Gaming Industry Lags in AI Adoption: UNLV Researchers Launch Second Major Survey

Artificial Intelligence (AI) has already transformed operation models across numerous global industries, yet the gambling sector, particularly land-based operators, remains noticeably hesitant. While financial institutions invest billions into dedicated AI departments, casinos often struggle with IT systems that are decades old. These legacy systems frequently lack the compatibility required for modern compute resources. To quantify these challenges and propose solutions, the AI Research Hub (AiR Hub) at the University of Nevada, Las Vegas (UNLV), has launched the second phase of its comprehensive industry survey.

Researchers are focusing specifically on infrastructure hurdles in the current study. Kasra Ghaharian, director of research at the IGI, notes a specific corporate culture within gaming that differs significantly from other high-tech industries. Many firms rely almost exclusively on third-party providers rather than building internal technological expertise. Consequently, valuable data generated across casinos, hotels, and restaurants is not being efficiently leveraged for AI-driven competitive advantages.

Numbers and facts

For the inaugural report, which highlighted the state of AI in 2026, researchers successfully recruited 83 companies. The target for the new 2027 report is even higher: at least 100 companies are expected to participate. Regulatory participation is also a key factor. Last year, 113 staff members from various regulatory agencies responded to the survey, which was then distributed openly via platforms like LinkedIn. This year, the process is being formalized, seeking one official response per organization from targeted stakeholders.

A major new focus for the upcoming report is the sports betting sector. Researchers are developing a comprehensive map of the value chain, starting from sports leagues and data collection down to the end consumer. Melissa Swinehart, a researcher at the IGI, emphasized the financial aspect:

„When you’re adopting AI, you have to have the infrastructure for that, to be able to accommodate compute time or compute resources and that takes a lot of investing into. This year, we are going to focus on sports betting." - Melissa Swinehart, researcher at UNLV International Gaming Institute

Background

The difficulty for land-based facilities lies in their sheer complexity. A casino resort is not just a collection of slot machines; it often includes thousands of hotel rooms and numerous dining outlets. Kasra Ghaharian points out that merging systems developed decades ago across these different business units is extremely difficult. In contrast, banks employ hundreds of people directly in AI roles and develop their own technology from scratch. In the gaming world, it remains rare for a company to build software entirely in-house.

The new report, scheduled for release in April, will also include a chapter on Responsible AI. This section addresses the lawful, risk-aware, and transparent use of algorithms. The goal is to prevent harm and ensure human oversight throughout AI lifecycles. Surveys will be sent out in early December to allow participants enough time to provide comprehensive feedback on the full calendar year.

Why it matters for German players

For players in Germany, technological developments behind the scenes are highly significant, even if they aren't immediately visible. The German Interstate Treaty on Gambling 2021 (GlüStV 2021) sets very strict boundaries for player protection. AI could play a pivotal role here, particularly in the early detection of problematic gambling behavior. Since German online casinos are required to be connected to the central LUGAS blocking system and the limit control system, massive amounts of data are generated.

Better AI infrastructure among providers could help implement these strict mandates more efficiently without slowing down the user experience through manual checks. Currently, German customers must adhere to a monthly deposit limit of 1,000 euros and a stake limit of 1 euro per spin. If providers learn from UNLV research how to better integrate AI into their systems, safety mechanisms could become more precise. Ideally, this means blocks only occur when there is an actual danger, while regular players are less bothered by rigid algorithms.

What it means for GGL-licensed casinos

Casinos licensed by the Gemeinsame Glücksspielbehörde der Länder (GGL) are under constant scrutiny. For them, the aspect of "Responsible AI" discussed in the UNLV report is particularly relevant. The GGL demands strict compliance with youth and player protection laws. Operators who analyze their data intelligently with AI can react more quickly to regulatory requirements than those still working on old legacy systems without proper interfaces.

While offshore providers (often without a German license) are frequently faster at introducing new features, scientific research by institutes like UNLV offers German licensees a chance to catch up technologically while remaining on legally sound footing. Participating in such studies allows German operators to benchmark themselves against international competitors and future-proof their IT strategies. Ultimately, GGL-licensed casinos benefit from higher transparency and better tools to comply with rigorous German regulations.