Investors Lab

Betting on safety: Startups scaling responsible gaming

Illustration of gambling addiction researcher Robert Custer posing against a red background. He wears a sport coat that is superimposed with playing cards, which are blowing off his jacket and out of the frame. One of the cards is an ace of hearts which has been cut in half.

Despite his influence on gambling disorder research, Robert Custer is not as well-known today as some drug and alcohol addiction researchers.

Tavo Montañez

By Susanna Camp

With the explosion of legalized sports betting in recent years, the gambling industry is facing a dual reality: record-breaking revenues and an intensifying regulatory spotlight on consumer protection. As public health and economic concerns mount, the companies that survive the inevitable regulatory tightening will need to invest in the technology of restraint. For SN, Judith Lavelle explores the origins of legitimizing compulsive betting as a medical problem.

🧠 The neuroscience of the near miss

Pioneering psychiatrist Robert Custer collected clinical data to argue that gambling addiction isn’t a failure of will. Modern neuroscientists are showing how it hijacks the brain’s reward system. The act of gambling releases dopamine, creating feelings of euphoria and excitement. Research shows that near-misses — where a slot machine or parlay almost hits — trigger the same dopamine spike as a win, effectively training the brain to keep playing despite losses. Modern software can now track this kind of addictive behavior in real time, identifying patterns like chasing losses or erratic betting spikes before they spiral into a crisis.

💰Where’s the money?

Gambling addiction leads to widespread economic problems and exacerbates poverty. Lower income gamblers are more likely to develop gambling problems, and these problems create a cycle of debt, instability and increased social inequality. Betting more than you can afford to lose can lead to bankruptcy and lower quality of life.

In response, the expansion of the online gambling industry worldwide (from about $50 billion in 2018 to almost $90 billion in 2025) has created a market for compliance technology. Just as ESG metrics (measurable impact related to environmental, social, and governance factors) became standard for the energy sector, responsible gaming metrics are being adopted as a benchmark for the betting industry. For example, software that monitors transactions for addictive behaviors offers gaming platform operators a way to self-regulate before governments step in with bans. In the current climate, a company’s ability to prove its users are healthy is its best defense against violations.

👮Betting on safety: startups scaling responsible gaming

As operators look to prevent regulatory crackdowns, these companies are providing high-tech guardrails:

  • ArdentSky’s gaming compliance technology suite helps companies with licensing applications and regulations. They also provide consulting services for companies needing to liaise with legislators. Clients include DraftKings and The Bally’s Corporation. The company reported revenues of $115 million before being acquired by Vector Solutions in 2025.
  • Mindway AI: Headquartered in Denmark, this startup uses a combination of neuroscientific insights and algorithms to monitor gambling behavior and protect players. Their GameScanner AI tool is powered by expert evaluations of thousands of gambling patterns. It acts like a virtual psychologist, analyzing players’ actual betting patterns and triggering alerts so that platform operators can reach out to users before problem gambling gets out of hand. Mindway AI has partnered with DraftKings, ATG and Entain and has seen increased adoption from European and international gaming firms. The company has reported revenues of $2.8 million.
  • Crucial Compliance: This tech firm, based in Gibraltar with offices in the Isle of Man, provides an integrated suite of tools designed to help gaming operators manage player protection and anti-money laundering requirements. By automating the identification of high-risk behaviors in customers, they allow operators to scale without scaling their legal liability. The company’s financials have not been released, but some estimates peg revenues at $5 million.It sounds counterintuitive, but as gambling scales, the big money is on restraint.

If you or someone you know is struggling with a gambling problem, call or text the National Problem Gambling Helpline at 1-800-522-4700. If you or someone you know is facing a suicidal crisis or emotional distress, call or text the 988 Suicide & Crisis Lifeline at 988.

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