The Impact of AI on the Gambling Industry

Understanding AI

To understand how machine learning, or artificial intelligence, could change gambling and impact the market’s future, we must first ensure that everybody understands what AI is and how it works. Unfortunately, artificial intelligence is not simple to understand. At the core of it, AI is software that, at a bare minimum, manages to mimic human intelligence and, at best, develops an intelligence and sentience of its own.

Of course, the latter is not something that we have access to at this point. While neuroscientists and computer engineers are working tirelessly to crack the code behind replicating human intelligence, businesses are relying on the closest thing we have to true AI, that being machine learning. Machine learning software can process information, learn from that information, and adapt accordingly. But how does that become useful in gambling or iGaming?

In fact, there are quite a few ways in which the technology we’ve described can and has been used to change the gambling industry. In this article, we hope to thoroughly explore all of the different steps that casino operators have taken to improve the online casino market through the use of artificial intelligence. While some of the more tech-savvy gamblers might be aware of many of the uses, we are certain that some of the things you will find in this piece will surprise you.

Predicting Patterns

When speaking about gambling and AI, the first thing that most people bring up is predictive analysis. As the phrase might suggest, predictive analysis refers to the ability to analyze data and make certain predictions based on it. Anyone who has ever wagered using a sportsbook might recognize the concept as what odds makers do to come up with favorites and underdogs. The question is, what does machine learning have to do with predictive analytics?

Well, it is no secret that machine learning software can operate much faster than a human brain. Therefore, gambling websites could use artificial intelligence to study player data, and come up with a custom list of games for each individual player. The repertoire would consist of games that the player has spent a lot of time on, as well as games that might be similar in gameplay or aesthetic (preferably both). In other words, casino operators could use AI to predict a player’s pattern, and improve their experience.

But, it does not stop there. Particularly savvy casino operators could also use predictive analytics in tandem with AI to study players’ behavior, and use said data to make predictions about future trends in the market in general. Using machine learning technology, a casino operator could successfully learn what games are going to grow more popular in the future, what games are going to fall behind, and what kind of bonuses the players prefer.

The technology could even impact payment options. For example, if the data bears out that most gamblers prefer using cryptocurrency to any other payment method, we are going to see a lot more websites allowing crypto-based transactions. On the other hand, we might see a decrease in transaction options that most gamblers shy away from or ones that have too high of a transaction fee.

Heightened Security

When playing at online casinos, most gamblers are concerned about their safety, and online security. We all want to have some sort of confirmation that the business that we’ve been using is looking out for our safety. The good news is that casinos can, and in fact already do, use artificial intelligence to heighten their security, and make sure that players are safe from external threat. It is especially good to know that security is a top priority for online casinos in a world where cybercrime is consistently on the rise.

The most effective way that AI is being used to protect players is as a tool for fraud detection. Online casinos already have a leg-up, security-wise, on their land-based counterparts. Operators are constantly monitoring player activity, in order to acquire data for the future (as we already discussed in the previous paragraph). However, accurately and thoroughly monitoring each and every gambler on any given website is very difficult. Unless, one has the help of machine learning software.

Operators can train an AI to monitor player activity and gather data regarding their behavior. However, that same software can be equipped with fraud detection systems, that will take into account things like sudden shifts in behavior, depositing or withdrawing large sums of money suddenly, and other suspicious activities. The AI could then alert a human employee, who will examine the situation further, and ensure that nothing strange or suspicious is happening.

It is interesting to note that online casinos are not the only businesses that have begun using AI as a tool for fraud detection and prevention. Markets associated with e-commerce, finance, entertainment, and even travel are also doing a great job of integrating artificial intelligence into their business model. In doing so, they’ve created a safer and more productive market and industry for everyone involved. But, cybersecurity is not the only way that machine learning is keeping gamblers safe.

Heightened Safety

A lot has been said about personal responsibility when gambling, especially online. As they are emerging markets, online casinos are often the target of anti-gambling groups, who claim that constant access to casinos is driving up the percentage of problem gambling. Now, there is absolutely no data whatsoever to support this claim. What is more, it would seem that online casinos are actually much more likely to take certain steps to prevent the development of problem gambling. Examples of gambling operators online doing their part include things like collaboration with support groups, self-exclusion programs, and of course, the integration of artificial intelligence.

But, how can AI possibly prevent compulsive gambling? The truth is, we already gave the answer; by using the very same system that casino operators use to detect fraudulent or suspicious behavior, they can detect compulsive or problematic behavior. If a player is betting much more frequently than ever before, or if they are constantly depositing higher and higher sums, an AI will pick up on that. Human employees could then step into contact with said player, ensure that everything is on the up and up, and maybe even recommend a course of action moving forward.

Improving Customer Support

One of the things that most online casinos pride themselves on is their ability to build a connection with the customers. Once upon a time, when online gambling wasn’t the multi-billion-dollar industry that it is today, this was possible with a human customer support staff. However, as the years have come and gone, online casino attendance has drastically increased. At this point, we can’t blame gambling websites for being unable to keep up with the amount of questions being asked every single day.

Luckily, developments in machine learning came at just the right time. With just a bit of training, AI software developed to be capable of answering the most basic of questions that gamblers might have. Don’t be surprised if most online casinos you visit nowadays have a fully AI-operated live chat. The machine will be able to answer basic questions, and address issues you might have with payment, bonus use, and more. However, for those players who have more complicated questions, we would recommend you send them to the customer support staff directly, using an email.

Again, it isn’t just the iGaming industry that is benefiting from AI in this department. It is rare nowadays to find an online business that does not incorporate an AI-operated live chat. There are even some that have trained machine learning software to answer phones and interact with customers, in a way indistinguishable from a human being. While many people are put off by this new development, the truth is that it is very unlikely to change. The good news, however, is that it is almost certainly going to improve, to a point where AI might just be capable of fixing any issues gamblers may have.

The Future of Artificial Intelligence

A lot of people have voiced their dismay towards AI, and some may even have good reason for it. However, the proverbial genie has been released. Now that we live in a world where the possibility of true AI is within reach, it is difficult to imagine that anyone would be willing to let the dream go. Of course, we have to hope that any research done on the subject will be regulated, as this is a heavy topic to handle. That being said, what will the future of AI look like in the realm of iGaming?

We can already see how this technology has benefitted the gambling industry. Not only has it made it safer and much more secure for new and existing players alike, but it has also improved the very nature of iGaming. Being able to create personal, curated gaming lists for each individual visitor to the website is a big deal, which could not have been possible without the power of machine learning. So, what can we expect to see in the industry’s future?

The first thing that most people might jump to is AI-generated games. Certainly, many have already seen the examples of art, animation, and even entire films generated by an artificial intelligence program. A lot of developers have tried their hands at working in tandem with machine learning to create video games as well, and some have been quite successful. It wouldn’t be surprising if we come to a point where artificial intelligence will be capable of generating a game fully. Considering that the gameplay behind slots is quite simple, it may not be farfetched to imagine a future where most slots online are generated by a machine.

Another incredible innovation, though significantly more optimistic and in the realm of science fiction, is the idea of machine-controlled live dealers. What we are imagining here are humanoid robots who have the capacity to deal tangible, physical cards, as any human dealer would. As we said, this idea may be too fantastic to imagine, but it could be possible in the future. Of course, the issue with it is that many gamblers wouldn’t support a robot dealer. One of the joys of live casinos is that players can experience the immersion of being in a land-based casino, while still getting the benefits of online gambling. A part of that joy is seeing a human face smiling at them from the other end of the table.

Key Takeaways

The future of artificial intelligence in the gambling sector is all but assured. In fact, it is already being utilized, and quite effectively too. Machine learning programs have managed to help create a safer, more secure, and customer-friendly atmosphere at online casinos. Not to mention, they’ve completely revolutionized the aspects of online gambling relating to player and market trends. Using data gathered from AI, casino operators can stay one step ahead of the customers, and always keep them happy.

Despite already achieving so much, there is still room for improvement and development. We are moving towards an ever-more digital future, and so it is important to keep up with the new advancements in tech. There is no doubt that AI will bring about a second revolution in the gambling industry, both online and in land-based casinos. We are certainly excited to see how the market is going to change in the next ten years.