July 24, 2020

The Impact of Artificial Intelligence on the iGaming Industry

Long gone are the days when humans did all the work. Now, computers can do a lot more without much outside input.

Artificial intelligence has seen a drastic development in the last couple of years, with more and more industries using it to take advantage of all the automation benefits that it offers.

The iGaming industry is no different. A decade or two ago, most people would’ve hesitated to put their data and credit card information on a shady iGaming website. This was in part due to the lack of security measures and privacy concerns.

But the landscape has shifted significantly when compared to the first iGaming websites ever created. Nowadays, the implementation of artificial intelligence has given players around the world all sorts of benefits that they couldn’t enjoy without it. Let’s go through a list of how the iGaming industry has evolved thanks to AI.

More security overall

SSL and other security measures have existed for quite a few years on every website. However, artificial intelligence steps up the game by automatically detecting suspicious behavior.

When players use an iGaming software, they can place bets on their favorite teams using their preferred money transfer method and they can customize their security settings to their heart’s desire.

The implemented AI can detect cheats, hacking attempts, fraud, and even genuine-looking phishing attempts. It also encrypts all the data sent and received automatically so players don’t have to worry about any of their details getting stolen even if they’re accessing the platform through a public Wi-Fi network.

Smart data collection and analysis

While humans who are good with numbers can create fairly precise statistics, they are no match for an advanced artificial intelligence algorithm.

And it’s not just the statistics, but also the user experience data that gets analyzed. If you were to play a certain fantasy sport or bet almost exclusively on one type of sport, then you might find that the interface changes in such a way that you won’t have to click much to go to the desired menu.

Similarly, the AI analyzes big clusters of data from all of the users on a website to determine how it can make the experience better. It compiles the data into an easy to read spreadsheet with percentages and relevant information to help web designers and developers come up with better games, more intuitive menus, and so forth.

Fraud and cheating prevention

Up until the moment machine learning became a reality, developers had to create basic algorithms against fraud and cheating based on past experiences and patterns.

Once AI came to the scene, it learned behaviors actively and started making connections between past experiences and emerging techniques. Not only that, but it can detect whether a certain player is using specialized cheating software, as well as their actual IP address, so they can’t hide behind a VPN and create fake accounts like before.

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Preventing addiction

One major problem that has faced video games and iGaming in general is the fact that some users tend to spend a lot more time glued to their screen than necessary.

AI is here to fix this with a solid and simple technique. Whenever it detects that a player bets too much or too often, the algorithm can automatically temporarily suspend their account and send the user helpful links to help them combat their self-destructive behavior.

A more cynical iGaming operator might think that having gambling addicts is a good thing. However, it can quickly turn into a PR disaster. Some casinos have been fined more than $10 million for failing to prevent gambling addiction. And people have noticed this, so the bad advertising doesn’t stop there. It’s better to prevent with the help of AI than end up in such a scenario.

AI helps iGaming businesses customize offers and promotions

Artificial intelligence analyzes users’ behavioral patterns. We’ve already talked about smart data collection and analysis for existing users, but this time we’re going to focus on attracting new players.

The world of marketing is constantly evolving and with the help of AI, marketers can now target new potential customers more efficiently. Many popular iGaming websites offer the same boring sign-up bonuses that gamblers are so used to by now.

As an example, AI data analysis can identify why people are drawn to certain types of online casino games. This data helps marketers come up with more attractive offers and even with personalized sales messages. Let’s say one user targeted by an AI seems to spend a lot of time online playing Farkle. In this case, the AI and the marketers will be able to tap into that player’s habit to make a customized offer.

Create better odds for players and the house

By now, everyone knows the classic saying “the house always wins”. That’s because casinos and iGaming providers need a steady flow of return on investment to function, much like any other business.

Sometimes this might feel quite unfair for many newcomers so they will quit using the site before they even get the chance to make a fat deposit. To help prevent this, AI analyzes past sporting events and all of the factors that come into play: scoring, injuries, red cards, etc.

With the help of an advanced mathematical algorithm, historic data, and prediction based on several other factors, the AI can show a player the odds of a match more fairly. In such instances, players are more likely to win some money from a bet while the house still gets to make their regular return on investment.

What does the future hold?

It’s amazing how many things AI has accomplished in so many industries in such a relatively short time.

However, this begs the question: where do we go from here? Will AI completely replace humans within a few decades? Or are humans capable of doing other things that AI will never learn? In any case, many good things can come out of it. While we can’t know for sure what will happen exactly, we’re looking forward to what the future of AI will bring.

About the author 

Imran Uddin

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