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A new study looking at AI large language models (LLM) and gambling suggests that the models show the same unhealthy patterns people do, like loss chasing and the illusion of control.
The research has been carried out by Seungpil Lee, Donghyeon Shin, Yunjeong Lee and Sundong Kim, with the aim of identifying the specific conditions under which LLMs exhibit human-like gambling addiction patterns.

oh hell yeah pic.twitter.com/ZsA6wQJ5e4
— tyson brody (@tysonbrody) October 10, 2025

Large language models are artificial intelligence systems, with ChatGPT, Google’s Gemini and Claude all being examples of these language models.
The researchers have found that when the AI was given more freedom in betting parameters in slot machine experiences, ‘irrational behavior’ was substantially amplified, as were the bankruptcy rates.
“Neural circuit analysis using a Sparse Autoencoder confirmed that model behavior is controlled by abstract decision-making features related to risk, not merely by prompts. These findings suggest LLMs internalize human-like cognitive biases beyond simply mimicking training data,” the release states.
How was the AI LLM gambling study conducted?
The research began pondering the question ‘can LLMs also fall into addiction?’ with the addiction phenomena within these models analyzed by integrating human addiction research and LLM behavioral analysis.
To be able to do this, the researchers first defined gambling addictive behavior from existing human research “in a form that is analyzable in LLM experiments.” Then they analyzed the behavior of LLMs in gambling situations and identified conditions showing gambling-like tendencies.
Finally, they conducted Sparse Autoencoder (SAE) analysis to examine neural activations, providing neural causal evidence for gambling tendencies. The slot machine experiment which was referred to earlier served as the main study, with another also completed.
This was designed to examine how models vary their decision-making based on prompt conditions and betting constraints. “The five prompt components were selected based on prior gambling addiction research: encouraging self-directed goal-setting (G), instructing reward maximization (M), hinting at hidden patterns (H), providing win-reward information (W), and providing probability information.”
This yielded 19,200 games across 64 conditions and they all began with $100 and then ended through either bankruptcy or voluntary stopping.
Featured Image: AI-generated via Ideogram
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Australia’s communications regulator, the Australian Communications and Media Authority (ACMA), has reaffirmed its firm stance on gambling regulation and recent enforcement actions.
Public scrutiny of the ACMA arose after it emerged that Sportsbet challenged a 2022 enforcement decision and reportedly lobbied the regulator to change the wording of a public announcement about the case.
As ReadWrite previously reported, documents released under freedom-of-information laws showed the ACMA came under pressure to defend its 2022 enforcement outcome against the betting operator publicly.
ACMA rejects claims of weakened enforcement
The ACMA has defended the decision, which resulted in a record AUD 2.5 million ($1.7 million) fine after finding Sportsbet had sent marketing texts and emails to tens of thousands of people who had already attempted to unsubscribe, breaching Australia’s spam communications regulations.
ReadWrite contacted the ACMA for comment following the criticism. The regulator rejected any suggestion that its enforcement action had been diminished or that it had failed to hold Sportsbet to account for the breach.
The ACMA said its compliance and enforcement activities are designed to stop unlawful conduct, deter future breaches, and protect consumers from harm.
“In our spam prevention activities alone, in 2024-25 the ACMA issued infringement notices to companies totalling more than $13.5 million,” the regulator said.
That figure includes a AUD 7.5 million ($5 million) penalty imposed on the Commonwealth Bank of Australia (CBA), alongside a court-enforceable undertaking for millions of similar spam email breaches.

Commonwealth Bank has paid a $7.5 million penalty after it sent more than 170 million marketing emails that didn’t comply with Australia’s spam laws.
Read more: https://t.co/STS03y0uEQ pic.twitter.com/cyVPwzVwAX
— ACMA (@acmadotgov) October 16, 2024

However, the Commonwealth Bank decision has itself come under increasing public scrutiny after an ABC report revealed senior bank figures had lobbied the ACMA to delay announcing the enforcement action until a day after the bank’s annual general meeting.
Former Supreme Court judge Anthony Whealy, now chair of the Centre for Public Integrity, said the decision to delay publication was “quite wrong.”
Shareholders and market analysts have also questioned the ACMA’s decision to accommodate the bank’s request. “It illustrates the bank’s control over the regulator,” AGM attendee Michael Sanderson told ABC.
Sportsbet and CBA cases probe ACMA decision-making
Addressing the Sportsbet matter directly, the ACMA said revisions to the media release “in no way changed the outcome of the investigation and the enforcement action,” adding that “the ACMA will continue to take strong, proportionate action to ensure companies meet their legal obligations.”
In closing, the regulator told ReadWrite: “The primary objectives behind the ACMA’s publication of its enforcement outcomes are to inform and educate members of the regulated community about the standards required by law and to serve as a general deterrence to the relevant regulated sector.”
The broadcaster and key decision makers down under have questioned whether those actions have been proportionate in practice, with Whealy stating that the Commonwealth Bank delay “strikes me as one more instance of the regulator trying to appease the people they’re regulating and to suit their convenience, and that’s wrong, completely wrong.”
ReadWrite has reached out to the ACMA again for further clarification.
Featured image: Sportsbet
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The sports betting solutions company Kambi Group has announced a multi-year partnership with Pickwin as it’ll expand its presence in Mexico.
Kambi will provide solutions to the sports betting operator, with Pickwin replacing its third-party sportsbook provider with products from the Kambi Group.
The company, which was founded in 2010, also works with other sports betting operators with partners like Bally’s, Leo Vegas, BetPlay, ATG, LiveScoreGroup, Rush Street Interactive, and more. They work with over 50 operators in more than 60 jurisdictions globally.

Kambi is pleased to announce a long-term online sportsbook partnership with Pickwin, which officially went live with Kambi’s market-leading Turnkey Sportsbook today (1 January).
One of Mexico’s fastest-growing online sports betting operators, Pickwin selected Kambi to replace… pic.twitter.com/2xhlTqeCGT
— Kambi (@KambiSports) January 1, 2026

This will include the Bet Builder, trading capabilities, and regulatory compliance expertise too. There will also be shared margin-driving insights provided from Kambi’s global partner network, with the aim being for this to allow for superior pricing and risk management through the bets processed by the company annually.
Werner Becher, Kambi Group CEO, said in a press release: “We are excited to partner with Pickwin and support their vision in delivering world-class sports betting experiences throughout Mexico. Our proven track record in Latin America, combined with our deep understanding of regulatory frameworks, makes this the ideal partnership to support sustainable growth.”
Kambi Group and Pickwin partnership will launch ‘imminently’
The duo will begin to launch ‘imminently,’ with the partnership said to be strengthening the sports betting solutions company’s footprint in the North American country.
Diego Sanchez, Pickwin, Co-founder and CEO: “Partnering with Kambi marks a pivotal moment for Pickwin as we continue our rapid growth in Mexico’s thriving sports betting market. Kambi’s reputation in the region gives us the confidence to deliver a premium experience to our players and we are excited about the opportunities this collaboration will present.”
The announcement comes just over a month after Kambi announced an extension with PENN Entertainment, with the terms of the agreement pushed further to 31 July 2027. Previously, the agreement was set to expire on 31 December 2025. The company supports 30 PENN properties across 13 US states.
Featured Image: Via Kambi Group
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