Tech Startups Seek to Revolutionize Betting with AI Agents

Since the repeal of the PASPA, more and more US jurisdictions have been launching their own betting markets, capitalizing on the fast-growing demand for wagering products. With more Americans than ever placing bets, many turn to novel solutions to optimize their chances of winning.

While the most fervent of sports fans love the thrill of putting their sports knowledge to the test, others like the idea of winning at any cost. With the latest advancements in technology, certain people have begun exploring the idea of using artificial intelligence for betting advice. And some have turned that into a business.

AI Gambling Agents Cannot Provide Players with an Edge

Tech news outlet WIRED explored the idea of AI gambling agents, saying that it had been only a matter of time before people paired online gambling with AI technology. One of the pioneers in this sector is Carson Szeder, whose company, MonsterBet, offers AI-powered tools that help players make the most out of their wagers.

Szeder, who is a computer science major, has previously leveraged technology to build complex betting algorithms and turn small wagers into four-figure payouts, is optimistic about the future of MonsterBet. While users have to pay a monthly subscription of $77 a month to use MonsterBet, the company’s founder said that they are statistically more likely to win. According to Szeder, his solutions allow players to win 56% to 60% of the time, instead of 52%, which is the industry average.

Szeder’s tools imply that technology could completely change how players interact with sportsbooks. However, he is not the only one to get that idea.

WIRED noted that Rithmm, a Massachusetts-based startup, currently offers AI-powered gambling agents for $30 a month. At the same time, JuiceReel, a separate firm, offers similar solutions for free. Even FanDuel, one of the leaders in the US betting market, previously launched Ace, a chatbot that assists players with making picks.

However, FanDuel and many others have rejected the idea of AI-powered solutions that place wagers on behalf of the players, preferring to allow them to have the ultimate say on whether to put their money on the line.

Ambitious Startups Explore the Idea of Automating Wagering

Conversely, some have explored the idea of automating the process and creating solutions that place wagers. Blockchain platform Zilliqa, for example, tested Ava, a solution designed to make horseracing picks and place bets on behalf of the players. However, implementing the latter part turned out to be easier said than done and Zilinqa eventually gave up on automated bets.

WagerGPT is another AI-powered tool created to place bets on behalf of players. However, many users seem to have gotten disappointed by its performance after paying the $199 a month fee to use it.

WIRED noted that automating bets is especially difficult since AI agents cannot access traditional bank accounts, meaning that such solutions can only work with platforms that accept crypto payments. Coinbase’s AgentKit was cited as one of the solutions seeking to automate payments.

Sire, a solution by Score, seeks to take things a little bit further and automatically convert dollars into a stablecoin and place bets on behalf of players. Sire is set to come out of beta later this month, WIRED noted.

Memetica is another similar project that sought to leverage technology to automatically convert currency and place bets. Eventually, however, the company decided to focus on AI agents instead, leaving players to place the bets themselves.

While AI agents are still a fairly new concept, their success could potentially change the industry. However, WIRED warned that players should be wary of scams as malicious parties have started to leverage the AI hype to defraud players.