What, people trust the current system of sports betting where it relies on a single human as a point of failure? People use online betting all the time so I don't think this is as big an issue as you are making it out to be, nor do I think the AI would be rigged to favor gambling outcomes. If the system is supposed to be impartial but fucks up, people will reject it in favor of just going back to human refs since it isn't actually providing a tangible advantage. Considering how much rage bad calls generate I am not sure people actually like that system, however what you might be arguing is that it generates engagement. It's like the facebook algorithm where they found that feeding people emotionally charged content increased use time even if those emotions were negative; over time facebook has lost user retention so I don't know if that is really a sustainable model.

Wouldn't a limited use of AI make senee however, sich as for calling strikes and balls during baseball pitches? I can think of applications where it makes sense to incorporate technology way more than it is currently utilized. Obviously sone sports and rulings it has more applicability than others.

And at this point an AI would slow the game down less and do a more accurate job of enforcing the rules than a human ref.

Why do we even use refs when we have the technology to make instant calls more accurately? Refs are obsolete and just serve to further corruption in gambling.