Big Data makes the Online Gambling World go Round

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The online gambling industry continues to flourish, just as it has done for the last two decades. In the early years, it grew organically, following the waxing tide of computers and mobile devices in mainstream society. Now days, its growth is heavily generated by the use of big data.

Competition is becoming more fierce, as well. Years ago, there were only a few operators to choose from, offering sports wagers and digital casino games. Now, there are thousands of websites to choose from, making it harder and harder for businesses to compete.

In order to remain relevant in today’s highly regulated markets, they’re making every effort to promote superior responsibility. The easiest way to do that in today’s technologically advanced world is through a process called machine learning.

Big Data & Machine Learning

If you work in any technology driven business, you’ve probably heard the term “big data” before. Depending on the elevation of your role in the company, you may or may not actually know what it means.

The Oxford Dictionary defines it as:

Big Data (noun):

Extremely large data sets that may be analysed computationally to reveal patterns, trends, and associations, especially relating to human behaviour and interactions.

Basically, everything that is done electronically, on a computer or mobile device – every click of the mouse, every tap of a finger, every use of an app – is being recorded. That data is sent back to a primary receptacle, where it’s gathered, computed and organized.

Big data involves so much information, coming in so quickly, that no single person, or even group of people, could possibly sort through it. That’s where “machine learning” comes in. Big data enters into a machine that does all the sorting automatically, identifying patterns and creating behavioral profiles.

How Online Gambling Companies Use It

For online gambling companies, this information can be used in a multitude of ways. It can help increase revenue and player retention, as well as benefiting their status with local governments and regulators.

For example, the machine learning process can tell online gambling companies what game designs are most attractive, or what promotions are best suited for different types of players. They are able to customizing each player’s experience based on their past performance, and the behavioral patterns of other players like them.

Online gambling companies can also use machine learning to detect potential problem gambling, often before a player develops a full-blown addiction. Many regulatory bodies require this sort of monitoring, and the hefty fines they impose for failing to report it is more than enough to encourage operators to study that data closely.

Casinos have always been a target for money laundering, and that’s another problem that regulators are cracking down on. If a potential case of money laundering is detected, it must be reported immediately to the proper authorities. Online gambling companies use big data to integrate anti-money laundering programs, as mandated by a growing number of jurisdictions.

Companies are able to cover their own backsides in terms of credit risk, as well. Online gambling promotions often include credit lines, especially for big spenders in the sports betting industry. Online casinos shell out free bonus credits like confetti at a New Year’s bash.

Players who abuse these systems with fake identities and/or multi-accounting are a huge risk for operators. Machine learning has become a great solution for detecting and preventing potential problem in this area.