The global gambling industry is racing to integrate artificial intelligence into its operations, but a glaring lack of safety controls and regulatory oversight is leaving the high-stakes sector severely exposed.
According to a sweeping new report, gambling operators have massive ambitions for AI, yet their internal governance and risk management frameworks are failing to keep pace with the rapidly evolving technology.
Published by the University of Nevada, Las Vegas (UNLV) International Gaming Institute’s AI Research Hub in collaboration with KPMG LLP, The State of AI in Gaming 2026 serves as the world’s first independent benchmark for how the technology is reshaping the betting industry.
The research draws on extensive survey data from 83 gambling companies and 113 regulators worldwide, as well as a 15-year analysis of academic publications and patent filings.
The governance gap
The data paints a picture of an industry eager to innovate but fundamentally unprepared to manage the consequences. On the report’s AI Maturity Index, gambling companies scored an average of just 45 out of 100.
While more than 80 per cent of firms have already embraced generative AI for tasks such as content creation and player insights, the critical area of “Governance” scored a dismal 30 out of 100.
The researchers found that only one in five gambling companies currently employs a dedicated AI governance role. The vast majority of organisations operate with absolutely no established safety policies or remain in the very early stages of developing them.
Rick Arpin, KPMG US gaming lead and executive editor of the report, warned that this blind spot is incredibly dangerous.
Arpin said: “What the data shows is a clear gap between ambition and execution. Governance is where that gap is most visible. With governance scoring just 30 out of 100 and most organisations lacking dedicated AI oversight, many companies are moving faster on AI adoption than on the controls needed to manage it. Those that address this now will be better positioned to realise value and avoid unnecessary risk.”
Regulators left in the dark
Perhaps most alarming is the profound disconnect between the gambling operators building these AI systems and the authorities tasked with policing them.
The survey revealed that regulators and operators fundamentally disagree on where and how AI is currently being deployed. Regulators explicitly reported having very limited visibility into what their licensees are doing with the technology, leading to low confidence in their ability to properly oversee the market.
Both sides ultimately agreed that “Responsible AI” practices across the entire global industry remain severely underdeveloped.
Simo Dragicevic, AiR Hub co-founder and executive editor, highlighted this regulatory blind spot as a critical threat to the industry’s future.
Dragicevic said: “The regulator-industry disconnect we uncovered is one of the most consequential findings in this report. Regulators believe they lack the capacity to properly oversee how AI is being used by licensees, and the data confirms they often have an incomplete picture. Meanwhile, Responsible AI practices across the industry are nascent at best. As AI becomes more deeply embedded in operations, this oversight gap will only become more urgent to address.”
