With the rising number of casino players betting on Ethereum casino sites and online fiat gambling platforms, artificial intelligence is becoming increasingly important in the iGaming industry. Artificial intelligence is a cutting-edge technology increasingly transforming different industries, and the gambling sector is no different.
Paired with other gambling technologies, artificial intelligence in the gambling industry promises players a safer and more realistic gaming environment with features similar to a physical casino. Casino operators can also use AI-powered algorithms to simulate human intellect and boost player engagement.
This article looks at AI’s influence on the online gambling industry and how it’s helping players and casino operators. But first, here’s a brief history and statistics of the gambling market.
The gambling culture has developed for thousands of years, but the biggest changes have happened over the last three decades with the rise of the internet and ease of accessing casino games. Along with that, the industry’s perception of gambling is changing from the stage of denial and defining the activity as a threat to the point of recognizing it as a key part of the entertainment market.
According to statistics, about 26% of the global population gambles regularly and over 50% wager at least once a year. A huge percentage place the wagers online, which has made the online gambling industry reach an estimated worth of about $74.17 billion. That shows that online gambling is on the rise as the industry continues attracting more investors from unexpected business areas.
The growth of the online gambling industry involves its active development, and AI can help interested stakeholders to solve existing problems. Artificial intelligence also helps prevent the rise of new problems.
Artificial intelligence has influenced how the online gambling industry operates in different ways. It has expanded the market’s horizons, developing a digital space where machine-operated abilities are limitless.
Practically every section of the online gambling industry is taking advantage of AI systems, from game developers creating games to casino operators monitoring the players’ gameplay. Artificial intelligence is also changing how the world is developing away from gambling, making it a key advancement in different industries, including the medical and automotive fields.
Here’s a deep dive into how artificial intelligence is taking online gambling to the next level.
With the increasing number of bettors playing on real money casino sites through their PC and mobile devices, security measures have become a key factor in creating a safe online gambling environment. Artificial intelligence has proven to be an excellent tool for casino operators to safeguard their users’ privacy while securely processing their payments.
The best online casino websites use powerful AI technologies to create a safe gambling environment for punters to place wagers. A good example of how artificial intelligence works in the online casino industry is through SSL encryption. That’s among the most essential cyber-security measures put in place by online casinos.
SSL encryption is a mechanism that helps to protect sensitive information from being accessed by third parties when processing transactions. With this technology, online casinos can prevent fraud and account hacking. That’s quite important as bettors will have the peace of mind knowing their account details and cash are always secure.
Besides helping operators develop SSL encryption protocols, AI programs can easily detect fraud activities with high precision rates. These AI-based programs are highly accurate and unbiased. They can learn through their past mistakes rapidly while studying the data for the player’s device. These programs can even comb through the user’s browser history and IP addresses to detect malicious activities.
Thanks to AI-based programs, online casino operators can detect fraudulent activities and security breaches before they occur. That helps to protect the gambling experience of other players on the casino site. AI programs will even take the necessary steps to ensure that fraudsters are flagged and take the necessary precautions when suspicious activity is noted.
Several AI programs can help casino operators assess players’ gambling behaviors on their sites. Analyzing their users’ gambling behavior helps casino operators deliver customized offerings and boost player engagement.
For instance, online casinos can collect data on how much a punter spends monthly or annually, the games that the players like and the number of hours they’re spending at a gambling casino site. With that information, casino operators can deliver personalized offers and improve the player’s experience while on the site.
Poker is among the most famous casino games played by millions of gamblers across the globe. With artificial intelligence, poker players can get more opportunities to wager on the game online. AI is developing a customized in-person experience that allows punters to feel like they’re playing against other people instead of a program. Additionally, there are various variations of poker available online.
Besides poker, artificial intelligence is improving the overall experience offered by other casino games, including blackjack, slot games and roulette. Every action occurs automatically, from shuffling the card deck to rolling the dice. There’s no manual input, which gives the players the peace of mind knowing there’s fair play. The players don’t have to worry about anyone cheating, and they can access new betting opportunities.
Problem gambling is everywhere in the world, and it’s among the biggest problems that online casinos must deal with. Such punters only want to take advantage of a betting site through fraud which might even result in cheating. However, AI-based software will quickly identify these problem gamblers and help to protect other users from this behavior.
AI programs can record the player data and analyze their behavior. This data helps the casino software identify users with malicious intent while helping others avoid gambling addiction. In the long run, that saves the online casino lots of money by ensuring the experience of other players isn’t hampered.
Gambling sites use artificial intelligence to improve their customer support. The operator can leverage the technology to deliver round-the-clock technical support to their players, so they never find themselves stuck when betting. For example, the best online gambling platforms offer their players chatbots as part of their customer support system.
The chatbots interact with players and help them clear their doubts. They’re programmed using frequently asked questions in a casino, which helps them address general questions and give satisfactory answers.
With artificial intelligence, the players don’t have to wait long for the casino agent to respond to their query. Some AI programs can also learn from the interaction between the players and real support agents to deliver a refined customer support experience.
Artificial intelligence is helping online casino operators to manage their finances better. Money management is among the biggest problems that online casinos face, as it’s not always easy to manually track all the deposits and withdrawals.
Thanks to artificial intelligence, casino operators can track their financial transactions automatically. Additionally, players can track their expenditures and ensure they’re not blowing their budget.
Regardless of the customer or the market, the ability to gauge a client’s potential value is crucial to a business. The three key customer acquisition strategies in the gambling industry are new customer incentives, customer referral bonuses and loyalty rewards programs. All three strategies are related to monetary value, so it’s important to understand their ROI in relation to a customer’s lifetime value.
According to a recent study on casino CRM initiatives, gambling websites that increase their customer retention rate by 5% can increase their profitability by 50%-70%. That shows that customer retention has a significant impact on their lifetime value. Unfortunately, it’s challenging to holistically understand and isolate the key drivers of lifetime value.
Artificial intelligence will empower online casino platforms to understand the players like never before. This technology allows you to synthesize a casino’s historical player data, the known attributes of the bettors and other game-specific information that’s valuable in identifying patterns related to additional risk or value.
After developing a data set with the desired list of variables, casino operators can use these attributes against the past player lifetime value or revenue outcomes. To achieve that, operators leverage machine learning and artificial intelligence to identify different player patterns, seasonal effects and the impact of various promotional offers.
Artificial intelligence is among the most promising tech developments in several industries today. Its influence on medicine, security and education is already showing incredible results, and it’s still growing. AI is also the perfect solution for several problems that might have previously seemed impossible in the gambling industry. As such, AI will continue transforming the gambling industry for the next decade.