Rhode Island Considers Ban on Facial Recognition in Sports Betting

Rhode Island’s Bold Move Against Facial Recognition in Sports Betting Apps

In the rapidly evolving landscape of sports betting, propelled forward by advancements in artificial intelligence (AI), the conversation around digital ethics and privacy has intensified. Amid this technological revolution, Rhode Island has emerged as a pioneering state taking decisive steps to safeguard its citizens in the digital betting realm. This move underscores a growing concern over privacy and the ethical use of AI in gambling, sparking a dialogue that could shape the future of online betting across the nation.

Rhode Island House Bill H7772, introduced on January 26, prohibits facial recognition technology and biometric recognition programs in video-lottery terminals at pari-mutuel facilities and online betting applications, as detailed in the official bill text.

The Legislative Response to AI in Gambling

On January 26, Rhode Island lawmakers introduced a groundbreaking piece of legislation aimed at addressing the use of facial recognition and biometric technologies within sports betting applications. Known as H 7772, this bill seeks to ban the use of algorithms that leverage a consumer’s betting history to manipulate wager amounts, conditioning, or play frequency. This legislation, championed by Representatives Joseph McNamara of Warwick and Brandon Potter of Cranston, extends its protective measures to encompass other online betting platforms and Video Lottery Terminals (VLTs) at racetracks.

A companion Senate bill S0146 similarly amends Chapter 42-61.2 to ban such technologies in state gaming operations including sports wagering, with prohibitions also on certain automated decision systems affecting gaming outcomes.

The bill’s introduction marks Rhode Island as one of the initial states to directly tackle the integration of AI within gambling technology, following its early adoption of retail sports betting post the repeal of the Professional and Amateur Sports Protection Act (PASPA) in 2018, and its subsequent launch of mobile sports betting in 2019. The state’s proactive stance on this issue reflects growing concerns over AI and biometrics, technologies that have seen increased scrutiny due to privacy worries.

Rhode Island launched mobile sports betting in 2019 via its exclusive Sportsbook RI app operated by International Game Technology (IGT), making it an early adopter after PASPA’s repeal.

Understanding the Concerns Over AI and Biometrics

Biometrics, as defined by the Biometrics Institute, encompasses the unique biological and behavioral characteristics that can identify an individual. This includes not just facial features, but also DNA, fingerprints, hand geometry, gait, and even one’s scent. Facial recognition, a subset of biometric recognition, has been under the spotlight due to its implications for privacy and personal freedom.

The scrutiny over AI and biometric technologies gained momentum as major corporations like IBM halted the sale of facial recognition tech to governments, citing privacy concerns. Despite this, the use of biometric recognition has continued to proliferate among corporations, including those in the internet gambling and gaming industry. Predictions by FinancialNewsMedia.com in October 2021 suggested that AI could radically transform the internet gaming business, leading to the creation of hyper-personalized gaming and betting experiences through software that learns and adapts to its users.

However, the legislative landscape has struggled to keep pace with technological advancements. According to the National Conference of State Legislatures (NCSL), while bills addressing the commercial use of biometrics were introduced in 24 states in 2021, none passed. Similarly, AI-related legislation faced hurdles in at least 19 states in 2020, indicating a broader challenge in regulating these technologies.

The Future of AI in Sports Betting

The introduction of H 7772 in Rhode Island signifies a critical juncture in the intersection of technology, privacy, and gambling. As AI continues to evolve, its potential to enhance user experiences in sports betting and gaming is undeniable. However, this potential comes with significant ethical considerations, particularly regarding user privacy and the manipulation of betting behaviors.

Rhode Island’s legislative efforts may set a precedent for other states grappling with similar concerns, sparking a nationwide dialogue on the responsible integration of AI in gambling. As we move forward, the balance between leveraging technology for innovation and safeguarding individual rights will remain a key issue for lawmakers, industry stakeholders, and bettors alike.

The ongoing debate over facial recognition and biometrics in sports betting apps underscores a broader societal reckoning with the implications of AI. As technology continues to advance, the need for thoughtful, ethical guidelines to govern its use becomes increasingly apparent. Rhode Island’s bold stance may just be the first step in a long journey towards responsibly harnessing the power of AI in the world of sports betting and beyond.