How Big Data and Analytics Help Predict the Behaviour of Users

Experts of the Casino Market studio talk about the features and benefits of Big Data in the gambling industry. You will learn how technology is changing and improving the casino and sportsbook sector.

About the Concept

This information comes from different sources at high speed. Its volume is growing exponentially, so it is almost impossible to manage such a flow without the use of special machines.

The term “Big Data” was introduced by Clifford Lynch in 2008. The editor of the Nature magazine drew attention to the expansion of the amount of details, which is becoming increasingly difficult to perceive every day.

In 2012, large IT corporations first paid attention to the technology. Apple, Google, Oracle, Microsoft, and other big names began to study the concept and test various applications for managing fragmented reports.

Today, Big Data has several key characteristics:

1. Volume. The minimum is 150 GB per day.
2. Velocity. This is a high speed of accumulation and processing of the info. It is updated regularly, so to keep track of it, operators will need specialised software.
3. Variety. Entrepreneurs face a huge amount of unstructured data. These are audio/video files, text messages, fragments of computer code, likes, etc. Before analysing them, the details must be organised and brought to a common denominator.

Today, in the era of active digitalisation, technology is becoming an invaluable resource in various sectors of the economy. These are tourism, pharmaceuticals, construction, logistics, banking, insurance, education, and, of course, gambling.

Deep Analytics of the Behaviour of Players

By processing colossal data sets, business owners better understand what people want to see in the entertainment session. In practice, this means that providers can customise content in real time, as well as make the offered products more exciting, enjoyable, and profitable.

According to research from the International Gambling Institute (IGI), operators that effectively use player details:

• recorded a 27% growth in audience engagement;
• increased retention of gamblers by 14% compared to providers that did not use an information management strategy.

The main types of data for casino brands:

1. Content. These are slots, board entertainment, cards, fishing, arcades, etc. It is possible to organise and analyse solutions by manufacturer, theme, technical parameters (RTP, volatility), plot, and bonuses.
2. Game strategy. It includes the duration of sessions, preferred entry/exit times, size, frequency, betting pattern, risk propensity, acquisition of features, average check size, number of received incentives, and other elements.
3. User profile. This is the information that clients provide during registration and verification on the website or in a land-based location (full name, address, and actual geoposition). Some data (for example, the card number and amount of debt for public facilities) can be integrated from third-party sources (like the ID Bank system) if such an exchange is permitted in the jurisdiction.
4. Internet of Things (IoT). Most often, operators collect the necessary details from blogs, social networks, instant messengers, and other external platforms where the profiles of gamblers are created.
5. Statistics. This is publicly available information: average traffic to entertainment sites, level of involvement, and percentage of people with signs of ludomania. Companies also use published materials, such as press releases for new products, evaluation of the results of tournaments and seasonal missions, subscriptions, etc.

Using complex analytical tools, entrepreneurs can find out about the gaming habits and preferences of customers, as well as the interests of visitors to competing portals. The acquired knowledge helps to quickly adapt offers in accordance with the individual wishes of people.

The advantage of Big Data is that it allows business owners to create personalised solutions for each selected category or subgroup of players. Thanks to this, a casino or a sportsbook site stops following patterns. All registered clients receive only the content and options (bonuses, rewards, or access levels) that interest them.

The work of platforms based on technology is often compared to the classic collection from Netflix. The American streaming service collects data from tens of thousands of entry points, processes it, and offers each viewer solutions that will match his taste.

Why a Personalised Experience is So Important

According to a study by the UK Gambling Commission (UKGC), casino visitors who received individual recommendations:

• extended the time spent on the entertainment resource by 35%;
• increased the average check by 20%.

In the long term, the tool is one of the most valuable assets in the operator's treasury. The in-depth analysis of user behaviour provides a clear understanding of the audience's habits and methods that can be applied to convert such preferences into the company’s profit.

Benefits of individual gambling products based on Big Data:

1. Increased audience retention. Personalisation qualitatively affects such metrics as average revenue per player (APRU), customer lifetime value (LTV), and other parameters. Users stay on the platform for a long time and are not afraid to take risks and spin the reels in slots at higher limits.
2. Formation of loyalty. Entrepreneurs create original bonus systems with individual offers for each client group. This approach allows project owners to quickly gather devoted players who will not go to competitors under any circumstances.
3. Rising incomes. The implementation of Big Data algorithms has a positive effect on brand profitability. Operators observe an increase in gross gaming revenue (GGR), return on investment (ROI), and other metrics.
4. Improved recognition. Thanks to relevant analytics, businessmen can transform their platforms through original designs and unique products.
5. More effective marketing. We are talking about individual promotional offers. These can be personal bonuses, push messages, e-mails, and other options aimed at communicating with the audience.

How Entrepreneurs Use the Technology

It has found application in all gambling areas:

Land-Based Sector

The first program based on customer habits and preferences was introduced in the mid-1990s at the Harrah's American casino network. The point collection system called Total Rewards became the gold standard for loyalty programs for many years to come.

The company identified and segmented visitors based on their actions, level of play, and value to the enterprise. After that, each group received personalised incentives.

The Total Rewards service operated on Microsoft SQL Server. The multi-level database has become the industry standard for most customer tracking tools.

According to Yahoo! Finance, almost all major casino resorts use Big Data and analytics to better understand people’s needs.

Firms study where and how their clients spend their money while they are:

• at the hotel;
• near the selected slot machine;
• at dinner in one of the establishment's restaurants.

For example, MGM Resorts uses technology to evaluate the performance of each entertainment facility in Las Vegas and Atlantic City.

Kelly Lister, vice president of the company, noted:

Our restaurants operate differently than casinos or hotels. Each area has its productivity drivers. Analysis of the information allows businessmen to see a detailed picture in all segments and improve management efficiency in each of them.

iGaming Vertical

The vast majority of software vendors and owners of iGaming projects use Big Data in their work.

Thus, Pragmatic Play offers to order original slots and table entertainment along with a collection of Enhance promotional tools. The catalogue includes tournaments, free spins, multipliers, cashbacks, and more options.

Operators can regulate the accrual of incentives based on the analysis of personal details. The company offers a wide range of targeted settings:

• various criteria for winning;
• automatic and manual payouts;
• launches at the chosen time;
• leaderboards;
• various types of free spins.

Content and CRM services based on the technology can be ordered from Playtech, NYX Gaming, Booming Games, ELK Studios, and other well-known developers.

Bookmaking Business

Betting platforms use Big Data to set realistic wagering odds. A balanced event line is formed based on the study of previous games and point-scoring models.

The Cloud DataFlow search giant from Google is one of the first examples of the concept being introduced into the work of sportsbook project owners. In 2014, the program accurately predicted 14 out of 15 matches of the World Cup. To make forecasts, the service collected fragmented information about teams, coaches, tactical changes, etc.

Today, data is actively used to create dynamic odds. They react to what is happening during the competition in real time, offering bookmakers the most favourable odds.

Such brands as DraftKings and FanDuel are considered leaders in the use of technology in the market.

The companies have created entire departments that are responsible for:

• prediction of matches;
• creation of a balanced event line;
• support for individual customer experience.

Electronic Arts, a leading developer of fantasy sports content, uses data science to analyse player behaviour. The firm decides which features are the most popular and what needs to be improved.

For example, studying telemetry details (tracking every push of a button, movement, or decision) made it possible to optimise FIFA and Madden NFL. Today, these are the most in-demand types of entertainment in the provider's portfolio, including due to the availability of unique game modes and advanced interaction features.

Legal Aspects of Using Big Data

Gambling brands collect and process terabytes of information daily. As the leading regulators have repeatedly reminded, this information must be properly stored and securely exchanged.

Most European operators are guided by the rules of the GDPR. The document covers the automated processing of customer details in the EU. It also defines the principles of analysis, rights and obligations of citizens, and firms that collect and store data.

Providers also use multi-factor authentication (MFA). The technique is actively used in the insurance, banking, and social housing sectors. It speeds up and simplifies the exchange of info between entrepreneurs and financial institutions.

Recommendations for managing Big Data in the gambling niche:

1. Canada. In 2022, the local regulator introduced a requirement to provide anonymous data about players. The purpose of such a request is to study the problems of ludomania in the country.
2. Europe. The EU Gambling and Betting Association has issued a Code of Conduct on Online Data Protection. The document contains recommendations for operators in accordance with GDPR standards.
3. Sweden. The Ministry of Finance has allowed licensed entrepreneurs to exchange individual client data. It will facilitate the fight against fraud and the spread of addiction to the placement of bets.
4. Great Britain. The UK government is consulting on the issue of mandatory interchange of data on people who belong to risk groups. The industry survey is currently being conducted together with the GAMSTOP charitable organisation.

Preventing the Development of Ludomania

Leading regulators are interested in Big Data, no less than operators or software vendors. The use of large amounts of information increases the effectiveness of the fight against addiction.

The National Council on Problem Gambling (NCPG) reported that companies using the technology have recorded:

• a 45% decrease in the number of requests for self-exclusion;
• a 28% reduction in registered cases of harm related to the betting activity.

During registration on the site and each subsequent visit, a user profile is created and filled in. It contains personal information about clients, as well as a description of the nature of the game, preferred types of bids, content options, etc.

If some behavioural issues are noted during the next session, the program immediately notifies entrepreneurs about them.

Project owners can take various measures:

• set limits on deposits;
• open access to self-exclusion and self-restriction registries;
• provide educational materials on ludomania;
• block the gambler's profile.

That is how it is possible to protect clients from excessive gambling and demonstrate commitment to creating a safe and responsible environment for the placement of bids.

The Main Things about Big Data in the Casino Niche

The technology is actively used in the entertainment industry.

Key aspects that need to be taken into account:

• In-depth behaviour analytics is one of the most successful examples of using the tool. Operators receive complete information about customers and their preferences based on the collection and study of different types of data. This is content, game strategy, user profile, Internet of Things (IoT), statistics from external sources, and competitors' websites.
• The creation of a personalised experience has several advantages for casinos or sportsbook brands. This is the income growth, an increase in recognition and marketing efficiency, and better audience retention.
• The collection, storage, and exchange of data are regulated by international authorities. The most famous of them is GDPR.
• The technology is extremely beneficial when it comes to the fight against ludomania. Analysis of game profiles allows operators to quickly identify atypical behaviour and instantly block problem clients.

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