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UNLV Report: Gaming Industry Cautious About AI Adoption

The gaming industry has been slow to adopt AI, mostly using it for cost reduction purposes, a UNLV report shows
UNLV report says gaming industry cautious about using AI.
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Ian St. Clair Avatar
2 mins read
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State of Play’s TL;DR

  • UNLV’s new report finds the gaming industry is using AI mainly to cut costs, but many operators are not yet seeing measurable returns and governance lags behind adoption.
  • This gap – especially pronounced between online and land-based operators – raises concerns about oversight, responsible gaming, and operational risk.
  • The findings set the agenda for stronger regulatory engagement and industry controls as AI becomes embedded in gambling operations.

The 113‑page “State of AI in Gaming 2026” report from the UNLV International Gaming Institute, produced with KPMG and released April 9, surveyed gaming companies worldwide and mapped how AI is entering the sector.

The study found cost reduction is the primary driver of AI adoption, but many firms struggle to achieve measurable ROI. Online gambling operations are outpacing land‑based casinos in deployment, and the report flags clear governance gaps.

Authors warned of a regulator‑industry disconnect: “many companies are moving faster on AI adoption than on the controls needed to manage it,” said KPMG’s Rick Arpin. IGI’s Kasra Ghaharian and AiR Hub’s Simo Dragicevic emphasized the need for a baseline understanding and stronger oversight as AI use deepens.

AI without controls could cost operators

The report highlights practical and regulatory implications. Bettors could face risks tied to opaque AI systems – from changes in game management and personalization to potential lapses in fairness or responsible gambling protections – while operators chase cost efficiencies without clear ROI.

Online operators, leading adoption, may introduce features faster than regulators can evaluate them, widening the oversight gap. Financially, firms that fail to pair AI rollout with controls risk wasted investment and regulatory scrutiny; conversely, operators that build robust governance and responsible AI practices stand to capture efficiencies with lower compliance risk.

Regulators will likely need to upskill, demand transparency from vendors, and clarify licensing expectations for AI use in gaming.

Based on reporting by National Today.

About the Author
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Ian St. Clair

Content Lead

Ian St. Clair is a lover of words, vocal or written. Naturally, that makes Ian a great communicator and leader. Ian is curious and driven, always looking to improve, and always welcomes a challenge. Ian is authentic, possesses high-level emotional intelligence, and knows just when to crack a joke. A University of Northern Colorado graduate, Ian is now an expert in the US online gambling field, where he's been for over 5 years. Ian also has over a decade of journalism experience covering college and professional athletics, as well as the symphony and theater. Ian's a lover of history, news, and bacon. Oh, and tacos.

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