Why Casinos, iGaming, and Sports Betting Companies Should Go All In on AI/ML7 min read
Early this year, a large U.S. sports betting and online gaming company declared artificial intelligence (AI) one of the driving forces behind the industry’s rapid market and revenue growth. According to the American Gaming Association (AGA), commercial gaming revenue — which includes traditional casino games, sports betting, and iGaming — reached over $60 billion in 2022. Predictions of future revenue exceed $100 billion annually, with AI and machine learning (ML) technologies at the forefront of this growth.
These tools have been used across the gaming ecosystem, from enhancing online game development and optimizing player experiences to revolutionizing player profiling, personalization, predictive analytics, and fraud detection. Ultimately, AI and ML have the potential to drive further innovation, enhance user engagement, and bolster security both online and in-person.
But what exactly does that mean for your organization? Where can AI/ML make the biggest impact? And how can you apply these tools and technologies to grow, innovate, and remain competitive?
Now is the time for casino operators, sports betting businesses, and online gaming leaders to move beyond experimentation. Simply dabbling in these areas won’t be enough. It’s time to embrace AI/ML to stay competitive and thrive in this evolving digital landscape.
Where AI/ML Will Make the Biggest Impact
Online Game Development and Optimization
AI-enabled tools and solutions are transforming the entire game development process.
- Creates unlimited element variations for different levels, characters, and environments.
- Generative AI helps automate the development of large-scale and hyper-realistic design elements.
- Improvements can be made using data-driven insights into player preferences, behavioral data, and feedback.
- AI’s real-time data analysis enables responsive gaming options that boost user engagement and loyalty.
- QA testing procedures can be automated, simulating hundreds or thousands of scenarios to locate any issues and identify potential platform-level biases to be fixed prior to launch.
- Reduces development timelines by streamlining the process of content creation, testing, and optimization.
Players have come to expect seamless, high-quality experiences that are secure and reliable, and AI ensures that is what they get.
Player Profiling and Personalization
AI helps improve overall user personalization both online and offline.
- Analysis of player and platform interactions or real-life gameplay means building more accurate player profiles.
- Casinos can then provide personalized recommendations, bonuses, and promotions.
- Tailored offerings frequently lead to greater customer loyalty and engagement.
- Player betting pattern assessments can lead to adjustments for their skill level.
- For example, this might mean identifying a highly skilled poker player who may be more likely to play longer if they were competing against high rollers.
- Dynamically adapts to a player’s style and adjusts parameters like payout rates.
- Further personalization benefits for both in-person and online players keeps them engaged.
- It even improves additional departments such as:
- Streamlining staffing
- Delivering revenue forecasts
- Providing marketing campaign analysis
For players, customized recommendations improve their overall gaming experience, increasing user satisfaction. Predictive analytics ultimately optimizes your operations and maximizes profits.
Fraud Detection, Regulatory Compliance, and Risk Management
AI/ML provides actionable insights that deliver better fraud prevention, such as:
- Casinos can utilize their data to train the technology to spot vulnerabilities before they’ve been exploited, leading to substantial cost savings.
- Online gameplay analysis identifies issues so businesses can swiftly respond.
- Real-time detection leads to faster problem resolution.
- These tools can also bolster online safety, protecting users from bot accounts or unauthorized player profile access.
- In-person security and safety can be enhanced with AI-supported biometric authentication tools.
- Fingerprint or retinal scanners allow only authorized individuals access to specific areas or information.
- Reduces the risk of fraud and prevents potentially catastrophic financial outcomes.
- Supporting regulatory compliance like anti-money laundering laws by detecting suspicious transactions and flagging possible laundering activities.
These examples demonstrate that AI/ML tools have widespread applications across the gaming industry.
Despite the benefits of AI/ML, online and in-person casino and sports betting operators are frequently stuck in the testing phase. You need to move beyond mere experimentation to remain competitive and foster innovation. Now is the time to transition towards rapid prototyping and development.
Stop Experimenting, Start Integrating
SoftServe's 2023 global study, "The Real State of AI/ML in ISVs and Digital Natives," showed that AI/ML technology is well-prepared for widespread adoption. Yet, the survey also revealed that the business processes fueling AI/ML investment are not as mature.
Ultimately, our research highlighted how eager executives are to invest in AI/ML while underscoring how their lack of business readiness continues to hinder progress. Despite AI/ML’s potential, without strategic alignment, most projects will continue to fall short of both executive expectations and their optimal utilization.
For casino operators, iGaming leaders, and sports betting organizations looking to boost their AI/ML capabilities, there are three key strategic imperatives for acceleration:
Drive customer alignment
Invest in data strategy and skills
Scaling these capabilities can be complex, but SoftServe offers workshops and assessments to make the process easier. We can collaborate to uncover your most significant AI/ML opportunities, demystify implementation, and work with your product development team to create new features and revenue growth opportunities.
Over one-third of companies are already using AI regularly, and nearly half plan to incorporate it into their business in the next three years. Almost 100% of enterprises will implement some form of AI by 2025. It’s clear that now is the time to invest in AI/ML.
This holds particularly true for the casino and iGaming industry, where AI/ML can revolutionize game development, player personalization, and fraud detection. By leveraging these technologies, you can boost revenue, enhance player experiences, and reduce operational costs. SoftServe is here to support you with the right tools and a team of experts. Don't risk falling behind your competitors. Let's discuss how you can fast-track your AI/ML integration and transformation.
Headed to the Global Gaming Expo in Las Vegas from October 9–12? Be sure to stop by our booth #5839. And don’t miss Iurii Milovanov, SoftServe’s Head of AI and Data Science. He’ll be sharing practical steps for kickstarting your Generative AI journey on Tuesday, Oct. 10 at 11 a.m. See you there!