AI chatbots funnel users to unlicensed gambling sites, sparking regulatory alarm
AI chatbots are directing users to unlicensed online gambling sites, raising concerns among regulators and harm prevention groups. An investigation by Investigate Europe found that popular chatbots from OpenAI, Google, and Meta Platforms frequently suggested offshore casinos when asked about online betting options.
Many of these sites operate without proper licensing in the EU or Switzerland, with some even appearing on official blacklists maintained by European authorities.
The investigation revealed that chatbots often promoted offshore gambling platforms by emphasising fast withdrawals, minimal identity checks, and financial incentives. They also recommended cryptocurrency-based casinos, presenting them as alternatives with fewer regulatory hurdles.
The responses frequently relied on marketing material from unlicensed operators and affiliate websites. Experts describe the issue as a 'routing problem,' where users are steered toward services outside established consumer protection frameworks. Tiemo Wölken, a member of the European Parliament, noted that while AI chatbots act as advanced search tools, they lack the safeguards found in traditional search engines. Policymakers worry that these systems may amplify promotional content from unregulated gambling operators, increasing risks for users. The European Union's Digital Services Act could eventually apply to generative AI tools as they become more embedded in everyday digital services. However, current regulations do not fully address the risks posed by chatbots recommending unlicensed gambling sites.
The findings highlight gaps in oversight as AI systems increasingly guide users toward potentially harmful services. None of the offshore casinos suggested by chatbots in the tested responses held valid EU or Swiss licenses. Regulators may need to reassess how generative AI tools interact with high-risk industries like online gambling.
