Impact of AI on the iGaming Industry

Impact of AI on the iGaming Industry

Table of Contents 1. What is AI? 2. Artificial Intelligence in iGaming Industry 3. AI in Sports Betting 4. AI in Casino Gaming 5. AI in Esports 6. How AI will Transform the iGaming Industry in the Future

Artificial intelligence has revolutionized almost every industry. There is not one industry that has remained untouched from the marvels of AI. From manufacturing to construction, from the health industry to senior care, from business intelligence to retail and from education to fashion, every single industry is witnessing the wonders of artificial intelligence. And the iGaming industry is no different.

In the past few years, the iGaming industry has seen rapid growth and AI has been one of the contributing factors. AI today renders punters, as well as players, one of a kind betting and gaming experience, and meets the modern needs. Several entrepreneurs and iGaming business owners are now making the shift towards the AI-powered solutions to cater to the demands of the players and punters.

In this article, we’ll be discussing how the iGaming industry being impacted and revolutionized by artificial intelligence. But before we get into it, let's first understand what exactly is AI.

What is AI?

AI, which is short for artificial intelligence, also known as machine intelligence is the “human-like” intelligence that’s demonstrated by machines. The “human-like” intelligence comprises one or several diverse behaviors which include planning, problem-solving, learning, knowledge representation, motion, perception, reasoning, manipulation, and many more. From Amazon’s Alexa to Microsoft’s Cortana, from Honda Motor’s Asimo to Tesla’s self-driving cars, AI is growing at a tremendous speed without slowing down by a bit.

Artificial Intelligence in iGaming Industry

There was a time when artificial intelligence was considered science fiction. It was portrayed negatively, sometimes positively in many movies like the terminator, Avatar, etc and several believed AI was going to stay confined to Hollywood culture only. But that’s not the case anymore. In recent times, AI has emerged as one of the most powerful technological aspects on which several industries depend.

And one such industry is the iGaming industry.

Today, several iGaming industry leaders are looking to harness the power of AI to deliver splendid experiences to users with high-end safety and security. For AI to work its magic, it requires lots and lots of data. The more data it has, the more accurate and efficient it is.

Data enables AI to identify patterns, learn, and develop algorithms on its own. The best thing about the iGaming industry is it’s a gold mine of data. Millions of transactions are recorded daily from diverse parts of the world. This much information can be easily overwhelming for the human brain but for AI, it fuels the training and learning process.

All the data that the iGaming industry receives on a daily basis can enable businesses to eliminate human dependency and successfully move towards automation. In addition to this, AI can also enable businesses to eliminate the room for human errors and combat

security issues head-on by recognizing the problematic patterns and abnormalities in the systems.

Now that we have a clear understanding of what artificial intelligence really is and what it can do, let’s take a look at how it’s impacting the diverse sectors of the iGaming industry.

AI in Sports Betting Industry

Before 2009, due to insufficient data and expensive equipment, AI seemed like a dream too good to come true. But in the past few years, everything has changed.

The big data revolution has enabled several companies to collect and record valuable data. This equips them with insights about events that take place during a game. Recorded data may include details about how the goal was scored, at what angle the shot was taken, which keys were pressed by the players or punters, which hand was used to take the shot or which leg was used to score the goal, etc.

Another factor that has made it possible is the availability of inexpensive hardware. Several big names of the industry are manufacturing high-end graphic cards to deliver an outstanding experience to the users.

AI algorithms have also played a crucial role in the technological advancement we have today. Today, we have access to more data than ever before. This data is used by artificial intelligence to learn, solve problems, recognize patterns, etc as a result of which, artificial intelligence is able to analyze the events that take place during the match, learn from the contributing factors towards wins and losses, and is also able to generate accurate event possible outcomes and do so much more.

Benefits and Applications of AI in Sports Betting

AI has been a part of the betting industry for a long time. Several sharp bettors depend on AI to ensure maximum wins. The day is not too far when artificial intelligence will be clubbed with augmented reality.

Odds Determination Data can be used by AI to determine accurate gambling and betting odds. The more the data is fed to artificial intelligence, the more precise are its calculations.

Opening Doors for Young Gamblers Artificial intelligence when clubbed with virtual reality can be one of the contributing factors for bringing new and young players on board. Today, most punters belong to the age group of the late twenties to mid-thirties, but this can be changed. By combining gambling with modern tech, sports betting platforms can attract new players.

Optimized Game Designs AI thrives with data. And the upside of the whole scenario is, online gambling platforms produce plenty of data that can enable AI to understand where users are able to get through and where they are struggling, what's helping them, and what's stopping them. This enables game development companies to optimize game designs as per the needs of the punters.

Personalized Betting Experience AI enables bettors to have a personalized betting experience by showing them their preferred games on the dashboards, their favorite betting styles, betting markets, etc. Personalized betting experiences influence player behavior, leading to enhanced engagement on the platform.

Responsible Gambling There is a ton of data available on problematic betting and this data is used by AI to protect betting addicts, underage punters, to provide a safe and secure environment for bettors on the platform as well as educating them about responsible gaming.

Automated KYC More and more online betting platforms are moving towards automated KYC for better player onboarding, risk profile management, analyzing transactions carried out by the users, sources of wealth, for detecting suspicious activity and document collection. This has not only enabled businesses to streamline their processes but has also enabled them to enhance security on the platform and comply with diverse jurisdictional rules.

Now that we know about the wonders of AI in sports betting industry, let's take a look at the impact of AI in the online casinos.

AI in​ ​Casino Gaming

Several areas in online casinos make use of artificial intelligence which include fraud detection, CRM, facial recognition, voice recognition, asset maintenance, sentiment recognition and analysis, etc. There is no doubt that the online casino industry has adopted AI successfully and in the coming years, we’ll be able to witness more AI wonders in the industry.

According to Andrew Engel, general manager of an AI startup named ​DataRobot​, casinos are already keeping track of the user activity. They have been collecting valuable information for several years to ensure big profits. This data provides all the insights about what entices users, what keeps them in the game, what motivates them to be a part of the action etc and enables them to tweak the casino experience every now and then to keep the users engaged.

Ikasi​, an AI-based startup equips casinos with insights especially about the players that will gamble big and can lose big. On the other hand, ​Optimove​, a software company makes use of data that enables casinos to create effective marketing strategies as well as campaigns.

Needless to say, artificial intelligence is rendering several benefits to the land-based as well as online casinos. Let's take a look at them in detail.

Benefits and Applications of AI in Casinos Gaming

Below are some of the benefits that AI is delivering to the online casino industry.

Collection of Player Data Online casinos today are all set to deliver personalized casino experience. The offers and experiences today's casinos provide are tailored as per the preferences of individual customers which keeps them engaged. This has been possible because of the artificial intelligence that works behind the scenes and analyses the collected data of the user.

Better Customer Support Every online casino platform today uses live chatbots that are backed by artificial intelligence that facilitate faster communication and provide quick resolutions in real-time to the users. In addition to this, artificial intelligence also provides personalized customer support for a better experience.

Identification of Loyal Customers Artificial intelligence and machine learning analyze the time spent by the player on the platform and the sum of money wagered. This enables casino businesses to identify and retain elite players on the platform to ensure profits.

Better Marketing Strategies By analyzing user behavior, AI is enabling online casinos to target customer betters and create personalized marketing strategies that are enabling online casinos to sell more, enhance engagement, and earn profits.

Personalized Betting Adverts AI when paired with IoT delivers personalized bookie ads and shows the punters trending offers. This enables bettors to place bets even on the ongoing matches and reap benefits which boosts engagement.

AI in Esports

Just like every other industry, the esports industry is also witnessing the AI revolution. But in the case of esports, it's empowering players and transforming the way players play the games and create strategies. Most esports teams spend hours practicing their craft.

After all, in order to win millions of dollars, you have to be the best in the arena. While some teams practice for 8-9 hours every single day, some pro players take some time to practice individually.

But in order to be the best, you need a strong opponent and human players come with limitations. Enters AI. AI not only provides an immensely challenging environment for the players but also enables them to improve their gaming skills.

Let's take a look at how AI is pushing the boundaries and benefiting the esports industry.

Benefits and Applications of AI in Esports

Below is the list of benefits that AI is bringing to the esports industry.

AI-Based Coaching There are several AI-powered coaching such as S ​ enpAI​, that are helping players improve their performances and games. These platforms access stats of players and suggest better game strategies for multiplayer online battle arena games. These platforms cover games like Dota-2, Valorant, League of Legends and many more to enable players to sharpen their skills.

AI-Based Game Plans Several elite players are now taking advantage of computer-generated game plans. In addition to this, players are also making use of AI in games like counter strike for better hiding positions, team deployments, and counter-attacks.

AI Assistants AI assistants are being deployed for creating a better customer experience. These assistants are designed to enable users to find what they look for and recommending users games, that match their gaming styles and taste.

Better sales By analyzing the behavior of the user, AI recommends games and other in-app offerings. This not only helps players save time but also helps game developers design user-centric games, game features, and offerings.

How AI Will Transform the iGaming Industry in the Future

We've already seen the marvels of AI in the diverse sectors of the iGaming industry. AI has already presented us with infinite opportunities, has enabled us to improve our systems, and has transformed gambling as well as gaming experiences. But what

about the future? What else can we expect in the coming years from the iGaming industry? Let’s find out.

Better User Experience In the coming years, players and punters can expect even more personalized and customized betting and gaming experiences. These personalizations will be made on user data which will enable businesses to boost player engagement and participation.

Facilitating Responsible Gambling Though AI today is already helping businesses recognize problematic players, this can be expected to be fine-tuned. In the coming years, AI will be able to facilitate responsible gambling by analyzing the sum of money wagered and the number of bets placed in a given time-frame to weed out gambling addicts.

Better Services AI can enable businesses to cater to the needs of the punters and players by analyzing the data based on the types of wagers that are placed, the types of games players prefer, the types of betting markets they like, etc which will enable them to provide better customer services.

Personalized Loyalty Programs and Bonuses AI can enable businesses to boost customer retention by tailoring loyalty programs and bonuses based on their activity. AI can analyze the user data and activity better and can recommend them bonuses that go well with their gaming or gambling styles.

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