AI has been transformative for industries across the world, and online casinos are no exception. I’ve seen the majority of areas of the industry transformed by AI and believe its influence is likely to increase in the future.
From customer service and personalisation to detecting fraud and promoting responsible gambling, AI has played a part in every aspect of how online casinos function. Let’s find out exactly how.
Improving customer service
I’m sure you’ve seen an AI chatbot being used for customer service on a website. They’re a common occurrence across industries, and online casinos have been no exception.
Chatbots have helped online casinos increase the efficiency of customer service, providing answers much quicker than a human could. They search the web for their answer, drawing on vast amounts of information to ensure it’s accurate.
Efficient customer service can be vital in the online casino world. If a customer has an issue with payments or is struggling to find responsible gambling resources, we don’t want to keep them waiting. Chatbots speed up this service, sometimes even providing instant answers.
They also ensure that users with more complicated queries can quickly access a human representative. By having chatbots answer simple queries, more human representatives are freed up for complex cases.
One of the most impressive features of AI, in my opinion, is its ability to constantly learn. In cases where a customer asks a question in terms that the algorithm doesn’t recognise, it can expand its knowledge base through association. This is called machine learning.
In machine learning, the AI chatbot or algorithm learns from experience, rather than just programming. In the case I mentioned above, AI can expand its knowledge and learn synonymous terms or questions. This means if I asked the same question in the future, it could have learnt the answer by associating it with a phrase it already knows.
Personalising user experience
We all enjoy when an experience at an online casino is tailored specifically to us. You may not have noticed, but AI is already used to do just this through recommendations and ads. In the future, it could play an even greater role in customising the experience.
After you’ve been playing at an online casino for a while, you’ll likely notice that the games or bonuses you’re recommended are actually very appealing. That’s because AI has been used to analyse your preferences and determine which games best suit them.
If I’m frequently playing blackjack, for example, AI can detect this information by analysing my playing history or visited sites. It can reflect these preferences in the games and bonuses I’m recommended on their site. In my case, I’d be more likely to be recommended blackjack games and bonuses.
Recommendations aren’t the only area that AI helps to personalise our online casino experience. The ads we see when playing or searching for a game also reflect preferences detected by AI. In the example I used earlier, I’d probably see ads for casinos or blackjack games.
Generative AI—one for the future
In the future, AI could play an even bigger role in the advertising experience. The current form of AI is usually referred to as traditional AI, although you may hear it called narrow or weak AI. Currently still in development, generative AI is a different strand which has more autonomy and creative independence.
Due to the popularity of personalising customer experience, I think it’s more than likely we’ll see generative AI used at online casinos in the future. It could even be used to create completely unique and personalised materials for individual players.
In marketing, this means AI would be able to detect customer preferences and then act on them. Generative AI could generate unique marketing materials targeting specific customers. Its greater level of autonomy means it could then send the materials to the relevant customers itself, automating every step of the marketing process.
Tackling fraud at online casinos
One of the biggest challenges faced by online casinos is fraud. Between 2022 and 2023 alone, Sumsub estimated the iGaming industry faced losses of $1.2 billion to fraud. AI has already begun to be used to tackle this epidemic, and it is likely to be even more influential in the years to come.
In my opinion, the most groundbreaking attribute of AI is its ability to analyse vast amounts of data in a matter of minutes, or even seconds, much faster than a human could. This quality has made it completely revolutionary in any task that requires data processing. In terms of online casinos, this ability has been used to detect patterns related to fraud.
Bonus abuse is the most common form of fraud that online casinos face. One form is where customers create multiple accounts to claim a bonus more than once. AI is able to detect if there are multiple accounts sharing the same personal information or originating from the same IP address. It can flag these concerns to the provider, allowing them to intervene much earlier than would be possible with human analysis.
Interestingly, AI also plays a role in rising fraud levels, with some players using it to generate accounts or even using deepfakes to pass KYC processes at online casinos. AI algorithms can also be left to play casino games, meaning players like you or me could be up against a bot when deciding our next move in online poker.
While AI is the problem in these cases, it’s also used in the solution. Once again, making use of the ability to rapidly analyse information, AI can detect patterns that indicate fake accounts. For example, if a player is making decisions faster than humanly possible or using fake details, it can report this to providers.
Supporting responsible gambling
Responsible gambling is essential in making sure all players stay safe when playing their favourite online casino games. AI is already being used to help promote the message to players and detect those at risk.
By analysing player patterns, AI can create a model of what the typical playing experience looks like at an online casino. As it continually monitors player activity, it can flag those who stray from this standard. For example, if a player has an abnormally extended playing session or is frequently active at night.
Using its generated models of behaviour, AI is more accurate in its detection of high-risk behaviour than humans. I’ve seen firsthand how difficult it can be to tell the difference between a player who is dangerously overspending and one who is simply a high roller.
AI can help get it right. It doesn’t just take into account one factor, like spending, but looks at the overall picture, considering things like playing time and betting history. It can also suggest the right intervention, specifically targeted at a player, rather than relying on blanket restrictions.
AI in know your customer
KYC processes are standard across the online casino industry. They’re carried out to verify the identity of a player and ensure they’re allowed to gamble. In the UK, these checks are being extended to look at the financial stability of players and whether they’re able to afford to gamble online.
AI is being used in these financial risk assessments to efficiently analyse the financial history of players. The low-level checks rely on publicly available information, like credit scores and bankruptcy records. AI can examine this data and return a result on whether a player can afford to gamble online.
Although these financial risk assessments are currently still in the testing phase, I don’t think we’re far away from seeing them rolled out across the industry. AI will play a critical role in their introduction and expansion.
Final thoughts—AI has transformed how online casinos function
AI has truly changed how online casinos function, overhauling many aspects of the industry. In terms of player experience, AI has improved customer support options, allowing for more efficient help. It has also allowed providers to personalise the user experience, recommending more relevant games and, in the future, providing unique customised marketing.
AI has also helped transform responsible gambling, better detecting at-risk players and seamlessly integrating financial assessments. For providers, I think AI will play an increasingly key role in the ongoing fight against fraud. Overall, AI has already shaped the way online casinos function, and it is likely to continue doing so in the future.
Giuseppe Faraone is an author and an online gambling expert, with over ten years’ experience in the industry. In 2022, he published his first book, The Untold Story of Online Gambling, to share his valuable insights with players. Giuseppe makes sure to keep up to date with the latest trends in casinos by reading industry news and attending conferences.
