Top 3 Technologies That Will Be Popular in the Gambling Niche in 2023
The casino industry is growing rapidly and, in terms of capitalisation, occupies a leading position along with finance, insurance, retail, and healthcare. New iGaming projects appear every month, bringing a stable profit to their founders.
Experts of the Online Casino Market company will tell you about innovations that make gambling even more attractive for investors. We are going to consider 3 key technologies, without which it is difficult to imagine the development of the sector.
AI is based on machine programs that perform cognitive and creative tasks that are the preserve of the human mind. Artificial intelligence is capable of learning, remembering, and recognising patterns, as well as performing other useful functions.
In an interview with Forbes USA, Bill Gates called the solution “the hottest topic of 2023”. The billionaire noted its unlimited possibilities in the field of launching and scaling a business. For many years, the Microsoft founder has been a key investor in the OpenAI American company, which develops AI programs.
Artificial intelligence is used in various areas of the economy, including gambling. The solution makes casino entertainment safer and helps operators to effectively build marketing campaigns and manage financial risks.
The industry is gradually introducing the program’s algorithms. The process has taken place in stages since 2017. Analysts predict that AI, together with mobile applications, will soon create casinos of the new format with an improved user lobby.
Mobile technologies will be responsible for the appearance of gaming sites, while the internal tasks of online platforms (verification of users, accrual of bonuses, risk management, etc.) will become the prerogative of AI.
There are 2 main spheres of influence of artificial intelligence in the gambling field:
Improving customer experience
Developers try to adapt all services and applications to the needs of players, and AI copes with this task in the best possible way.
AI programs automatically adjust to the requirements of users, remember their preferences (slots, bonuses, etc.) and generally make their stay on the gaming site comfortable. Thanks to this, people return to such resources, which automatically increases the profit of business owners
Confirmation of the legality of operations
Legitimate casinos should monitor problematic customers and guarantee fair and safe play for verified gamblers.
Confirmation of the legality of operations may be associated with the timely age verification of casino visitors, the fight against multi-accounting, and legitimate advertising of entertainment for real money.
The scope of AI is quite wide, and much depends on the jurisdiction in which entrepreneurs have registered their projects
Artificial intelligence does not work autonomously. The solution’s main task is to improve the existing software and expand its functionality.
There are several areas of application of AI:
- Acquisition Marketing. The product is installed in the CRM system of casinos or affiliate services to increase Internet traffic. The ongoing AI analysis studies the behavioural preferences of gamblers on third-party resources and, based on them, develops effective mechanisms for attracting the audience to the iGaming site. The system suggests which tools to use (SEO, SMM, or e-mail) in a particular situation to achieve the best results.
- Retention Marketing. AI works with the CRM system to provide the best experience for registered users. The solution studies the actions of players (viewed games, interest in tournaments/seasonal promotions), analyses the received data, and offers customised solutions for each selected group. Casino visitors stay on the platform for a longer time, and the average check and business profitability grow.
- Fraud Management. AI mechanisms are built into security software, increasing the reliability and security of the gaming site. The solution generates behaviour patterns for each client and, based on them, instantly reports any deviation (associated, for example, with the seizure of accounts). Payment monitoring, prevention of hacker attacks, control over the distribution of bonuses, and the fight against multi-accounting are also carried out thanks to the program.
Artificial intelligence helps to better control the casino’s expenses. For gamblers, these are deposits, bets, bonuses, and other types of rewards. Thanks to AI, operators can set up monthly (daily, weekly) spending, which contributes to the Responsible Gambling principle.
For entrepreneurs, AI opens up opportunities for competent budgeting of operating costs and effective allocation of funds for current needs. These are staff salaries, rental payments, as well as settlements with hosting providers and software vendors.
The addition of an AI-based virtual assistant automates many of the routine tasks of entrepreneurs, including:
- registration and verification of users;
- acceptance of payments;
- accrual of bonuses;
- customer consulting (assistance in creating accounts, informing about new promotions);
- data collection for business intelligence, etc.
A chatbot can be implemented as part of a gaming site or a mobile casino application. Top developers go even further and develop virtual assistants in such popular messengers as Viber, VKontakte, Telegram, and others.
A messenger-based solution is a fully functional platform with all the inherent attributes. Players can register, make deposits, launch games, and perform other actions. The calculation of the prize money and the accrual of bonuses (rewards for registration on the website or the number of completed rounds) are also carried out based on a virtual assistant.
In practice, operators get another portal, which increases the profitability of their business. It is possible to place bets in Telegram or Viber with a subsequent transition to the main resource.
The chatbot is fully synchronised with the online casino or mobile betting application. All 3 products share a common backend, while the front end varies depending on the device used.
The world’s leading casino software vendors are already actively testing the capabilities of artificial intelligence:
- The Playtech English provider has added Ada, a conversational AI platform, to its software. The product is designed to monitor the activity of players, help with user identification and account setup, and support the principles of Responsible Gambling. The launch of the Ada virtual assistant is announced for the second quarter of 2023.
- 888 Holdings launched its branded Orbit AI platform. The key feature of the service is the presence of a mechanism for recommending games, bonuses, tournaments, and other activities within a casino. AI collects data on previous customer experience and based on it, offers the most personalised solutions. If, for example, a gambler has previously played roulette, then he will be offered more versions of this entertainment from the most well-known developers.
Distributed ledger technology has been used in the industry for more than a year. The product is presented as a peer-to-peer blockchain with billions of interconnected cells. They store information about already completed and planned transactions.
According to Dapp Review:
- More than half of all decentralised applications on the Ethereum blockchain are accounted for by iGaming accounts.
- In the Tron ecosystem, 8 out of 10 implemented programs are somehow related to the industry.
The leading positions in the use of blockchain in the gambling niche are occupied by the USA, Great Britain, India, Canada, and Germany. Good growth (17.1% in 2022) was also shown in Asia and South America, where the casino sector is also growing rapidly.
Most often, blockchain is used to accept deposits and pay out winnings. The approach has many advantages:
- High transaction speed. The time for crediting money is 5–10 seconds after the confirmation of the operation. Users do not need to wait several banking days until the financial institution checks and approves the transfer.
- Minimum commission deductions. Transfers are made directly between the blockchain wallets of operators and players. Thanks to this, the cost of operations is reduced because there is no need to pay intermediaries: banks, financial services, or electronic systems.
- Expansion of the geography of users. Acceptance of bids is available even from countries that have an ambiguous attitude towards entertainment for the money. This contributes to the growth of conversion on the website, and its owner receives more income.
- Large selection of digital tokens. Gamblers can wager in BTC, ETH, TRX, LTC, DOGE, USDT, and other currencies. Entrepreneurs will earn on the conversion of digital units and invest them in the purchase of crypto signs of a certain denomination.
- Good response from the audience. People like fast and secure transactions, so they are willing to play on those platforms that offer such options.
There are 2 types of iGaming projects:
- websites that accept only cryptocurrency;
- companies that work with both fiat and digital money.
Many beginning operators prefer to launch a startup of the first type. They have not yet formed a customer base, so it will help them immediately attract fans of crypto bets. Moreover, blockchain projects are characterised by low competition: according to statistics, only 15% of iGaming brands in the world work with digital currency.
Features of a traditional blockchain casino:
- acceptance of cryptocurrency bets;
- verification of transactions using blockchain technology;
- automatic payment of winnings using smart contracts.
There are websites on the market that accept both fiat and digital money. Most often, these are already operating casinos, to which games based on distributed ledger technology are added. It increases the number of visitors to the platform and the profit of business owners.
Blockchain gambling establishments are completely valid. Most countries have already legalised cryptocurrency settlements, so entrepreneurs will have no problems accepting bids and paying out winnings.
To increase the level of trust of players and B2B partners, it is worth obtaining a licence.
The document can be bought in several countries:
- Curacao. This is the first jurisdiction that issued a crypto casino permit. The certificate was obtained by a provider from Lithuania. At the moment, operators can work under a sublicence of the parent company and make use of tax benefits.
- Malta. The country is a leader in the field of granting permits for the activity of casinos that accept digital tokens. Entrepreneurs get access to excellent IT infrastructure, qualified specialists, and favourable taxation models.
- Costa Rica. In the island state, you can register a legal entity and work on the crypto market on its behalf. Operators pay only 2% of the monthly turnover.
A distinctive feature of a modern crypto casino is the presence of content created based on this innovative technology.
Features of such ready-made games:
- Large selection of mechanics. Gaming sites can offer both familiar slots and card entertainment (accepting deposits in BTC or LTC), as well as innovative crash games and multiplayer fishing.
- There is no need to be certified. This is a long and financially expensive procedure that can be avoided thanks to the presence of smart contracts in the blockchain structure. They confirm the transparent operation of the RNG and the automatic transfer of funds to the winner's wallet.
- Good response from the audience. Players love BTC slots and other blockchain solutions. They attract users thanks to stylish graphics, a wide range of bets, and generous payouts.
Among gamblers, crash products are gaining popularity. This is multiplayer entertainment with a minimalistic design. An object (rocket, plane, or balloon) moves along a parabola, after which at a certain moment, it explodes (falls/bursts). Those who managed to collect the bet before the explosion receive a generous reward (the basic size of a BTC bid with a multiplier).
Non-fungible tokens are original digital objects. They, like cryptocurrency, are created based on the same technology but are still unique.
Blockchain records the ownership of the selected NFT object. If in the future, entrepreneurs or players decide to sell or exchange their non-fungible tokens, a new entry will appear in the smart contract. In the real world, NFTs are considered an analogue of patents and copyright.
Throughout 2022, the market has experienced ups and downs. At the end of 2022, the average asset value stabilised, while some non-fungible tokens fell in price, and others, on the contrary, became more expensive.
In 2023, according to experts, the NFT niche will get rid of speculation and continue to grow, which will attract many investors. They will put money into:
- the purchase of unique objects (games, characters, artefacts, and bonus features);
- the development of fully functional casino applications.
By 2028, the capitalisation of the market will reach $97.6 billion.
These are linear or cluster slots, in which 1 or more elements are non-fungible tokens. These can be icons on the panel, musical fragments, characters, functions, bonuses, etc. The more NFT is integrated into the slot machine, the more attractive it is to the audience.
Slots of this type are based on blockchain technology. This ensures transparency in the accrual and payment of prize money, instant determination of the result, and a wide range of bets during the main and risk rounds. NFT games do not require certification, which makes them easier and faster to release.
The Swedish company, Evolution Gaming, was one of the first to integrate this category of bonuses into their solutions: 4 CryptoPunks collectable cards were thrown into the prize box of Megaways slots. At the end of 2022, the cost of 1 card increased to 62 ETH, despite the market fall at the beginning of the year.
Gaming sites are part of the metaverse, a digitised space created based on real prototypes. Here, you can create residential buildings, trade or rent real estate, form political parties or hobby groups, and, of course, release gambling entertainment.
NFT platforms are multi-user resources. An unlimited number of players can participate in the same session. All of them place bets and bring good income to operators.
The industry is growing rapidly due to the introduction of in-demand IT solutions.
- Artificial intelligence is one of the most important technologies in the casino sector. Entrepreneurs use AI analysis to study and improve user experience, optimise marketing campaigns, increase the security of iGaming sites, and reduce operating costs.
- AI is the basis of full-featured chatbots that work on popular instant messengers. These are Telegram, Viber, VKontakte, etc. The ready-made solution is a universal platform where players can launch their favourite slots and also talk to a virtual assistant.
- Key investments in the gambling industry will be related to the development of blockchain casinos and NFT platforms. Non-fungible tokens are distinguished by stable growth in value, and crypto platforms are extremely popular with the modern audience.
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