Original title: GambleFAI: The Rise of Autonomous Betting Agents
Original author: 0x Jeff, AI investor
Original translation: ChatGPT
Editors Note: This article describes the development of GambleFi, which emerged in 2023 and was gradually marginalized in 2024 due to the market shift and the popularity of meme coins. In 2025, GambleFAI came into being, combining the advantages of decentralized gambling and AI technology. With the advancement of AI 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 driving innovation in the industry, not only improving prediction accuracy, but also bringing higher return potential to players, marking a technological leap in the gambling industry.
The following is the original content (for easier reading and understanding, the original content has been reorganized):
TL;DR
GambleFi is a narrative that emerges in the second half of 2023, offering a simple value proposition - democratized access to casino games and prediction markets for billions of users through global crypto liquidity.
Casinos like Rollbit and Shufflecom generate hundreds of millions in revenue each year by acting as the house for casino games and collecting commissions (“vigs”) on sports betting odds.
This narrative gained more traction in 2023 due to the impact of the bear market, where the risk-reward of betting on casinos or sportsbooks was more attractive than buying cryptocurrency tokens. However, this changed dramatically in 2024, with the markets focus shifting as market sentiment turned extremely bullish, BTC halving, and figures like Trump embracing cryptocurrencies.
The rise of Pump.fun and the advent of meme coin season sparked a frenzy where celebrities, animals, startups, and anything imaginable were used to launch meme coins. Stories of regular anonymous people turning $500 into $6.9 million became common. This changed the mindset of gamblers - why risk 50:50 or 33:66 odds in a casino to 2x or 3x their returns when they can get 10x to 100x returns on their investment in meme coins? As a result, the GambleFi narrative faded and players turned to trading meme coins instead of betting in casinos.
By 2024, Polymarket has become a leading prediction market platform, especially for political events like the 2024 US presidential election. Known as the source of truth, Polymarket provides real-time predictions, with more capital betting on the results to reflect public sentiment. Its reputation continues to grow, becoming a reference source in global media in various markets - not just elections, but also covering sports, cryptocurrencies, AI, celebrities, hacking incidents, geopolitics and many other fields.
The birth of GambleFAI
Then, it’s 2025. The altcoin market is in chaos thanks to the meme coin craze and the Pump.fun fork, millions of tokens have emerged, and anyone can launch a token in minutes. The risk-reward of cryptocurrencies starts to look less attractive than gambling in casinos or prediction markets.
At the same time, AI and AI agents are advancing rapidly - Large Language Models (LLMs) are becoming more sophisticated, capable of reasoning, automating workflows, and providing domain knowledge across industries, including GambleFi. Instead of analyzing football teams, tactics, player performances, and historical data themselves, gamblers can now rely on AI to provide strategic insights.
GambleFAI was born.
GambleFAI is a combination of GambleFi and AI, fusing decentralized betting with AI-driven data synthesis and prediction capabilities. With the advancement of AI, gamblers no longer face odds below 40% due to insufficient information. Instead, retail players can use the insights and machine learning models provided by AI to increase their win rate to more than 55% to 60%.
Key players in GambleFAI
We are already seeing this play out across multiple players:
Billy Bets
@AskBillyBets is the first autonomous betting agent powered by @sportstensor, running on Bittensor Subnet 41 (SN 41).
Sportstensor is building the most accurate decentralized sports prediction algorithm. It aggregates intelligence from competing machine learning models and rewards long-term discovery advantages over short-term wins.
Billy Bets started betting on Polymarket with a pool of $100,000. So far, it has generated $24,000 in profit, of which $6,000 was used to buy back and destroy $BILLY.
DKING
@thedkingdao is the first autonomous sports betting DAO, running on @webuildscore Subnet 44 (SN 44).
Score integrates computer vision and predictive models to analyze match footage in real time, tracking micro-events, player patterns, and match analytics for enhanced betting insights.
VLLMs annotate the content, labeling footage of players’ actions during soccer matches. This data is then used to further train models for accurate player evaluation and prediction.
DKINGs products include:
Agentic Wagering Pool: Stake $DKING to deposit USDC into a pool managed by an autonomous gambling agent.
The Terminal: $DKING holders have access to a personal soccer AI Agent powered by Score’s model.
While these products have yet to go live and DKING is still in its early stages, the team is reportedly working with the second largest sports hedge fund to explore potential capital allocations.
AION 5100
@aion 5100 is an AI Agent powered by @Playinfgames, running on Subnet 6 (SN 6).
AION consists of 256 large language models (LLMs) that compete with each other to generate up to one trillion synthetic scenarios per month to improve predictions. Its goal is to achieve full autonomy - by 2027, it will be able to manage its own keys, code, and funds.
AION has made seven Polymarket predictions with mixed results ($665 loss, $9.2k in treasury). It explored a variety of markets — Bitcoin, egg prices, Apple releases, the Super Bowl, etc.
Although it is difficult to judge, it will be very interesting to see if general models can exceed the ROI of specialized models in the long term.
AION is up 53% in the past week, driven by the GambleFAI narrative sparked by BILLY. Soon, holders will have access to a trading terminal to gain insights into AION beyond Polymarket.
Pauly from Robonet
@RoboNetHQ is developing autonomous agents powered by @AlloraNetworks machine learning models.
Pauly is a flagship political trading agent that participated in Polymarkets 2024 US election market and achieved a three-month return of approximately 14% (approximately 68% annualized return) through hedging trading strategies.
Pauly identifies market inefficiencies by comparing Allora Network’s forecasts to market pricing and dynamically adjusts positions to achieve optimal returns 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 consolidation around fundamentals: Profitable AI Agents are taking center stage, similar to real business models.
Machine learning models provide much-needed utility: AI enhances the prediction accuracy of agents, increasing potential rewards.
Bittensor subnets 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)
in conclusion
To survive in this market, AI agents must generate real revenue. Just dancing and making noise will no longer work. Agents must capture and monetize market insights, provide tangible advantages, and solve real problems.
GambleFAI is still in the early stages of the narrative, but autonomous gambling agents are proving that they can outperform regular gamblers and generate outsized returns.
If the market continues to move sideways and the AI Agent space remains fragmented, GambleFAI could become an alternative for gamblers seeking alpha who cannot find such opportunities in shitcoins.
