Technology’s role in responsible gambling is a critical one

The gaming industry and technology have been soulmates since the 1990s. Harrah’s, in particular, was an early leader for its closed-loop marketing process. As a case study from the late 90s noted:

“Gary W Loveman [CEO of Harrah’s at the time] refers to their success as ‘the triumph of software over hardware in gaming’. The Total Rewards programme has increased traffic in Harrah’s casinos, and marketing programmes driven by data from the warehouse are increasing retention. Keeping customers goes right to the bottom line.”

Harrah’s essentially helped write the book on deep, detailed customer data as a cornerstone of marketing and profits. The intense focus is on customer loyalty. That sophistication has led to the top gaming companies relying on a customer data platform (CDP) as the cornerstone of customer intelligence to where we are today – a digital-first gaming world.

According to Grand View Research, the global online gambling market hit $63.53bn in 2022 and has a predicted compound annual growth rate (CAGR) of 11.7% from 2023 to 2030. So, it will reach $70.64bn by the end of 2023 and be at $153.57bn by 2030.

With people armed with a smartphone to make a bet, the propensity for growth in online gambling is increasing. Keith Whyte, executive director of the National Council on Problem Gambling, said in a 2022 interview: “We believe that the risks for gambling problems overall have grown 30% from 2018 to 2021, with the risk concentrated among young males 18 to 24 who are sports bettors.”

We have arrived at a place where technology is a catalyst for problem gambling due to easy access to betting in the palm of one’s hand, and technology that can identify gamblers’ actions down to the individual. But here’s the rub; a highly active gambler who is not a problematic gambler and a gambler developing an unhealthy behaviour can have similar profiles.

So, what is technology’s role in responsible gambling? Let’s start with what technology’s role is not.

Tech has no role in making the rules for any government or gambling/gaming enterprise. If we were to give an analogy to professional sports, technology records what happened down to the individual player. Technology can analyse and measure usage patterns over time and make predictions. So, technology is like instant replay or an instant analysis of historical records. But it does not make the rules, nor does it make the call on who is or is not a problem gambler. Those decisions are left to gaming authorities, regulators and operators.

With that said, based on our experience working with the leading gaming companies across the globe, here is where tech can play a role in helping the industry with a persistent issue.

First, let’s understand that humans cannot keep up. Overall, technology has increased the velocity of gambling. Pulling a slot machine lever takes more time than clicking a button on a smartphone. Gambling speed can outrun humans, and technology is a must to monitor and identify issues. Technology enables operators to predict rather than react.

AI’s role

So, let’s look at the role of artificial intelligence (AI) as one tool for supporting responsible gambling that can be used in combination with other approaches, such as public education and counselling services.

1. Early warning system to detect problem gambling behaviours: As noted, a non-problematic gambler can look like one with a problem. However, AI algorithms can be used to discern the difference by looking at patterns and detecting potential signs of problem gambling. One key can be identifying if a gambler displays risky behaviours like frequent large bets, chasing losses or others. An AI system can provide an early warning system to alert a land-based casino or online platform.
2. Setting personalised risk limits/exclusions: AI algorithms can analyse gambling behaviours to generate personalised risk assessments. This can be a guide to set deposit limits or self-exclusion periods to have guardrails assuring responsible gambling.
3. Identify when intervention and support are needed: AI systems can set guides on when intervention and support is needed for problem gamblers. In addition, recommendations for problem gamblers could come from an AI-powered chatbot as a first level of communication to provide resources for at-risk behaviour treatment. Or, if a player is exhibiting signs of problem gambling, an AI system could change the messaging mix to one encouraging them to take a break or seek help.
4. Data analytics: AI can help operators gain a holistic view of gambling patterns and develop strategies for early interventions to mitigate problem gambling behaviours. For example, AI could analyse data to identify times when problem gambling behaviours are most prevalent.
5. Personalised responsible gambling limits: AI algorithms can help operators impose personalised responsible gambling strategies for individual players. For example, an operator’s AI system could manage problem gambling behaviours with time or deposit limits and self-exclusion options to help users manage and reduce the risk of problem gambling.
6. Continuous improvement: AI learns as it goes, so it should help to improve responsible gambling practices continuously.

Tech companies’ role

Tech companies can help to mitigate problem gambling through these actions:

1. Help operators be proactive: Implement predictive analytics and have automated communication plans and alerts in place. These will help mitigate problem gambling in player-facing communications, while the alerts help marketing teams reach out and provide a personalised touch.
2. Educate gaming companies and authorities: Tech companies may have a holistic view of data across companies and jurisdictions. They can be a valuable resource to the industry on the signs of problem gambling and tips for managing gambling behaviour.
3. Adhere to regulations: Tech companies must create information systems that help the industry adhere to regulations and standards related to responsible gambling, such as those set by industry regulators and certification bodies.
4. Collaborate with gaming companies and regulators: Tech companies can collaborate with the industry to understand their needs and perspectives on responsible gambling.

In the end, problem gambling, like any other human behavioural problems, can have serious negative impacts on individuals and their families, including financial distress, relationship breakdowns and mental health problems. Technology has a critical role in being the conduit of information to help operators and legislators be informed as they take steps to mitigate the risks of problem gambling and support those who are affected.

Pini Yakuel is the co-founder and CEO of Optimove, the first customer-led marketing platform. From its two-person launch in 2009, under Yakuel’s leadership, Optimove is now a multi-million-dollar global retention marketing business with more than 450 employees. Today the company provides industry-specific and use-case solutions for hundreds of leading consumer brands including Dollar Shave Club, BetMGM, SodaStream, Pennsylvania Lottery, Papa John’s and Staples.