Caesars, Brightstar Lottery Among Gaming Industry AI Beneficiaries

• Analyst sees gaming operators expanding use of artificial intelligence (AI)
• Casino operators with expansive rewards programs could be beneficiaries
• Sees potential benefits to lottery and sportsbook operators, too

Artificial intelligence (AI) is being embraced across an array of industries, gaming among them. Use cases for AI the betting world could prove expansive, providing runway for further adoption of the technology as well as benefits to end users.

In a recent report to clients, Jefferies analyst David Katz explores AI’s effects on the gaming, lodging, and leisure ecosystem, noting that gaming operators have multiple ways of deploying AI and as such, they’re likely to increase their use of the technology. Those that don’t risk being passed by competitors. Caesars Entertainment (NASDAQ: CZR) is one of the gaming industry AI beneficiaries mentioned by Katz.

We believe gaming operators are likely to expand the use of AI to support customer acquisition, engagement and retention through more targeted and personalized promotional offers at greater speed and scale,” observes the analyst. “Operators with the most extensive loyalty ecosystems, including CZR appear best positioned to capture incremental value from these AI-enabled strategies and to defend, if not modestly expand, share versus later adopters.”

Caesars Rewards has over 65 million members, making it the gaming industry’s largest loyalty program. Though not mentioned by Katz, MGM Resorts International (NYSE: MGM) could make for an AI winner among casino operators because it too has one of the industry’s largest rewards plans.

Casino Operators Have Myriad Uses for AI

Katz points out that of the gaming, lodging, and leisure subgroups, the greatest AI impact is likely to be felt in the lodging space, but that has implications for companies such as Caesars, MGM, and more because they also run hotels.

“AI-driven analytics should also enhance machine placement and mix decisions across gaming floors,” adds Katz. “There is additional opportunity to deploy AI agents to automate routine guest interactions, such as room bookings; however, the prevalence of union labor suggests limited near‑term displacement risk. In short, we expect the labor impact from AI in customer facing roles to be limited.”

The point about limited labor effects could be a relief for some casino workers because other gaming companies are mentioning AI as a reason for recent layoffs.

Bet on Brightstar as Potential AI Winner

Brightstar Lottery (NYSE: BRSL), the company that remained after IGT sold its global gaming and PlayDigital units to Apollo Global Management (NYSE: APO) in 2025, is now a dedicated lottery operator. That could position to wring benefits from AI.

“BRSL is also a relative beneficiary given its ability to accelerate content development and optimize game performance through AI-driven tools,” says Katz.

Brightstar is the leading technology provider for 26 of the 46 US lottery jurisdictions and eight of the 10 biggest lotteries in the world.