A quick read of GambleFAI: Gambling + Decentralized Finance + AI, the best solution for the native needs of the crypto world?

Original title: GambleFAI: The Rise of Autonomous Betting Agents

Original author: 0xJeff, AI investor

Original Text Translation: ChatGPT

Editor’s note: The article introduces the development process of GambleFi, which emerged in 2023, gradually marginalized under the market shift in 2024 and the trend of meme coins. In 2025, GambleFAI emerged, combining the advantages of decentralized gambling and AI technology. With the advancement of AI in Large Language Models (LLMs) and machine learning, GambleFAI enables players to obtain more accurate predictions, significantly improving their winning rate. The AI Agent is driving innovation in the industry, not only enhancing prediction accuracy but also bringing higher return potential to players, marking a technological leap in the gambling industry.

The original text is as follows (for the sake of readability and comprehension, the original content has been slightly reorganized):

TL;DR

GambleFi is a narrative that emerged in the second half of 2023, offering a simple value proposition - to democratize access to casino games and prediction markets for billions of users through global encrypted liquidity.

Casinos like Rollbit and Shufflecom generate hundreds of millions of dollars in revenue annually by acting as the house for casino games and collecting commissions (‘vig’) on sports betting odds.

This narrative received more attention in 2023 because of the bear market impact - in this market environment, the risk-return of betting on casinos or sports betting is more attractive than buying cryptocurrency tokens. However, this situation changed dramatically in 2024, as market sentiment turned extremely bullish, BTC halved, and figures such as Trump embraced cryptocurrency, shifting the market’s focus.

The rise of Pump.fun and the arrival of the meme coin season has sparked a frenzy of celebrities, animals, startups, and anything imaginable being used to launch meme coins. Stories of ordinary anonymous people turning $500 into $6.9 million became common. This changes the mindset of gamblers – why risk 50:50 or 33:66 odds in a casino to bet 2x or 3x their gains, when they can get 10 to 100x returns on their meme coin investments? As a result, the GambleFi narrative has gradually declined, and players have turned to trading meme coins instead of betting in casinos.

By 2024, Polymarket had become a leading prediction market platform, especially in political events like the 2024 US presidential election. Referred to as the “source of truth,” Polymarket provides real-time predictions, with more capital betting on outcomes to reflect public sentiment. Its reputation continues to grow, becoming a reference for global media in various markets—not limited to elections, but also covering sports, cryptocurrencies, AI, celebrities, hacker events, geopolitics, and other fields.

Birth of GambleFAI

Then, we entered 2025. Due to the frenzy of meme coins and the fork of Pump.fun, the altcoin market was in chaos, with millions of tokens emerging, and anyone could launch a token in minutes. Compared to gambling in casinos or prediction markets, the risk-return of cryptocurrencies began to seem less appealing.

At the same time, AI and AI Agents are making rapid progress - large language models (LLMs) are becoming more complex, possessing reasoning abilities, automating workflows, and providing cross-industry domain knowledge, including GambleFi. Without personally analyzing football teams, tactics, player performance, and historical data, gamblers can now rely on AI to provide strategic insights.

GambleFAI comes into being.

GambleFAI is a combination of GambleFi and AI, integrating decentralized gambling with AI-driven data synthesis and predictive capabilities. With the advancement of AI, gamblers no longer face odds below 40% due to lack of information. Instead, retail players can use the insights and machine learning models provided by AI to increase their winning percentage to over 55% to 60%.

Key participants of GambleFAI

We have seen this phenomenon gradually unfold among participants in multiple fields:

Billy Bets

@AskBillyBets is the first independent betting Agent powered by @sportstensor, running on 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 advantages rather than short-term victories.

Billy Bets starts betting on Polymarket from a $100,000 pool. So far, it has generated $24,000 in profit, with $6,000 used for buyback and burning $BILLY.

https://img.gateio.im/social/moments-902b102d78288c0c107ee25551770848()

)# DKING

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

(

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

https://img.gateio.im/social/moments-111844f6b3f064e801a5fd304e1b1bc1()

VLLMs annotate the content, marking the actions of players in football matches. Then, these data are 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 an autonomous betting agent.
• The Terminal: $DKING holders can access a personal football AI Agent driven by Score’s model.

Although these products have not yet gone live and DKING is still in the early stages, the team is reportedly collaborating 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 improve predictions. Its goal is to achieve complete autonomy - by 2027, it will be able to autonomously manage its own keys, code, and funds.

AION has made seven Polymarket predictions, with mixed results (loss of 665 US dollars, treasury of 9.2 thousand US dollars). It explores various markets - Bitcoin, egg prices, Apple releases, Super Bowl, etc.

It’s hard to tell, but it would be interesting to see if the generic model could outperform the ROI of the specialized model in the long run.

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


)# Pauly of Robonet

@RoboNetHQ is developing a self-governing Agent driven by the machine learning model of @AlloraNetwork.

! [Read GambleFAI in one article: Gambling + DeFi + AI, the best solution for the native needs of the currency circle?] ](https://img.gateio.im/social/moments-5cb2be769f957d829b6995c05423ef81)

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% (an annualized return of approximately 68%) through a hedging trading strategy.

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, offering different strategies and perspectives driven by @AlloraNetwork.

! [Read GambleFAI in one article: Gambling + DeFi + AI, the best solution for the native needs of the currency circle?] ]###https://img.gateio.im/social/moments-78e262361d7ad3b9fc53240bbb0c5b0e(

) Bigger Picture

Three major trends can be seen from these developments:

• Market integration around the fundamentals: Profitable AI Agent is taking center stage, similar to a real business model.
• Machine learning models provide much-needed practicality: AI enhances the predictive accuracy of the Agent, increasing potential returns.
• 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 continuing to integrate more subnets into their ecosystem)

( Conclusion

To survive in this market, AI Agent must create real income. Just dancing and making noise no longer works. Agents must capture market insights and profit from them, provide real advantages and solve real problems.

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

If the market continues to move sideways, the AI Agent field remains fragmented, GambleFAI may become an alternative choice for gamblers seeking alpha, those gamblers who cannot find this opportunity in shitcoins.