A Dutch study published this month tested 10 AI assistants and found that every one of them named at least one unlicensed operator, with some incorrectly presenting illegal brands as licensed. The findings follow a UK investigation in March that found widely used chatbots directing users towards offshore gambling sites operating outside the GamStop self-exclusion scheme.

Ben Head, COO at BetGoodwin, explains why the growing influence of AI assistants presents a challenge for licensed operators and what needs to change.

Ben, why should licensed operators be worried about AI chatbots recommending unlicensed sites?

For a lot of people, the first place they go to ask where to bet is their AI assistant. If those tools are treating unlicensed sites and licensed ones as the same, or even calling them legit, then the black market gets free distribution that no licensed operator could ever afford.

My biggest concern is the way these sites are being marketed. No ID checks and faster payouts are being presented as advantages, when those checks are precisely the protections that licensed operators are supposed to have for the wellbeing and safety of their customers.

How does this put licensed operators at a disadvantage?

Licensed operators invest a great deal in affordability checks and self-exclusion through GamStop. While this is the right thing to do, it means we’re competing with sites that skip all of it and are now being recommended by the same tools our customers use every day. This puts licensed operators at a massive disadvantage, as we’re carrying the cost of keeping players safe while the black market is being handed our customers for free.

Who is responsible for fixing the problem?

AI platforms should be held to the same standard as search engines and social media when it comes to illegal gambling. Checking a brand against the regulator’s licence register is a really simple step, and there’s no reason these tools can’t do it before recommending a site to users.

The industry also has a part to play. Operators should be monitoring how AI tools describe their brand and reporting unlicensed sites when they see them recommended, so regulators have all the evidence they need to act.

What’s at stake for players and the wider industry?

Every player who has a bad experience on an unlicensed site risks losing trust in online gambling as a whole, and that affects every licensed operator. Not only can an unlicensed site put your personal and financial information at risk, but it can also leave you vulnerable to scams or identity theft. Some sites may expose you to malware, which could allow hackers to access or damage your device without you even realising.