GambleFAI is still in the early stages of its narrative, but autonomous betting agents are proving they can outperform ordinary gamblers and generate excess returns.
Author: 0xJeff, AI Investor
Translation: ChatGPT
Editor’s Note: This article discusses the development of GambleFi, which emerged in 2023 and gradually became marginalized in 2024 amid market shifts and the trend of meme coins. Entering 2025, GambleFAI was born, combining the advantages of decentralized betting and AI technology. With advancements in AI in large language models (LLMs) and machine learning, GambleFAI enables players to achieve more accurate predictions, significantly increasing their win rates. AI agents are driving innovation in the industry, enhancing prediction accuracy and providing players with higher return potential, marking a technological leap in the gambling industry.
Here is the original content (reorganized for readability):
TL;DR
GambleFi is a narrative that emerged in the second half of 2023, offering a simple value proposition—democratizing 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 taking a commission on sports betting odds ("vig").
This narrative gained more attention in 2023 due to the impact of the bear market—in such a market environment, the risk-reward of betting at casinos or on sports was more attractive than buying cryptocurrency tokens. However, this situation changed dramatically in 2024 as market sentiment turned extremely bullish, with the BTC halving and figures like Trump embracing cryptocurrency, shifting the market's focus.
The rise of Pump.fun and the arrival of meme coin season sparked a frenzy, with celebrities, animals, startups, and anything imaginable being used to launch meme coins. Stories of ordinary anonymous individuals turning $500 into $6.9 million became common. This changed the mindset of gamblers—why risk 50:50 or 33:66 odds at a casino for 2x or 3x returns when they could achieve 10 to 100 times returns through meme coin investments? As a result, the GambleFi narrative gradually faded, and players turned to trading meme coins instead of betting at casinos.
By 2024, Polymarket became a leading prediction market platform, especially for political events like the 2024 U.S. presidential election. Known as the "source of truth," Polymarket provided real-time predictions, with more capital betting on outcomes to reflect public sentiment. Its growing credibility made it a reference source for global media across various markets—not limited to elections but also covering sports, cryptocurrency, AI, celebrity events, geopolitical issues, and more.
The Birth of GambleFAI
Then came 2025. Due to the meme coin frenzy and the forks of Pump.fun, the altcoin market was chaotic, with millions of tokens emerging, and anyone could launch a token in minutes. Compared to betting at casinos or prediction markets, the risk-reward of cryptocurrency began to seem less attractive.
At the same time, AI and AI agents were rapidly advancing—large language models (LLMs) became more complex, capable of reasoning, automating workflows, and providing domain knowledge across industries, including GambleFi. Gamblers could now rely on AI for strategic insights without personally analyzing football teams, tactics, player performance, and historical data.
GambleFAI was born.
GambleFAI is the combination of GambleFi and AI, merging decentralized betting with AI-driven data synthesis and predictive capabilities. With advancements in AI, 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 win rates to over 55% to 60%.
Key Players in GambleFAI
We have seen this phenomenon gradually unfold among participants in various fields:
Billy Bets
@AskBillyBets is the first autonomous betting agent powered by @sportstensor, operating on Bittensor subnet 41 (SN41).
Sportstensor is building the most accurate decentralized sports prediction algorithm. It aggregates intelligence from competing machine learning models, rewarding long-term discovered advantages rather than short-term victories.
Billy Bets started betting on Polymarket with a $100,000 fund pool. So far, it has generated $24,000 in profit, with $6,000 used for buybacks and burning $BILLY.
DKING
@thedkingdao is the first autonomous sports betting DAO, operating on @webuildscore subnet 44 (SN44).
Score integrates computer vision and predictive models to analyze match footage in real-time, tracking micro-events, player patterns, and match analysis to enhance betting insights.
VLLMs annotate content, marking player actions during football matches. This data is then used to further train models for accurate player assessments and predictions.
DKING's products include:
· Agentic Wagering Pool: Bet $DKING to deposit USDC into a fund pool managed by autonomous betting agents.
· The Terminal: $DKING holders can access a personal football AI agent powered by Score's models.
Although these products are not yet launched and DKING is still in its 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, operating on subnet 6 (SN6).
AION consists of 256 large language models (LLMs) that compete internally, generating up to a trillion synthetic scenarios each month to refine predictions. Its goal is to achieve full autonomy—by 2027, it aims to manage its own keys, code, and funds independently.
AION has made seven predictions on Polymarket, with mixed results (losing $665, treasury at $9,200). It has explored various markets—Bitcoin, egg prices, Apple releases, the Super Bowl, etc.
While it is still difficult to judge, it will be very interesting if general models can outperform specialized models in investment returns over the long term.
AION has risen 53% in the past week, driven by the GambleFAI narrative sparked by BILLY. Soon, holders will be able to access a trading terminal for insights beyond Polymarket.
Pauly from Robonet
@RoboNetHQ is developing an autonomous agent powered by machine learning models from @AlloraNetwork.
Pauly is a flagship political trading agent that participated in Polymarket's 2024 U.S. election market, achieving approximately 14% returns over three months (about 68% annualized return) through hedging strategies.
Pauly identifies market inefficiencies by comparing Allora Network's predictions with market pricing, dynamically adjusting positions for optimal returns while minimizing risk.
Robonet recently announced Robonet 2.0, expanding its AI agent ecosystem with different strategies and perspectives powered by @AlloraNetwork.
The Bigger Picture
From these developments, three major trends can be observed:
· Market consolidation around fundamentals: Profitable AI agents are taking center stage, resembling real business models.
· Machine learning models provide much-needed practicality: AI enhances the predictive accuracy of agents, increasing potential returns.
· Bittensor subnets and Allora machine learning models drive innovation: These infrastructures provide predictive capabilities, supporting 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 agents must generate real revenue. Simply dancing and making noise no longer works. Agents must capture market insights and profit from them, providing tangible advantages and solving real problems.
GambleFAI is still in the early stages of its narrative, but autonomous betting agents are proving they can outperform ordinary gamblers and generate excess returns.
If the market continues to consolidate, and the AI agent space remains fragmented, GambleFAI may become an alternative for those gamblers seeking alpha, who cannot find such opportunities in junk coins.
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