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Sports wagering is currently legal or poised to go legal in about 29 states across the U.S. Maine and Florida represent the two most recent states to permit sports betting.

The growth of sports gambling was sparked by the Supreme Court's decision to strike down the Professional and Amateur Sports Protection Act in 2018. The ruling effectively allowed states to decide whether sports wagering would be legal within their respective borders. North Carolina recently passed legislation which paves the way for online betting to eventually become legal in the state.

Super Bowl LVI drew approximately $8 billion worth of wagers, but February's big game between the Philadelphia Eagles and Kansas City Chiefs surpassed last year's betting totals. As legal sports gambling continues to spread across the country, generative artificial intelligence (AI) is introducing algorithm-driven personalization to betting platforms.

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Ocean Casino Resort

A customer makes a sports bet at the Ocean Casino Resort in Atlantic City, New Jersey, on Sept. 6, 2022. (AP Photo/Wayne Parry)

The AI-powered technologies have opened the door for a whole new experience for those who decide to partake in sports betting. Machine learning algorithms can be leverage to allow various sportsbooks to analyze a given bettor's patterns and interests to show them personalized recommendations. As a result, users are given a variety of new tools that they otherwise would not have without the technology.

"AI will allow for increasingly personal experiences for sports bettors, and customize quests for users, building upon the type of quests they tend to accept and complete," Dan Taren, founder of sports betting platform Scrimmage, told Boardroom.

"This is powerful for operators we integrate with to help their users make their betting experience feel personalized to them."

WHAT IS ARTIFICIAL INTELLIGENCE (AI)?

AI-powered algorithms have the ability to analyze a live sporting event in real-time and quickly adjust in order to give bettors the most up-to-date and dynamic experience possible. Oftentimes, traditional methods do not always necessarily provide bettors with the opportunity to place wagers on specific outcomes as the game unfolds.

SharpLink Gaming is a start-up company that focuses on creating tech solutions for betting, especially internet-based wagering. The firm is also working on a tool called BetSense. 

Internet sports gambling app on a phone

The online gambling website Bet365 is displayed on a smartphone. (PAUL ELLIS/AFP via Getty Images)

The goal of the recommendation engine is to leverage machine learning in an effort to customize sports betting experiences. The foundation of the tailored experience will also be built from an individual's patterns and interests.

"When you hear about AI being applied to sports, everyone agrees sports is behind," SharpLink co-founder and CEO Rob Phythian told Fox News Digital. "It’s not like Netflix or your financial stuff, it’s very transactional. So everybody agrees with that. But to solve this problem, it’s a really big build and integration, and the integration part is the hardest."

Artificial intelligence

Artificial intelligence is being used to power the personalization of popular sports betting apps to tailor experiences to users' preferences. (iStock / iStock)

The large scale rollout for BetSense is still several months away, but a close to full-scale launch should be ready in time for next year's NCAA men's basketball tournament. Every year, March Madness presents one of the more unique opportunities in sports. The tournament features multiple weeks of games taking place simultaneously, which usually ramps up fan engagement.

When a user creates an account, they will likely be asked to provide their name, email and other information. Some of that data from the account management system is then used to create the aforementioned personalized experience. 

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"It has a sense of what you like, and we surface that integrated into the UI/UX of your mobile experience at SaharaBets or wherever you’re at," Phythian said. "We’ve got some content, some interaction with the weather or injuries… We know your appetite for betting, so we can tailor an offer."

If bettors see content that they enjoy, they will likely be more engaged and possibly spend more time on a given platform.

When enjoyed in moderation and when spending limits are put in place, sports wagering gambling can be a fun and exciting way to enjoy a game. However, it is important that players are aware of the importance of responsible gambling.

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Bill Miller, president and CEO of the American Gaming Association, shared that a responsible gambler does not rely on gambling as a source of income.

"As someone approaches the Super Bowl or March Madness or any other sporting event where they're thinking about making the game a little bit more fun or a little bit more interesting, one, it's supposed to be fun. No one should ever believe they are going to make a living or a second job placing wagers on sporting events," Miller told Fox News Digital in February.

Gamblers should also have a specific budget in mind.

"And number two, you set a budget, and you stick to that budget," he advised.