The Massachusetts Gaming Commission has formed a new workgroup that will study the use of AI technology to identify problem gambling risks.
The progress of the workgroup was discussed during the MGC’s Aug. 15 meeting. The group has discussed the use of AI for responsible gaming purposes with industry and AI experts, including regulators from other jurisdictions. The group will also be informed by research recently commissioned by the MGC.
Though still early in the discovery process, the workgroup’s findings could lead to requiring Massachusetts sports betting operators to use AI to examine data and take action if risky gambling behavior is identified.
Responsible gambling AI workgroup includes Massachusetts staff members
The MGC’s workgroup was formed after commissioners expressed an interest last year in learning more about AI’s capabilities when it comes to identifying problem gambling risks on sports wagering platforms. The commission’s Research and Responsible Gaming division has spent the past year gathering information. The workgroup met for the first time last month.
The workgroup’s members include a variety of MGC staff, including:
- MGC interim chair Jordan Maynard
- Commissioner Eileen O’Brien
- Executive Director Dean Serpa
- General Counsel Todd Grossman
- Chief Information Officer Katrina Jagroop-Gomes
- Sports Wagering Chief Bruce Band
- Chief Administrative Officer Grace Robinson
Massachusetts regulators met with New Jersey counterparts
Among the topics discussed during the initial meeting was New Jersey’s requirement for sportsbook operators to use technology to identify risky gambling behavior. MCG’s director of research and responsible gaming, Mark Vander Linden, said he and other MGC staff members met last month with the New Jersey Division of Gaming Enforcement (NJDGE) to discuss its efforts.
In January of 2023, New Jersey began requiring sports betting operators to use player data to identify potential problem gambling risks. Regulators in the state developed a set of 10 behavioral and account activity triggers that lead to a phased intervention approach by operators.
Vander Linden told commissioners that the meeting with New Jersey officials was enlightening:
“To my knowledge, New Jersey is the only state in the U.S. that currently has something like this in place. I thought it was interesting information and certainly something for the gaming commission to consider.”
New Jersey requires sportsbooks to use data to identify problem gambling
Instances of sportsbook customers’ account activity and behavior that triggers intervention in New Jersey include:
- Total deposits over a 24-hour period exceed $10K
- Total deposits over 90 days exceed $1 million
- If a customer visits the voluntary self-exclusion page but does not complete the process
- If a customer requests a second “cool off” period within 45 days of their first request
- If a customer requests increases on their deposit or loss limits more than three times within 24 hours
- Total monetary turnover over 90 days exceeds $1 million
- There’s a 50% increase in time spent using the app or website during a week compared to playing time during the previous two weeks
Once the automated triggers have been identified, New Jersey sports betting operators must begin a phased intervention. The first phase includes correspondence with the player to let them know about responsible gaming features available on the platform and further resources. The second phase includes a video tutorial highlighting responsible gaming resources. The third phase is direct contact with the player from a responsible gaming professional, who advises them on “corrective actions” to address their behavior.
MA Workgroup also discussed research on AI use in gaming
The Massachusetts AI workgroup also discussed research the MGC recently commissioned to study AI’s use for responsible gaming, marketing and player acquisition. The commission provided a grant to the UNLV International Gaming Institute for the research in June.
Vander Linden said that there are three parts to the research. The first part examines current and future uses of AI in the gaming industry and includes focus groups with AI experts.
The second study is a systematic literature review. Vander Linden said that the researchers recommended building what they called a “behavior risk indicator database of gambling evidence” or BRIDGE. That database of literature would then be used by not only the MGC, but regulators in other jurisdictions.
The third study will examine financial risk identification processes in the gaming industry. During the Aug. 15 update, Vander Linden said the study will include one-on-one discussions with experts in the field. It will also examine the proposed financial risk checks for gaming operators in the U.K.
AI group to meet with Massachusetts sports betting operators
Vander Linden described the workgroup’s examination of AI use to facilitate Massachusetts responsible gaming as “slow moving.” Thus, any action taken by the commission in response to their findings likely won’t occur anytime soon. He said the workgroup’s next steps include individual meetings with Massachusetts sports betting operators to better understand their current use of AI technology.
Chair Maynard said he was excited for Massachusetts to be one of the jurisdictions leading the way in developing better responsible gaming tactics through the use of AI:
“What we try to do here is not just be a thought leader but build a better mousetrap. And we’ve seen some stabs at building the mousetrap and I think that we’re going to build a really good one by the time we’re finished with this process.”
