Looking into how big data is the driving force behind the current growth of the online casino industry and any other industry.
Big data is the driving force behind the current growth of the online casino industry and any other industry. With big data, it becomes easy to predict what a user’s next move is going to be. It also makes it easy to do competitor analysis, plan, and invest in the right markets.
Analysts predict that the online gambling industry will grow by $50.03 billion by 2025, from its estimated size in 2020. That translates to a compounded annual growth rate (CAGR) of 4.85%.
Use of Big Data in the Online Casino Industry
According to a survey by Future Anthem in 2022, 74% of online casino operators consider data an important focus area. And over 50% said that data had been one of the main contributors to their positive performance.
More Operators are Using Big Data and AI
Moreover, 87% of the online casino industry operators and studios said they now use structured data. That was a 76% increase from a previous survey done in 2021. Of the 87% using structured data, 32% of the respondents said their data was very structured.
Operators who used big data were able to create better gaming experiences for players and to conquer new markets. Big data has also proven useful when moving to new markets and developing new products.
And most important, online casinos are using big data to adapt and optimize their products for more devices. That has proven helpful as computer and phone manufacturers create diverse gaming devices.
However, according to Future Anthem, one of the leading AI and game data specialists, this is just the beginning. The online casino industry has yet to realize the full potential of data in its operations.
Potential for Growth in the Use of Data
For instance, 41% of the respondents said they do not share their data with their industry affiliates. This is after only 24% said they do share their data with partners and suppliers. And that was a double increase from 2021’s respondents.
Furthermore, 33% felt their organization is not taking full advantage of their data. Only 265 of those interviewed said data-driven decisions were measurable.
Speaking on the findings, Future Anthem CEO Leigh Nissim said that it is clear that data is key to future growth. He added that they expect to see the use of data accelerate.
He said that could come about as the industry continues to reap the benefits of big data in various markets.
He pointed out that online casinos compete for “eyeballs and minutes” with giants such as Amazon and Netflix. And those are already using data in a big way to enhance their product recommendations to users.
Online Casinos Use Big Data and AI Innovatively to Profit
Defining and Targeting Players
With big data, a casino can tell a player’s favorite game, when they like to play it, and how much they spend on each session. Moreover, they can learn about a player’s location and even make an intelligent guess about their income.
An online casino will also collect information such as the date of birth, preferred payment methods, and devices used to access their favorite games.
With that information, an online casino can profile users and target them with ads that match their gambling needs. They can also use that information to recommend a new game to their existing players and new ones. That greatly enhances user experiences in online casinos.
Big data can also help marketing teams to use the right vocabulary when targeting a particular demographic. And using big data, they can market certain games to specific demographics based on their age, location, and potential earnings.
Developing New Games
Online casinos can use big data to determine the games that do well with various age groups and geographic locations. That information makes it easier for online casinos to decide on their next gaming titles.
And for highly profitable titles, casinos can opt to create new but similar game titles. That helps keep players coming back, not for the money but for the thrill of playing and the hope of winning their next game.
That works well for games that target underage players who cannot play and win real money for legal reasons. In turn, online casinos can make money from selling gaming credits to underage players.
With big data and AI, it is easy to identify problem gamblers while they are still in their early stages. Online casinos can use their existing historical player data to learn about the gambling patterns of problem gamblers.
Licensed casinos use that information to inform problem gamblers about the dangers of excessive gambling. On the other hand, some casinos can choose to use that information to target the identified problem gamblers with more offers.
In gambling and sports betting, there is always the risk that players can cheat the house. With big data, online casinos can track players and spot those that are likely to be cheating.
Players that cheat often win more often than honest players do. This is easy to spot for online casinos since they keep track of player winnings across their various sites.
Moreover, for casinos that share big data with other stakeholders, spotting fraudsters becomes easier. They can identify them when they sign up if they happen to have been flagged down by any of the casino’s affiliate sites.
Overall, that helps to limit losses to players that practice card counting. For scrupulous players, it creates a fair playing ground. That also enables casinos to keep the jackpot growing, ready to be won by a lucky player!
By working with third parties in the online gaming industry, online casinos can get industry insights about their competitors. And with that data, they can learn about their competitors’ customer base and marketing strategies that are working best for them.
Most licensing authorities require land-based and online casinos to keep records of their players. Gambling authorities use those records to help them minimize problem gambling and fight money laundering.
With big data and AI, it is easy for online casinos to remain compliant. They can create and maintain their customer profile with minimal resources and share them with the authorities promptly.
Conclusion – Online Casinos, Big Data and AI
Online casinos were among the few businesses that the 2019 pandemic did not affect negatively. Instead, they experienced continued growth as more layers switched to gambling online. And with their ready access to big data and AI, we expect them to experience steady growth.
Overall, big data and AI can make it easy for casinos to deliver suitable games to the targeted players. And AI can help casinos identify players that show signs of problem gambling so that they can receive help when they can.
With that in mind, it is clear that big data and AI can help online casinos profit without negatively affecting the lives of their customers – online players.