“Possibilities are endless” – when AI meets sports betting

Garance Limouzy November 15, 2024

SiGMA news

“Possibilities are endless” – when AI meets sports betting

The future of sports betting isn’t just about expanding markets and embracing new sports; it’s also about harnessing technological advancements, particularly in artificial intelligence (AI), explained Mark Blandford, Partner at Burlywood Capital, during a keynote at the SiGMA Europe Summit.

Throughout his career, Mark Blandford has witnessed the remarkable transformation of the sports betting industry over the decades. “Back in the 80s, 90 percent of betting focused on horse racing, with just 5 percent on other sports,” he recalled. “Then digital came along in ’96, and by ’98, we became the first UK bookmakers to trade online.”

Blandford has seen the industry shift from traditional practices to a digital-first approach, with mobile betting and live in-game markets now staples of the sector. And as he points out, the next revolution is AI. “AI was once just about potential,” he noted. “Now, as a technology investor, I see it becoming a reality, and we’re only scratching the surface of what it can achieve.”

Putting AI to work

One of the key areas where AI is making an impact is in the calculation of odds. Gone are the days when odds were set manually. Now, machine learning algorithms analyse vast amounts of data, from player statistics to weather patterns, to set odds more accurately. “Odds setting is becoming predictive,” Blandford noted. “Instead of simply calculating the probability of a team winning, AI helps operators predict emotional betting trends—where fans’ favouritism could sway the odds.”

Blandford also touched on the role of AI in improving user experience. AI-powered personalisation allows sports betting platforms to tailor the interface to individual users. “Imagine logging into a platform and seeing only the sports and markets that interest you. That’s the level of personalisation we’re heading towards,” he said. The result is a more intuitive, engaging, and, ultimately, profitable experience for operators.

The rise of live betting and micro-betting is another trend accelerating due to AI. “Live betting has expanded from a few simple markets to micro-betting, where bettors can wager on events within seconds,” Blandford explained. “AI can calculate these odds in real-time, allowing operators to offer a broader range of in-game betting options.”

Challenges

However, as Blandford pointed out, with these advancements come new challenges, particularly in terms of regulation. “We’re seeing more and more regulations globally,” he said, noting the regulatory changes in the US and emerging markets in Africa and South America. “The biggest issue for operators is the lack of standardisation. Every state in the US has different rules, which makes it operationally difficult.”

Blandford also highlighted the importance of ethical considerations in the industry, such as addressing addiction and mental health issues. “AI can help operators identify early signs of problem gambling,” he stated. “By analysing patterns and identifying at-risk customers, we can ensure that operators are taking the necessary steps to protect vulnerable players.”

Another concern raised by Blandford was the growing threat of cyberattacks. “AI is your friend, but it can also be your enemy,” he warned, referring to the increasing risks associated with hacking. “As AI becomes more integrated into sports betting platforms, operators will need to invest more in cybersecurity to protect user data and financial transactions.”

Despite these challenges, Blandford remains optimistic about the future of sports betting. He believes the industry is on the cusp of a technological revolution, where AI will continue to play a crucial role in driving growth and innovation. “I’m excited as an investor in this sector,” he concluded. “This has always been an entrepreneurial industry, and with the advancements in technology, the possibilities are endless.”