Building trust in AI: Advancing gaming compliance through governance and analytics

As regulators increasingly hold organisations accountable not only for AI outcomes, but for how automated decisions are designed, governed, and explained, gaming compliance is entering a new era.

Against this backdrop, industry leaders are examining how advanced analytics and governed AI can transform compliance and financial crime prevention. Discussions within the KPMG eSummit Series, particularly the NextPlay: Responsible AI for Gaming Compliance dialogue, have brought together senior leaders from organisations such as Kaizen Gaming and Betsson Group to explore this.

As regulatory expectations intensify, particularly with the introduction of the EU AI Act and its accountability requirements for high-risk AI systems, gaming operators face mounting pressure to modernise legacy AML and fraud detection frameworks. Traditional rule-based tools remain relevant, but they often lack the transparency, explainability, and end-to-end governance required in today’s regulatory environment.

NextPlay was designed to address this shift head-on: how can gaming organisations leverage the power of AI while embedding trust, accountability, and regulatory alignment at every stage?

Speaking on the sector’s digital acceleration and the growing need for integrated, governance-led compliance models, Russell Mifsud, Director & KPMG’s Head of Gaming Europe emphasised that “AI adoption in gaming must move beyond experimentation toward structured, enterprise-grade implementation, supported by robust oversight and clear accountability”.

The regulatory implications were outlined by GTG - Malta Law Firm, who provided legal context around the EU AI Act and the responsibilities attached to high-risk AI systems used in AML and fraud detection. A key takeaway was that compliance is no longer limited to outputs; regulators increasingly expect visibility, auditability, and defensible decision-making processes behind how AI-driven decisions are reached.

In response to these regulatory expectations, a central theme emerging across the industry is that trust in AI must be operationalised through governance.

At the NextPlay event, Dr. Keith Cortis, KPMG in Malta’s AI Lead, highlighted the importance of translating AI principles into actionable governance frameworks. Trust in AI cannot be achieved through policy statements alone, it requires embedded controls across the entire AI lifecycle, from design and development to deployment and monitoring.

Dr. Cortis outlined the importance of explainability, bias mitigation, human oversight, model validation, and continuous performance monitoring, all critical components in aligning AI systems with both regulatory expectations and organisational risk appetites. Governance should not be viewed as a barrier to innovation, but rather as the foundation that enables responsible and scalable AI adoption.

From a KPMG perspective, strong AI governance creates the foundation for confidence, internally among risk and compliance teams, and externally among regulators and stakeholders.

Alongside stronger governance frameworks, organisations are also exploring how technology can enhance compliance effectiveness. Advanced analytics is increasingly enabling AML and fraud detection to move beyond static rule-based systems.

Representatives from SAS joined the NextPlay event, demonstrating how techniques such as machine learning, network analysis, natural language processing, and entity resolution can uncover hidden behavioural patterns and complex risk relationships within player data. A live demonstration of an AI-powered iGaming risk detection solution illustrated how predictive analytics and dynamic risk scoring can support faster and more informed compliance decisions.

Importantly, the demonstration reinforced a key message: advanced analytics delivers its full value only when supported by strong governance, transparency, and audit-ready controls. Sophisticated models must be supported by transparency, traceability, and auditability to ensure alignment with regulatory standards.

These developments raise broader strategic questions for the industry.  Across industry conversations, a consistent message is emerging: innovation and AI governance must evolve in parallel. Those organisations that integrate legal, compliance, and technology functions early in AI deployment will be best positioned to scale innovation while withstanding regulatory scrutiny.

This was a recurring theme throughout the panel discussion at our NextPlay event, led by Dr. Keith Cortis with various industry leaders as panellists: Giselle Borg, KPMG in Malta Partner for Risk Consulting, Dr. Ian Gauci, Managing Partner at GTG; Katarina Garai, CFE Fraud & Compliance Advisor at SAS and VP at ACFE - Austria Association of Certified Fraud Examiners; Dimitris Thanasopoulos, CTO at Kaizen Gaming; and Stefan Lia, Head of Governance Risk and Compliance at Betsson Group.

Taken together, these discussions point to several strategic conclusions for the gaming sector.

AI governance is rapidly becoming a regulatory expectation, particularly under obligations such as the EU AI Act. Operators must demonstrate transparency, accountability, and lifecycle oversight of AI systems used in financial crime prevention.

At the same time, advanced analytics offers a pathway toward more proactive, behaviour-driven risk management, enabling earlier detection, improved decision accuracy, and greater operational efficiency.

Ultimately, building trust in AI is not simply a compliance requirement; it is a strategic differentiator. Organisations that embed governance, explainability, and ethical oversight into their AI systems will strengthen stakeholder confidence and future-proof their compliance operating models.

For gaming leaders, the question is no longer whether to use AI in compliance, but whether it is governed well enough to withstand the next wave of regulatory scrutiny.

Through NextPlay, KPMG reaffirmed its commitment to supporting the gaming sector as it navigates this evolving intersection of regulation, technology, and risk, helping organisations transform compliance from a reactive obligation into a forward-looking, analytics-enabled capability.

The KPMG eSummit Series is a strategic industry platform bringing together senior leaders across gaming, technology, regulation, and finance to explore the forces reshaping the global gaming sector. Led by KPMG, the series goes beyond traditional events, focusing on high-value dialogue around regulatory change, innovation, risk, and sustainable growth. Through expert insights, real-world case studies, and curated discussion, the eSummit Series helps organisations translate emerging challenges into practical strategy, strengthen governance and trust, and transform compliance and technology into long-term competitive advantage.