Addiction: AI and Its Rising Impact on Sports Betting

AI disclosure: Google Gemini was used to find and outline sources for this journal. The summary was generated by ChatGPT, and the images were created by Artlist.io. Comprehensive research was conducted further through articles linked within the report.

Summary: AI tools make it easier and faster for people to place sports bets by giving quick predictions on players and games. Betting companies earn more money because AI helps them set better odds and target users with personalized offers. Studies show that online sports betting increases the risk of addiction, especially among young adults. Experts warn that AI can shape user behavior in ways that are not fully understood and may harm vulnerable people. As AI grows, stricter rules are needed to protect users and limit how betting companies use personal data.

Sports fans now ask the same question before every game: “Did you put a parlay in?” What once felt like casual fun has shifted into rapid-fire betting, with small groups creating parlays worth hundreds of dollars in minutes. This speed comes from AI tools like ChatGPT, Gemini, and DailyGrind, which instantly produce player predictions and odds suggestions.

While bettors hope to gain an edge, major companies such as FanDuel, PrizePicks, and DraftKings have gained even more. Their increased data accessibility has made it easier for AI systems to develop betting algorithms, raising concerns about transparency and the risks these tools pose to younger users.

This analysis explores the growing connection between AI, addiction, and sports betting — and how the technology may reshape the industry’s risks.

The Evolution of the Sports Betting Industry

Sports betting shifted dramatically after the 2018 Supreme Court ruling allowing states to legalize wagering. Today, 38 states have moved forward with legalization, each with unique tax structures. A breakdown of these policies is available from the National Conference of State Legislatures.

Research from Qiying Ding, published in Financial Economics Research, shows a strong link between AI adoption and increased corporate profit. Her study, “The Influence of Artificial Intelligence to the Earnings of Sports Betting Companies” (2025), compares DraftKings’ margins before and after adopting AI-driven odds tools.
Full study

DraftKings’ EBITDA improved from –114.36% in 2020 to –3.27% in 2024, with projections reaching +13.42% by 2025. Ding also found that mentions of “artificial intelligence” in company reports jumped from 13 in 2020 to 45 in 2024 as revenue increased from $614.5 million to over $4.7 billion.

Psychological Impacts and Youth Addiction

A study, “Current Addiction in Youth: Online Sports Betting”, published in Frontiers in Psychiatry, examined 1,186 people diagnosed with gambling disorders, comparing slot machine gamblers to online sports bettors.

Researchers found that while 42% of in-person social gamblers might develop a disorder, the figure rises to 81.3% for online sports bettors. Spending more than 100 euros per week was a major warning sign — a behavior far more common among digital users.

The study highlights that this issue is not just an American problem; online platforms have increased addiction risk among young adults worldwide.

Experts’ Perspective on AI & Risk

Dr. Tiange “Patrick” Xu of the University of Las Vegas International Gaming Institute offered insight into AI’s growing influence on betting behavior. He explained that while AI may give users a sense of control, several studies show it can actually decrease a bettor’s sense of personal expertise.

Since sports betting expanded in 2018, younger adults have increasingly sought treatment for gambling-related issues. Xu notes that isolating AI as the sole cause is difficult, but the spike in younger male bettors is well-documented.

Xu also pointed to personalization as a major blind spot for lawmakers. Platforms use AI not only to adjust odds but to tailor promotions and user nudges based on individual behavior — something current regulations do not address. He warns that by 2030, if personalization becomes more advanced, more users may fall into harmful betting patterns.

Corporate Strategy & Data Collection

According to Vanessa Alves Johnson (2026), “All-In on AI: How the New Technology Is Rewiring the Casino Experience,” Dr. Kasara Ghaharian explains how casinos use AI to increase “house winnings”. These systems consume behavioral data connected to every bet a consumer places.

This data collection allows companies to refine their odds and maximize profits. Because the science of consumer protection is still “catching up” to the technology, current bettors are essentially participating in an unregulated experiment.

Looking Into the Future

Given the positive correlation between AI and betting addiction, there is a clear need for limitations on how these tools are implemented. Protecting vulnerable populations from aggressive, profit-driven algorithms remains a critical challenge for the industry and the community as well. This issue is not just within the US but also worldwide, which is affecting the young generations.

As AI keeps evolving, Xu emphasized that a window for proactive policy and education efforts is now, which forces companies like FanDuel and DraftKings to change their policies to make AI tools less transparent.

Regulations would be implemented across both spectrums of the table, with companies adopting stricter policies and AI limited in gathering information with such efficiency. In hopes of reducing the percentage of young adults with social gambling addiction.

AI guts the barrier of efficiency into quickly producing results for quick bets at the cost of adults’ ongoing gambling addiction. The fact that betting is allowed with a couple of taps on your phone is a major issue, with some betting apps even allowing anyone over the age of 18 to bet, which should not be allowed.

FAQ: AI and Sports Betting

1. What role does AI play in modern sports betting?

AI tools generate predictions, analyze player data, and provide betting suggestions. These systems support bettors and also help companies like FanDuel, DraftKings, and PrizePicks optimize their odds and user promotions.

2. Has AI increased profits for betting companies?

Yes. Research by Qiying Ding shows a strong connection between AI adoption and profitability. DraftKings, for example, improved its EBITDA margin from –114.36% in 2020 to –3.27% in 2024, with positive margins expected in 2025.

3. Does online sports betting pose a higher addiction risk than in-person gambling?

Yes. A study from the University of Internacional de Catalunya found that 81.3% of online sports bettors displayed signs of gambling disorder, compared with 42% of in-person gamblers.

4. Why are younger adults more vulnerable to gambling risks?

Younger users are drawn to fast and convenient digital platforms. Since 2018, experts such as Dr. Tiange “Patrick” Xu of the International Gaming Institute have documented increased treatment-seeking among younger male bettors.

5. How do betting companies use AI to influence user behavior?

AI personalizes odds, pushes targeted promotions, and sends behavioral nudges. These systems track patterns such as wager size, spending frequency, and team preferences to guide users toward higher betting activity.