Entain AI Protects More Players, But UK Regulation Remains Murky
Increase of 98% in Player Adoption for Entain's Artificial Intelligence Player Protection
Entain's AI-driven player protection tool, ARC, is seeing a massive surge in usage, flagging over 742,122 customers in a 12-month period, according to their latest ESG report.
The system, which employs AI models to flag unusual behavior and suggests protective measures, saw a whopping 98% increase in usage. When flagged, users are offered various player protection features tailored to their circumstances. These could range from setting deposit or loss limits to directing them to self-exclusion tools and treatment programs.
With 8.7 million ARC interventions during that period, an impressive 98% of high-risk individuals opted to utilize at least one protective feature. Medium-risk players showed a 65% adoption rate.
United Kingdom's Regulatory Landscape Remains Uncertain
First deployed in 2021 across 27 jurisdictions for Entain's online gambling offerings, ARC is also operational in the company's many UK and Republic of Ireland retail outlets, including brands like Ladbrokes and Coral.
The UK gambling industry has been bombarded with calls for reform in recent years. Although a consultation took place when ARC launched, the recent change of government in the country leaves the regulatory landscape unclear.
To bolster its commitment to safer gambling and improve its ESG score, Entain raised its Research, Education, and Treatment (RET) contributions to £18.7m ($23.7m). This is part of an agreement where the five largest members of the UK Gaming and Betting Council agreed to contribute 1% of their Gross Gaming Yield (GGY) annually—double the previous contribution.
Entain Exits Unregulated Markets
In another development, Entain announced that it now generates 100% of its revenue from regulated markets. Previously, the company faced scrutiny from a UK government investigation into its activities in unregulated markets and agreed to withdraw from all unregulated territories, except those offering a clear pathway to a license.
"The technology behind ARC leverages behavioral indicators, data science, and analytics to assess risk in betting and gaming, working invisibly using advanced AI to learn and identify risks in player behavior," the report explained. These models are based on academic research and are frequently evaluated and retrained to improve their accuracy.
Looming Regulatory Changes
In light of the shifts in the UK regulatory landscape, Entain's ARC tool will have to adjust to stricter standards, such as enhanced consumer control over deposit limits and increased transparency in client fund protection. Moreover, ARC will likely need to align with new funding systems for gambling-related harm prevention and position itself as a leader in responsible gambling technologies to capitalize on regulatory-driven opportunities.
ENRICHMENT:
Current Regulatory Landscape for Gambling in the UK:
- Statutory Levy for Harm Prevention: A new statutory levy replaces the voluntary scheme, raising £100 million annually for gambling-related harm prevention. Online operators face a 1.1% levy on Gross Gaming Yield (GGY), while land-based operations pay lower rates.
- Consultation on Tax Simplification: The UK government proposed a consultation to simplify remote gambling tax but has not yet determined the specific rate.
- Enhanced Consumer Protection: New rules require gambling companies to encourage clients to set financial limits before the first deposit and allow easy changes. Clients will be reminded to review their limits every six months.
- Pausing Slot Machine Rule Relaxation: Plans to relax retail slot machine rules have been delayed, maintaining current restrictions.
These changes could impact Entain's ARC in terms of compliance, integration with levy requirements, and market opportunities. As the regulatory landscape for gambling in the UK evolves, ARC must adapt to enhance consumer protection standards and align with broader industry efforts to prevent gambling-related harm.
- Entain's AI-driven player protection tool, ARC, flagged over 742,122 customers in a 12-month period, emphasizing the need for safer gambling.
- With the deployment of ARC across Entain's retail outlets in the UK and Republic of Ireland, the tool demonstrates a commitment to protection in the casino-and-gambling industry.
- The increasingly regulatory landscape in the UK might require ARC to adhere to stricter standards such as enhanced consumer control over deposit limits and increased transparency in client fund protection.
- AI models employed by ARC, such as behavioral indicators, data science, and analytics, will likely need to align with new funding systems for gambling-related harm prevention.
- The UK government's proposed changes, including a statutory levy for harm prevention and a consultation on tax simplification, could impact Entain's ARC in terms of compliance and market opportunities.
