Can AI Help Casinos Reduce Problem Gaming?

Casinos may benefit financially from problem gamblers, but they can lose their licenses if they don’t monitor and act on problem gambling. They can also benefit more from customers who budget well and thrive over the long term. Casino operators are increasingly using artificial intelligence (AI). It offers great potential in areas such as marketing and improving customer experiences.

Some casinos are also using it to support safer gambling. AI can help casinos to identify problem behaviors and promote healthier gambling habits. However, the use of AI to prevent problem gambling also presents some challenges. These include addressing regulatory issues and navigating privacy laws.

AI can flag at-risk players

Casino operators are increasingly taking measures to prevent players from developing a gambling addiction. Artificial intelligence has the potential to flag players who are at risk. It can analyze the behavior patterns of problem gamblers. This includes the typical hours when they place bets, how much time they spend on a betting site, and how much they keep playing to ‘chase losses.’ AI tools can even rate the degree of risk of different players.

Many players today have the convenience of using a gambling app to play games such as slot games or table games. If AI detects problematic behavior, casino operators can message them, encourage them to take a break, or give them access to assistance resources. Studies have shown that messages tailored to behaviors such as significant losses or extended gambling sessions can have an immediate impact on player behavior. However, the effect is not as strong with players identified as ‘high risk.’

Predicting future problem gambling

Mindway AI can predict future problem gambling. It can catch players as their play devolves. The algorithms are trained by psychologists to recognize behaviors associated with problem gambling. A significant challenge is that there isn’t a sole indicator of whether someone is a problem gambler.

At most casinos, human detection of problem gamblers relies on factors like the length of time they play and the money they spend. Mindway AI takes 14 different factors into account. Each factor has a score from 1 to 100 and the AI assesses the risks for each player. Players receive a score from green to red.

The AI can identify players before they reach a critical point so casino operators can take harm mitigation measures. One of the issues is how to communicate the information to gamblers. The specificity of the data can help with personalizing messages. As technology like Mindway is new, no regulatory body is there to set a standard yet.

Challenges that come with using predictive AI

Safe gambling tools such as time-outs, stake limits, or self-exclusion need customer uptake. It’s the customers who decide whether they need to use these tools. When using AI tools to monitor player behavior and act, casino operators need to take care with how they approach customers. Branding someone as a problem gambler could be problematic.

In Macau, casino operators use hidden cameras and facial recognition technology to track betting behavior. In image and facial recognition technology, deep learning helps computers accurately identify objects and faces. However, it can be costly to invest in AI tools. To even get a computer assembled today requires finding a low-cost PCB manufacturer that also offers top quality. In the United States, players are not used to this level of monitoring that happens in Macau. The compromising of privacy can be a big concern.

AI is helping casinos with marketing and promotions, but using it to reduce problem gambling requires some careful consideration. Bad actors can program AI in an unethical manner. It is just as easy to use an AI tool to send a message that encourages further betting via a personalized ad as it is to send one that suggests taking a break.

AI analysis and human intervention

With advancements in AI, algorithms can uncover patterns that traditional algorithms might miss. Areas such as image recognition and natural language processing (NLP) are progressing rapidly. Casino operators frequently interact with customers, and using automated text analysis to review emails and chat logs can be a valuable tool. At this point, combining AI analysis and human intervention is necessary for the best results.