Casinos Limit AI to Back-Office Systems Over Licensing Risks
Ai4
Strict regulatory oversight and zero tolerance for black-box errors force casino operators to reject autonomous customer-facing agents in favor of auditable operational tools.
## Background
Published on YouTube by the Ai4 channel on August 14, 2026, this panel session explores how artificial intelligence is transforming the gambling and hospitality sector. Moderated by Dr. Kasra Ghaharian of the UNLV International Gaming Institute alongside industry leaders Kiran Brahmandam of Aristocrat and Earle Hall of AXES.ai, the video discusses findings from the 2026 State of AI in Gaming Report to evaluate real-world casino AI deployment, regulatory hurdles, and future operational paradigms.
## TL;DR
The panel details how the global gambling industry—projected to reach $1 trillion by 2030—is actively deploying AI across back-of-house floor optimization, predictive anti-money laundering, and real-time player personalization while breaking down legacy data silos. Enterprise adoption of autonomous agentic AI remains deliberately cautious because regulatory errors risk gaming license revocation, and tribal gaming priorities emphasize community employment over standard vendor cost-cutting. The speakers highlight that gaming's strict compliance standards exceed even FDA medical approvals, positioning the sector as a prime model for disciplined data governance. Looking ahead, the panelists project a dual future combining predictive front-end VIP avatar concierges with single-click autonomous back-office campaign orchestration.
## Atmosphere & style
The discussion carries a measured, pragmatic, and highly authoritative tone, trading tech-conference hype for the sobering realities of a heavily regulated, real-money industry. The rapport among the speakers is collegial and candid, using light humor about Las Vegas conference logistics to introduce rigorous critiques of Hollywood stereotypes and naive vendor pitches. Watching the panel feels like sitting in on a high-level strategic debrief, where technical ambition is continually anchored to deterministic compliance, risk mitigation, and operational accountability.
## Key takeaways
- [02:55](https://www.youtube.com/watch?v=u5WQ0fXJlKQ&t=175s) The gambling industry is a massive, highly quantitative sector generating over $700 billion annually and pacing toward $1 trillion by 2030, operating under far more stringent data and compliance standards than public misconceptions suggest.
- [06:26](https://www.youtube.com/watch?v=u5WQ0fXJlKQ&t=386s) The UNLV International Gaming Institute's 2026 State of AI in Gaming Report, developed with KPMG, provides an executive-level benchmark of over 80 gaming organizations across strategy, infrastructure, expertise, and governance.
- [08:12](https://www.youtube.com/watch?v=u5WQ0fXJlKQ&t=492s) Historically delayed by sustained profitability, modern casino operators are now actively breaking down legacy data silos across gaming floors, hotels, dining, and online platforms to build holistic customer profiles.
- [13:02](https://www.youtube.com/watch?v=u5WQ0fXJlKQ&t=782s) AI deployment in gaming is primarily concentrated in back-of-house technology, cybersecurity, and product R&D, while operators actively leverage AI for floor optimization, machine pricing, and predictive Anti-Money Laundering (AML).
- [19:44](https://www.youtube.com/watch?v=u5WQ0fXJlKQ&t=1184s) Autonomous agentic AI faces severe adoption barriers in enterprise gaming due to the high cost of error, where black-box decisions or regulatory non-compliance can jeopardize multimillion-dollar budgets and gaming licenses.
- [19:44](https://www.youtube.com/watch?v=u5WQ0fXJlKQ&t=1184s) Standard tech vendor pitches focused on headcount reduction often fail in Tribal gaming, where casino operations prioritize community reinvestment, social stability, and job retention over simple payroll cutting.
- [22:39](https://www.youtube.com/watch?v=u5WQ0fXJlKQ&t=1359s) Across all global industries, only 7% of agentic AI initiatives transition from pilot to full production, making the gaming sector's cautious deployment a sign of regulatory prudence rather than technological lag.
- [25:22](https://www.youtube.com/watch?v=u5WQ0fXJlKQ&t=1522s) As gaming compliance standards already rival or exceed FDA medical certification, the primary regulatory and operational frontier in 2026 has shifted from model mechanics to rigorous data governance and privacy isolation.
- [32:04](https://www.youtube.com/watch?v=u5WQ0fXJlKQ&t=1924s) Future AI applications will bridge personalized front-end guest concierges—such as predictive VIP travel butlers—with goal-oriented back-office orchestration that autonomously executes multi-channel marketing campaigns.
- [36:35](https://www.youtube.com/watch?v=u5WQ0fXJlKQ&t=2195s) AI replaces blunt, arbitrary 90-to-365-day churn windows by continuously modeling individual patron visit frequencies, enabling real-time intervention before a player actually becomes inactive.
## Detailed walkthrough
### [00:04](https://www.youtube.com/watch?v=u5WQ0fXJlKQ&t=4s) Introductions and Setting the Stage at AI4
Dr. Kasra Ghaharian, Director of Research at the University of Nevada, Las Vegas (UNLV) International Gaming Institute—located just ten minutes east of the Las Vegas Strip—opens the session by welcoming attendees. Reflecting on attending his first AI4 conference at the MGM in 2023, he jokes about the massive growth of the event, recalling how the venue was "bursting at the seams" to the point where an escalator bottleneck caused a scary standstill, prompting organizers to staff the elevators. Ghaharian sets the agenda for the 40-minute panel to discuss the current state of AI across the gambling sector alongside two prominent industry leaders.
The panelists introduce themselves and their operational footprints:
- **Kiran Brahmandam**: Managing Director of Gaming Analytics at Aristocrat. Aristocrat is a global gaming powerhouse known for slot machines (such as the famous *Buffalo* franchise), land-based casino hardware, online gaming, and social gaming. Brahmandam founded Gaming Analytics eight years prior to help casinos transform operations using AI, leading to its recent acquisition by Aristocrat.
- **Earle Hall**: President & CEO of AXES.ai. Based in Las Vegas, Hall serves on blockchain and industry standards committees and helps advise regulators. His company builds a cloud-native, cashless, AI-driven ERP ecosystem designed specifically for land-based gaming environments.
---
[02:55](https://www.youtube.com/watch?v=u5WQ0fXJlKQ&t=175s) Industry Scale, Regulation, and Overcoming Misconceptions
Ghaharian establishes a baseline for an audience accustomed to mainstream tech conferences rather than gaming summits. While outside observers often view gambling through the vintage, unscientific lens of movies like *Casino* or *Ocean's Eleven*—assuming operations run purely on gut intuition—the reality is a massive, highly quantitative sector generating over $700 billion in annual revenue and pacing toward $1 trillion by 2030.
```mermaid
flowchart LR
accTitle: Gambling Industry Scale and Evolution
subgraph MarketTrajectory["Economic Scale"]
direction TB
A["Current Revenue: $700B+"] --> B["Projected by 2030: $1T+"]
end
subgraph Drivers["Core Drivers"]
direction TB
C["High-Volume Behavioral Data"]
D["Stringent Regulatory Oversight"]
E["Public Tax Contributions"]
end
MarketTrajectory --- Drivers
```
When asked about common public misconceptions, both panelists highlight the vast gap between perception and reality:
- **Kiran Brahmandam** notes that outsiders frequently fail to realize how tech-oriented the sector is, nor do they appreciate the immense capital and effort spent on self-regulation and responsible gaming compliance—often exceeding the standards of big tech companies that profit from user "doom scrolling." He also highlights how gaming tax revenues directly fund public schools, infrastructure, and roads across numerous states.
- **Earle Hall** points out that people often mischaracterize gaming as "money laundering and addiction." In reality, it is one of the most heavily regulated sectors in the world, requiring thorough background checks involving personal bank accounts, credit cards, and neighbor interviews. Hall emphasizes that the modern casino floor represents one of the deepest, richest consumer data environments available, where a single guest's journey spans gaming, dining, hotel stays, shows, and entertainment like the Sphere or Cirque du Soleil.
---
[06:26](https://www.youtube.com/watch?v=u5WQ0fXJlKQ&t=386s) The UNLV State of AI in Gaming Report
Ghaharian introduces the core themes of the discussion—data, safety, and customer experience—surveying the audience to gauge the room's composition of casino professionals and software developers. The discussion references the *State of AI in Gaming* report released in April by the UNLV International Gaming Institute in collaboration with KPMG, which Hall praises as "the bible" and one of the most comprehensive cross-sector technology documents available.
The report synthesizes findings from a 100-page benchmarking study surveying more than 80 gaming organizations. To ensure high data integrity, each organization provided a single, unified response directly from top leadership—including CEOs, CTOs, and Chief AI Officers.
---
[08:12](https://www.youtube.com/watch?v=u5WQ0fXJlKQ&t=492s) The Evolution of Casino Data and Overcoming Silos
Ghaharian charts the technological trajectory of casino floors from the mechanical, coin-operated "one-armed bandits" of the late 20th century to the adoption of Ticket-In/Ticket-Out (TITO) systems and computerized Casino Management Systems (CMS) in the 1990s and 2000s. Today, operators sit on massive data troves, but integrating legacy systems remains an active challenge.
```mermaid
flowchart TD
accTitle: Evolution of Casino Floor Architecture
subgraph Past["Mechanical Era (Pre-2000s)"]
M1["Coin Dispensers & Levers"]
M2["Zero Identity Tracking"]
end
subgraph Transition["Digitization (1990s-2000s)"]
T1["TITO (Ticket-In/Ticket-Out)"]
T2["Casino Management Systems (CMS)"]
end
subgraph Present["Omnichannel Era (2020s)"]
P1["Unified Cloud & Cashless ERP"]
P2["Cross-Channel Identity (Floor, Online, Social)"]
end
Past --> Transition --> Present
```
Brahmandam and Hall unpack the structural realities of casino data ecosystems:
- **Legacy Inertia vs. Modern Integration**: Brahmandam explains that the gaming business has historically been so profitable that operators felt little pressure to overhaul functioning 10-to-20-year-old workflows ("the industry makes money despite itself"). Unlike retail sectors operating on razor-thin margins, casinos had the luxury of lagging on tech adoption. However, the last 5 to 7 years forced a dramatic shift as customer touchpoints expanded across land-based slot machines, table games, online gambling, and social apps.
- **Data Hunger and Guest Intent**: Hall highlights that casinos are fundamentally "data hungry." Operators urgently want to understand whether guests are having a fun, safe experience, as gaming is an entertainment expenditure rather than an investment. By 2026, technology allows operators to pierce historical silos across hotel reservations, table games, and food and beverage (F&B) to build holistic player profiles.
---
[13:02](https://www.youtube.com/watch?v=u5WQ0fXJlKQ&t=782s) Front-of-House vs. Back-of-House AI Adoption
The UNLV report revealed a notable disparity in where AI is deployed across gaming enterprises. While AI discussions often focus on personalized front-of-house customer experiences, survey data indicated that adoption is heavily concentrated in back-of-house operations, product development, technology, and cybersecurity, with lower relative activity in direct customer-facing and risk/compliance functions.
```mermaid
flowchart TD
accTitle: Organizational AI Deployment Breakdown
subgraph HighAdoption["Highest AI Activity"]
H1["Product Development & Game Design"]
H2["IT Infrastructure & Cybersecurity"]
H3["Vendor Operational Optimization"]
end
subgraph FloorAdoption["Direct Operator Deployment"]
F1["Predictive Anti-Money Laundering (AML)"]
F2["Real-Time Player Offer Recommendations"]
F3["Slot Machine Floor Optimization & Pricing"]
end
subgraph Emerging["Growth Frontiers"]
E1["Harm Minimization & Responsible Gaming"]
E2["Omnichannel Customer Journey Tracking"]
E3["Agentic AI Workflows"]
end
```
The panel analyzes the reasons behind this deployment pattern:
- **Operator vs. Vendor Perspectives**: Brahmandam clarifies that while software and hardware vendors focus heavily on R&D, security, and internal coding tools, gaming operators are aggressively applying AI directly to floor operations. Gaming Analytics, for example, powers roughly 140 casinos (representing about 15% of the market), leveraging AI to optimize marketing campaigns, determine slot machine purchases and floor placement, adjust pricing, trigger real-time player offers, and detect fraud.
- **Regional Regulatory Priorities**: Hall notes that customer and regulatory priorities vary widely by geography:
- *Australia, the UK, and Singapore*: High demand for predictive harm minimization to detect whether a player is wagering outside their normal comfort zone and entering dangerous territory.
- *Global baseline*: Predictive Anti-Money Laundering (AML), which Hall characterizes as algorithmically straightforward to implement.
- **Understanding Customer Lifetime Value**: Hall and Ghaharian agree that despite massive data assets, the gaming industry historically struggled to model true customer journeys within a single visit and over long-term lifecycles. Operators are now working to close this education gap to build sustained customer engagement similar to mainstream consumer apps like Starbucks or BMW.
---
[18:44](https://www.youtube.com/watch?v=u5WQ0fXJlKQ&t=1124s) The Lag in Agentic AI Adoption
Turning to specific AI subfields examined in the UNLV-KPMG report, Ghaharian notes that the gaming sector visibly lags behind other industries in adopting autonomous "agentic AI" workflows. In response, Brahmandam observes that the industry's cautious posture is typical for early-stage paradigms, noting that enterprise awareness and practical value creation around autonomous AI agents only entered mainstream industry discourse within the prior twelve months.
[19:44](https://www.youtube.com/watch?v=u5WQ0fXJlKQ&t=1184s) The Reality of Enterprise AI vs. Consumer Agents and the High Cost of Error
Kiran Brahmandam highlights the fundamental divide between how individuals consume AI in daily life versus how heavily regulated enterprises must operate. While personal AI agents handle low-stakes tasks—such as summarizing emails, organizing daily schedules, or making a hotel reservation—casinos operate under strict regulatory oversight demanding complete auditability and validation for every decision made. If a casino allocates a $20 million monthly marketing budget and delegates player targeting to an autonomous agent, leadership cannot afford black-box ambiguity. If a campaign fails or misfires, the business must explain precisely what happened; a severe mistake does not just lose revenue, it can cause the casino to lose its gaming license entirely—a risk profile Brahmandam compares directly to the medical industry.
Furthermore, general agentic AI has not yet solved enterprise-specific context. Outside vendors often overlook that enterprise agents require training on organizational data, custom context layers, and querying across knowledge graphs and subgraphs. General tech vendors routinely pitch standard "cost-cutting" value propositions, but this pitch often falls flat in gaming—especially among Tribal casinos and Native Nations whose primary mandate is investing in their community, supporting tribe members, and maintaining jobs rather than slashing payroll. In gaming, accuracy, reliability, and deterministic consistency are paramount: if asked a question, a system must produce the exact same auditable answer every time, or regulators will ban the product.
- **Enterprise deployment barriers**: The requirement for proprietary context layers, structured knowledge graphs, and auditable reasoning paths.
- **Tribal gaming focus**: Business models centered around community reinvestment, tribal member employment, and social stability over simple vendor cost-cutting.
- **Regulatory penalty**: Inconsistent or unverifiable algorithmic decisions can lead directly to license revocation.
---
[22:39](https://www.youtube.com/watch?v=u5WQ0fXJlKQ&t=1359s) UNLV Maturity Index and Why Cautious Adoption Is a Strength
Kasra Ghaharian introduces findings from the UNLV International Gaming Institute’s 2026 State of AI in Gaming Report, noting that the industry maturity index—evaluating organizations across strategy, infrastructure, expertise, and governance—revealed that organizational ambition is significantly outpacing infrastructure, technical expertise, and governance.
Earle Hall responds by citing fresh data from a closed breakfast briefing with AWS: across all industries combined, 85% of agentic AI projects reach the pilot phase, but only 7% ever successfully transition into full production. Hall argues that gaming’s perceived lag behind other sectors is actually a positive indicator of prudence. Because the industry operates with real money on the casino floor, impacts people's livelihoods, and touches player entertainment, operators and state regulators are deliberately cautious. Rather than recklessly experimenting on players, the industry adheres to strict responsible AI and ethical guidelines.
```mermaid
flowchart LR
accTitle: AWS Agentic Project Funnel Across All Industries
A["All Agentic AI Initiatives (100%)"] --> B["Pilot Stage (85%)"]
B --> C["Full Production (7%)"]
```
- **Maturity Index pillars**: Strategy, Infrastructure, Expertise, and Governance.
- **Industry gap**: Strategic ambition currently outstrips operational infrastructure and governance readiness.
- **AWS enterprise benchmark**: Only 7% of agentic AI initiatives across all business sectors reach production, despite 85% entering pilots.
---
[25:22](https://www.youtube.com/watch?v=u5WQ0fXJlKQ&t=1522s) AI Safety, Regulatory Gates, and the Shift Toward Data Governance
Addressing AI safety and alignment, Ghaharian notes that while mainstream tech is grappling with alignment as a new phenomenon, gaming has tackled player safety, anti-money laundering (AML), and fraud detection for decades. UNLV's survey revealed that gaming regulators favor sector-specific, stricter AI rules and express skepticism about vendor self-regulation. Brahmandam defends the tier-one supplier track record, pointing to Aristocrat’s substantial investments in responsible gaming, land-based player education, self-exclusion tools, early problem gambling detection algorithms, and research funding for universities like UNLV. He also challenges regulators to upskill in AI and utilize gaming as a robust test bed for broader enterprise standards.
Hall emphasizes that gaming faces stricter hurdles than even medical technology under FDA certifications. Because licensed companies already build games and treat patrons under rigorous compliance frameworks, AI functions merely as an additional tool within a deeply ingrained compliance culture. The primary frontier in 2026 is no longer just the AI model itself, but data governance: determining data residency, third-party access rights, and data privacy boundaries. Brahmandam clarifies that while slot machine game math and player-facing mechanics undergo rigid certification (such as GLI standards), back-office casino management systems and operational agentic tools enjoy significant leeway for AI-driven innovation.
- **Regulatory scrutiny**: Gaming testing and compliance standards exceed typical industrial and medical technology approval gates.
- **2026 priority shift**: Data ownership, isolation, and access control take precedence over pure model capabilities.
- **Dual operational domains**: High compliance constraints on game-math development vs. flexible innovation in back-office operational systems.
---
[32:04](https://www.youtube.com/watch?v=u5WQ0fXJlKQ&t=1924s) Future Experiences: The Autonomous Vegas VIP Butler vs. Back-Office Orchestration
Looking three to ten years ahead, Hall and Brahmandam share complementary visions for AI's evolution in Las Vegas and the broader casino ecosystem. Hall outlines an end-to-end guest journey: moving away from the vintage era of picking up coupon booklets in yellow cabs, future visitors landing at Harry Reid International Airport—or simply deciding to visit Las Vegas—will be paired with a personalized VIP avatar butler. Powered by predictive LLMs integrating services like OpenTable, Uber, and venue ticketing, this digital butler can dynamically optimize schedules on the fly (e.g., booking an impromptu VIP tour of the Sphere during a two-hour window), a concept currently being explored by UNLV researchers and investment groups like Desert Ford Ventures.
Brahmandam focuses on the transformation of back-office operations. Rather than manually sifting through reports, a casino executive can establish a top-line objective—such as generating an additional 3% in monthly revenue. Agentic AI will evaluate historical floor data, formulate multiple strategic "recipes," allow the executive to fine-tune the parameters ("add their own salt and pepper"), and autonomously execute the strategy with a single click. The system will then orchestrate real-time room bookings, send personalized player text offers, and sync backend loyalty systems automatically.
[36:35](https://www.youtube.com/watch?v=u5WQ0fXJlKQ&t=2195s) Audience Q&A: Dynamic Lifecycle Modeling vs. Arbitrary Churn Windows
During the audience Q&A, an industry attendee asks how AI can be leveraged to reactivate inactive or churned players. Brahmandam explains that the true value of AI lies in early intervention before a customer ever becomes inactive, rather than attempting post-churn reactivation. Traditional casino marketing relies on blunt, static time buckets (classifying players based on arbitrary 90-day, 180-day, or 365-day inactivity windows).
This arbitrary segmentation produces severe marketing inefficiencies:
- **Infrequent regular visitors**: A customer who naturally visits only once a year is misclassified as churned and over-reinvested with excessive, unnecessary marketing offers.
- **High-frequency daily players**: A daily visitor who abruptly stops visiting goes unnoticed for up to 365 days before legacy systems flag them as churned.
Brahmandam concludes that AI fixes player lifecycle management by modeling each patron's unique behavioral frequency, detecting subtle deviations in real time, and triggering precise interventions at the exact moment their behavioral pattern breaks.
## Notable quotes
> [00:04](https://www.youtube.com/watch?v=u5WQ0fXJlKQ&t=4s) bursting at the seams — Dr. Kasra Ghaharian
> [02:55](https://www.youtube.com/watch?v=u5WQ0fXJlKQ&t=175s) money laundering and addiction — Earle Hall
> [32:04](https://www.youtube.com/watch?v=u5WQ0fXJlKQ&t=1924s) add their own salt and pepper — Kiran Brahmandam
## Mentioned
Dr. Kasra Ghaharian, Kiran Brahmandam, Earle Hall, University of Nevada, Las Vegas (UNLV), UNLV International Gaming Institute, Aristocrat, Gaming Analytics, AXES.ai, KPMG, AWS, Desert Ford Ventures, FDA, GLI, OpenTable, Uber, Starbucks, BMW, MGM, State of AI in Gaming Report, Buffalo, Ticket-In/Ticket-Out (TITO), Casino Management Systems (CMS), The Sphere, Cirque du Soleil, Harry Reid International Airport, Las Vegas Strip, Casino, Ocean's Eleven, AI4
## Video description
Kasra Ghaharian - Director of Research, University of Nevada, Las Vegas, International Gaming Institute
Kiran Brahmandam - Managing Director, Gaming Analytics, Aristocrat
Earle Hall - President & CEO, AXES.ai
The gambling industry is at an inflectxion point. In just a few years, AI has shifted from an emerging novelty to operational necessity - powering everything from personalization and game development to compliance and surveillance. But as adoption accelerates, key questions arise: How are organizations deploying AI in practice? Where are the biggest challenges? How can we ensure responsible implementation? And what new AI advancements will drive future innovation?
In this session, we present the results of the UNLV International Gaming Institute’s 2026 State of AI in Gaming Report. Joined by AI leaders from some of the world's premier gambling companies, we will discuss how AI is redefining the industry and helping optimize the modern casino floor.
Industry executives Kiran Brahmandam and Earle Hall, alongside UNLV researcher Dr. Kasra Ghaharian, argue that while the gambling industry commands an expansive quantitative footprint, AI deployment is fundamentally constrained by strict regulatory compliance, deterministic safety requirements, and the existential risk of license revocation. Consequently, gaming organizations prioritize auditable back-of-house automation and behavioral modeling over experimental, black-box autonomous agents.
High-Stakes Regulation and Deep Data Footprints (2:55)
Contrary to vintage cinematic depictions of gut-driven operations, the commercial gambling sector generates over $700 billion annually and is projected to surpass $1 trillion by 2030. Panelists emphasize that the modern gaming floor constitutes an extraordinarily granular consumer data environment covering hotel stays, dining, live entertainment, and gaming transactions. Earle Hall notes that casino oversight involves extensive personal background and financial checks, subjecting operators to regulatory hurdles that he argues exceed medical device certifications under the FDA.
Because non-compliance or unexplainable algorithmic anomalies can result in the immediate forfeiture of gaming licenses, operators cannot risk deploying unvalidated systems. Brahmandam points out that tier-one suppliers invest heavily in self-regulation, early problem gambling detection algorithms, and research partnerships with institutions like UNLV, contrasting this accountability with mainstream tech platforms that monetize unmonitored user engagement.
Legacy Silos and Back-of-House Deployment (13:02)
According to the UNLV-KPMG State of AI in Gaming report—which benchmarked more than 80 gaming organizations—AI adoption is heavily concentrated in back-of-house operations, game design, IT, and cybersecurity rather than customer-facing interfaces. Brahmandam explains that historic profitability previously insulated casino operators from the margin pressures that forced early IT overhauls in retail, allowing 10-to-20-year-old legacy systems to persist. However, expanding customer touchpoints across digital apps and physical properties have recently forced operators to integrate these fragmented data environments.
Regulatory realities further divide deployment strategies. Core game mechanics and slot machine math face rigid certification barriers under technical standards like GLI, restricting front-of-house generative experimentation. In contrast, back-office casino management systems enjoy substantial latitude to implement AI for pricing, floor placement, predictive anti-money laundering (AML), and marketing allocation across roughly 140 properties serviced by Gaming Analytics.
Auditability Hurdles for Autonomous Agentic AI (19:44)
The UNLV maturity index revealed that organizational ambition currently outpaces technical infrastructure, expertise, and governance across the gaming sector, particularly regarding autonomous agentic AI. Brahmandam stresses that while consumer agents perform low-stakes functions like email summarization, a casino delegating a $20 million operational budget to an autonomous agent requires absolute auditability, deterministic consistency, and structured context layers built on proprietary knowledge graphs. General vendor pitches emphasizing payroll reduction also fail within Tribal gaming operations, where mandates prioritize Native community employment and social investment over operational cost-cutting.
Hall argues that the industry's cautious adoption reflects prudent enterprise risk management rather than technological backwardness. Citing cross-industry benchmarking data from an AWS executive briefing, Hall highlights that while 85% of agentic AI initiatives reach the pilot stage, only 7% successfully transition into enterprise production across all commercial sectors.
Dynamic Player Modeling and Automated Orchestration (32:04)
Audience discussion highlighted a major limitation in traditional casino marketing: the reliance on arbitrary 90-, 180-, or 365-day inactivity buckets to classify customer churn. Brahmandam explains that static windows misallocate capital by over-subsidizing infrequent annual visitors while failing to notice abrupt departures by daily players for months. Modern AI addresses this by learning individual visitation frequencies, enabling operators to detect behavioral anomalies and intervene in real time before churn occurs.
Looking three to ten years ahead, the panelists project divergent frontiers for casino AI. Hall anticipates a predictive guest concierge—a personalized VIP avatar butler integrating external services like Uber, OpenTable, and venue ticketing to orchestrate customized trips upon arrival at Harry Reid International Airport. Brahmandam envisions autonomous back-office execution where casino executives define high-level strategic targets, allowing AI agents to generate auditable operational recipes that automatically coordinate hotel bookings, direct marketing offers, and loyalty adjustments under human oversight.
The panel underscores that enterprise AI adoption in gaming hinges on resolving data governance, access boundaries, and auditability rather than advancing model capabilities alone. A primary unresolved challenge remains aligning strategic ambitions with internal technical maturity, as operators seek to harness real-time predictive analytics without breaching strict deterministic compliance mandates.
[0:04] Dr. Kasra Ghaharian: bursting at the seams
[2:55] Earle Hall: money laundering and addiction
[2:55] Kiran Brahmandam: doom scrolling
[6:26] Earle Hall: the bible
[8:12] Kiran Brahmandam: the industry makes money despite itself
[8:12] Earle Hall: data hungry
[19:44] Kiran Brahmandam: cost-cutting
[32:04] Kiran Brahmandam: add their own salt and pepper
Original transcript
[0:04] It's really a pleasure to be here. Um, as
Mercedes introduced me, I am Dr. Kazra Gajarian.
[0:09] I'm director of research at the University of
Nevada, Las Vegas International Gaming Institute,
[0:14] which is literally just 10 minutes east of here.
Uh, you can see it from the strip. In fact,
[0:21] um, it's really great to be back at AI4.
I think I attended my first one in 2023,
[0:27] uh, when it was at the MGM. Uh it appeared to be
bursting at the seams then it's certainly bursting
[0:31] at the seams now. Um I think I was on an escalator
yesterday and I got to the top of the escalator
[0:37] and as we were met by a crowd of people that had
come to a standstill which was quite scary. Um I
[0:42] think they've got people manning the elevators now
which is good. Um but yeah, thank you for joining
[0:49] us today. I know you've got a lot of content to
choose from. Uh so thank you for spending the next
[0:53] 40 minutes with us where we're going to talk about
the state of AI in gambling. Um, and I I'm biased,
[0:59] but I think we have two of probably the best
people in the industry to talk about how AI I
[1:05] think the two is correct. Um, two of the best
people in the industry to talk about how this
[1:11] technology is impacting our sector. Um, and I'll
actually allow you guys to go ahead and introduce
[1:17] yourselves. How about you give me your name,
your role, and in under 60 seconds if possible,
[1:23] Earl? Um, what your company does for the gambling
sector. And how how about how about we start with
[1:27] you Cohen? [clears throat] Can the folks in the
back hear me? Okay. So I'm Kiran Braandum. Uh I
[1:35] am the managing director of gaming analytics at
Aristocrat. For the folks uh who may not know,
[1:40] Aristocrat is a a pretty large, you know, gaming
company that makes, you know, board loads of
[1:45] slot machines for the land-based casinos, online,
social gaming, and so on and so forth. Um buffalo
[1:50] buffalo. [laughter] Yep. Uh and then um prior to
that just a few months before I was actually had
[1:58] my own startup. It was called Gaming Analytics. We
help casinos use AI to transform their operations
[2:04] and we've been you know in the business for about
8 years and then recently acquired by Aristocrat.
[2:09] Yeah. So thank you Karen and hello folks. Hope
you're enjoying the air conditioning. It's a
[2:17] little bit toasty outside. Um, three of us are
from Las Vegas. All three of us are pretty much
[2:24] involved in regulating uh, advising the gaming
industry on all kinds of standards. And the part
[2:32] that my team does is we've built a cloud cashless
and AIdriven ERP to drive landbased gaming. So
[2:42] that's what I do as a day job and I'm involved in
blockchain and other different standard committee
[2:47] at the same time. Great. Thank you. You both kept
to the time which is awesome. Um so I just wanted
[2:55] to start by providing a little bit of a level set.
Um I'm not sure how familiar you are all with the
[3:01] gambling sector. Um you know the the picture
people might have of the gambling sector is is
[3:07] maybe perhaps decades old. You know something from
the movies like Casino, Oceans 11, those types of
[3:14] movies. uh maybe a business that is not really
that scientific, maybe a lot of decisions being
[3:20] made on intuition rather than data and science. Uh
but but the actuality is it's a highly datadriven
[3:27] industry and one that has reached over $700
billion in revenue this year and [snorts] is
[3:33] on track to reach over a trillion uh by 2030. Um
so you know this is a really big opportunity for
[3:40] AI I think. And before we get started, I guess
um Kieran Oh. Um what's the biggest misconception
[3:47] people have when you tell them what you guys do?
Kieran, do you tell people you work in gaming
[3:51] and what do they usually say? Well, you know, we
get a little bit of gaming, right? Uh is that the
[3:58] vertical that you are in? But um in terms of the
uh the misconceptions also, right? uh is it's not
[4:05] necessarily seen as a very tech oriented industry
like based on uh you know what Kasra has uh
[4:12] mentioned in terms of general image of gambling um
and then also you know people don't appreciate how
[4:18] much time effort and money the industry spends on
regulating itself and complying to all the various
[4:25] regulations probably more than you know some of
the big companies that you guys are you know aware
[4:30] of uh in the outside world uh if you're used to
doom scrolling and all of that good stuff, right?
[4:36] So the industry spends a lot of time and effort
on making sure that you know the players not only
[4:40] have a great experience we do it very responsibly
and I don't think that's kind of appreciated
[4:45] generally from the outside world and also the
revenue the industry generates funds you know
[4:50] so many public school initiatives roads and so on
and so forth in in so many states you know right
[4:57] oh anything to add so coming from Quebec Canada
originally um most people think gaming is I don't
[5:07] call it gambling, I call it gaming. Most people
think gaming is money laundering and addiction,
[5:14] which is so not true. We're in one of the most
highly regulated industries in the world. If you
[5:21] want to work in this sector, they grab your bank
accounts. They g grab your Visa cards. They check
[5:27] with all your neighbors to make sure you're an
okay person. We are in an overregulated industry.
[5:34] That's the very first thing. The second thing is
people don't realize that we're in the deepest,
[5:41] richest data consumer experience that exists.
A player walking on a casino floor may be doing
[5:49] 10 things at the same time. They're reserving a
restaurant. They're extending their hotel. They're
[5:56] going out to the sphere. They're going to suck
to so the player that's on the gaming floor is
[6:04] probably one of the most retail datari data points
or avatars that you could ever imagine. And that's
[6:12] the exciting thing about the industry we're in.
The limitations on what you can do to enhance that
[6:19] consumer experience are absolutely limitless.
Great. Fantastic guys and great segue for my
[6:26] next slide. Um so you know Kieran I memorized your
slide Kieran Earl and I you know we're we're very
[6:33] used to speaking at gambling conferences so this
is quite a different audience for us. So you know
[6:37] we spent a bit of time preparing and we wanted
to make sure that um you know the audience today
[6:42] left knowing three key things about the gambling
sector and both Kieran and I have already touched
[6:47] on those three things and here they are. So really
today we want to be talking about data safety um
[6:54] and experience and and just just to get kind of a
pulse for who's in the room like so so does anyone
[7:00] work in the gambling sector in the room? Oh, so
we do have quite a few. So and and who of those
[7:07] um how many of you kind of build technology or
or technical leads building solutions? Okay,
[7:13] great. Okay, so I think we have a nice bit of
content for everyone actually. So this is going
[7:17] to be a great chat for you all. We didn't ask
who gambles, right? We did not. Who gambles? Um,
[7:26] so we're going to be chatting, but we're going to
be having some slides to kind of like uh work off
[7:32] of and we're going to be presenting some data from
a report uh my institute just released earlier
[7:37] this year in April. Uh the state of AI in gaming.
Um these are not my words, but it's been referred
[7:43] to as the bible uh for AI in the gambling sector.
my words because it's one of the best documents
[7:48] I've read in all sectors combined. Well, thank
thank you very much. So, a lot of work went into
[7:54] it. It's a great report. Um, we're going to be
sprinkling out some um data from that report in
[8:00] today's fireside chat, but you can download it.
It's free freely accessible um at this link. Um
[8:06] so, yeah, enjoy reading. It's over 100 pages long.
Um [sighs] okay, so let's start with the first
[8:12] topic of the day, uh data. And um we're going to
be arguing that this might be the richest consumer
[8:17] data set almost nobody um outside this room is
talking about. Um and you know it hasn't always
[8:23] been that way, right? If we look kind of like
pre-200s, you know, late 1900s, uh we had a very
[8:30] kind of mechanical casino floor. Um you know, the
one-armed bandits where you literally had to pull
[8:34] a lever, uh put coins into the machine. Um, in the
2000s and '90s, we started to move towards Tito,
[8:42] casino management systems, maybe digitizing the
casino floor so you can track players. Um, so,
[8:48] so now AI has arrived uh with arguably a
data ready casino floor. Uh, but I'm going
[8:56] to [snorts] stop there. Um, and Kieran, you guys
have kind of lived this arc, so you might be able
[9:00] to speak more granularly about it. Um has this
transition from kind of mechanical to digitization
[9:07] been seamless? Um and is the data really there? Um
even you can start. Okay. I think for me to talk
[9:15] about mechanical to digital it's probably prior
my time but [laughter] uh but um I can tell you
[9:22] that um you know the industry when I came in
had the same problems that any other industry
[9:28] has right data silos and data is across you know
tens of systems if not hundreds of systems right
[9:34] uh and then the casino operators always actually
had a challenge to bring in all this data together
[9:40] and make decisions and and and by the way those
problems are not unique to to this industry it's
[9:45] you know it's the same across the board. Uh
but what happened in terms of the shift in in
[9:51] in trends in the last 5 to seven years is that
more and more operators started thinking about
[9:57] you know how do we actually leverage this data
to act either make more money or improve their
[10:02] player experience and one of the things you guys
have to know right we in a very unique industry
[10:07] uh and there are good and bad with this industry
the good is casinos make a lot of money right the
[10:12] bad is casinos make a lot of money so when you're
making a lot of money why should I change? Why
[10:18] should I still, you know, whatever processes I've
been using for the last 10, 15, 20 years that made
[10:22] us so much revenue, why should I change, right?
Uh whereas in the outside world, you kind of
[10:28] squeeze for, you know, every penny, especially
on the retail side, right? This industry has a
[10:32] luxury of letting technology pass by for a few
years and then catch up, you know, after that,
[10:38] right? So it's it's okay to be slightly behind but
that mental shift I've seen in the last you know 5
[10:44] to seven years where more and more um the way the
casinos connect with the player is not just at the
[10:51] slot machine or at the tables it's it has become
online it has become social. So your player is in
[10:56] so many different channels. So the need to connect
all of this data to create a much more enhanced
[11:03] experience has significantly changed in the last
four or five years and generally the industry is
[11:07] very excited about see uh to see what this agentic
AI and all the future is going to bring. Yeah,
[11:13] I I think a old professor of mine used to say uh
the industry makes money despite itself. But yeah,
[11:20] anything to add there? So, probably the first
thing that most people don't realize about the
[11:26] gaming industry is we're data hungry. Who's
on the casino floor? What are they doing? Are
[11:35] they happy? Are they safe? Do they need to be
protected? Our industry is hardcoded with an
[11:42] ethics of making sure that they're checking on
people to be safe and then they're trying to
[11:49] make sure they're having a fun experience. You
don't go to a casino to make money. You go to
[11:56] have an experience like you go to a restaurant
or anything else. If you come out with money,
[12:02] if you're one out of a million people that come
out with money, well, good on you. So the thing is
[12:08] is we're in a data hungry industry. So is the data
there? In 2026, we can say the data is definitely
[12:18] there because even though there's silos in food
and beverage, there's silos in hotels, there
[12:24] might be silos in table games, there is a way to
go find and get that data out because everybody is
[12:31] hungry to know who the player is and how are they
doing. So that's one of the exciting things about
[12:39] our industry. You could look in transportation and
pharmaceuticals and things like that. But the fact
[12:45] that we're hungry for data, the fact that there
is so much regulation around anti-money laundering
[12:51] and responsible gaming, we are genetically a data
hungering industry. Perfect. So we've kind of set
[13:02] this stage where the data is. Sorry, hold on. My
slides isn't going. There we go. Okay. So, we said
[13:07] the data is ready and of course, you know, we all
know by now uh so if we want to leverage AI, yeah,
[13:13] it might be a bit small. Sorry about that. But, um
do the same thing. To leverage AI, we need data,
[13:18] right? That's fine. Um so, we asked this in our
report. So, we surveyed over 80 companies um about
[13:26] their AI adoption and their AI use cases. Uh this
was a one response per organization survey. So,
[13:31] we had really high quality data. you know these
surveys were answered by CEOs, chief AI officers,
[13:37] CTO's uh those kind of levels of individuals.
So the the data this uh report represents is
[13:42] quite robust. Um so so we mapped use cases across
these 80 different companies. Um and what we found
[13:48] was actually quite interesting. It wasn't kind
of this customer experience that uh Kieran and
[13:53] have described. We we found heavy use cases and
activity uh in kind of back of house functions,
[13:59] technology and security, product development and
innovation. Um we actually found less activity in
[14:04] kind of customerf facing functions and then you
know the least activity was kind of in these risk
[14:10] and compliance functions. Um so guys looking at
this and and what I just said is a key takeaway
[14:15] in that AI seems to be being leveraged more at
the back of house rather than the front of house.
[14:21] um is that what you guys are seeing and and
maybe could you explain that disparity? Yeah,
[14:25] I think it depends on you know the the the the
percentage of the the the type of people that
[14:32] actually answered the research paper. So if you
have asked the question to most of the vendors
[14:37] right that providing software hardware to the
casino industry yes they are spending a lot of
[14:42] their time on technology software development
security and so on and so forth right but if
[14:47] you actually go look at how operators use the
technology right they themselves may not be
[14:53] using AI the way we wanted to use to manage their
back office operations but to manage their casino
[14:59] floors right they've been doing a pretty decent
job in the last four five here. So for you know
[15:04] I can speak from my experiences. So uh when
you know we started the company and we started
[15:09] helping casinos change the way how they make their
decisions um uh and we are about 140 casinos which
[15:16] is call it 15% of the market or whatever right
so that's a pretty significant chunk in terms of
[15:23] market adoption that's leveraging AI to say how
do I change my marketing campaigns what kind of
[15:28] slot machines do I buy where do I place them how
do I price them how can I do real time you know
[15:33] offer recommendation to the players how can I
detect fraud odd, right? So, those are all the
[15:38] things that um that the vendors, sorry, the casino
operators are using products from companies like
[15:44] us. But if you if you ask a question saying how
are you using AI in your back office, the answer
[15:50] is probably going to be not much yet, right?
So, that's where the discrepancy comes from. So,
[15:56] of course, the question the the answer has to be
regional. The questions we're getting asked in
[16:03] Australia are different than Singapore because the
different cultures have different preoccupations.
[16:09] The number one thing we always get asked if
we can do is predictive anti-money laundering,
[16:16] which is one of the easiest things you could
ever do from an algorithmic point of view.
[16:21] Second of all, jurisdictions like in Australia,
like in the UK, Singapore, they're all getting
[16:27] very excited about the fact that you can use
more and more data to predict if somebody is
[16:35] trending towards a dangerous experience where
they're hurting themselves by spending outside
[16:42] of their window of comfort. But really, the
most thing we get asked is, who's our player?
[16:50] Who's that person out on the floor? When do they
come? Why do they come? How long do they stay? Why
[16:57] are they stay? Why did they just get up and leave?
So like every other retail world experience,
[17:05] the number one question we get asked every day
is how do we ask these questions to the system?
[17:12] Because at the end of the day, the more you know
your customer, the cheaper it costs to cater to
[17:18] to their specific needs and the better they're
entertained and the safer they are. Just to bounce
[17:25] off of that, uh, you know, some people have told
me this is the only industry that doesn't really
[17:31] know how to value their customers. Would you
agree with that statement based on, you know,
[17:36] like theory? 100%. 100% because there's there's
something we have in player theory called customer
[17:44] journey and even though there's some amazing
solutions out there between the solution and a
[17:53] lot of the clients there's still an education gap
of them learning what a player's journey is inside
[18:00] of a session inside of a visit and over time so
I think that's one of the exciting things that
[18:08] our industry is starting to embrace now is how
do I engage a long-term relationship with that
[18:14] person and I think we're in the right time in the
consumer world for that because whether it's the
[18:21] Starbucks app whether it's the BMW app everybody
right now from a retail experience is asking that
[18:28] same question I think the exciting differentiation
in the gaming industry is the amount of data
[18:36] we have to create a deeper and a more engaging
experience. Perfect. Thank you. Um, moving on, we
[18:44] asked another question to our 80 or so companies.
We we kind of wanted to drill into kind of what AI
[18:50] exactly is being leveraged by these companies and
uh we had various options. Um, I think the most
[18:55] you know striking striking result here from our
perspective was the lack of adoption of agentic
[19:01] AI. Um and you know if you've been here at the
conference there's a number of sessions on aentic
[19:07] AI um and you know we did this report with KPMG so
we were able to benchmark kind of these industry
[19:13] results against other industries and sectors and
we do in fact see that the gaming industry appears
[19:18] to be lagging behind in terms of their adoption
of aentic systems. Uh Kieran I'll start with you.
[19:24] Do do you have any idea as to why uh there might
be this slow adoption of agentic systems? Well,
[19:32] you know, uh if you just talk I think the whole
word agentic AI and the and and the hype and
[19:38] the value creation about that probably started
just a few months ago, maybe a year ago, right?
[19:44] But leaving that aside, see the way we consume
AI in our daily lives is very different than
[19:52] the way businesses consume AI, right? So if I
have an agent that goes and you know looks at
[19:58] all my emails, gives me what I'm supposed to
do for the day or makes a hotel reservation,
[20:02] those are all simple things. But when you come to
the casino world where it's highly regulated and
[20:09] there is a very uh high need for validating and
auditing everything every decision that was taken.
[20:17] These systems are not there yet to help casinos
make those complex decisions. So for example,
[20:21] I want to spend $20 million in my marketing budget
this month. You know what campaign should I run?
[20:27] You know, could I just have an agent go figure
out what players need to get an offer and make
[20:31] it happen? And if it works, great. But if it
doesn't, you know, do we have the intelligence
[20:35] to actually be able to explain what happened
and would I want to take that risk? So the scale
[20:39] of the problems are extremely different in our
industry because when you make certain mistakes,
[20:45] your gaming license could be cancelled. Right?
So the cost of a mistake is very high in this
[20:50] industry. Very similar to the cost of a mistake
is very high in the medical industry. Right? So
[20:56] that is why and and I've seen in this conference
that people have not fully solved using agents
[21:02] to solve problems because they're like oh by the
way these agents are not trained on your your your
[21:07] organizational data you need to have your own
context layer and by the way you have to have
[21:11] all of that in a knowledge graph and have queries
go through subgraphs. So the the world is still
[21:15] trying to figure out how to solve these problems.
Whereas you know the things that most of us use
[21:21] for agents in our daily lives they save time but
they're not making consequential decisions right
[21:27] so that's the gap I think the tech has to evolve a
little bit more um uh while the world is figuring
[21:32] those problems out anybody who wants to actually
come into this industry right uh some of the
[21:38] vendors that are out there just know that you know
uh in every other industry yes I can save cost
[21:45] you know you can sell your solutions that way but
But in our industry, it's a little bit different.
[21:49] You know, casinos make good money. And a lot of
tribal casinos, right, the native nations, their
[21:54] focus is just not cost cutting because they want
to make sure they invest in their people, they
[21:58] invest in the tribe members, they all have jobs.
So the standard pitch that you that you that you
[22:04] give for a typical business is very different and
may not fly in the gaming industry. And accuracy,
[22:09] reliability, and auditability is extremely
important. And if I ask the question, I need to
[22:14] get the same answer every single time. Otherwise
your products will be canned by the regulators and
[22:19] you're out of the industry. Right. So so it's
a different scale of the problem that we are
[22:23] dealing with. I don't mean by scale in terms of
mass amounts of data and billions of transactions
[22:28] but the cost of a mistake. Right. Yeah. It's a
highly scrutinized industry. We've got regulations
[22:34] in place. So maybe there's hesitancy driving
that. I guess some um you know some data from
[22:39] our survey that could maybe help uncover some more
reasons. um we kind of created this maturity index
[22:46] for the industry as we called it. Um so we scored
every organization on four different pillars um
[22:53] strategy, infrastructure, expertise and governance
and and kind of the headline finding was that you
[23:00] know ambition is kind of outpacing everything
else. Um infrastructure expertise and governance
[23:05] in particular is lagging behind strategy. Um, oh,
so you know, kind of related to what I just asked
[23:11] Kieran, um, but also is this a bad thing? Do you
think the gaming industry is lagging behind other
[23:18] sectors? Um, do you think they need to catch
up on things like infrastructure, expertise,
[23:23] governance? Um, is this similar to other
sectors? So, my answer is going to be based
[23:29] on fresh information this morning from a closed
meeting that we had with AWS. They had a they had
[23:35] a really good event this morning at breakfast and
they're saying all industries combined only 7% of
[23:45] agentic projects ever make it into production. 85%
make it to a pilot but only 7% actually make it
[23:56] into production. Now to reinforce the point that
was just made, we are in a highly regulated and
[24:06] self-regulated industry. And when you go to one
of our industry conferences and you have a casino
[24:12] that wants to do an agentic project and they go
to the regulators or the state body and they say,
[24:18] "We're thinking about doing this. Why do you
think about this?" And everybody just looks at
[24:22] each other and goes, "We don't know." Because this
is new. We play with real money on the floor. We
[24:30] play with people's livelihoods. We play with their
entertainment. So the amount that we're careful is
[24:38] more than the normal than you would find in other
segments. So we're cautious as an industry. We
[24:46] innovate, but we take our time to do it right. And
I think that's where you look at responsible AI.
[24:54] That's where you look at ethics. We are very
in our industry. I'm on a couple of different
[25:00] associations. We take our time to make sure that
we're not experimenting with our players. So,
[25:09] if we say we're lagging behind other segments, I'd
absolutely say that's a good thing. Okay. Kevin,
[25:18] anything to add there? No, you're good. Okay,
we can move on. I think that was good. Um,
[25:22] so let's move on to our next kind of topic. We
said we're going to talk about three things. Um so
[25:28] the second thing we want to talk about is safety.
Um I think this is quite timely actually. You know
[25:34] there's lots of sessions at this conference about
AI safety, AI alignment. Certainly, you know,
[25:40] AI is having to tackle this head on. Uh the
gambling industry, you know, we can say that it's
[25:45] had to tackle this for decades since its inception
perhaps. Um, we've always been highly scrutinized
[25:51] uh for things like fraud, anti-money laundering,
uh, being able to protect players from addiction
[25:56] and that kind of thing. So, you know, this is
an industry that really has to prove it. Um,
[26:03] so I'm really having trouble with this clicker.
Um, so in terms of AI safety in particular, um, we
[26:09] actually surveyed some regulators as well as part
of our report and we asked them various different
[26:14] questions. Um what was interesting is that on the
whole regulators kind of agree that there needs to
[26:20] be some AI specific regulations for the gambling
sector. Um and they even think they might need to
[26:25] be stricter than broader AI regulations. Um they
also don't have high confidence in the industry,
[26:33] the operators, the suppliers being able to
self-regulate. Um Kieran, what do you think
[26:39] of that? Do do you think that's uh reasonable uh
for the regulators to have that perspective or do
[26:44] you think the industry can uh provide some good
self-regulation? Interesting question. Uh because
[26:51] there's so many vendors in this industry. I can
speak for you know what Aristocrat does right.
[26:55] I mean uh responsible gaming is one of their you
know core pillars and core part of their strategy.
[27:01] uh and uh they spend a lot of time educating the
players on the land-based side, self-exclusions
[27:07] tools, you know, early detection of a player that
is likely to become, you know, likely to have a
[27:12] gambling problem. So, Aristocrat as a company, you
know, spends a lot of money and also, you know,
[27:16] it funds UNLV and a bunch of universities to
actually do research on what's happening. Um I
[27:23] don't have metrics on what other companies do but
generally speaking you know we've been reasonably
[27:30] good in terms of self-regulating uh now if the if
the if the regulators think you know the vendors
[27:36] you know are not well equipped you know I give it
to them but I I would say you know from aristocrat
[27:42] perspective it's it's pretty heaven and the other
thing I would also put it back on the regulators
[27:46] is that you know they also have to actually get a
lot more educated on AI and they should actually
[27:51] be doing these sessions on how AI should be safely
implemented and use gaming industry as a test bed
[27:58] for the rest of the world also. And so yeah,
do do you guys think there's something for AI
[28:03] as a whole to learn from the the gambling sector?
You know, if there's a new game or a new product,
[28:08] um there's various different gates that a company
has to get through to get that to the casino
[28:14] floor. Whereas, you know, even in the keynote
this morning, Fay and and Jeffrey were talking
[28:20] about how there might need to be regulation um
for for model releases, but there really isn't
[28:25] any. I don't think Anthropic and Open AI can
kind of just release a model if they want to.
[28:30] They don't have to get approval from anyone.
Um so, so could general AI have something to
[28:36] learn from how the gaming industry works in terms
of its licensing, you know, GLI certification,
[28:41] that kind of thing? Oh, do you want to maybe add
to that? So, it it's natural for us being in the
[28:48] gaming industry to speak about how we're regulated
because we're way more regulated than most other
[28:54] industries. Even if you look at like medtech
and the FDA certification, I would say clearly
[29:03] the gaming industry has much more regulation
than that. So, can we self-regulate? Well,
[29:12] in our industry, the companies that are regulated
are following the strictest guidelines already,
[29:19] which means if they're implementing AI solutions,
they are already implementing AI solutions inside
[29:27] of their regulations of how they treat
their players, how they build their games,
[29:33] how do they play games, how do they treat their
employees. So the regulations are so strict that
[29:39] in my opinion AI is just another tool like the
others as part of the regulation culture if that
[29:47] makes sense. Where our gaming industry is now
trying to wrap our heads around a new subject is
[29:57] where's the data? Where's it going? Who's allowed
to see the data? Who's not allowed to see it? Do
[30:03] any third parties have any access to this data? So
the really cool discussion that's emerging in 2026
[30:11] is not really the AI discussion. It's the data
discussion. And that's really the core discussion
[30:18] that needs to be had more than AI in our industry
because of the fact that I think we're so more
[30:25] advanced than other segments when it comes to how
we regulate everything we do. Kieran, do you think
[30:33] it's a stifling of innovation? Like, you know, as
I said, Open AI, Anthropic, they they seem to have
[30:39] free reign. They're like not really regulated,
whereas you you you operate in a heavily regulated
[30:44] industry. Do does do you feel it stifles your
ability to innovate? [clears throat] With the
[30:50] realm in which I play, uh, in terms of optimizing
casino operations and all, no. But in the realm
[30:57] of making games right uh obviously there are
lots of you know rules and regulations to make
[31:04] sure you know we follow the responsible gaming you
know the principles on the game side yes I'm sure
[31:10] you know everybody fights for you know slightly
lower regulations uh but on the system side which
[31:16] is managing all the back office operations uh we
are able to you know innovate a lot more on the AI
[31:23] side uh even building you know deploying some of
our you know agentic solutions um to solve some of
[31:29] to to answer some of the strategic questions that
an executive may have. I don't see that much but
[31:35] definitely on building the actual slot machine in
the game right now that also you know makes it a
[31:42] little bit difficult for anybody to just come into
the industry because you know uh there are pros
[31:46] and cons of regulations guys you know so perfect
so I went on a bit of a tangent there that was
[31:52] unprepared but you guys handled it uh really well
um I want to leave some time for questions to see
[31:56] if anyone has any but um we'll quickly go over our
last um topic for the day um which is experience.
[32:04] Um, so really I I don't really have much to say
here, so I was just kind of going to tear it up
[32:09] for you guys in terms of like what does the casino
floor or the gaming industry in general look like
[32:15] 3, five, 10 years from now? You know, oh, let's
start with you. I land at Harry Reid airport.
[32:22] What's my experience? So folks, this is where
it gets exciting because can you imagine you're
[32:28] landing in the universe capital of entertainment
called Las Vegas. So there's absolutely an
[32:37] infinity of things you can do in this town.
So where our industry is going to and the
[32:44] Las Vegas tourist agencies and everybody else is
wrapping their head around how do we cater to all
[32:51] of the millions of people that are coming here as
individuals. So it shouldn't be even when you land
[32:58] here because if you remember the good old days
before co you get in the yellow taxi you'd get the
[33:03] little booklet with the coupons and then you'd
figure out your own journey through the town.
[33:09] But as soon as you decide to go to Las Vegas,
you should be assigned your own personal avatar
[33:17] VIP butler. And this VIP butler can do anything
for you. This is not uh futuristic. This is what
[33:26] the students at NL UNLV, our university here in
town, this is what they're talking about today.
[33:33] So you can say, I've got two hours to kill. What
should I do? Oh, would you like me to book you
[33:38] a VIP walkthrough of the sphere? So, the thing is
is as this town captures the data spirit of being
[33:49] the center point of the customer experience, what
we'll be doing in this town over the next three
[33:56] years is limitless because once the avatar becomes
the lead on your experience, there is no limit.
[34:05] Just look what OpenTable has done to trying to
figure out how to reserve a restaurant or Uber has
[34:12] done. Can you imagine pooling all of that inside
of one deep LLM experience of question and answer
[34:20] and trying to figure out how to make sure you have
more fun that is happening right now. Like Desert
[34:26] Ford Ventures has a project up and coming here
in town. This town is geared to entertainment and
[34:33] it's coming to predictive LLMs real real soon.
Great. Great. So, so that was like kind of the
[34:40] destination perspective I'd say. Kieran, maybe
could you speak to like the you know we walk
[34:45] into the casino maybe what what do you envision?
Maybe it could be from a business or customer. I
[34:50] think you know I I focus a little bit more on
you know experience from the operations side
[34:55] right on the back office side because we focus
so much on the players but not actually people
[35:00] who make decisions on how the players experience
should be. Um so that's where generally you know
[35:05] my focus is and what we envision you know how
casino operations run in the future and for that
[35:11] matter any business hopefully right is you know an
executive saying can I get an extra 3% revenue you
[35:17] know this month and then we have AI and all these
agentic solutions you know figuring out recipes
[35:23] that we can actually recommend to that executive
and the executive can actually add their own salt
[35:28] and pepper to each of these recipes adjust it and
push a button and then through technology ology
[35:33] you know offers are sent various integrations
are happening a text message comes to the player
[35:38] hotel reservations are made so that is where you
know I think you know the world is going to go in
[35:44] our industry where operators are going to define
business goals and software is going to execute
[35:49] it and that kind of tech probably is pretty
relevant to the rest of the world also right
[35:53] that completely changes how you run your business
great no thank you guys um so we finished with a
[35:59] couple of minutes so I think we do have time for
some questions I'll just put our um LinkedIn links
[36:04] up there. So, if you want to connect with any
of us, you certainly can and I'm sure we'll be
[36:08] happy to talk to you afterwards. Uh but thank you
all for joining today. Um you know, we are in the
[36:13] entertainment capital of the world, maybe the
G definitely the gaming and gambling capital of
[36:18] the world, yet we're heavily underrepresented at
this conference. I think we are actually the only
[36:22] gambling related content at the conference. So,
thank you all for joining today and uh if you'd
[36:27] like to give Kieran and L a round of applause
and we'll take any questions you might have.
[36:35] So the question is how do you leverage AI to
reactivate you know an inactive player? I think
[36:41] the first step is trying to make sure they don't
become inactive right. Uh so so one of the are you
[36:47] from the industry sir? Okay. Uh so now this feels
like I'm a traditional gaming conference because
[36:53] we're always struggling. What do we talk to this
audience who are generally not involved with
[36:57] the industry? So typically what happens in most
casinos is the way you define whether a player is
[37:02] active or high-risk or churned or past you is rest
of the guys you know this is how it is based on
[37:10] fixed time periods meaning if I have a player that
comes to my casino in the last 90 days for example
[37:16] they're active if I have a player that I don't
see them for 365 days or whatever these fixed time
[37:21] periods are right so the way the life cycle is
classified in this industry is defined by standard
[37:26] fixed time periods Right? So, we're taking a
bunch of players and ignoring their individual
[37:31] patterns and putting them in this huge basket
or bucket and then reacting to them, you know,
[37:35] and and sending them off or securely. So, for
example, if your definition of inactive is players
[37:40] who don't show up in 365 days or 180 days, what
if I'm a player that only comes every year? So,
[37:46] technically, as far as I'm concerned, I'm not
inactive, right? I'm still an active player.
[37:50] Today the way decisions are made in the marketing
side is I get reinvested a lot more than I should.
[37:57] Whereas if a player that comes every day stops
coming, you're still waiting 365 days to figure
[38:01] out that they're inactive. Right? So the fixing
the life cycle by understanding every player's,
[38:07] you know, patterns and then leveraging AI
to figure out a change in behavior and and
[38:13] reacting at that particular point is the way you
fix it, right? So okay. Uh thank you again guys.
[38:19] Appreciate it. Thank you. All right, let's give
the panel another round of applause. Thank you.