The gambling industry is undergoing a transformation with the arrival of artificial intelligence (AI)-powered dealers. It is a groundbreaking change for sure. These systems offer more immersive and efficient experiences on platforms. However, they also bring ethical, legal and technical challenges. Ensuring player safety must be a priority. Technology could be misused without clear rules. This article discusses the key points to create a legal framework that protects players on platforms with AI dealers.

1. Transparency and fairness in AI algorithms

A key pillar of regulation is to ensure the transparency and fairness of the algorithms behind AI dealers. To do this, operators must subject their systems to regular audits by independent third parties. These audits must assess three main aspects:

• Fairness: The algorithms must generate random and non-manipulable results. They must respect the same odds as a physical game.
• Explainability: Operators must explain how the algorithm works. It is crucial that players know they are interacting with an AI, not a human.
• Preventing bias: Systems must be programmed to avoid any bias that affects the user experience or unfairly benefits the operator.

In addition, regulations must require compliance with international standards, such as those of the International Standards Organization (ISO), to ensure ethical AI.

2. Protection of personal data and privacy

The use of AI dealers involves intensive handling of personal data. This includes gaming history and behavioral patterns. The regulation must comply with privacy laws such as the European Union’s GDPR. To do so, it must incorporate key principles:

• Explicit consent: Players must clearly approve the use of their data.
• Anonymization: Data must be anonymized so that players cannot be identified.
• Purpose limitation: Data can only be used to improve the gaming experience.

These measures are essential to protect players from abuse and privacy violations.

3. Addiction prevention and consumer protection

Platforms with AI dealers must include mechanisms to prevent gambling addiction. Necessary measures include:

• Real-time monitoring: Algorithms must identify problematic gambling patterns and issue alerts.
• Automatic limits: Time and spending restrictions must be set based on player behaviour.
• Access to support resources: Platforms must offer information on support programmes and facilitate self-exclusion.

Strong regulations in this area are key to prevent harm and ensure that gambling is a recreational activity.

4. Cybersecurity

The implementation of AI dealers increases the attack surface for cybercriminals. Regulation must therefore establish mandatory cybersecurity standards, including:

• End-to-end encryption: All communication and data must be protected using robust encryption.
• Penetration testing: Operators must conduct regular testing to identify and mitigate vulnerabilities in their systems.
• Incident management: Platforms must have clear plans to respond to security breaches, with immediate notifications to affected players.

5. Regulatory oversight and sanctions

To ensure compliance, it is crucial that regulatory authorities have clear powers to oversee and sanction. This includes:

• Mandatory licenses: Operators must obtain specific licenses certifying compliance with security and ethical standards.
• Deterrent sanctions: Significant fines and license revocation should be tools available to authorities in case of non-compliance.

Furthermore, international collaboration will be essential, as many platforms operate in multiple jurisdictions.

Clear parameters

The use of AI dealers in gambling needs a robust legal framework. This must balance innovation with player protection. Clear standards are essential in:

• Transparency
• Privacy
• Consumer protection
• Cybersecurity
• Supervision

These regulations will ensure a fair and safe environment. In addition, they will reinforce user confidence and consolidate the industry’s legitimacy in the face of technological advances.