Could AI be the future of Tabcorp’s wagering business?
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The Tabcorp Holdings Limited (ASX: TAH) share price is falling amid reports that the company is turning to artificial intelligence (AI).
Tabcorp is reportedly using simulations created by AI to predict the winners and losers of American Football games.
Right now, the Tabcorp share price is $4.95, 0.40% lower than its closing price on Friday.
Let’s take a closer look at Tabcorp’s apparent foray into what may be the future of betting.
Is AI the future of Tabcorp?
The Tabcorp share price is slipping amid rumours the company’s been working to create in-house artificial intelligence.
Tabcorp is said to be planning to use the AI software to analyse the most likely winners and losers of American Football games and allow punters to place bets on more elements of a given game.
The development could be a means to strengthen its wagering business ahead of Tabcorp’s planned demerger of its lotteries and keno business. The demerger is expected to go ahead in the middle of next year.
According to reporting by The Sydney Morning Herald (SMH), the company has spent the last 12 months developing its own artificial intelligence database. It can now run thousands of simulations every second, analysing both teams’ and individual players’ chances of success.
The publication stated the technology will allow Tabcorp to double its betting options for American Football games without expending the manpower needed to calculate odds.
The American Football season will begin in September. Tabcorp’s said to be hoping to unveil its latest offerings then.
Market watchers will likely be eying the Tabcorp share price if it does launch an AI-driven betting next month.
SMH also reported Tabcorp is currently developing AI technology to provide similarly in-depth betting on NBA basketball games and tennis matches.
Additionally, the company reportedly plans to use live feeds to allow betting on single plays during future sports matches.
Tabcorp share price snapshot
Tabcorp’s been performing well on the ASX lately.
It has gained 25% since the start of 2021. It is also 37% higher than it was this time last year.
The company has a market capitalisation of around $11 billion, with approximately 2.2 billion shares outstanding.
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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.