The online casino business is developing in the era of active digitalisation of the economy. New technologies are constantly emerging, which makes the industry better, more profitable, and more attractive to investors.
Experts of the Casino Market studio will gladly tell you how Big Data is changing the iGaming niche, about the meaning of the term, and what benefits it brings to operators.
Features and Characteristics of the Technology
It is a huge array of unstructured information stored in digital media. In a broader sense, it is also a variety of tools, approaches, and methods for processing data, transforming it into a form that is understandable and accessible for decision-making.
The term was first coined by Clifford Lynch, editor of the Nature American journal. In a special issue for September 2008, the correspondent noted the explosive growth of information in the world.
Until 2014, only research centres at universities were using the technology, and later, large IT companies, mostly from the USA, also paid attention to the topic. Today, Microsoft, IBM, Oracle Corporation, Amazon, and many others collect and process terabytes of information, mainly for commercial purposes.
Google currently has the greatest influence:
- 1.7 billion people signed up for Gmail;
- 2.7 billion have installed the Android operating system on their phones;
- 2.4 billion created a profile on the YouTube online platform.
Additional data is collected through the Chrome browser, the proprietary Maps application, and the Google Play online store.
The main competitor of the USA in this field is China. The government of the Celestial Empire has decided to stake on the largest providers of cloud computing — Alibaba Group Holding and Tencent Holdings. The third place belongs to Baidu — the Chinese version of Google.
The extracted and processed information is used in various sectors of the economy. These are tourism, logistics, healthcare, banking, insurance, culture, retail, and, of course, gambling.
According to the IDC Spending Guide, 55% of companies in the US work with Big Data, and 53% of entrepreneurs in Europe. Over the past 5 years, the use of the technology has tripled, and the profit from its implementation reached $850 billion.
Key Features of the Phenomenon
The Meta Group company has identified 6 main criteria:
| Volume | A large number of information arrays — from 150 GB per day |
| Velocity | The data shows exponential growth. Its operational analysis requires the processing power of supercomputers |
| Variety | Companies use text and video files, reactions, mentions, statistics, instrument readings, medical information, etc. One user can leave thousands of digital traces daily in the form of likes, subscriptions, and registrations. Special software collects all unstructured data and converts it into a single unified form |
| Veracity | IT companies focus only on true information: both the dataset and the results of its analysis |
| Variability | There are ups and downs in all industries, which are caused by seasonality, economic and political factors, as well as the nuances of working in the chosen field |
| Value | Information can be simple or difficult to perceive. All these aspects should be taken into account in special technologies for working with Big Data |
Main Sources of Information
Top IT corporations collect data from:
- social networks, instant messengers, blogs, and mass media;
- company databases;
- reading devices (meteorological probes, satellite images, and communication sensors);
- digitised state archives;
- Internet resources with statistics and analytics, etc.
One of the key sources of Big Data is the Internet of Things and the gadgets connected to it. The system combines billions of personal devices into a single computer network. IoT programs operate in real-time. They collect, study, and transmit terabytes of useful information.
Where the Data Is Stored
The leading companies use:
- traditional physical servers combined into secure data centres;
- cloud storage;
- data lakes (the storage for unstructured information from a single source).
The collection and analysis of large amounts of information are closely related to Hadoop technology. This is a project of the Apache Software Foundation. The solution consists of hundreds of utilities, frameworks, and libraries. Their main task is to implement the search and context mechanisms, which are used to structure and transfer information.
Big Data Analytics is the science of studying large amounts of data. Currently, this is one of the most intense IT specialities in the market and a promising area for investment. Thousands of companies all over the world are spending huge resources to improve asset and risk management.
Big Data for Personalising Gaming Experience
One of the most popular options for the use of technology is the creation of event marketing.
Operators can use traditional acquisition methods to increase Internet traffic. This is the distribution of bonuses for registration, accrual of free bets, and other actions. Such an approach shows good effectiveness: it contributes to the growth of conversion on the website and the expansion of the target audience.
When people become regular customers of an online casino, the massive distribution of bonuses no longer brings the expected results. In this case, operators will need an individual approach, which can be formed thanks to Big Data.
The use of technology allows entrepreneurs to:
- study the preferences of gamblers;
- group users by gender, age, geolocation, and interests;
- develop special offers for each selected category;
- analyse the reactions of users to individual bonuses, recommendations, and gifts.
For full-fledged work with Big Data, operators need high-quality software. Its main task is the secure localisation of confidential information. Powerful servers or cloud storage will do. Business owners also should take care of effective anti-fraud solutions to avoid theft and disclosure of data.
Interaction with New Customers
Working with modern technology allows entrepreneurs to offer their clients only what they are interested in. For example, they prefer to play roulette.
After registration, users will immediately be offered several versions of such entertainment (European, American, and live roulette), as well as adapted bonuses (free spins and additional bets on the combinations of numbers).
Bookmakers operate on the same principle. They study the digital traces of betters (views, clicks, and search queries) even at the stage of their registration on the gaming site.
If a player, for example, is interested in La Liga, then he will be offered:
- profitable quotes for football competitions;
- announcements of future meetings;
- statistics of previous matches.
Increase in the Customer Retention Rate
Entrepreneurs can determine when gamblers are most likely to decide to leave the casino platform.
The program studies the style of the game (the duration of sessions, as well as the actions in case of victories and failures) and provides clients with profitable bonuses at the right time. Usually, this is a free bet option. An invitation to a tournament (for a poker room), bid insurance (for a bookmaker’s office), and other types of rewards are also suitable.
Players receive the type of bonus that will interest and motivate them to continue placing bets instead of leaving the gaming site.
Introduction of Cross-Selling
Big Data analysis allows operators to calculate the perfect time to offer customers to deposit in the new casino entertainment.
Fans of sports betting will like eSports, virtual horse racing, football, or basketball. Those who spend most of their leisure time playing slot machines will prefer products with the participation of live dealers. These are roulette, blackjack, baccarat, and other card games.
Improvement of the Usability of a Mobile Casino
Benefits of using Big Data:
- Comprehensive personalisation of the mobile application. This includes the creation of a list of recommendations, the addition of new skins, and the adaptation of the interface to the needs and wishes of a particular client.
- A simplified choice for gamblers. The program helps people select solutions (slot machines and live content) by offering them quick tips and easy navigation.
Effective Fight Against Fraud
A survey carried out by the Ernst and Young audit company showed that:
- 72% of firms believe that Big Data can play a key role in the prevention of corporate fraud.
- 89% of respondents noted that technology makes it possible to detect crimes that would otherwise pass unnoticed.
- 74% of brands emphasised the value of the program for managing corporate risk and identifying vulnerabilities in the infrastructure.
Let us consider how Big Data improves the security of iGaming projects:
| Fight against bonus hunting | Some users register on such websites for one purpose — to receive welcome bonuses. Often, such players collude with other clients and also use bots. The analysis of big data allows operators to anticipate such situations, protect their platforms against theft of special offers, and help to properly allocate funds to attract the audience |
| Fair play support | The analysis of big data allows entrepreneurs to identify bots and scammers who place bets using illegal software. The key task of any iGaming resource is to create an environment for fair and transparent gameplay with equal conditions for all online casino visitors |
| Enhancing cybersecurity | Thanks to technology, the gambling business effectively fights against:
The program instantly reacts to threats that appear on the Web (for example, new viruses and log files). It studies the experience of competitors in the fight against hackers |
| Legitimate work support | Technology helps operators adhere to the AML and FATF principles. These are important requirements for any online casino enterprise |
Big Data and Responsible Gambling
A conscious approach to the placement of bets is one of the main requirements of prestigious regulators. The authorities of Malta, Curacao, the United Kingdom, Alderney, and other popular jurisdictions expect their licensees to work in the market fairly and legally. For this reason, they implement effective mechanisms to prevent the development of ludomania.
Big Data allows operators to take a broader look at the problem of gambling addiction.
Based on technology, the program identifies behavioural patterns and signs that may indicate a loss of control over the game. Such users will be offered to have a break and rest. Entrepreneurs have the right to set limits on the sizes of deposits and playing time, launch newsletters, and much more.
Casino owners can access databases of self-excluded customers in other countries. If there are such people among the visitors of their iGaming sites, operators will be immediately informed about this so that they can take preventive measures.
KPI of Entertainment Platforms Based on Big Data
In the gambling industry, businessmen are guided by the following key performance indicators:
- GGR — Gross Gaming Revenue. This is the sum of all the bids placed by clients. The indicator is often taken as the basis for calculating taxes. Entrepreneurs pay between 2% and 30% of GGR depending on the jurisdiction in which they obtained a permit.
- NGR — Net Gaming Revenue. The metric is calculated as GGR minus operating expenses (taxes, commissions to providers, as well as licence and rental payments).
- ARPU — Average Revenue Per Gambler. This is the profit of an iGaming site for a certain period (month, quarter, or year), divided by the number of registered players.
- CR — Churn Rate. This is the number of customers who, for one reason or another, stopped placing bets, divided by the total number of registered users.
Interaction with Big Data allows operators to take a broader look at KPI:
- compare the performance of the company with the comprehensive reports on the industry;
- reveal patterns and identify steps that need to be taken to increase the profit of entrepreneurs;
- increase business liquidity and reduce dependence on external risk factors.
The following popular systems are available for KPI analysis:
- 1C-Bitrix BigData. This is a cloud solution for personalising offers, improving the quality of services, and managing a gambling business more efficiently. It is possible to build the product into the platform or set it up to synchronise with the website's CRM system.
- Alytics. It allows operators to effectively manage their advertising budget, generate detailed user reports, and group the audience by various parameters. The solution is characterised by a user-friendly interface and a simple integration in a few clicks.
- Crossss. The service collects and analyses information about the preferences and behaviour of customers and helps to predict the desires of players. Content can be adapted to each client registered on the website.
Legal Use of Big Data
In 2023, online casinos are actively gathering and processing it for various business purposes.
Along with the information that is usually publicly available (geolocation, statistics, and that of the reading devices), providers also get access to the gamblers’ confidential data. The requirements for its proper storage are much more serious.
The USA
This is the first country to allow the use of Big Data for commercial and government purposes. The turning point was the terrorist attack on September 11, 2001, after which the special services received unlimited access to private information.
Currently, the collection and analysis of Big Data is regulated at the federal level of each of the states. The strictest laws are in California. Here, any user has the right to know about the interests of each company related to this field. People can also demand that their info is removed from the sample or even prohibit its collection.
In states where casino games are legalised (New Jersey, Pennsylvania, West Virginia, and Delaware), operators often use data anonymisation. This business tool depersonalises the obtained information so that it cannot be used to identify a specific person. Such data becomes legal and is no longer subject to confidentiality requirements.
It gives an overall picture of:
- reactions to bonuses, discounts, and promotional codes;
- preferences of the audience (genres of entertainment and favourite software vendors);
- interest in multiplayer events (games, quests, and tournaments);
- behavioural patterns in certain situations.
China
Online gambling is prohibited in this country but local players are happy to bet on foreign platforms.
Since 2017, China has had a cybersecurity law that many experts call controversial:
- The document prohibits Internet companies from collecting and transmitting information about customers without their consent.
- It requires mobile operators and online service providers to store some of the data obtained within the jurisdiction and transfer it to the government upon request.
Since 2019, the Golden Shield has been operating in the country, which filters online traffic per Chinese legal rules.
European Union
Since 2019, the EU has adopted the GDPR — General Data Protection Regulation.
Key points of the document:
- grounds for collecting and processing the users’ data (for example, personal consent or legal circumstances);
- the rights of each online player (for example, to be informed about data collection, etc.);
- responsibilities for the proper storage of obtained information;
- data transfer from one device to another, and much more.
Already in the first year, the European Commission fined more than 90 Internet companies for a total of €56 million.
The Main Things about the Benefits of Big Data for the Casino Niche
Technology is actively used in iGaming, making the industry better, safer, and more profitable.
- Big Data is a huge array of unstructured and fragmented information. With the help of special software, analysts collect and process data and transform it into an accessible form for decision-making.
- In gambling, technology is used to create event marketing and personalise the user experience. Working with the solution makes it easier for operators to interact with new customers and increase the level of their retention and facilitates the introduction of cross-selling.
- Big Data analysis increases the effectiveness of the fight against fraud. The program helps to maintain fair play and the legal operation of online casinos. It also prevents hacker attacks and theft of bonuses and improves the overall cybersecurity of the iGaming site.
- Technology is used to improve the usability of mobile betting apps, facilitate KPI analysis, and implement responsible gambling principles.
- The world’s leading economies are fighting for the legal application of technology. The European Union, the United States, China, and other jurisdictions have strict laws and regulations on the collection, storage, and disclosure of confidential information to third parties.
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