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How AI is Changing the iGaming Niche

Updated 18 july 2024
Online casino
Author: James Burton

This technology is widely used by mankind. Every day people come across selections in news feeds, automatic messages on websites, and hint systems in supermarkets. Leading IT corporations (Amazon and Apple) went even further by introducing personal voice assistants, such as Alexa and Siri.

Entertainment for money is a promising sector of the economy, so it does not remain aloof from innovations and is actively implementing AI.

AI in gambling: general info

Experts of the Casino Market studio will tell you about the role of this phenomenon in the casino and sportsbook niche, its benefits, as well as key challenges.

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About the Concept

This is a machine learning method that teaches computers to perform tasks that are feasible for humans naturally. AI is good at self-analysis and tends to improve, making each new task better, faster and more efficient.

The impetus for the discussion of the phenomenon was the emergence of ChatGPT, Copilot, Midjourney, and other innovative programs. This has prompted many companies, if not to implement such mechanisms, then at least to explore the merits of the technology.

Analysts from Research and Markets claim that in 2024, 35% of global businesses plan to add AI algorithms to their projects. The same number of respondents are considering it within 2 or 3 years.

Companies that have already implemented artificial intelligence highly appreciate its benefits:

  • 94% of survey participants noted a reduction in operating costs;
  • 70% indicated that AI has improved customer interaction;
  • 50% have received a real financial gain from the tool.

About 60% of respondents plan to spend from 1 to 5% of their budget on digitalisation and introduction of innovations in the next 5 years.

Experts predict that by 2030, the global artificial intelligence market will exceed $2 billion. The real contribution of the phenomenon to the world economy will be $15.7 trillion.

Key Components of AI

Today, it is useful in many business verticals. These are industry, retail, insurance, banking sector, tourism, and, of course, gambling. Such widespread application is explained by many factors, but the main one is the technology’s versatility.

Let us consider what components AI consists of:

  1. Machine learning. It is responsible for simulating human behaviour, collecting/processing huge amounts of unstructured information, and solving complex problems. The tool became the basis for YouTube and Netflix recommendation services. It also determines what posts a person will see in the news feed on Facebook.
  2. Natural language processing. It is based on computational linguistics and a deep learning model. The solution helps fight spam and is the basis of chatbots and virtual assistants.
  3. Computer sight. It collects and analyses images, videos, and other visual data. Its capabilities are actively used in biometrics. Using the technology, operators will be able to recognise faces, scan fingerprints or retinas, and identify fake documents.
  4. Deep learning. This is a modified version of the first item and is used to solve more complex and cumbersome tasks and create forecasts based on the data obtained. The tool works based on neural network architectures.
  5. Generative AI. The solution is needed for the development of new content (text, audio, and video) without resorting to templates.

The multi-component nature of the concept allows entrepreneurs to solve a wide range of problems and apply technology in different areas. For example, in gambling, AI is responsible for security, the quality of the user experience, and other aspects of the operation of digital entertainment resources.

Improved Personalisation

iGaming is a very competitive niche. To stand out against rivals, attract the audience, and retain it, business owners should offer clients unique impressions. AI helps to cope with this task and create appealing ideas that will make clients interested.

How the technology improves the experience:

  1. Large selection of games. The solution can customise a person’s home page based on their past sessions. Thanks to this, users save time when looking through the list of games and searching for a suitable slot. AI algorithms work on the principle of the Netflix streaming service. They create a thematic product range based on the people’s interests and preferences.
  2. Individual bonuses. The introduction of the tool optimises the loyalty program. The amount of remuneration for each user is determined in accordance with their real benefit to the gaming site. All calculations, as well as analysis of reactions to received incentives, are carried out instantly using AI functions.
  3. Personalised communication. Special services collect information about what clients like, how they behave during/after the sessions, and what additional activities (for example, forecasters’ tournaments) interest them. Based on the data obtained, operators can create customised advertisements or support communications.

The implementation of the tool does not require prior audience segmentation. Thanks to machine learning, which is part of the AI, the system automatically divides players into small groups based on their preferences, previous views, and gaming habits.

The technology takes into account a huge number of factors and characteristics, which is almost impossible to do manually. This is the main advantage of the tool, especially when it comes to large iGaming sites with thousands of people.

Safety and Fraud Detection

Casino security: key features

AI-based services solve a wide range of problems that were previously difficult to cope with using traditional security systems.

How the solution protects entertainment startups:

  1. Automatic authentication. The identity can be checked using biometrics, document scanning, or a verified ID number. AI speeds up and simplifies all these processes, minimising the likelihood of human error. It also helps to find bots or scammers before they cause damage to online casinos.
  2. Risk management of transfers. This includes their scanning for compliance with AML and FATF standards, identifying/blocking problematic transactions, and analysing chargebacks. AI is also used to protect personal data and bank details that players provide when registering on the website.
  3. Fight against multi-accounting. Machine learning algorithms instantly show anomalies in betting patterns and client behaviour. This may indicate unlawful account takeover, the use of bots, or the activity of fraudsters.
  4. Protection against cyber criminals. The iGaming industry faces hacker attacks, code obfuscation, and theft of confidential information every day. The introduction of AI significantly increases the security of virtual casinos. Moreover, the technology studies the ability of competitors to quickly respond to threats at the right time.

Development of Innovative Content

AI helps create new entertainment and improve already existing solutions:

  1. Production of dynamic games. These are slots, cards, and arcades in which difficulty settings can be changed in real time based on the preferences of a particular customer. Each client receives personalised offers and a unique experience.
  2. Testing mechanics. Artificial intelligence collects and analyses audience reactions to new mathematical algorithms and bonuses. Thanks to this, providers release only content that is sure to interest people and abandon projects that are obviously unsuccessful.

As with content production, AI algorithms play a similar role in the marketing field. They study the most in-demand slots and identify games with low profits. As a result, operators buy entertainment with a high response from visitors and do not waste money on ineffective options.

Fair and Responsible Gambling

Artificial intelligence helps to adhere to such a principle and ensures the transparent process of placing bets.

Special systems developed for digital casinos track user behaviour in real-time and instantly identify atypical actions, for example:

  • frequent spins of reels;
  • rotations at higher limits;
  • simultaneous participation in 10 or more sessions;
  • playing 24/7 without breaks and other signs of ludomania.

AI tools detect unhealthy behaviour patterns before they become a problem. Entrepreneurs can intervene in the game if necessary, providing assistance and resources to those clients who need it.

Programs based on the technology guarantee the randomness of winning combinations and protect casino visitors from any manipulation of the results. The audience can rest assured of the honest and unbiased activity of virtual entertainment portals.

The Main Things about AI in the Entertainment Niche

Artificial intelligence in gambling: benefits

The tool is actively used in this industry and is extremely popular with business owners.

It has the following benefits:

  • The key advantage of AI is its multi-component nature. The phenomenon includes machine learning, natural language processing, computer vision, and other elements.
  • The technology helps in creating customised offers for players. For example, high-quality content, attractive rewards, and personalised messages from the support team.
  • Such algorithms are actively used to detect fraud and improve the security of iGaming startups. The tasks of these services include faster and more accurate verification of customers, as well as risk management of transactions, combating multi-accounting, and protection against cybercriminals.
  • AI is useful for the creation of innovative content. These are fast-paced solutions where difficulty settings change in real time. They depend on user preferences, the nature of the game, and the current position of clients in the standings.
  • The introduction of such technology helps entrepreneurs adhere to the principles of responsible gambling. AI instantly identifies behavioural anomalies, which may indicate the development of ludomania.

You can order a turnkey digital portal, a blockchain platform, and a licensed White Label platform from the Casino Market. It is also possible to implement an individual project with the help of a constructor.

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