Artificial intelligence (A.I.) can be used by the online sports betting industry to boost gambler losses.
There are several ways sportsbooks can use A.I.:
- Tailored communications with users to maximize the “lifetime value” of the player
- Optimized advertising targeted at current or would-be bettors
- Creation of bets, including parlays and microbets, tailored to a user’s past activity
Artificial intelligence allows the betting industry to save on costs and grow its revenue. In response, some states have looked at addressing A.I. in the gambling sector.
Growing Concerns Over A.I. Gambling
Sports betting A.I. technology could contribute to gambling harm. Adding to greater concern was 2025 study on A.I.’s prosperity for risk taking, which found that chatbots can exhibit problem gambling.
In peer-to-peer gambling apps, bots powered by A.I. could be used to cheat users.
As of late 2025, sports betting addictions statistics show that more than half of online sports bettors have chased losses. Nearly 40% have felt ashamed after betting.
The prevalence of problem gambling among online sports bettors is already high. The further development of A.I. in the industry could worsen a growing addiction crisis.
Legislative efforts are underway to restrict the betting industry’s use of A.I.
This page will track state and federal legislation on the topic. Here’s a brief overview:
| Jurisdiction | Bill No. | Focus | Status |
|---|---|---|---|
| Federal | H.R. 9590 / S.1033 | Ban AI tracking, tailored offers, AI-generated bets | Pending in Congress |
| Illinois | SB 2398 / HB 1565 | Ban AI tracking, tailored offers, AI-generated bets | Dead for 2025 |
| New York | S5537 / A4279A / A8916 | Ban AI-driven tracking, notifications, texts, ads | Pending in committee |
| Mass. | N/A | Regulatory concern expressed; no bill | Potential 2026 legislation |
| Minnesota | N/A | Policymaker concern expressed; no bill | Potential 2026 legislation |
SAFE Bet Act
The SAFE Bet Act, introduced in 2024 by Rep. Paul Tonko (D-NY) and Sen. Richard Blumenthal (D-CT), includes explicit restrictions on the use of artificial intelligence in the sports betting business.
Sports betting A.I. is a key focus among federal lawmakers looking to rein in the betting industry.
The SAFE Bet Act would prohibit sportsbooks from using A.I. to track individual bettor behavior, generate personalized promotions, or create A.I.-driven betting products.
The bill aims to curb predatory practices by banning technologies that manipulate betting habits. It also calls for mandatory gambling safeguards, including customer affordability checks and deposit limits.
The A.I. restrictions are part of a broader effort to establish federal consumer protections for online and mobile sports wagering platforms.
As of 2025, the SAFE Bet Act was pending in Congress. Its prospects were unclear.
Illinois Sports Betting A.I. Bills
Illinois SB 2398 (2025) would amend the state’s Sports Wagering Act to prohibit sports betting platforms from using artificial intelligence to:
- Track an individual’s wagering activity
- Create personalized offers or promotions targeting a specific bettor or group of bettors
- Develop A.I.-generated betting products, including in-game microbets
Sponsored by Sen. Bill Cunningham and referred to committee in spring 2025, the bill aimed to block A.I.’s role in enabling harmfully tailored or addictive betting products.
The Illinois sports betting A.I. bill bears significant similarities to the SAFE Bet Act.
Illinois SB2398 failed to gain traction in 2025 but will likely be considered again in 2026.
Another Illinois bill to address A.I. in gambling was HB 1565, the Gambling Collection Data Act. Under the proposed law, betting apps or their subsidiaries could not collect data from a user with “the intent to predict how the participant will gamble in a particular gambling or betting scenario.”
New York Sports Betting A.I. Bills
Sponsored by Sen. Kristen Gonzalez and referred to committee in February 2025, Senate Bill S5537 would ban push notifications and text messages from sportsbook apps such as DraftKings and FanDuel.
“With A.I. enhancing the ability of gaming companies to collect data and specifically target consumers, addictions will only get worse as time goes on,” said a bill memo.
“Constant reminders of gambling opportunities through push notifications are one of the key ways betting apps ensure they have a large number of addicted customers and maximize their profit. This irresponsible practice needs to be curbed.”
NY Assembly Member Alex Bores sponsored the Assembly version of the legislation, A4279A.
In mid-July 2025, NY Assembly Member Phil Steck introduced another sports betting A.I. bill. Steck’s Assembly Bill A8916 would prohibits online sportsbooks from relying on artificial intelligence for tracking and advertisement purposes.
States Likely to Consider Betting A.I. Legislation
As of late 2025, only two states have formally considered restricting the betting industry’s use of artificial intelligence. However, more could join the debate in 2026 and beyond.
Minnesota, which hasn’t legalized online sports betting, is a contender to include an A.I. prohibition in a gambling bill that clears the finish line.
Policymakers in the state have signaled great interest in stronger consumer protections around betting.
Massachusetts is another state that could see a future sports betting A.I. bill.
In June 2025, the state’s top regulator expressed concern about sports betting A.I. in the gambling sector.
“If operators are using technology to target bettors, that technology can be used to promote healthy behaviors,” Jordan Maynard, chair of the Massachusetts Gaming Commission, told The Guardian.
“And I believe that a way that happens quicker is for regulators to get involved on the issue.”
Regulator involvement on the artificial intelligence issue could require enabling legislation.
Federal Efforts to Ban A.I. Regulation
Artificial intelligence has its fingerprints all over the U.S. economy. The betting industry’s use of A.I. is only one small part of the general concern with the technology.
In mid-2025, lawmakers on Capitol Hill were considering a 10-year ban on states enacting A.I. regulation. The A.I. industry has long argued that regulation stifles their “innovation,” and such proposals are supported by billionaire gambling investor Peter Thiel.
Such a ban would undermine state efforts to address online sports gambling addiction. However, it’s unclear if an A.I.-regulation moratorium would be constitutional.
Fortunately, the proposed A.I. regulation ban was stripped from the final version of the so-called “One Big Beautiful Bill” before it was signed into law.
In the absence of a federal ban on state A.I. regulation, more sports betting A.I. bills will likely emerge.
Related: New York Bill Would Restrict A.I. Use In Gambling Therapy
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