Artificial intelligence is playing an increasingly important role in policing prediction markets, and attorneys say that regulators and investigators are starting to effectively use the same technology that would-be bad actors have leveraged to try to score big with their bets.[...]

Philadelphia-based Duane Morris LLP partner AJ Rudowitz likened the technology to the newest version of the old-school casino pit boss who scanned the floor to make sure everything was in order. Eventually, casinos began to use high-tech cameras and algorithms to spot cheating.

"With AI, it's getting more and more real-time, and more and more accurate," Rudowitz said. "You're not seeing as many false positive hits, and you're able to get to it quicker and see a broader picture." [...]

Rudowitz said that AI is helping platforms spot red flags so fast that, in some instances, they prevent the bet from taking place at all. He still expects this to be a busy area for lawyers moving forward.

"There's a lot of different potential issues, and attorneys are going to be needed to make sure the regulatory schemes are being adhered to," Rudowitz said. "You're also going to need attorneys who are really aware of these laws to help any athletes who might get caught up in allegations."[...]

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