GambleFAI: The Rise of Autonomous Betting Agents
Original author: 0xJeff, AI investor
Original compilation: ChatGPT

Editor’s note: The article introduces the development process of GambleFi. It will rise in 2023 and will gradually be marginalized due to the changes in the market in 2024 and the popularity of meme coins. Entering 2025, GambleFAI came into being, combining the advantages of decentralized gambling and AI technology. As AI advances in large language models (LLMs) and machine learning, GambleFAI enables players to obtain more accurate predictions, significantly improving their winning odds. AI Agents are driving innovation in the industry, not only improving prediction accuracy, but also bringing higher return potential to players, marking a technological leap in the gaming industry.

The following is the original content (the original content has been compiled for ease of reading and understanding):

TL;DR

GambleFi is a narrative emerging in the second half of 2023 that offers a simple value proposition-allowing billions of users to democratize access to casino games and forecast markets through global crypto mobility.

Casinos like Rollbit and Shufflecom generate hundreds of millions of dollars in revenue each year by serving as bookmakers for casino games and charging commissions (“vig”) on sports betting odds.

This narrative will gain more attention in 2023 due to the impact of the bear market-in this market environment, the risk-reward of betting on casinos or sports betting is more attractive than buying cryptocurrency tokens. However, this situation changed sharply in 2024, and the market’s focus shifted as market sentiment turned extremely bullish, BTC halved and people such as Trump embraced cryptocurrencies.

The rise of Pump.fun and the arrival of meme coin season have sparked a craze of celebrities, animals, startups and anything imaginable being used to launch meme coins. Stories of ordinary anonymous people turning $500 into $6.9 million have become common. This changes the mentality of gamblers-why are they risking odds of 50:50 or 33:66 in casinos to bet on 2 or 3 times the return when they can get 10 to 100 times the return through their investment in meme coins? As a result, the GambleFi narrative gradually declined, and players turned to trading meme coins rather than betting in casinos.

By 2024, Polymarket will become a leading forecasting market platform, especially in political events like the 2024 U.S. presidential election. Known as the “source of truth,” Polymarket provides real-time forecasts, with more capital betting on results to reflect public sentiment. Its credibility continues to grow and it has become a source of citations for global media in various markets-not just elections, but also in sports, cryptocurrency, AI, celebrities, hacking incidents, geopolitics and other fields.

The birth of GambleFAI

Then, we entered 2025. Due to the frenzy of meme coins and the fork of Pump.fun, the altcoin market has been in chaos, with millions of tokens emerging and anyone can launch a token in minutes. Compared to gambling in casinos or prediction markets, the risk-rewards of cryptocurrencies are starting to look less attractive.

At the same time, AI and AI agents are advancing rapidly-large language models (LLMs) have become more complex, have reasoning capabilities, automate workflows, and provide domain knowledge across industries, including GambleFi. Instead of personally analyzing football teams, tactics, player performance and historical data, gamblers can now rely on AI to provide strategic insights.

GambleFAI came into being.

GambleFAI is the combination of GambleFi and AI, combining decentralized gambling with AI-driven data synthesis and prediction capabilities. As AI improves, gamblers no longer face odds below 40% due to lack of information. Instead, retail players can leverage insights and machine learning models provided by AI to increase their winning odds to 55% to more than 60%.

Key players in GambleFAI

We have already seen this phenomenon unfolding among participants in multiple fields:

Billy Bets

@AskBillyBets is the first autonomous gambling Agent driven by @sportstensor and runs on Bittensor subnet 41 (SN41).

Sportstensor is building the most accurate decentralized sports prediction algorithm available. It aggregates intelligence from competitive machine learning models, rewarding long-term discovered advantages rather than short-term victories.

Billy Bets started betting on Polymarket from a pool of $100,000. So far, it has generated a profit of $24,000, of which $6,000 has been used to repurchase and destroy $BILLY.

DKING

@thedkingdao is the first autonomous sports betting DAO running on the @webuildscore subnet 44 (SN44).

Score integrates computer vision and predictive models to analyze game footage in real time, tracking micro-events, player patterns and game analysis to enhance betting insights.

VLLMs annotate the content and mark the behavior of players during football games. This data is then used to further train the model for accurate player evaluations and predictions.

DKING’s products include:

·Agenda Wagering Pool: Bet $DKING to deposit USDC into a pool managed by an autonomous gambling Agent.

· The Terminal: $DKING holders can access personal football AI agents driven by Score’s model.

Although these products are not yet available and DKING is still in its early stages, the team is said to be working with the second-largest sports hedge fund to explore potential capital allocations.

AION5100

@aion5100 is an AI Agent driven by @Playinfgames and runs on subnet 6 (SN6).

AION consists of 256 large language models (LLMs) that compete internally and generate up to a trillion synthetic scenarios each month to refine predictions. The goal is to achieve full autonomy-by 2027, being able to manage your own keys, code and funds independently.

AION has made seven Polymarket forecasts, with mixed results (loss of $665, treasury $9.2,000). It explores multiple markets-Bitcoin, egg prices, Apple launches, the Super Bowl, etc.

Although it is still difficult to judge, it would be very interesting if the general model could exceed the return on investment of the specialized model in the long run.

AION rose 53 in the past week AION rose 53% in the past week, driven by the GambleFAI narrative sparked by BILLY. Soon, holders will be able to access a trading terminal and gain AION insights beyond Polymarket.

Robonet’s Pauly

@RoboNetHQ is developing autonomous agents driven by @AlloraNetwork’s machine learning models.

Pauly is a flagship political trading Agent who participated in Polymarket’s 2024 U.S. election market and achieved a three-month return of approximately 14%(an annualized return of approximately 68%) through hedging trading strategies.

Pauly identifies market inefficiencies by comparing Allora Network’s forecasts with market pricing and dynamically adjusts positions to achieve the best return while minimizing risk.

Robonet recently announced Robonet 2.0, expanding its AI Agent ecosystem to provide different strategies and perspectives driven by @AlloraNetwork.

the bigger picture

Three major trends can be seen from these developments:

·Market integration around fundamentals:Profitable AI agents are taking center stage, similar to real business models.

·Machine learning models provide much-needed utility:AI enhances the Agent’s prediction accuracy and improves potential returns.

· Bittensor Subnetwork and Allora machine learning models drive innovation:These infrastructures provide predictive capabilities, support specialization and product-market fit. (We see @virtuals_io and @CreatorBid continue to integrate more subnets into their ecosystems)

conclusion

To survive in this market, AI agents must generate real revenue. Just dancing and noise no longer works. Agents must capture market insights and profit from them, provide tangible advantages and solve practical problems.

GambleFAI is still in the early stages of the narrative, but autonomous gambling agents are proving they can outperform ordinary gamblers and generate excess returns.

If the market continues to move sideways and the AI Agent field remains fragmented, GambleFAI could become an alternative to alpha-seeking gamblers who cannot find this opportunity in junk coins.

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