Regulatory Measures and Consumer Protection in Electronic Gambling

Abstract

This paper advances a novel regulatory framework to address the growing cognitive and behavioral harms associated with electronic gambling machines (EGMs) and iGaming (online gambling) platforms. As the gambling industry rapidly expands, it increasingly capitalizes on users’ psychological vulnerabilities and the persuasive design of digital interfaces. Identifying the limitations of AI-driven harm mitigation strategies, which often lack contextual sensitivity and regulatory accountability, this paper argues for an integrated approach that combines targeted AI interventions with enforceable regulatory measures. Drawing on the UK Gambling Commission’s model, the paper proposes a new, region-specific framework for the United States and North America that foregrounds fairness, transparency, and consumer protection. This framework makes a novel contribution by incorporating explainable design standards, structural game modifications, and cross-border regulatory cooperation into a cohesive policy blueprint. Key recommendations include rigorous licensing and audit processes, mandated user protections, and international collaboration to reduce gambling-related harms and promote ethical industry practices.