Among the various industries adopting artificial intelligence (AI) is gaming. The betting industry might find many applications for artificial intelligence, paving the way for additional use of the technology and advantages for end users.

David Katz, a Jefferies analyst, examines the impact of AI on the gaming, lodging, and leisure ecosystem in a recent report to clients, observing that gaming operators have several ways to use AI and are consequently likely to expand their use of the technology. Those who take no chances run the risk of being passed over by competitors. Katz names Caesars Entertainment (NASDAQ: CZR) as one of the gaming industry AI beneficiaries.

"We believe gaming operators are likely to expand the use of AI to support customer acquisition, engagement and retention through more targeted and personalized promotional offers at greater speed and scale,” observes the analyst. “Operators with the most extensive loyalty ecosystems, including CZR appear best positioned to capture incremental value from these AI-enabled strategies and to defend, if not modestly expand, share versus later adopters.”

With more than 65 million members, Caesars Rewards is the biggest loyalty program in the gaming sector. Although not included in Katz's list, MGM Resorts International (NYSE: MGM) may be an AI winner among casino operators since it has one of the industry's biggest rewards programs.

There are several applications for artificial intelligence among casino operators

According to Katz, the lodging sector is likely to be the most affected by artificial intelligence (AI) among the gaming, lodging, and leisure subgroups. However, since companies like Caesars and MGM also manage hotels, this has repercussions for them as well.

Similarly, casino operators can utilize AI for a number of game-related tasks, such as determining which gaming gadget should be utilized and where it should be located on the casino floor.

“AI-driven analytics should also enhance machine placement and mix decisions across gaming floors,” adds Katz. “There is additional opportunity to deploy AI agents to automate routine guest interactions, such as room bookings; however, the prevalence of union labor suggests limited near‑term displacement risk. In short, we expect the labor impact from AI in customer facing roles to be limited.”

Casino employees may find comfort in the claim that AI has minimal impact on labor since other gaming businesses cite it as the cause of recent layoffs.

Take a chance on Brightstar to win with artificial intelligence

Brightstar Lottery (NYSE: BRSL) is a committed lottery operator after IGT sold its PlayDigital and worldwide gaming divisions to Apollo Global Management (NYSE: APO) in 2025. In this way, benefits may be extracted from AI.

“BRSL is also a relative beneficiary given its ability to accelerate content development and optimize game performance through AI-driven tools,” says Katz.

Brightstar is the top technology provider for 26 of the 46 US lottery jurisdictions and eight of the world's 10 biggest lotteries.