The casino industry is entering the artificial intelligence (AI) era later than many other sectors, but experts believe this delayed adoption could ultimately unlock significant long-term profit growth for both land-based and online gaming operators.
Clayton Peister of Differential Labs, a firm specializing in AI solutions for casino and iGaming operators, recently spoke with Truist Securities analyst Barry Jonas about emerging AI trends within the gaming sector.
The discussion highlighted two key insights: the integration of AI into gaming is still in its early stages, but once fully developed, it could significantly boost earnings before interest, taxes, depreciation and amortization (EBITDA).
“Overall, most initial AI efforts have not yet delivered full value, as operators have mainly concentrated on infrastructure rather than strategic application,” said Jonas. “Over time, Mr. Peister believes AI could generate around 20–30% EBITDA upside for both physical casinos and digital platforms.”
However, unlocking this potential remains a complex challenge.
Casino Industry Needs to Bridge AI Gaps
Gaming operators have several pathways for AI adoption, but industry experts say key gaps must be addressed before the technology can reach its full impact.
According to Peister during the Truist discussion, many casino operators currently rely heavily on traditional machine learning models, which limits the ability to fully utilize generative AI (GenAI) and large language models (LLMs).
“Peister explained that earlier attempts to implement AI often required major process changes that were difficult for operational teams to adopt. With LLM-based systems, however, AI can be integrated into existing workflows more effectively,” Jonas noted. “In combination with machine learning, LLMs could help deliver a 10–20% EBITDA improvement.”
He added that LLM technology could enhance real-time marketing, risk assessment, asset optimization, player-level engagement strategies, and reinvestment planning — all contributing to stronger profitability.
Legacy Systems Remain a Challenge for Casino AI Adoption
Some lighter-asset gaming companies such as DraftKings and Flutter Entertainment, owner of FanDuel, are already seen as leaders in AI integration, while several operators in Asia are also advancing in this space.
In the United States, however, traditional casino operators face structural challenges due to legacy systems and regulatory limitations.
“Significant barriers exist due to outdated Casino Management Systems (CMS) and strict market regulations. These systems are often rigid and highly controlled, requiring operators to build additional layers of applications to overcome data limitations,” Jonas explained.
During the interview, Peister also noted that many US casino operators currently view AI primarily as a tool for reducing labor costs. However, this perspective is expected to evolve as cloud computing adoption expands across the industry.
