Artificial intelligence in gambling: Casinos go online to offer patrons more personalized experiences

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Artificial intelligence in gambling: Casinos go online to offer patrons more personalized experiences

Artificial intelligence in gambling: Casinos go online to offer patrons more personalized experiences

Subheading text
The use of artificial intelligence in gambling can lead to every patron receiving a personalized experience that suits their playing style.
    • Author:
    • Author name
      Quantumrun Foresight
    • May 6, 2022

    Insight summary

    The gambling industry is incorporating artificial intelligence (AI) and machine learning (ML) to enhance user experience through personalization and ensuring compliance with legal norms. The integration of these technologies is reshaping advertising strategies, with platforms leveraging user data to forge deeper commercial partnerships, and initiating measures to curb gambling addiction through real-time analysis of user behavior. As the sector evolves, it faces the dual challenge of fostering responsible gambling while navigating issues of privacy and ethical AI use.

    AI in gambling context

    Companies within the gambling industry are increasingly integrating AI/ML technologies into various aspects of their operations. These technologies find applications in facility management, customer monitoring, personalization services, and online gambling platforms. The objective is to enhance the user experience by tailoring services to individual preferences, which could attract more customers and retain them for longer durations. 

    In a bid to better understand and meet patron interests, casino and gambling operators are utilizing tools such as natural language processing (NLP) to gain insights into players' online activities. This technology can analyze the feedback and comments from users to help operators refine their offerings. Another tool at their disposal is sentiment analysis, which can alter a gambler’s online environment based on their interactions and the feedback received through specific channels. When users log onto their preferred online gambling platform, AI technologies can present them with a selection of games that align with their interests, enhancing the personalization of the service.

    Moreover, AI tools play a crucial role in ensuring compliance with local gambling laws, such as verifying the ages of users to prevent underage individuals from accessing gambling platforms. AI-driven bots and assistants are also being deployed to provide patrons with instructions on how to play various games, offering a form of on-the-spot training that can enhance the user experience by offering guidance and support. These features may lead to increased revenue through sustained customer engagement. 

    Disruptive impact

    As gambling platforms continue to integrate AI tools, there is a potential for these platforms to legally gather user data, such as cursor heat maps and chat analysis, to enhance targeted advertising strategies. This data collection can offer insights into user preferences, paving the way for gambling companies to form deeper commercial partnerships with specific brands and companies that align with their clientele's tastes. For individuals, this could mean receiving promotions and offers that are more in line with their interests, potentially enhancing their online gambling experience. However, it also raises questions about privacy and the extent to which user data should be used for commercial gains.

    In addition to enhancing advertising strategies, AI tools can be leveraged to promote responsible gambling through the identification of users who may be developing an addiction to gambling products. By analyzing sentiment and usage data, platforms can detect signs of addictive behavior and implement protocols to restrict access for users who lose a specified amount of money within a preset period. These users could then be notified and provided with resources to seek help, such as contact information for gambling anonymous organizations. However, the introduction of limited memberships, accessible only to individuals with sufficient wealth, could potentially create a tiered system that favors the affluent.

    Looking at the broader industry landscape, the surge in AI integration is likely to influence the composition of the workforce in online gambling platforms. The demand for technical staff capable of building and maintaining AI technologies is expected to rise, leading to a shift in the skill sets required for employment in this sector. Governments and educational institutions need to anticipate this shift, possibly encouraging training and education in AI technology to prepare the future workforce for the changing landscape of the gambling industry. 

    Implications of AI in gambling

    Wider implications of AI in gambling may include:

    • The creation of proprietary tokens and cryptocurrencies by casino and gambling companies, fostering a closed economic system within their platforms and altering the financial dynamics of the gambling industry by offering more secure and streamlined transactions.
    • The development of auto-generated online gambling games that are tailored to the intellect, interests, and risk profiles of individual gamblers, enhancing personalization but possibly leading to increased addiction rates due to hyper-personalized gaming experiences.
    • A surge in gambling activities targeting rural mobile users in the developing world, potentially introducing a new demographic to gambling but also raising concerns about responsible gambling education and support systems in regions with limited access to large gambling facilities.
    • A significant number of gambling companies either creating online/mobile games or forming alliances with video game development companies, expanding the gambling industry's reach and possibly blurring the lines between gaming and gambling.
    • Governments introducing legislation to oversee the integration of AI in gambling, focusing on ethical usage and data privacy, which could foster a safer and more responsible gambling environment.
    • The emergence of AI-driven environmental conservation strategies within the gambling industry, such as optimizing energy use in live facilities.
    • The development of AI tools that can predict market trends and consumer behaviors with high accuracy, potentially giving larger companies with access to such technologies a significant advantage and increasing market concentration.
    • The potential for AI technologies to facilitate more immersive and interactive gambling experiences through virtual reality (VR) and augmented reality (AR), enhancing user engagement but possibly leading to increased screen time and associated health concerns.
    • The introduction of educational programs by governments to equip individuals with the skills needed to navigate the AI-augmented gambling landscape, fostering a society that is better prepared to engage with advanced technologies.

    Questions to consider

    • Should access to online gambling and the use of AI to provide gamers with a more personalized experience be restricted?
    • What features should be introduced to reduce gambling addiction rates?

    Insight references

    The following popular and institutional links were referenced for this insight:

    The European Business Review How AI is treated in the Casino Industry