AI and Gambling: What does the future hold?

The mere mention of artificial intelligence(AI) conjures up mixed feelings of excitement and fear at the same time.

But this is an inevitable discussion. Already, ChatGPT, having gone live on November 30, 2022, has caused a lot of global disruption. Some countries have banned its use, like China, Italy, and Russia. We like to take a view that technology can be harnessed for good, sparking innovation, improving UX and more. For igaming in particular this power could be used to transform KYC, fraud detection, CRM and other facets of operations. Let’s run through some of these key aspects through the lens of AI’s capabilities.

 

The Current Landscape

 

Apart from the traditional physical casinos, online casinos now have a more expansive offering and can be accessed from any part of the world. Online gambling has seen a surge in the number of players visiting, and as the industry has grown, challenges have also evolved.

However, as the industry expands, so do the challenges. AI integration in gambling can improve KYC checks, customer support, enhanced player experience, fraud risk mitigation, ensuring a safe and fair gaming environment, responsible gaming, and optimizing odds calculations are vital areas where improvements can be made.

 

AI as the Game Changer

KYC and AML

Gambling apps and casinos fall under the category of financial institutions, and KYC and AML are just among what they should be compliant with. One of the most captivating prospects in using AI is improving KYC and AML checks.

These procedures are designed to verify players’ identities and ensure their funds come from legitimate sources. Without these measures, there would be a higher risk of fraud, such as identity theft and using illicit funds in gambling. It would result in diminished player protection, reputational damage to the industry, and legal repercussions for operators.

An AI-powered system that can swiftly verify user identities, streamline the registration process, monitor transactions, and flag off suspicious ones while maintaining the highest security standards. This is a significant milestone and a win for all gaming stakeholders other than fraudsters.

 

 Customized Gaming Experiences

Online casinos use technology and data analysis regarding player preferences, behavior patterns, and gameplay data to provide their players with a more personalized and tailored gaming experience.

Machine learning can further enhance the reliability and effectiveness of personalized online casino gaming experiences. AI algorithms can analyze vast amounts of data in real-time, identify trends, and make relevant recommendations. With such analysis at their disposal, casinos can tailor-make offers, bonuses, and recommendations to create optimal value and excellent levels of engagement for their clients, which is more of having a virtual casino concierge catering to a gamer’s every need.

 

Finding the Best Odds

Wagering is an integral part of the gambling experience, and it adds excitement and anticipation to the outcome of a game or event. For a bettor or player, understanding the odds is crucial when placing bets.

Players, of course, do not want to stake their hard-earned money without considering the risks associated with the odds placed.

AI’s ability to analyze massive amounts of data can result in accurate predictions and trend identifications that even the most seasoned gamblers may miss. Meanwhile, the bookmaker’s odds reflect the likelihood of a particular outcome and factor in their profit margin, so AI algorithms become their ultimate ally in maximizing their gains.

 

Fraud Detection

Online presence attracts online crooks and cyberattacks of different in different forms. Technological advancements and the rise of online gambling have introduced new opportunities for fraudulent activities. Identity theft and money laundering are common challenges the gambling industry faces.

Fortunately, AI can combat these fraudulent activities.

• Continuously monitoring user interaction can help eradicate Identity theft. AI algorithms can identify irregularities, such as sudden changes in betting patterns or unusual account access, and raise red flags for further investigation. Casinos can also use AI-powered systems for robust verification processes like facial recognition or biometrics to ensure players’ identities are not compromised.

 

• AI can assess the risk associated with each gambling transaction, including deposits, withdrawals, and betting patterns. AI systems can identify suspicious transactions indicative of money laundering by analyzing factors such as transaction history, player behavior, and geographical information. This proactive approach allows operators to intervene and investigate potential cases, helping to prevent illicit funds from entering the gambling ecosystem.

 

Fair Play

Behaviours that violate the rules, regulations, or principles of fair and honest gameplay lead to unfair play. Fair play maintains the integrity of gambling and ensures that all participants have an equal and enjoyable experience when playing online slots and table games.

Cheating involves various techniques individuals employ to gain an unfair advantage in gambling, including card manipulation, collaboration with other players, and using bots or devices or software to tamper with the outcome of games.

 

Customer Support

Doing business online necessitates excellent customer support. Here are some ways AI can assist in customer support within the gambling industry:

• Customers can receive instant support through AI-powered chatbots that utilize Natural Language Processing (NLP). NLP enables systems to understand and interpret human language, enabling customer support systems to analyze and respond to customer queries or feedback more accurately and efficiently. These virtual assistants can escalate more complex issues for human intervention.
• AI algorithms can analyze customer behavior, preferences, and betting history to provide personalized game suggestions.
• With AI-powered language translation capabilities, players from diverse linguistic backgrounds can smoothly engage in gaming.

 

Multiple Inventions

More sophisticated algorithms would mean that AI can use customer feedback and reviews over time, identify areas of improvement and suggest new ideas.

By understanding player preferences and behavior, AI can generate insights that help develop new and unique game concepts, which can lead to the creation of innovative and engaging games that cater to the evolving interests of players.

 

Responsible Gaming

Gambling can be addictive and lead to financial and psychological harm for individuals with problematic gambling behaviors.

By analyzing player data like the time a player uses and the amount of money and bets within a given period, AI algorithms can detect patterns of excessive gambling behavior. With this kind of intelligence, gambling operators can intervene proactively by implementing measures such as personalized player notifications, self-exclusion options, or time and spending limits.

AI-powered algorithms can also provide real-time risk assessments and recommend appropriate interventions to promote responsible gambling behavior.

 

AI no Real Threat

With the ongoing buzz around AI and the looming alarm around job losses, it is important to note that while AI may automate certain aspects, human involvement is still crucial in many areas of the gaming industry.

Human creativity, critical thinking, and emotional intelligence are valued qualities that AI cannot fully replace. The industry will likely evolve, with a  shift in job requirements and the need for upskilling and reskilling to adapt to the changing landscape. Marketing functions may embrace AI for generating suitable marketing content based on a player’s behaviour. Instead of creating multiple CRM funnels manually – they could be autogenerated, more personal and with safety locks in place to ensure promotional offers set values and bet limits within a player’s financial means.

 

AI Cons In Gambling

Responsible and balanced use of AI can help enhance the gambling experience by providing valuable insights, improving efficiency, and addressing particular challenges. Potential concerns with the integration of AI in gambling include the following:

• The risk of over reliance on AI that may reduce critical thinking, independent decision-making, and human judgment; all of which are essential elements in gambling.
• Less human interaction that can result in a loss of the social dynamics and personal connections that some players enjoy in traditional gambling settings: Traditional brick-and-mortar casinos often provide a social environment. Players can interact with dealers, fellow gamblers, and staff.
• Lesser thrill and excitement of gambling may get diminished. The unpredictability and element of risk are part of what makes gambling enticing to many individuals. However, AI algorithms are designed to optimize outcomes and minimize risks, potentially reducing the uncertainty and thrill associated with gambling. This further begs the question, can Lady Luck herself be found in AI programming?

 

Final thoughts

Although AI is anticipated to disrupt the world order of doing things, the future of AI and online gambling holds tremendous promise. Integrating AI into online gambling will unlock new possibilities as technology advances. From improving KYC checks to enhancing gaming experiences and ensuring fair play, AI is set to redefine the industry. But it will not be all roses as AI may reduce the thrill of the game, reduce human interaction and cause over reliance.

By taking a thoughtful and responsible approach, the gambling industry can harness the potential of AI to enhance the gambling experience. At the same time the igaming industry can safeguard the captivating allure that has made gambling a popular pastime for generations.