IGSA readies AI guidelines for industry stakeholders

The International Gaming Standards Association (IGSA) is spearheading the development of an AI best practices framework tailored specifically for the gambling sector, equipping regulators with essential insights into the technology’s applications and implications.

In a recent interview with iGaming Business (iGB), IGSA President Mark Pace emphasized AI as the organization’s primary focus in its ongoing technological initiatives. This commitment will culminate in the forthcoming publication of a comprehensive set of “best practices” aimed at guiding the deployment of AI within gambling operations.

Established in 1998, IGSA emerged as a collaborative effort involving over 20 companies, functioning as a non-profit entity. The organization today plays a pivotal role in formulating standards and best practices beneficial to suppliers, operators, and regulators alike. Notable members include industry titans such as IGT, Merkur, Novomatic, and Intralot.

With operational bases in Macau, Malta, and Tokyo, IGSA recently expanded its footprint into the African market in 2023, reflecting its commitment to enhancing global gaming standards.

To facilitate its AI initiatives, IGSA has formed an Ethical AI Standards Committee (AIC), which focuses on standardizing the integration of AI technologies within the industry. The committee aims to provide stakeholders with a foundational framework for the responsible adoption and application of AI standards in gaming.

Furthermore, the AIC has drawn inspiration from best practices in other sectors, ensuring their adaptability for the global gaming landscape.

“Our goal is to develop a set of best practices that regulatory authorities can rely on to better understand the core areas of focus regarding AI,” stated Pace. “In today’s world, everything seems to be powered by AI—from consumer goods to marketing techniques. Regulators must keep pace with this technological trend.”

Understanding AI: A Streamlined Approach for Regulators

The IGSA is actively engaging with various regulatory bodies about the strategic implementation of AI and the burgeoning adoption of this transformative technology across the gambling sector. To date, the IGSA has shared eight preliminary best practices on AI usage with stakeholders, inviting their input for refinement.

Pace advised regulators to avoid a deep technical dive into AI development. “While an understanding of AI is beneficial, striving for developer-level knowledge may lead to unnecessary complexity,” he posited. “Regulators should concentrate on critical aspects like the type of data consumed by AI algorithms, the accuracy of that data, and the potential for inherent biases.”

This perspective underscores the maxim, “garbage in, garbage out,” which is particularly relevant to the functioning of AI algorithms.

Moreover, Pace highlighted the importance of transparency and accessibility in AI algorithms. Regulators must be adept at identifying the individuals or organizations responsible for managing AI systems, especially when these systems malfunction.

Adapting AI Guidelines to Diverse Regulatory Landscapes

Pace noted that IGSA is poised to explore additional best practices to enhance its guidelines further, recognizing that AI technology is in a constant state of evolution. Consequently, the framework will require periodic updates to stay relevant.

Importantly, Pace acknowledged that the guidelines will need to be tailored to suit the regulatory environments of different markets. “Each jurisdiction should adapt these guidelines to align with its unique regulatory landscape. However, the core guidelines will emphasize significant concerns rather than focusing on the rapidly changing nature of generative AI algorithms,” he explained.

Mark Pace is set to share insights at the upcoming Payments, Fraud & Compliance Gaming Leaders’ Summit, an exclusive event for high-level decision-makers in the iGaming industry. This invite-only event will take place on May 20-21, 2025.

In summary, as the gambling industry navigates AI’s rapid evolution, the guidance provided by IGSA’s best practices framework will be invaluable. By enabling regulators to focus on vital areas of AI governance, the IGSA is positioning the industry for a future that embraces technology while ensuring responsible gaming practices.