Smarter House, Same Rules

Gaming attorney Katherine Baker, technology and innovation attorney Samir Patel and litigation attorney Diego Troncoso Breton co-authored an article for Sports Betting Operator addressing the legal and regulatory considerations surrounding the use of artificial intelligence (AI) by licensed gaming operators. AI agents can support personalized promotions, player analytics, wager recommendations and customer service, but deploying them raises new compliance considerations under gaming regulations, consumer protection laws and the Lanham Act. As the authors reiterate, operators remain responsible for the systems' communications and decisions, including promotional claims, use of patron data, trademark references, recommended bets and responses provided through customer service chatbots.

Katherine, Samir and Diego go on to outline practical safeguards for managing these risks, including restricting marketing content to approved claims and licensed trademarks, documenting AI-generated communications, separating responsible gaming data from promotional systems, and grounding recommendations and chatbot responses in verified information. They also emphasize the importance of human oversight, vendor controls and systems that make it easier for patrons to set limits or stop gambling without allowing AI tools to independently increase spending. As regulators consider additional restrictions and disclosure requirements, the authors encourage operators to understand the purpose of each AI system, monitor what it communicates to bettors and maintain records demonstrating continued compliance.

READ: Smarter House, Same Rules (Article begins on page 12)