Artificial Intelligence has been proven to be useful in many use cases. And here casinos and gambling websites are adapting the technology to tilt the long-term odds in their favor.
Using AI and analytics of data, many casinos and gambling sites are getting better in forecasting even the most uncertain outcomes.
Using the technology, they are getting an upper hand in terms of predicting people's behavior.
Casinos have been collecting data from gamblers for decades, mostly through longstanding loyalty programs. And with technology improving, some casinos are starting to use CCTVs, facial recognition and AI analytics to gauge gamblers' play and tailor unique incentives for each.
And as for online gambling, the websites and apps are known to use trackers to get to know more about the gamblers' behavior and habits in ways that are more advanced than their brick-and-mortar counterparts.
Using advanced technologies, these businesses know how much the people are in for, how much they play, how long they play, what types of games they like to play, and so forth.
With this huge amount of data, casinos and gambling sites can tweak every aspect of the gambling experience. This can include casino layout/web/app UI and UX, incentives and freebies.
All that to entice people to spend more by keeping them playing for as long as possible.
And by using AI for behavioral forecasting, these businesses can better predict who will spend big, or lose big, and target them with the right incentives and marketing materials.
For business, this is a good thing for them. But from a public health perspective, this is a big concern. With many people having gambling addiction and more minorities prone to gambling problems, targeted marketing can be destructive, according to James Whelan, co-director of the Institute of Gambling Education and Research at the University of Memphis.
Furthermore, a vast majority of gamblers gamble with a budget.
Casino defenders say that the worries are overblown. According to them, casinos and online gambling sites that analyze playing data can actually help problem gamblers rather than hurt them.
"I don't believe that more efficient offers are just all of a sudden going to trigger problems for large numbers of people," said Alan Feldman, a former MGM executive who chairs the Nevada State Advisory Committee on Problem Gambling.
Using AI for example, early detection and prevention are made possible. By analyzing player data for problematic behavior, AI can flag individuals with concerning patterns and notify online casino operators. The identified account can be suspended while the player is offered help before he or she goes further down into gambling addiction.
"The industry is constantly exploring new and emerging technologies, like artificial intelligence, to gain a deeper understanding of our customers and provide the right resources for our customers to enjoy our products in a responsible manner,” said Elizabeth Cronan of the American Gaming Association.
AI is causing disruptive waves to a variety of industries and sectors.
Knowing that with AI, computers can automate things by learning from existing data, businesses that sit on trove of user information are scrambling to understand what AI is and how the technology can best be used. And this apparently, include casinos and online gambling sites.
While the gambling industry at large is experiencing an AI transformation, AI in fact has been around for much longer than that. In May 1997 for example, IBM’s Deep Blue computer successfully defeated renowned chess master Garry Kasparov 3.5 – 2.5 in a six-game match
This was more than 20 years ago.
The power of AI in the gambling arena was also demonstrated in 2017, when Carnegie Mellon’s Libratus AI won thousands of poker hands over top-rated players in Heads-Up No-Limit Hold ‘em.