I think there's a line to be drawn on terms of constant torturous fear, or panic and losing points. Like if I'm playing paintball for example, I'm afraid of getting shot because it might hurt a little, and I will lose points for my team. This level of fear is good because it drives you towards productivity. I think if an AI is sentient enough to experience fear, it deserves human rights and should be given the option to choose what games it wants to play.

Your question is reminiscent of old farmers forcing ethnic minorities to work in their fields as slaves. Without considering their emotions on the subject.