How AI Improves iGaming Sites: Tools and Approaches

29 may 2023

Gambling is a fast-growing economic sector. By 2026, its capitalisation will be $100, according to experts’ forecasts. Artificial intelligence algorithms will play a key role in the development of the industry.

AI and online casino: work improvement

CASEXE describes how neural networks and machine learning are changing Internet casinos, making businesses safer and more profitable.


What is Artificial Intelligence

AI is a field of computer science in which machines can work and react in the same way as a person, thanks to a set of new technologies. Artificial intelligence models the user's behaviour to the smallest detail, studies and remembers the previous experience, learns and makes informed decisions based on previously acquired knowledge.

The Grand View Research analytical centre estimated the AI market at $62.3 billion. Experts expect that this figure will be $630 billion by 2028. Every third project will be related to the entertainment sphere.

According to the Oracle Corporation IT concern:

  • 70% of companies are already using or planning to implement AI in their work. Among the respondents are representatives of gambling, finance, insurance, tourism, and other sectors of the economy.
  • 85% of support channels will work based on AI in 3-4 years. The addition of machine learning algorithms will automate the operation of customer helpdesk, reduce the number of employees hired, and improve the quality of service.

AI contains many directions and functions:

Machine Learning

It is responsible for analysing information, discovering patterns, and predicting upcoming events based on the data received.

In the gambling field, such technologies are used to identify common factors in user behaviour or to guess the results of games. In addition, it is a great tool for optimising advertising campaigns. The operator can make customised offers to users based on their previous customer experience

Natural Language Processing

Artificial intelligence algorithms allow computers to understand and analyse human speech and text input.

In the gaming industry, this feature is used to improve customer experience and fraud detection

Deep Learning

This form of AI is represented as neural networks. They collect and explore terabytes of information to help operators deliver personalised products to their customers

Facial Recognition Technology

This is the basis of the multi-level identification system.

To pass the test, a user should just point the camera at the face. AI-program instantly verifies the gambler and gives access to the play

Increased Protection of Gambling Sites

AI for casino security: protection

The key advantage of AI is the ability to quickly and efficiently process large amounts of data and identify patterns and atypical behaviour based on it. In this way, it is possible to detect intruders, prevent hacking attempts, and improve the overall security of an iGaming site.

What AI gives to online casinos:

  1. Gambling site perimeter protection. Artificial intelligence demonstrates high efficiency in the fight against hacker attacks, theft of confidential data, phishing, code obfuscation, and other violations. The technology can study the experience of competitors in combating cybercriminals, making online casinos more secure.
  2. Fight against fraud. Artificial intelligence can detect anomalies before they become problematic. This advantage of AI algorithms is especially important in the gambling market, where attackers come up with new tricks every day to deceive casinos. The tools detect bots playing instead of real users, bonus abuse, and other approaches that interfere with honest visitors to a gambling site.
  3. The prevention of technical failures. AI programs can process terabytes of unrelated data, thus reducing the load on the IT infrastructure of an iGaming project.
  4. Risk management of transactions. Artificial intelligence is an integral component of the payment module. The use of AI helps online casinos to better comply with AML (anti-money laundering) and FATF (the prevention of terrorist financing) policies. The instruments reduce chargebacks and increase the financial security of a platform.
  5. Client authentification. Software developers use Facial Recognition Technology (FRT) to automatically verify gamers. Gamblers do not need to fill out complex registration forms or upload scanned documents. It is enough to bring the smartphone to the face for the biometric identification function to work.

AI and Responsible Gambling

The Journal of Gambling Studies conducted independent research on the gaming preferences of thousands of users from European online casinos.

According to an anonymous survey, 68% of respondents report signs of ludomania at least once a month. This is a sharp increase in the cost of a spin, sessions that are too long, an overly negative reaction to a loss, etc.

The introduction of AI algorithms makes it possible to identify risks and prevent the development of gambling addiction.

AI-based software collects and analyses terabytes of customer information (login frequency, bet size, and other characteristics) and creates each visitor’s profile. If, for any reason, the nature of the play changes, the service instantly informs the operator about it.

AI helps entrepreneurs adhere to the Responsible Gaming guidelines set by regulators.

For example, the Swedish Gambling Commission (Spelinspektionen) recommends operators pay more attention to young players. Entrepreneurs are required to develop separate self-restriction and self-exclusion mechanisms for persons under 21 years of age.

New Formats AI-Based Casino Games

A chatbot is the result of the combined use of artificial intelligence and social media. As a base, you can focus on a variety of instant messengers (Viber, Instagram), but Telegram is the most suitable one.

The peculiarity of this bot is that it offers different game formats for various categories of gamers. The AI-based program collects and studies previous customer experience and gives gamblers what is interesting to them. These can be slots of a certain theme, seasonal promotions, or convenient cashback.

The main functions of the chatbot are as follows:

  1. The automation of routine tasks. These are registration and verification, the acceptance of deposits, and the launch of slot reels. Telegram casino performs the same list of functions as a traditional gambling site but in standalone mode.
  2. The formation of recommendation lists. Punters receive only those offers (games, bonuses, and content producers) that will interest them. The list of recommendations is created based on previous customer experience, which was studied and analysed using AI.
  3. Round-the-clock service. A user can consult on all issues related to replenishing an account, withdrawing bonuses, launching tournaments, and gaining access to premium entertainment solutions.

The updated chatbot gaming format arouses genuine interest among the audience. Customers like maximum personalisation of content, high security of personal data, fast play, and individual user experience.

Artificial Intelligence and Cost Optimisation

AI in online casinos: cost optimisation

Consider the main areas of savings:

Marketing strategy improvement

The AI program can predict the results of an advertising campaign even at the stage of its testing.

The operator sees which messages, slogans, promotions, and other creatives will receive rave reviews from the audience and which activities should be abandoned

Reduced personnel costs

The introduction of AI allows businessmen to automate lots of daily tasks that were previously handled by real employees — technical support specialists who consult online casino visitors.

The creation of advertising materials can also be delegated to an AI bot, reducing the cost of a marketer’s services

Cost control

AI interacts perfectly with online casino CRM tools.

The components built into the system automate settlements with B2B partners, generate high-quality analytics on key parameters of an iGaming platform, as well as create a payment calendar and individual business budgeting

The Examples of Using AI in the Entertainment Sphere

Consider how leading software vendors apply machine learning instruments:

  1. Playtech. The innovative Ada program helps the firm’s B2B partners improve business operational efficiency and interaction with customers, as well as implement responsible gaming tools. The solution was developed jointly with the SaaS corporation. It is delivered as part of the company's proprietary IMS platform.
  2. Evolution gaming. Live casino content producer uses AI-driven avatars as virtual dealers. This improves the user experience and makes live roulette, baccarat, and blackjack companies more attractive to gamblers.
  3. BedBaddy. A developer of casino and sportsbook platforms implements AI to prevent problems associated with gambling. The studio's premium software contains options for identifying behaviour patterns that indicate ludomania.
  4. Bet365. The supplier uses AI-powered systems to manage risks and change pricing. As a result, the software comes with the best odds and lucrative bonus programs that bring real value to an operator.

The Main Things about Advanced iGaming Tools

AI is a technical innovation that makes casinos safer and more convenient for users.

  • Artificial intelligence is the property of machines and systems to perform tasks that are characteristic of the human mind. AI programs can collect and process information, simulate various development scenarios, self-learn, and make informed decisions based on previous experience.
  • AI consists of many components. These are machine and deep learning technologies, neural networks, biometric face recognition systems, etc.
  • The innovation improves the security of a gambling site. AI mechanisms help fight cybercriminals, block fraud attempts (associated with accounts, bonuses, and bank cards), prevent technical hacks and identify iGaming site visitors.
  • The introduction of AI mechanisms is a step towards optimising the expenses of an entrepreneur. Costs are reduced in three areas: marketing, buying casino software, and paying salaries. The instruments can study consumer preferences in the market and tell the operator which games and providers are worth considering.
  • AI is the basis for creating chatbots. It functions as an independent entertainment platform. Gamblers can make deposits, place bets, receive bonuses, as well as participate in seasonal promotions and draws.

You can order a modern and profitable iGaming project at the CASEXE studio. We create high-tech and secure solutions with a high return on investment.

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Author: Matt Grant
iGaming business expert
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