Gambling of the Future: Top 3 Technologies Affecting the Development of the Field

The gaming industry is a dynamically developing environment. It attracts new investors and brings a good income to those who have already put their money into iGaming start-ups. The growth of the industry is associated with the active use of IT solutions. These are blockchain, artificial intelligence, NFT, and other innovations.

The Smart Money studio explains how information technologies influence the development of the gambling field. Find out which niches are worth investing in today.

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Artificial Intelligence for Business Risk Prediction

Artificial intelligence (AI) is the ability of machines or software to perform the functions of the human mind. The system works continuously. It extracts, analyses, and applies the acquired knowledge.

Nowadays, AI is no longer a fantasy. This is a real and useful tool for business development. The number of companies using artificial intelligence algorithms is growing exponentially. Every year, their number increases by 5 times.

The revenue from Big Data and business intelligence (AI implementation options) amounted to $274.3 billion at the end of 2022. Experts predict that in 5 years this figure will increase to $1.9 trillion.

AI is used in various economic sectors, including the gambling field. The active use of this technology:

• improves customer experience;
• automates routine tasks of operators;
• improves the security of iGaming sites;
• simplifies Internet resource management, etc.

The implementation of artificial intelligence has not yet been fully explored. Companies are just launching their first AI-based projects. Therefore, entrepreneurs have a chance to create a profitable and cost-effective iGaming start-up based on this technology.

How Artificial Intelligence is Used in the Gambling Niche

The emergence of AI coincided with the popularisation of mobile casinos in the gaming field. Nevertheless, the solution also brings some benefits to land-based casino complexes, simplifying the work of staff (croupiers, administrators) and guaranteeing an unforgettable user experience for visitors.

The key areas of using AI are as follows:

The improvement of cybersecurity	Protection against fraud and phishing programs is one of the most important tasks for businesses. Operators face hacker attacks, attempts of confidential data theft, technical failures, and other types of violations. AI-based services are programmed to predict and prevent all types of attacks. The software monitors the atypical behaviour of players, programs, and sources or files. It compares it with the algorithms of secure systems and, if necessary, blocks suspicious activity on the site
Player identification	AI is used to verify clients: based on biometric face recognition, fingerprint scanning, geolocation authorisation, and checking a device used to log in. The system automatically compares new data with previously recorded information and identifies gamers based on them. AI is also indispensable for verifying the age of customers and blocking individuals under 18 or users with signs of gambling addiction
The confirmation of the operations’ legality	Artificial Intelligence algorithms are built into the risk management module. It is responsible for the prompt check of payments, the blockage of suspicious transactions, and the analysis of transactions for compliance with AML and FATF policies (combating money laundering and terrorist financing). AI helps operators work legally and fairly, as well as provides transparent gaming conditions for visitors to iGaming sites
User experience improvement	AI programs collect and analyse terabytes of information about customers’ preferences. Based on the received data, they form behavioural algorithms. As a result, each group of gamblers is provided with personalised solutions — slots, bonuses, promotions, and newsletters. The casino recommendation system gives gamers what they need at a particular moment (an exciting game, a promotional bonus, a promo code, etc.). Thanks to this, customers spend more time on the gambling site, and the operator receives more profits
Cost optimisation	The introduction of AI tools helps entrepreneurs to control the costs of online casinos better. Operators can plan the monthly (weekly, quarterly) budget more efficiently and use the released funds for strategic business development

Player Service Automation

This task is successfully handled by a chatbot. The virtual assistant is based on artificial intelligence. Therefore, it can easily replace a call centre employee or a casino manager.

The scope of the chatbot’s responsibilities includes:

• advising clients on registration and verification issues;
• assistance users with depositing and withdrawing;
• informing customers about new games, bonuses, and tournaments;
• distributing advertising materials, etc.

The installation of an AI-based chatbot makes the operator’s work easier and saves the entrepreneur from many routine tasks.

The virtual assistant automatically answers a lot of similar questions (for example, how to deposit an account on the site for the first time). At the same time, more complex requests are forwarded to a real manager. These can be nuances with the withdrawal of money, personal bonuses, and other issues.

The Launch of a Branded Chatbot

Artificial intelligence algorithms can be used along with the functions of popular social messengers. Personalised chatbots are created based on Viber, Telegram, and other systems.

The virtual assistant is presented as another platform along with a mobile casino and a desktop version of the gambling site. All three solutions will have a common backend (control system), but the frontend (visual part) may differ depending on the device or program used for login.

The chatbot is a fully functional gaming resource. Here users can register, make an initial deposit, launch slot reels, receive bonuses, and perform other actions. A gamer can always go to a site or open a mobile casino. These actions are carried out automatically along with saving the history of bets and winning sessions of the gambler.

The advantages of installing a messenger-based bot are as follows:

1. The increase in the number of gaming resources. Users can place bets both in the casino and in the chatbot window. This fact attracts a new audience, which quickly turns into regular customers.
2. Customer service optimisation. A virtual bot can perform any task: advise customers, inform them about promotions and gaming novelties, and help users with registration and account replenishment. The reason is the presence of machine learning programs in the structure of the bot.
3. The improvement of casino marketing. Seasonal draws, tournaments, and other activities can be easily carried out in the messenger environment. This will attract the target audience, which likes to spend time on popular social networks.

The Examples of Using AI in the Industry

The gambling field leaders are introducing artificial intelligence tools into many proprietary software solutions:

• The Chinese developer SenseTime has invested in a new entertainment complex in Singapore. The Resorts World Sentosa facility will consist of several halls. In one of them, the supplier plans to replace the croupiers with robots and install dozens of smart cameras around the perimeter. Their main task is to detect suspicious behaviour of visitors and block scammers.
• The British provider 888 Holdings launched Orbit, its proprietary game recommendation platform. The solution works on the Netflix principle. It displays a list of games that will definitely interest the gambler. The AI program is integrated into all innovative products of the manufacturer: a casino gaming system, a betting platform, and a lottery draw service.
• The European company Playtech has added a new dialogue form Ada to its casino software. The solution is based on artificial intelligence. The program analyses users’ preferences, studies behavioural algorithms, reveals hidden associations between apparently unrelated accounts, etc.

Blockchain as a Tool for Improving Casino Payment Policy

Investors are putting digital currency in promising iGaming start-ups. Software developers are offering new options for using blockchain in the industry.

Blockchain as a Means of Payment

15% of gambling activities organisers are using cryptocurrency at the beginning of 2023. This is a convenient settlement method. It attracts a new audience to the site and simplifies communication with B2B partners (hosting providers, affiliates, etc.).

Why it is worth adding cryptocurrency to an online casino:

High transaction speed	The time needed for transferring money to the operator's or player's BTC wallet is 2–5 seconds. Money is received instantly bypassing dozens of approvals from regulatory authorities. The introduction of blockchain significantly speeds up payments. This increases the company's cash flow
Decentralised work	To transfer funds, it is enough to open a digital wallet in cryptocurrency. The entrepreneur does not need to wait for approval from banks or interdepartmental organisations or coordinate actions with regulators
Safety	According to the essence of blockchain, any illegal changes in the program code are even theoretically impossible. All data (wallet addresses, transaction amounts, etc.) is encrypted using cryptography tools
Good audience response	Gamers are attracted by the high speed of operations, anonymity, minimal fees, and easy depositing and withdrawing. The connection of a cryptocurrency gateway expands the geography of gamblers. It is possible to place bets in blockchain casinos from anywhere in the world

The Development of Entertainment Content

One of the promising areas of using blockchain is the creation of unique games. The ready-made software is characterised by original graphics and storylines. It has a stable demand among solvent traffic.

Today, developers are focused on releasing two categories of games:

1. Slots. These are traditional 5-reel or cluster machines with the possibility to bet in cryptocurrencies. The software includes a wide wager range. The cost of one move varies from 0.0001 BTC to 1 BTC, and even more. The software is marked by an impeccable design and a diversified retention program. Bonuses and gifts are also awarded in digital money.
2. Crash games. The main advantage of the content is the support for multiplayer mode. From 2 to 16 gamers can participate in one round. This increases the revenue of online casinos. The content is characterised by a concise interface. An object moving along a parabola (rocket, aeroplane, airship) is at the centre of attention. With each new hitch, the multiplier increases. The growth continues until the object explodes on the screen.

Blockchain games do not require certification. The smart contract system built into the software works on the principle of a random number generator. The algorithm for dropping out winning and losing combinations is pre-encrypted using cryptographic tools. Smart contracts serve as a guarantee for the payment of prize money.

Blockchain Casino Licensing

An iGaming blockchain start-up is a promising and, most importantly, legal type of business. Today, the circulation of cryptocurrency is allowed in most developed countries. Therefore, the launch of a profitable gambling project will not cause any difficulties for the operator.

In many jurisdictions, cryptocurrency is equated with a means of payment. This means that when exchanging digital money for fiat monetary units, entrepreneurs have to declare their revenues and pay income tax. This practice is followed in Germany, the USA, the UK, etc.

The operator is not required to obtain a licence to launch a Bitcoin casino (a platform supporting crypto settlements and blockchain games). However, the presence of a permit will increase the confidence in the casino on the part of gamers and B2B partners.

Jurisdictions issuing licences for crypto gambling projects:

Malta	The European island state is a mecca for blockchain companies. Most gambling activity organisers and software providers that are associated with crypto transfers are registered here. Malta offers stable legislation and access to advanced IT infrastructure. The country provides low taxes. Entrepreneurs are exempt from corporate tax, capital withdrawal fees, and other deductions
Curacao	The jurisdiction was the first in the world to issue a licence for a crypto gambling start-up. In 2017, a company from Lithuania received the document. Large-scale changes are planned in the offshore zone. The new bill, which is currently under consideration in Parliament, allows exchange transactions with digital assets. It is expected that operators will be able to accept blockchain bets as before. However, all payments will need to be connected to the goAML monitoring system
Costa Rica	The island of the Caribbean archipelago allows cryptocurrency transactions. To do this, entrepreneurs need to register local companies, open bank accounts and physical offices, as well as hire staff. The country is characterised by loyal taxes. The size of the fiscal burden depends on the number of employees in the company. As a rule, operators pay 57 base salaries per year

NFT Technologies for Improving User Experience

The non-fungible token, or NFT, is a one-of-a-kind object. Its value can grow or, conversely, fall depending on the conditions in the digital asset market.

In the gambling field, NFTs are associated with:

• games;
• bonuses;
• gaming artefacts (clothes, weapons, other props);
• the functions of the main characters;
• the access to premium levels, etc

NFTs are based on blockchain technology. It confirms the authenticity of non-fungible tokens and the ownership of each unique object.

The proprietor of the NFT is fixed in the smart contract. When transferring (selling, exchanging) an asset, a new line of code appears in a virtual document. It is encrypted using the blockchain.

The Creation of NFT Slots

This is a promising direction for investing funds, considering the stable increase in the value of NFT assets.

The software is presented as a decentralised DApp application based on the blockchain. Platform modules are located on different physically remote servers, which provides 100% NFT protection.

This type of slot machine includes one or more NFT objects. Most often, these are branded bonuses, functions of the main characters, interface elements (gifs, avatars), and other components.

The key characteristics of gaming software are as follows:

• guaranteed honesty of the rounds’ results and payment of prize money (it is transferred automatically as one of the conditions of the smart contract);
• complete confidentiality of data;
• the security and 100% protection of NFT assets from theft and transfer to third parties.

The principle of NFT slots’ operation:

1. The formation of a sequence of successful and unsuccessful sessions. This is the establishment of numbers in roulette, the order of icons appearing on slot reels or cards in video poker.
2. Transferring data to virtual cloud storage, which is protected by blockchain.
3. Processing a sequence of combinations using a hash function. It converts data into a unique program code, which is even theoretically impossible to decipher.
4. Extracting data from the storage and converting it into numbers (cards, icons) on the playing field.

NFTs for the Development of the Metaverse

The Metaverse is a three-dimensional digital space created based on real prototypes. Here users can build residential and commercial buildings, grow vegetables, participate in prestigious conferences and, of course, play.

The basis for the creation of Metaverse includes:

• NFT assets;
• artificial neural networks;
• VR, and other technologies.

The Metaverse is the gaming environment of the future. Top IT brands have already invested in its development: Google, Meta, Apple, and other brands.

According to the forecasts of the IZEA Worldwide online media, the market size will reach $758.6 billion by 2026. Businesses are glad to invest in NFTs and the Metaverse, given that the environment is securely protected using blockchain.

The Main Things about Technical Innovations in the Gambling Field

The gaming area is developing rapidly. It brings good dividends to investors. One of the reasons for the good market capitalisation is the introduction of modern IT solutions.

• Artificial intelligence will be the main indicator of market growth over the next 10 years. The use of AI improves the user experience, increases the security of an iGaming start-up, ensures the legitimacy of operations, and facilitates the verification of gamers and the identification of problem players.
• AI programs are used to create chatbots. Virtual assistants operate based on social messengers — Viber, Telegram, and others. They automate customer service and also act as an additional gaming platform.
• The addition of cryptocurrencies as a settlement method increases the speed and security of transactions, ensures the decentralised operation of casinos, and brings new paying traffic. Innovative slots and crash games that have a good response from the audience are also created using blockchain.
• Tokens function based on blockchain, but unlike cryptocurrencies, they are unique. NFTs are a great foundation for the development of branded content and the creation of the metaverse.

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• Bitcoin casinos;
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• NFT slots;
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