How casinos are using artificial intelligence to maximise profit
Artificial intelligence is being used to maximise profit at online and land-based casinos.
The use of artificial intelligence to extract the most from their customers is not a new development. In fact, the web giants including Google, Microsoft and Facebook have been doing it for a while now and getting exceedingly good at predicting user behaviour. This allows them to sell more of their products and services. This advantage is not limited to the web giants anymore as today online gambling sites and land-based casinos have caught on after seeing how they too can harness the developing technology. We've got more information next.
Identifying the most profitable players
The AI sector is growing and is characterised by many specialised start-ups. There are a number of start-ups including Ikasi which is based in San Francisco. It studies the frequency of customer visits, style of playing and bets using machine learning software in casino databases. The purpose is to identify the most profitable players by identifying what they desire and encouraging them to start playing or continue spending their money. This is accomplished through ultra-personalised targeted marketing.
Another AI start-up is Optimove which boasts famous clients such as MGM, 888 casino and Caesars. This Israeli-based company uses machine learning software to analyse casino client databases to isolate them into behavioural groups. It then uses a marketing and loyalty automation solution in order to maximise player returns.
Next up, we've got DataRobot which is based in Boston and uses artificial intelligence to predict the behaviour of players to order slots and table games in land-based or online casinos. Once again the goal is to maximise the amount of money the players spend.
Identifying future winners
The technology can also be used to identify likely big winners. The benefit of this is that these players can be used to showcase the potential rewards to as many players as possible. This then enables the casino to use them as live advertisers to further compel players to bet more. There are also facial recognition, RFID chips and database analysis to encourage players to bet more.
You can learn how online and land based casinos use AI.
RFID chips and face recognition
Some online and land based casinos go even further to identify the biggest players. For example, some institutions in Macau use facial recognition software and RFID chips which connects chips together to track player behaviour so that they can retain them. This allows casinos to maximise their profit by enticing players to keep playing.
A system called Dallmeier has the ability to alert staff to a potentially big player. Employees at the casino will then be responsible for taking special care of this player to keep him/her playing through different means such as offering complimentary cocktails or free meals. The same system can also be used to combat fraud since it can help to spot collusion between a player and dealer.
In summary, the advancements in artificial intelligence has allowed casinos to maximise their yield per player. While this can be of benefit to the player too, it does come with a potential downside as well since the player is being encouraged to continue gambling.