Published on: March 13, 2026, 03:35h.
Updated on: March 13, 2026, 03:35h.
- Experts predict gaming businesses will increase their use of artificial intelligence (AI)
- Casino firms with extensive loyalty programs could stand to benefit significantly
- Lottery and sportsbook operators are also expected to gain advantages
The adoption of artificial intelligence (AI) is sweeping through numerous sectors, including gaming. The potential applications of AI within the betting industry are vast, creating opportunities for broader integration of this technology and delivering benefits to users.
In a recent analysis for clients, Jefferies analyst David Katz discusses the impact of AI on the gaming, hospitality, and leisure sectors. He asserts that gaming companies have numerous avenues for implementing AI, leading to an anticipated increase in its application. Firms that fail to adopt these technologies risk falling behind their competitors. Caesars Entertainment (NASDAQ: CZR) is highlighted by Katz as one of the beneficiaries in the gaming landscape.
“We anticipate that gaming operators will broaden their AI usage to enhance customer acquisition, engagement, and retention by offering more targeted and personalized promotions at a faster rate and larger scale,” the analyst notes. “Operators with the most robust loyalty programs, like CZR, appear to be in the best position to extract additional benefits from these AI-driven strategies, securing a competitive edge over slower adopters.”
With over 65 million members, Caesars Rewards stands out as the largest loyalty program in the gaming sector. While Katz did not mention it, MGM Resorts International (NYSE: MGM) may also emerge as an AI frontrunner among casino operators due to its vast rewards program.
Diverse Applications of AI in Casino Operations
Katz emphasizes that while AI’s most significant influence will likely be seen in the hospitality sector, there are considerable implications for companies like Caesars and MGM that also manage hotels.
Similarly, casino operators can leverage AI for various gaming-related tasks, including determining which gaming machines to utilize and their placement on the casino floor.
“AI analytics should optimize machine placement and configuration across gaming environments,” Katz adds. “There is also an opportunity to implement AI agents for streamlining routine customer interactions, such as room reservations. However, the presence of organized labor suggests that the immediate threat of job displacement is limited. In essence, we foresee a minimal impact on labor in customer-facing positions due to AI.”
This point regarding the limited impact on employment may provide some reassurance for casino employees, especially as other gaming firms cite AI as a factor in recent workforce reductions.
Brightstar: A Potential AI Success Story
Brightstar Lottery (NYSE: BRSL), the entity emerging after IGT divested its global gaming and PlayDigital divisions to Apollo Global Management (NYSE: APO) in 2025, is now focused solely on lottery operations. This specialization could enable them to capitalize on the advantages of AI.
“BRSL stands to gain significantly due to its capability for accelerating content creation and enhancing game performance through AI-powered tools,” Katz explains.
Brightstar is currently the leading technology supplier for 26 of the 46 lottery jurisdictions in the U.S. and services eight of the world’s ten largest lotteries.