AI in the iGaming Niche: Combating Fraud and Other Advantages

Nowadays, AI is popular in many fields, including gambling. The Casino Market experts will explain how the technology can speed up and simplify all business processes in digital gaming establishments.

Order Service

About the AI Concept

AI implies machines and programs that imitate human behaviour and intelligence. It can collect and analyse information, identify patterns, learn, and improve itself.

The solution can be useful in various areas:

• regularities and natural language recognition;
• computer vision;
• recommendation systems, etc.

The history of AI began in 1956 when John McCarthy, a professor at Dartmouth University, first defined the concept as a technology related to understanding human intelligence.

The real boom came in the early 2010s. At that time, many IT giants (such as Google, Apple, and Amazon) announced large investments in AI-based projects. Concurrently, the phenomenon began to actively penetrate the business sphere, making it more advanced, safe, and resistant to crisis situations.

Today, the technology is popular in many fields, including gambling.

The Forbes Advisor survey shows that casino brands use AI in the following areas:

• 56% of respondents note the great contribution of technology to the improvement of the quality of customer service;
• 51% need AI to combat fraud, abuse of bonuses, and money laundering;
• 47% use the solution to create digital personal assistants;
• 35% develop gaming and advertising content thanks to AI;
• 24% implement this technology to provide high-quality audience segmentation.

Forbes analysts predict that the role of AI will only grow in the future. Companies that ignore the trend will not be able to remain competitive. They will quickly lose their positions in the high-tech iGaming market.

Automation of KYC Verification Using AI

Owners of online casino platforms must identify visitors promptly to protect their websites from scammers and prevent gambling addicts from placing bets.

AI algorithms improve the KYC procedure and give the following advantages:

1. Automated data extraction. This is the collection and analysis of information about users from various sources. AI programs examine government-issued IDs, utility bills, financial statements, etc. They scan the digital footprint of players on the Internet, which is almost impossible to do manually.
2. Quick document authentication. AI instantly detects falsified papers (passports, ID cards, or driver's licences). Optical character recognition (OCR) is a key technology element, as it allows entrepreneurs to instantly extract and process data, protecting iGaming sites from fraudsters and dishonest players.
3. False alarm minimisation. Manual checks usually increase their number, but AI reduces it by 70% due to the absence of the human factor. As a result, operators spend time only on those accounts that create a real threat to their platforms.
4. Introduction of biometric identification. This is verification through fingerprinting, iris scanning, facial recognition, or voice matching. Comparing the received information with existing biometric databases allows business owners to confirm the user’s identity and provide a high confidence level.
5. Compatibility with existing systems. Modern AI products can smoothly integrate with banking programs and infrastructure. The purpose of the merger is to optimise the workflow and increase efficiency.

AI and Smart Feedback

One of the key components of artificial intelligence is the NLP solution. Its task is to study and extract information from people's spoken and written words. The tool can be added to an online casino chatbot to simplify and speed up feedback from the audience.

The use of AI algorithms makes it possible to answer 80% of standard questions related to:

• registration and verification on the website;
• payment instruments;
• rules for calculating rates;
• bonus terms;
• updating the entertainment catalogue, and other aspects.

This approach reduces the casino's call centre load and helps entrepreneurs concentrate on more complex and important issues. Owners of iGaming brands can spend less time and money on customer support. However, its quality will remain at the highest level.

ChatGPT is the most popular AI solution. It was presented in November 2022 by the OpenAI American FinTech company. The product can recognise text, audio, and video fragments, maintain dialogue, as well as search and process data.

In gambling, the solution is used for strategy formulation, but it is not wise to trust the results of a chatbot completely. According to experts, its predictions come true only in 80% of cases.

AI and Deep Personalisation

Machine learning is an important component of AI technology.

It allows entrepreneurs to divide their clients according to different criteria:

• preferences;
• history and types of bets;
• time of entry;
• duration of sessions, etc.

Operators no longer focus on the mass market but work only with loyal customers. For each selected category, a separate marketing plan is written. It is aimed at increasing the involvement and retention of the target audience.

Key features of the technology:

1. Relevant content in real-time. AI programs work by analogy with the Netflix streaming platform and offer individual solutions (slots, types of bets, and functions) right after game events (the unsuccessful spin, the victory, or the launch of an additional round) take place. All received recommendations help business owners attract gamblers so they stay on the websites and spend more money there.
2. Personalised options. Players are offered the best possible bid (as well as a game, entertainment theme, or bonus) without making them look for it, which saves a lot of time. The selection is based on trends, preferences, previous sessions, queries in search engines, etc.
3. The best bonuses. AI-based personalisation can be presented in the form of special offers, tournaments, seasonal promotions, and other elements of the loyalty program.

Combat Fraud Using the Technology

AI is more effective at detecting intruders in casinos than humans.

Such programs can collect terabytes of seemingly unrelated data, quickly process it, and identify suspicious patterns. They may indicate multi-accounting, bonus abuse, collusion, and other activities that can make operators lose funds. Honest users also suffer because they feel powerless against the bots on the other side of the screen.

AML fraud is another common problem in the iGaming industry. Often, entrepreneurs do not even suspect that their platforms are used for dubious transfers and money laundering. Tens of thousands of transactions can pass through a large casino daily, and tracking and analysing them without AI is impossible.

How the solution helps fight fraudsters:

1. Identification of bots and malicious users. The specialised software recognises them by behaviour, IP addresses, and input devices. AI can analyse large amounts of data and identify anomalies, suspicious matches, illogical movements during the rotation of the reels, and hidden associations.
2. Prevention of cyber attacks. The key benefit of AI is that it studies competitors' experience in the fight against hackers and virus software. When cybercriminals try to hack an online casino's database, the program will be prepared to repulse the attack immediately.
3. Responsible gambling support. The decision to disregard this principle threatens to destroy the establishment's reputation, resulting in huge fines from regulators. AI can identify and analyse behavioural patterns, offering each group of clients several safe game modes. The risks of interaction with people who suffer from ludomania are minimised, so operators work only with honest and adequate customers.

AI and Successful Project Management

The introduction of the technology speeds up and simplifies the work of iGaming platforms:

1. Cash flow administration. AI programs help predict financial streams and efficiently manage working capital. The analysis uses patterns and trends in payment history, as well as credit risk assessments, regulatory requirements, and other information.
2. Customer’s life cycle management. Entrepreneurs can budget their marketing strategies more effectively, taking into account the costs of attracting and retaining the target audience. The benefits of implementing AI algorithms include the prediction of the lifetime and future value of each player, examination of the return on referral programs, and assessment of the customer’s loyalty.
3. Creation of business analytics. AI allows platform owners to compare the performance and profitability of their projects with the competitors in a matter of seconds, form detailed reporting on different KPI groups, and predict financial indicators for future periods.

The Main Things about the Role of AI in the Gambling Niche

The use of AI provides powerful support to online casinos:

• This programming field is responsible for the simulation of the behaviour of a real person. It can collect and process terabytes of information, analyse disaggregated data, learn, and improve.
• AI simplifies and speeds up KYC verification. The solution provides automatic data extraction, minimises false alarms, and checks gamblers based on biometrics.
• The product is considered the basis of most smart casino assistants. Chatbots partially replace real staff, thus reducing the cost of customer support.
• AI algorithms are responsible for content personalisation. They also segment the audience according to different parameters and behavioural patterns. After that, each group of players is offered games and bonuses that interest them.
• The technology provides a significant advantage in the fight against fraudsters. It detects bots and malicious users, prevents cyber attacks, and ensures fair and transparent gameplay.

Order modern security software from the Casino Market studio. Our cutting-edge AI solution simplifies and speeds up customer verification, helps operators manage payments and cash flows, and protects against fraudsters and cybercriminals.

We also offer the following products and services:

• creation of a turnkey online casino;
• installation of a White Label platform;
• drafting a business plan;
• development of HTML5 slots;
• assistance in obtaining a licence, and much more.

For all questions, please contact our managers.

Order Service

James Burton The Casino Market partner, the owner of the gambling establishments’ network

Have questions or want to order services?
Contact our consultants:

• e-mail: manager@casino-market.com
• Skype: support.casinosupermarket
• feedback form.