Robert Kraft is an entrepreneur and innovator in the sports betting technology sector, founding Atlas World Sports in 2021 to provide personalized data solutions for fans and sportsbooks. An entrepreneur since the age of 25, Robert has been Founder and CEO of multiple Direct Marketing/Direct Response companies, employing over 500 people. His career blends experience in marketing, finance, professional sports, and business leadership. Kraft also brings advisory experience from his role with World Business Chicago’s Sports Betting Committee. His background includes a BSBA in Business from John Carroll University, where he played football all four years, followed by a brief stint as an Arena Football player with the Charleston Swampfoxes.
The sports betting industry in the United States has grown exponentially since the Supreme Court overturned the federal ban on sports gambling in 2018. As the market expands, technology is central to shaping its future. Among the most transformative technologies is artificial intelligence (AI), which is revolutionizing how operators, bettors, leagues, and regulators interact with the industry. From personalized betting experiences to fraud detection, AI is reshaping the landscape of sports betting in ways that were unimaginable just a decade ago.
The Rise of AI in Sports Betting
AI has become a cornerstone of innovation in the sports betting industry. Its ability to process vast amounts of data in real time has made it an invaluable tool for operators and bettors. By analyzing historical data, player statistics, and even social media trends, AI can provide insights that were previously inaccessible or, quite honestly, way too time-consuming to utilize in short order, as games are too numerous and fluid for individual quants to cull through all the potential data sets. This has led to more informed decision-making and is proving to create a more engaging experience for users. The sports betting market is projected to continue its rapid growth, largely driven by increasing adoption of AI and related technologies.
For instance, AI-powered algorithms can predict outcomes with remarkable accuracy by considering variables such as weather conditions, player injuries, and team dynamics. These predictions are not only beneficial for bettors but also help operators set more accurate odds, reducing their risk exposure. As a result, AI is creating a more balanced and efficient market for all stakeholders.
Why Sportsbooks Embrace AI-Powered Partners
Sportsbooks are increasingly partnering with companies that leverage AI to help users make better bets. Why? Because confident bettors are engaged bettors.
AI provides users with data-driven insights, enhancing their trust in the betting process and encouraging more active participation. This is a win for sportsbooks, as increased betting activity drives revenue.
Contrary to popular belief, sportsbooks don’t aim to “beat” bettors. Instead, their goal is to balance the ledger—ideally, they want half the money on one side of a bet and the other half on the opposite side. This balance ensures they earn their commission (the “vig”) without taking on excessive risk. AI helps by providing bettors with more informed choices, which in turn leads to more balanced action on both sides of a wager.
As money flows in, sportsbooks adjust their lines to attract bets on the less popular side, maintaining equilibrium. AI-driven insights play a crucial role in this ecosystem, creating a fairer, more dynamic market. Ultimately, sportsbooks thrive when bettors feel confident, and AI is the tool that makes this possible.
Personalized Betting Experiences
One of the most significant ways AI is changing the sports betting industry is through personalization. By leveraging machine learning, operators can analyze user behavior and preferences to offer tailored recommendations. This enhances the user experience by presenting bettors with options that align with their interests and betting history.
For example, if a user frequently bets on NFL games, AI can suggest relevant bets, such as player props or in-game wagers, based on their past activity. This level of customization not only increases user engagement but also fosters loyalty, as bettors feel understood and valued by the platform. With personalization becoming a key differentiator, companies are exploring hyper-personalization to elevate the tailored betting experience even further.
Fraud Detection and Responsible Gambling
As the sports betting industry grows, so do concerns about fraud and problem gambling. AI plays a crucial role in addressing these challenges.
Advanced algorithms can detect unusual betting patterns that may indicate match-fixing or other forms of fraud. By flagging suspicious activity in real time, AI helps regulators and operators maintain the integrity of the industry.
Additionally, AI is being used to promote responsible gambling. By monitoring user behavior, AI can identify signs of problem gambling, such as excessive betting or chasing losses. Operators can then intervene by offering resources or implementing limits to protect vulnerable users. This proactive approach not only safeguards bettors but also enhances the industry’s reputation.
In-Game Betting and Real-Time Analytics
In-game betting, also known as live betting, has become increasingly popular in recent years. AI is at the heart of this trend, enabling operators to update odds and offer new betting options in real time. By analyzing live data feeds, AI can assess the evolving dynamics of a game and adjust odds accordingly.
For bettors, this means more opportunities to place wagers as the action unfolds. For operators, it means higher engagement and revenue. Real-time analytics also allow bettors to make more informed decisions, as they can access up-to-the-minute insights on player performance and game conditions. This has transformed how people experience sports betting, making it more dynamic and interactive.
For example, golf is a thrilling in-game betting experience, especially when powered by AI. Unlike faster-paced sports, golf’s slower rhythm and longer play time in total allow bettors to analyze and react to real-time developments, such as player performance, weather changes, or course conditions. AI enhances this by processing vast amounts of data instantly, providing actionable insights and updated odds as the action unfolds.
The speed at which AI adjusts the market ensures bettors can capitalize on shifting dynamics, like a player’s hot streak or a sudden collapse. This combination of strategy, real-time adjustments, and AI-driven precision makes golf in-game betting both engaging and uniquely rewarding for fans.
Challenges and Ethical Considerations
While AI offers numerous benefits, it also presents challenges and ethical considerations. One concern is the potential for over-reliance on AI, which could lead to reduced human oversight. Poorly calibrated algorithms may introduce bias or inaccuracies, leading to unfair outcomes.
Fortunately, in the sports betting industry, the books constantly shift lines based on the numbers which adds another level of governance when the original “set lines” were inaccurate.
Another issue is data privacy. AI systems rely on vast amounts of user data to function effectively, raising questions about how this data is collected, stored, and used. Operators must ensure they follow privacy rules and maintain transparency with users.
Addressing these challenges is essential to building trust and ensuring the sustainable growth of any industry utilizing AI, which I would argue is only a matter of time before all industries will be reliant upon it. To that end, I believe we are talking in the 3 – 5-year type range as opposed to decades.
The Future of AI in Sports Betting
The integration of AI into the sports betting industry is still in its early stages or rookie years, if you will, and its potential is far from fully realized. As technology continues to evolve, we can expect even more innovative AI applications.
For example, the use of natural language processing (NLP) could enable bettors to interact with platforms using voice commands, making the experience more intuitive, accessible, and, quite frankly, more fun. Atlas World Sports is already testing NLP technology, allowing users to hear odds and predictions, ask questions, and build bet slips. This innovation could streamline the betting process across platforms like Caesars, MGM, FanDuel, DraftKings, Bally’s, and Hard Rock. Sure sounds fun to me!
Moreover, advancements in AI could lead to the development of virtual sports betting, where users can wager on simulated games with realistic outcomes. This would open new revenue streams for operators and provide bettors with endless entertainment options. Of course, this raises fairness concerns, but the concept is already being explored.
Truly though, the possibilities are limitless. We are just at the beginning, and the future of sports betting is undoubtedly intertwined with the future of AI.
Conclusion
AI is transforming the sports betting industry in the U.S., offering unprecedented opportunities for innovation and growth. From personalized experiences to real-time analytics, AI is enhancing every aspect of the betting journey. However, as with any technology, addressing the associated challenges and ethical considerations is essential to ensure a fair and sustainable industry.
As the market continues to evolve, operators, leagues, and regulators must work together to harness the power of AI responsibly. By doing so, they can create a thriving ecosystem that benefits all stakeholders.
The future of sports betting is here, and AI is leading the way—Atlas World Sports is thrilled to be part of this exciting evolution!
