to new technology like AI and AR, this industry is already evolving faster than regulation can keep up. As a result, sports betting could be dominated by a growing network of harms that are currently unforeseen and difficult to understand.