AI is becoming increasingly integrated into people’s everyday lives. People of the 20th century thought that AI would initially enter the realms of production, where “blue-collar” workers operate, in the shape of robots to replace humans or ease their physical labor a lot. However, people of the third decade of the 21st century already clearly see that AI has approached from another side: the intellectual one. Many business spheres that AI is entering today are if not being revolutionized then get significantly changed. For now, AI often acts as an assistant: it does something faster, better, more accurately, and more attentively than humans. But the process of AI’s increasing integration into business processes has inevitably begun and must be completed — along with the revolutionizing of human consciousness, politics, economics, and related fields — by the beginning of the 22nd century. Although, most likely, it will be much sooner.

In this article, we examine how AI is already changing the gambling industry this very second. In particular, AI is capable of quickly, accurately, and reliably gathering and analyzing punters data to offer them a personalized gaming experience, predict trends, act as a mechanism for detecting and combating fraud, be a better support agent, contribute to the development of new games, and optimize other gambling processes.

Discover How AI is Transforming Online Gambling - Read More!

AI in Personalized Gaming

Every professional knows that customer segmentation is necessary to offer each segment its unique gaming experience, including games, bonuses, financial transactions, tournaments, and other gambling elements that better suit the specific segment, based on its characteristics. The better the segmentation is done, the better the experience offered will resonate with the hearts of the people receiving it. AI enables effective segmentation down to each individual punter. And it does so not on guesses and assumptions but on quick and deep analysis of big data, guided by all the information collected about a person on the Internet, where each of us leaves a digital footprint. Analytics can be retrospective, online, and predictive, significantly increasing the likelihood that the user will like the experience offered to them here and now.

AI performs data analysis according to the following algorithm:

  1. Data collection
  2. Data preprocessing and cleansing
  3. Application of machine learning models
  4. Feature extraction and pattern recognition
  5. Personalization of offers
  6. The loop of continuous improvement and reevaluation.

As a result, individuals are shown dynamic content, which can also be generated by AI within certain boundaries, using various data visualization models, including text, graphics, images, videos, and sound. This generation can happen instantly by human standards, and each punter sees offers tailored specifically to them. These offers consist of optimally fitting:

  • Games
    • Bonuses
    • Tournaments and missions
    • Free spins
    • Cashback and other elements.

It’s important for gambling establishments to authorize AI to develop unique personalized offers (within certain limits, of course). As a result, in an instant, one person may be offered a 25% cashback, knowing that they will lose it and not withdraw it, while another may be offered 500 free spins in a slot game, knowing that this person uses on average 10% of the bonuses offered to them. Specific examples of personalization can be anything not rigidly defined by pre-developed content conditions.

Retrospective and predictive behavioral patterns allow for significant optimization of marketing efforts, influence on game optimization, and increase customer retention. New customers coming to gaming parlors will bring with them a trail of digital footprint, and for them, personalized offers can be generated just as quickly and effectively as for long-standing customers, improving over time as behavioral data accumulate in a specific gambling club.

AI-based software products that exist for these purposes today are Qubit, Emarsys, Optimove, and Dynamic Yield.

Nobody can deny the changing role of artificial intelligence in online gambling

AI in Security and Fraud Detection

AI is used for real-time operations and post-analysis to detect patterns of fraudulent behavior in gambling establishments. Fraud is detected through analysis of:

  • transaction history and punter behavior
  • information about their operating systems, devices, geolocation, and installed software (specifically, the one that may influence the systems of a gambling house)
  • anomalies and behavioral characteristics of individuals that may indicate fraudulent activity
  • deviations from normal or predicted behavior, including both periodic and unexpected ones
  • changes in gameplay tactics
  • suspicious attempts to access an account.

Various algorithms are used for the purpose of fraudulent behavior detection, such as:

  • Isolation forest
  • Local outlier factor
  • One-class support vector machines
  • Logistic regression
  • Decision trees and others.

Companies that are currently developing AI-based solutions for this task include Featurespace, iovation, Forter, Riskified, Kount, Whimsy Games, Blacklight, and others. The list of IT solutions from these and other companies on the market in 2024 is as follows:

  • LexisNexis® Digital Identity Network
  • ThreatMetrix
  • Experian CrossCore
  • Neustar Identity Resolution
  • TransUnion IDVision
  • Splunk Enterprise Security
  • IBM QRadar
  • LogRhythm NextGen SIEM Platform
  • RSA NetWitness Platform
  • Alert Logic Threat Manager
  • Worldwide’s ReD Shield
  • Fraud.net
  • ARIC™ Fraud Hub.

AI in Predictive Analytics

Predictive analysis in a house of gambling is an attempt to understand how a person will behave in various situations (when offered certain games, bonuses, tournament participation, event prize pools, gifts, specific deposit conditions, etc.). The analysis is based on accumulated data about the behavior of this and similar clients. The mathematical, statistical, methodological, and behavioral models are often used for predictive analysis:

  • Regression and progression analyses
    • Time series analysis
    • Decision trees, such as CART
    • Recurrent neural networks for pattern recognition
    • Support vector machines
    • Gradient boosting machines
    • Monte Carlo simulation
    • Markov chains, etc.

They allow for selecting:

  1. Games that the client is most likely to enjoy
    1. Bonuses that they are highly likely to use
    1. Tournaments in which they will want to participate at certain prize pool levels
    1. Days of the week and hours of the day for gaming and depositing
    1. Methods of conducting financial transactions that are most profitable, fast, or otherwise better suited to the individual.

As mentioned earlier, if AI is used to autonomously create products tailored to clients (within reasonable limits), this will further enhance content personalization and customer satisfaction. According to reputable online sources (Untamed Science, Analytics Insight, Scaleo, and QWERTY Labs), it is known that these companies use AI to personalize offers and conduct predictive analysis: Caesars Entertainment, MGM Resorts, Bet365, Las Vegas Sands Corp, Wynn Resorts, The Cosmopolitan of Las Vegas, 888 Casino, William Hill, Party Casino, LeoVegas, Betway, Unibet, Mr. Green, Ladbrokes, Casumo, and Scientific Games (the latter is a provider of gambling offerings).

So, this is not some newfangled thing but a long-utilized advantage provided by AI.

Learn About AI's Impact on Online Gambling - Click Here!

AI in Customer Support

Blaming advanced modern AI for largely surpassing humans since its second year of operation is quite nonsensical. After all, that’s what it was designed for. AI-powered chatbots are much smarter, faster, more accurate, and productive than humans. And since the vast majority of them are also programmed for polite communication, they outperform live support staff by a long shot.

From what is known, in the online gambling market, AI-powered chatbots are already utilized by establishments such as LeoVegas, Betway, 888 Casino, William Hill, Mr. Green, Casumo, Unibet, Bet365, Royal Panda, Bovada, Unibet, Party Casino, and Guts Casino. If information about these cases of artificial intelligence in online casino can be obtained from open sources, then it’s likely that hundreds of others also use AI-powered chatbots in 2024.

What’s noteworthy is that just 1-2 years ago, there were many companies that either established their own customer support departments or outsourced them. Projects were launched to outsource it to other specialized national and international companies. However, in 2024, there is absolutely no need for this anymore. Because customer support, even based on something non-specialized like ChatGPT 4, is clearly better than humans as of mid-2024. And much cheaper, too! Handling 100,000 requests per month, answering questions, and providing necessary explanations, AI costs not $50,000-$150,000 like a full-fledged team of people, but just $100-$1,000! Additionally, chatbots are not only smart, fast, accurate, and fair to all clients, but they also operate 24/7, there’s no need to wait long for a connection, and they can handle thousands of requests simultaneously (though for this, you need either a good in-house tech infrastructure or a good cloud server solution). They also easily operate in dozens of languages (currently, all, even free, AI bots support multilingualism). And the icing on the cake is that there are already hundreds and thousands of videos online on how to create your own AI-powered bot, based on ChatGPT 4 and similarly powerful solutions. And their numbers increase not just every day, but every week! Not to mention the completely new release of hundreds of new AI tools from Google at the end of May 2024, along with the version of ChatGPT 4o, which is free or limitedly free for billions of global users!

Furthermore, ChatGPT 4o also supports voice communication, can analyze documents sent, and videos from the user’s camera, and can even joke and flirt! From this, one can conclude that outsourcing companies, which until yesterday provided remote call center services and customer support services, can today or tomorrow be effectively replaced by AI-powered bots, which can be configured independently. And this is just the beginning of such a widespread replacement — because this is just one area out of thousands where AI can easily displace humans. And it’s up to humans to decide on the level of political and economic decisions as nations, whether such widespread AI implementation will lead to unemployment and societal collapse or to the appearance of unconditional basic income so that people can finally stop working and engage in leisure, contemplation, philosophy, and travel.

Nobody can deny the changing role of artificial intelligence in online gambling

AI in Game Development

Strong AI (the one that has existed since the end of 2022, and in its best manifestations — since mid-2024) has been scarcely applied in the development of casino games so far. Simply because there hasn’t been enough time to fully embrace the application of artificial intelligence in online gambling. Both humans in general and game studios in particular need time to integrate AI into their production processes. Most likely, we will see some significant strides in this direction in 2025-2026 in the form of games developed with the help of AI or entirely by it. For now, strong AI is being used in game design for computer games (non-gambling ones):

  • FIFA uses AI-driven animation and graphics
  • Detroit: Become Human uses AI-driven adaptive storytelling
  • XCOM uses game balancing for optimal player engagement
  • Red Dead Redemption 2 uses AI to revolutionize the behavior of NPCs to make them life-like responsive
  • Minecraft uses AI-based procedural content generation.

When it comes to advancements in using AI for the creation of gambling games, these things will appear on stage in the future:

  • Game personalization (difficulty, RTP, volatility levels, personal bonuses like free spins and other rewards)
  • Enhanced graphics and animation for deeper immersion into the ambiance
  • Adaptive sound effects to be better perceived by a punter based on their auditory preferences
  • Procedural content generation (random backgrounds or in-game bonus levels with higher variability), which can change on the fly
  • Data-driven game development to resonate better with narrower groups of punters, down to individuals. So, one and the same game may have tens, hundreds, or thousands of fine-tailored species to be offered to narrowly segmented audiences, based on their big-data-driven preference definitions
  • More immersive VR and AR experiences. It’s not a secret that these technologies were considered once absolutely mind-blowing. Still, their use in gambling isn’t high enough even after many years of their occurrence; they are still often called “future possibilities” but this future doesn’t seem to come. In practice, we see a critically low number of VR/AR-based gambling games. The advancement of strong AI could provide a real boost to these technologies through procedural content generation, where all the background and foreground no longer need to be designed and tested by a live person. AI is capable of creating fantastically unique, diverse, and wonderful gambling worlds, individual for every punter, without the need to use game-design resources of multiple people.
  • Real-time analytics and loops of recurring improvements.

AI in Responsible Gaming

AI exists not only to profit gambling establishments. It can (and should) benefit each individual punter by monitoring signs of gambling addiction and notifying both gaming parlors and the punters themselves.

Methods used for this purpose include:

  1. Behavioral pattern analysis (already actively employed by establishments like Betfair and Unibet). Signs may include a punter chasing profits or losses, spending more time gambling than before, making increased deposits (with reduced withdrawals or none at all), betting larger amounts, and exhibiting eccentric betting patterns.
  2. Real-time monitoring. Utilized by the Kindred Group, this involves AI recognizing behaviors akin to gambling addiction and triggering notifications, as well as interrupting gaming sessions for a specific period.
  3. Reality checks to help individuals snap back to reality. AI can autonomously set reality check intervals, which will vary for different punters based on their behavior.
  4. Predictive analysis for individuals based on their past behavior, risk profile, and collected historical data. Employed by BetBuddy.
  5. Personalized interventions of AI in online casino. This is used by LeoVegas. It goes beyond reality checks or notification messages, including setting personalized limits on deposits and gaming time.
  6. Self-exclusion offers. If a person wants to voluntarily exclude themselves from gambling for a certain period, AI can suggest extending or reducing this time.

AI in Marketing and Advertising

The marketing use of AI sounds quite logical, as marketing is one of the areas where the use of big data is very appropriate to reach the hearts of consumers.

Using AI in this sphere will achieve:

  1. Maximum personalization of ad programs and content.
  2. Automated customer segmentation and auto-re-segmentation based on collected data, including increasing the number of segments for better personalization.
  3. Efficient use of advertising channels based on micro-segments and people’s preferences in ad channels (enhanced targeting).
  4. Real-time campaign performance analysis and adjustments if necessary.
  5. Dynamic pricing of ad placement offers with a selection of the best prices, considering the achievement of set KPIs.
  6. Auxiliary processes such as fraud detection and prevention, such as bonus abuse, chargeback abuse, payment method abuse, etc.

This will not only help attract new punters more effectively but also retain existing ones.

Let’s look at the role of AI in online gambling

Conclusion

AI is a rapidly advancing technology that has much more potential than is currently realized. Considering that AI usage is quite inexpensive, highly efficient, and can be customized by the consumer companies themselves, it not only improves the processes of gambling establishments but also replaces entire human teams, enhancing ROI and EBITDA metrics.

With optimally configured AI tailored to the needs of gambling, personalized gaming and bonus offers for punters can be achieved, statistical, historical, and predictive analyses can be conducted (to understand punters better than they do themselves), quality of risk management and fraud detection at venues can be maximized, responsible gambling tools can be enhanced, and AI can even be used in the development of new games.

As a result of changes in the number of hired personnel and reduction in operating expenses while simultaneously improving the quality of customer service and client understanding, AI in online gambling is indeed a valuable tool for modern gambling establishments. It will also help punters receive ultra-personalized offers that they will be super thrilled about.

Uncover AI's Role in Online Gambling Revolution - Explore Now!

Leave a Reply

Interested in our Solutions?


    Interested in our Domains?


      Contact