Despite it not being as publicized, gambling is one of America’s most lucrative pastimes. Statista mentions that in 2017, the revenue gained by casinos hit 76.59 billion US dollars. For an industry that has this much income, gambling’s overall operation has marched in time with the advance of technology. Gaming machines today are electronic and can keep track of their own statistics, and even alert owners if they are being tampered with. But one of the most disruptive technologies to have come out in the early twenty-first century holds a lot more promise for the gambling business than any other. By leveraging artificial intelligence (AI), casinos and other gambling outlets can gain unique insights into their customers and their habits.
For many non-specialists, AI remains a black box for the most part – they don’t know what goes on inside of it, but they see what comes out of it. As Quanta Magazine notes, AI can potentially teach itself how to learn, and through that be even more useful in tasks it is applied to. In the case of understanding consumers, the gambling industry needs to know pertinent information to market to the right sectors of their customer base.
This information can be outlined to the AI which then utilizes all the other data-gathering inputs, such as connections to the slot machines or cameras over the blackjack tables to build up individual profiles for each player based on where they are what they do. In many cases of marketing, this would be enough to build up an idea of how people think, but unlike regular consumers, gambling customers have a few quirks that make marketing to them a little different.
Gamblers have always been a select breed of individual. The amount that they offer to business as income is unpredictable. While other major entertainment companies can more or less predict the revenue they will be getting from a particular sector of the consumer base, casinos and other gambling establishments don’t have that security of income. With AI dedicated to figuring out the actions of players, it can then come up with a more confident stance as to how much money any given player can contribute to the bottom line of business for the month.
This provides one of the outlets for the data the AI gathered to benefit the company, but it is by no means the only way AI can positively impact a gambling business. These very customers are the ones that the AI has developed marketing strategies for, because of how unique they are as a customer base.
The BBC reports that gamblers tend to gamble because of the rush of dopamine they get to their brain, and even states that when they lose, that high still happens. The draw in gambling comes from not knowing whether one wins or loses, but rather the expectation of the win or the loss. Just like the amount customers spend on a casino, the amount they win or lose in a casino can also fluctuate wildly.
While it is expected there will be a few people who have huge wins, the norm is that people win sometimes, and lose sometimes. The AI can potentially detect how people play and where they spend their money the majority of the time to determine where they enjoy gambling and then direct marketing to them along these lines. More importantly, the AI can determine which individuals are the most valuable customers to the casino. These are the winners (and the losers) that spend the most money, and the business wants them coming back for more. Winners can be more certain of their outcome after checking a Bitstarz casino review online.
While it may seem that gambling wants people to lose to make the profit, the opposite is true. Gaming relies heavily on having a few winners interspersed in between the losers. It offers hope to those gambling that they, too, could be a big winner. Psychology Today states that this phenomenon comes from people’s inability to judge the ‘winnability’ of a particular game. From the gaming industry’s perspective, having winnable games is essential because people will only return to spend money if they know they have a chance at winning.
With AI, the industry can determine who are the most significant contributors to bottom lines, and who has the potential to contribute the most over time and zero in on them with marketing and promotions. By showing off the winners to the people who don’t win, it stokes their drive to come out and spend to be a winner themselves. AI can streamline the process of attracting these customers, thereby assuring the income of the parent organization.
While AI technology offers so much promise to gambling organizations, it is a bit strange to see how slow they are being adopted. These companies have long invested money in mathematical means to derive their current expected incomes and expected expenditure by visitors and have incorporated them into everything from how they construct their buildings to how they upsell their customers.
AI offers a faster, more streamlined, and automated way to do the things they’ve been doing for years by hand, but with the added benefit of it being able to generate real-time updates based on current information. If anything, it’s surprising that the industry is taking this long to realize how much of a benefit AI can be to their day-to-day operations.
If you are interested in even more business-related articles and information from us here at Bit Rebels, then we have a lot to choose from.
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