AI and iGaming: how is the world implementing and adapting?

Quirino Mancini, 1xCare Advisory Committee Member.

An AI revolution is taking the world by storm. Wherever you look, the influence of this powerful technology continues to become intertwined with everyday life on a scale unimaginable for many.

With this in mind SBC and 1xBet have collaborated on a series of International Player Safety Index Reports that placed a focus on a series of global jurisdictions.

In the conclusion of a two-part special, 1xCare Advisory Committee Member, Quirino Mancini breaks down the state of play in Latin America, Africa and Europe.

Will LatAm be the global leader in AI?

The former of those aforementioned regions has been a central focus for many across the industry during recent years. As regulatory progress intensified, a scramble for prime position ensued.

As LatAm proclaims that it is engaged and ready to ride the AI wave, the report labels the region as being ‘positioned as the global leader in AI adoption for player safety’.

Elaborating on this, Mancini begins: “They definitely do not belong to the category of very conservative regulators. These are more, I would say, innovation-friendly regulators. 

“I guess this also has to do with the fact that for the most part of the Latin American region, these are still relatively new markets, that is, markets that only opened over the last 10 years or so, with a few more ones expected to open up in the next few years.” 

When you are in the middle of a major process that has a drastic impact on any industry, a category befitting of AI, you cannot just ignore it. 

While some legacy markets may be slightly reluctant and conservative, those currently in the legalisation process are in no position to be ignorant and will therefore have to ride the AI wave.

“Latin American regulators have a fresher approach, because they are just starting to roll out the new rules, and they have to onboard AI like it or not,” Mancini says. “That’s why their approach is more proactive when it comes to AI.”

Africa must adopt best practices

While African gambling regulation cannot be labelled as being at an impasse, there is a clear disparity in the pace of progress being made in the continent.

With player protection being placed at the forefront of the agenda, 1xBet notes that the deployment of AI for player tracking or harm identification currently sits at zero.

To illustrate the reasons behind this, Mancini first points to a “fully ripe” Europe, where most markets have been fully regulated for a number of years.

Elsewhere, despite LatAm progressing much later, a number of jurisdictions have adopted new regulations, while others are currently in the process of doing so.

Africa is the next destination,” he comments. “Most of the black continent, with the exception of countries such as South Africa, Kenya, Tanzania, Ghana, Botswana and a few others is untapped waters.

“They still have to set about regulating gaming in a comprehensive way, and clearly, by default, they still haven’t been hit by the AI wave, and they are not yet ready to deal with it. 

“If I was an African regulator coming from one of those many emerging markets, I would try and understand exactly what’s happening all around me, directly engage with fellow regulators from first-tier jurisdictions who have already ‘been there and done that’, take lots of notes, digest the information, and then come up with some recommendations. But this is something that is still to happen, or however that is not happening at a very speedy pace.”

Is AI collaboration key for Europe?

As opposed to the two regions dissected above, Western Europe represents a different prospect altogether largely due to the industry’s long-standing roots.

However, despite being at a much more advanced stage when it comes to regulation, the report declares that it is in an “emerging but cautious phase” when it comes to the adoption of AI.

Starting from Italy via Spain, France, Portugal, Germany, Denmark, Sweden, and now Finland, progressively all of the Western European jurisdictions have adopted a comprehensive set of rules when it comes to gaming business,” Mancini explains.

“When it comes to licensing and the use of AI as applied to the gaming industry, the problem in Western Europe is that these rules are not harmonised.”

Illustrating this point, Mancini points to the “quite proactive” approach taken by Malta in looking to take on the challenge to regulate the use of AI for their licensees. 

This, he says, contrasts with other European nations where a more conservative approach is a challenge, because this will play against the adoption of common rules that can be implemented.

“Certainly, the EU legislation, the EU AI Act, is a good reference, which applies across the board to all industries,” he concludes. “But again, that is just the frame. Whereas the picture that goes into the frame is yet to be worked out.

“This is a job for the regulators to do. I would hope that in the coming years, as long as Western European regulators gather and exchange notes, information and best practices, they will ultimately come to some common and shared understanding of how they should regulate the use of AI. 

“I’m afraid to say this is a process that will still take time.” 

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