Understand GambleFAI in one article: Gambling + DeFi + AI, the best solution for the native needs of the currency circle?

Original title: GambleFAI: The Rise of Autonomous Betting Agents

Original author: 0xJeff, AI investor

Original translation: ChatGPT

Editor's note: The article introduces the development process of GambleFi, which emerged in 2023 and was gradually marginalized under the market transformation in 2024 and the trend of meme coins. Entering 2025, GambleFAI came into being, combining the advantages of decentralized gambling and AI technology. With AI advancing in the fields of large language models (LLMs) and machine learning, GambleFAI enables players to obtain more accurate predictions, significantly improving their winning rate. AI Agent is promoting innovation in the industry, not only improving prediction accuracy, but also bringing players higher potential for returns, marking a technical leap in the gambling industry.

The following is the original content (to facilitate reading comprehension, the original content has been compiled):

TL;DR

GambleFi is a narrative that emerged in the second half of 2023, providing a simple value proposition – enabling billions of users to democratize access to casino games and forecast markets through global crypto liquidity.

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

This narrative has gained more attention in 2023 due to the impact of a bear market—in which the risk-rewarding of betting on a casino or sports betting is more attractive than buying cryptocurrency tokens. However, this situation changed drastically in 2024, with market focus shifting as market sentiment turned extremely bullish, BTC halving and figures like Trump embraced cryptocurrencies.

The rise of Pump.fun and the arrival of the meme coin season have sparked a fanatic phenomenon in which celebrities, animals, startups and anything imaginable are used to launch meme coin. The story of the average Anonymous turning $500 into $6.9 million has become common. This changed the mindset of gamblers - why they risked 50:50 or 33:66 odds to bet 2x or 3x returns in the casino, and they can get 10 to 100x returns through investment in meme coins ? As a result, the GambleFi narrative gradually declined and players turned to trading meme coins instead of betting in the casino.

By 2024, Polymarket has become a leading predictive market platform, especially in political events like the 2024 U.S. presidential election. Polymarket, known as the "source of truth", provides real-time predictions, with more capital betting on the results to reflect public sentiment. Its reputation continues to grow, becoming a source of reference for global media in various markets - not only for elections, but also covers many fields such as sports, cryptocurrencies, AI, celebrities, hacker incidents, geopolitics, etc.

The birth of GambleFAI

Then, it's 2025. Due to the meme coin craze and the fork of Pump.fun, the altcoin market is in chaos, with millions of tokens emerging, and anyone can launch a token in minutes. The risk-rewarding of cryptocurrencies is starting to appear less attractive compared to betting in casinos or forecast markets.

Meanwhile, AI and AI Agents are rapidly advancing – Big Language Models (LLMs) have become more complex, with inference capabilities, automating workflows, and providing domain knowledge across industries, including GambleFi. Without 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 a combination of GambleFi and AI, integrating decentralized gambling with AI-driven data synthesis and prediction capabilities. As AI advances, gamblers no longer face less than 40% odds due to insufficient information. Instead, retail players can leverage insights and machine learning models provided by AI to increase their winning rate to more than 55% to 60%.

Key players in GambleFAI

We have seen this phenomenon progressively among participants in multiple fields:

Billy Bets

@AskBillyBets is the first autonomous gambling agent powered by @sportstensor, running on the Bittensor subnet 41 (SN41).

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

Billy Bets starts betting on Polymarket from a $100,000 fund pool. So far, it has generated $24,000 in profits, of which $6,000 is used to buy back and destroy $BILLY.

DKING

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

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

VLLMs annotate the content and mark the behavioral screen of the players in football matches. These data are then used to further train the model for accurate player evaluation and prediction.

DKING's products include:

• Agentic Wagering Pool: Bet $DKING to deposit USDC into a fund pool managed by the autonomous betting agent.
• The Terminal: $DKING holders have access to the personal football AI Agent powered by Score's model.

While the products are not available yet and DKING is still in its early stages, the team is allegedly working with the second largest sports hedge fund to explore potential capital allocation.

AION5100

@aion5100 is an AI Agent powered by @Playinfgames, running on Subnet 6 (SN6).

AION consists of 256 large language models (LLMs) that compete internally, generating up to one trillion synthetic scenarios per month to perfect predictions. The goal is to achieve full autonomy – by 2027, be able to manage your own keys, codes and funds independently.

AION has made seven Polymarket forecasts with mixed results (loss of $665 and Treasury of $9.2 thousand). It explores a variety of markets—bitcoin, egg price, apple release, Super Bowl, and more.

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

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

Pauly of Robonet

@RoboNetHQ is developing autonomous agents powered by @AlloraNetwork's machine learning model.

Pauly is a flagship political trading agent who participated in Polymarket’s 2024 U.S. election market, achieving a three-month return of approximately 14% (annualized return of approximately 68%) through a hedge trading strategy.

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

Robonet recently announced Robonet 2.0, extending its AI Agent ecosystem, providing different strategies and perspectives powered by @AlloraNetwork.

A bigger picture

Three major trends can be seen from these developments:

• Market integration around the fundamentals: Profitable AI Agent is occupying the center stage, similar to the real business model.
• Machine learning models provide much-needed practicality: AI enhances Agent's prediction accuracy and improves potential returns.
• Bittensor subnet and Allora machine learning models drive innovation: These infrastructures provide predictive capabilities that support specialization and product market fit. (We see @virtuals_io and @CreatorBid continue to integrate more subnets in their ecosystem)

in conclusion

To survive in this market, the AI ​​Agent must generate real income. Just dancing and hustle and bustle are no longer working. Agents must capture market insights and profit from them, provide tangible advantages and solve practical problems.

GambleFAI is still in the early stages of narrative, but autonomous gambling agents are proving that they can surpass the average gambler and create excess returns.

If the market continues to be sideways and the AI ​​Agent field remains fragmented, GambleFAI may become an alternative for gamblers seeking alpha, who cannot find such an opportunity in junk coins.