49 PUBLIC GAMING INTERNATIONAL • JANUARY/FEBRUARY 2025 In October 2024, the European Commission published the findings of the Digital Fairness Fitness Check, which evaluates whether the current EU consumer protection laws are fit for purposes to ensure a high level of protection in the digital environment. The report shows that consumers behave differently online than offline. Over the last 2 years, the EU has published a series of important texts relating to the digital environment: Data Act, Data Governance Act, DSA, DMA, DORA, Cyber resilience, AI Act, NIS2, and the Chips Act. Digital Fairness will indeed become a priority for future legislation, but is not the only concern. Addressing the various potential problems and emerging security risks of the digital world is thus of paramount importance. Many studies and practices show that the use of AI for and against cybersecurity is rapidly developing. At the same time, ‘Artificial intelligence’ (AI) is a tremendous growth driver for lotteries, betting, and gambling firms today, especially for the online structures. AI tools to counter security breaches in the digital world will become essential for every big player. 2024 has become the year AI took the world by storm on the recognition of how to use AI in most sectors, but also was the year of the first regulatory framework (by the EU) and global influence thereof. Democratisation of AI and machine learning is one of the business's priorities today. The increasing integration of AI into our lives – from personal data security to cyber defence strategies – show also how AI can influence the digital landscape for lotteries, betting and gambling firms. Indeed, AI is becoming a fundamental skill and necessary for game design, odds setting, risk management, customer profiling and responsible gaming, optimization of bonus programs and fraud detection. The transformative convergence of AI and security in gaming and gambling sets out how AI can contribute to risk management while mitigating its own associated risks. Implementing the ethical standards developed by various international bodies is of great value, but is not enough to address all potential problems. Legislation is certainly useful if it protects consumers and enables legal security and innovation. The EU Artificial Intelligence Act (AI Act) entered into force on 1 August 2024 is the first comprehensive policy framework for AI. It categorizes AI systems into four risk categories, a real RISK-BASED APPROACH: unacceptable risk, high risk, limited risk, and minimal risk. This risk-based approach should be endorsed by companies in their daily business, and evaluation of AI-related risks implemented. The AI Act defines AI system as a machine-based system that is designed to operate with varying levels of autonomy and adaptiveness, which follows the global OECD’s definition. In the European Union area, the AI Act therefore provides general obligations of ROBUSTNESS, ACCURACY and CYBERSECURITY of the usage of AI. The EU AI Act also stresses the importance of HUMAN OVERSIGHT over automated decision-making systems, including those used in cybersecurity. The establishment of the European AI Office is also critical for many aspects of regulation, especially for general-purpose AI, the use of trustworthy AI, and international cooperation. Generative AI is particularly useful for cybersecurity purposes: it provides firms with efficient capabilities in proactive threat detection, incident response and operational efficiencies. AI & CYBERSECURITY IN GAMBLING FROM A EUROPEAN PERSPECTIVE “Just like EU's General Data Protection Regulation in 2016 (GDPR), the EU AI Act of 2024 might spread worldwide, with many countries being influenced by the EU in regulating AI. For instance, in the final days of 2024, South Korea joined the EU in establishing a comprehensive AI legislation which also imposes strict requirements on high-impact AI systems and creates oversight bodies. Japan also just announced its AI framework, with a focus to make Japan “world’s most AI R&D friendly nation”. UK is anticipated to develop an AI framework in 2025. One exception might still be the U.S where innovation and unconstrained AI development remains a priority. Philippe Vlaemminck Beata Guzik Valentin Ramognino By Philippe Vlaemminck, Managing Partner, Vlaemminck.law Beata Guzik, Director Public Affairs, Vlaemminck.law Valentin Ramognino, Associate at Vlaemminck.law
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