Gamasutra: The Art & Business of Making Gamesspacer
View All     RSS
November 18, 2018
arrowPress Releases
  • Editor-In-Chief:
    Kris Graft
  • Editor:
    Alex Wawro
  • Contributors:
    Chris Kerr
    Alissa McAloon
    Emma Kidwell
    Bryant Francis
    Katherine Cross
  • Advertising:
    Libby Kruse






If you enjoy reading this site, you might also want to check out these UBM Tech sites:


 

Artificial intelligence in the Gambling Industry

by Daniel Sinoca on 09/07/18 11:16:00 am

The following blog post, unless otherwise noted, was written by a member of Gamasutra’s community.
The thoughts and opinions expressed are those of the writer and not Gamasutra or its parent company.

 

Artificial Intelligence has absorbed nearly all aspects of the modern life. Every day we benefit from its advantages in modern technology and various complex instruments. Therefore, it is quite interesting what angle AI might be playing in gambling. Let us find out the answer to this question together.

What Is Artificial Intelligence?

In simple words, artificial intelligence is a broad field of computer science that aimed at simulating human intelligence by machines. AI requires an autonomous process of collection and analyzing information for further self-education. As a result, it performs mental and even creative tasks.

What Are the Kinds of AI and How Do They Differ?

To date, there are two main types of artificial intelligence, the implementation of which is different in such a way:

  • AI built on a semiotic principle;
  • AI built on a biological principle;

The semiotics approach is focused on the development of a symbol base capable of modeling such high-leveled psychological processes, as human emotions, reasoning, and thinking.

Nevertheless, AI built on a biological principle, which is also called the neural networks is now practiced more widely.

What Is a Neural Network?

A neural network is a mathematical model supported by software or hardware form. The principles of organization and operation of the biological network of neurons serve as a basis for it. In other words, it is an interpretation of the model of the human brain.

Image extremetech.com ( Jessica Hall )

Modern science has reached such a level of development when AI can recognize images, analyze the information received and classify it (by splitting into the groups). Due to this, it became able to fulfill those tasks that previously were done exceptionally by a man. The introduction of these machines allows you to assign to them a huge number of functions and thus optimize the resolution of many issues.

Neural Networks in Gambling: Marketing and Management

The cost of implementation and application of artificial intelligence is gradually falling. Accordingly, the AI becomes accessible even for small companies and startups. There are three main areas in the gaming industry where artificial intelligence gives businesspersons the opportunity to get a number of benefits.

Marketing Aimed at Withholding

Forecasting through the analysis of capital outflows and the calculation of potential profits provides a timely reaction and allows contacting the customer on time, thus preventing their withdrawal. The companies spent much more resources on attracting new customers than their retention. If a company does not attract enough audiences, it will earn less and, as a result, lose to competitors.

Artificial intelligence processes the data of the entire client base in a few seconds. Accordingly, AI can easily predict the behavior of the user, who soon plans to abandon any game. What is most impressive is that AI will identify these players and offer them such bonuses, from which it will be difficult to refuse.

Marketing Aimed at the Acquisition

Because of the limited marketing budget, companies need to analyze continually the traffic sources to maximize their ROI. In this field, artificial intelligence in gambling has long surpassed the most experienced managers.

Image journal.eyeprophet.com

Artificial intelligence can even predict potential profits. This is all because AI makes a detailed analysis of the game of each new player coming in a variety of ways. The received information allows to allocate reasonably resources and to acquire qualitative traffic.

What is more, artificial intelligence most accurately predicts the future behavior, since it involves dozens of parameters for this. Experienced managers use about five parameters, so their predictions, in comparison with AI data, are unfortunate.

What does artificial intelligence allow? It automatically determines the creative approach that will give the maximum conversion to each specific user. Many details are taken into account, such as the location, operating system, browsing time, screen size, etc. Consequently, the standard client engagement tasks become automated with the AI.

Tackling Fraud

Artificial intelligence in gambling makes it possible to replace the staff of experts in monitoring the activity of clients. It instantly establishes any suspicious activity, if it is different from the norm, while a person is simply not physically able to control everything.

The Importance of Using Artificial Intelligence for Optimizing Gambling

The use of artificial intelligence is a great way to develop a modern business. This applies to all areas, especially the gambling industry. Eventually, is it bad if you can easily automate and optimize all routine actions? Of course, not. Innovators are gaining a significant competitive advantage. The main business indicators are marginality and customer base. A high level of marginality allows investing more money in increasing the customer base. The operator, investing more money in attracting customers, can entice the audience of competitors.

Operators know what amount of money goes to pay their labor. Artificial intelligence helps to reduce these costs. How does it work? It increases the operational efficiency of the business by minimizing the cost of paying for people.

Chatbot: A “Real” Example of Using AI in Gambling

Attracting a chatbot in a casino can bring an additional source of profit. To date, not everyone recognizes this method, thus, operators can use huge bonuses. What is a chatbot? It is an intermediate link between the online casino server and the user. Artificial intelligence is used to establish communication with clients and display the results of their queries.

What does a chatbot do? It gives players access to the classical type of gambling, free spin, bonus offers, and technical support. Using a chatbot, the player takes all the necessary actions, namely: makes a bet, replenishes the account and transfers money.

You can use the chatbot in two ways that differ in the principle of its interaction:

  • Commands are given as text messages;
  • Commands are implemented as a graphical interface.

What a player likes the most is the graphical interface. Undoubtedly, there will be no set of messages at all, and work is generally more convenient. Although, in both types, the bot works by the same principle. A bot is the intermediary that receives commands, sends them to the server where they are processed, and then a player gets the results.

What Are the Advantages of a Chatbot?

  • Messengers gradually begin to be more widespread than social networks providing the widest reach of the audience;
  • Anonymity is guaranteed. It is impossible to access personal correspondence;
  • Operators have the opportunity to enter forbidden markets and thus expand their own business;
  • The high level of attractive design makes the chatbot-routine identical to the online service.
  • It can work at the low speed of Internet connection;
  • Players can discuss their results with friends, thus involving them in the gameplay.

Using a virtual interlocutor, the operator can reduce the cost of employees and use this money to improve the project by:

  • Attracting a new audience through bonus systems;
  • Expanding the range of games;
  • Upgrading the service, etc.

Poker Bot for Business

A poker bot is based on three key elements:

  • Data-reading module;
  • Decision-making algorithm;
  • Simulation mechanism.

What does the data-reading module do? It determines the information about the player that the poker bot gets. In particular, it is the amount of time required to make a bet, the number of discharges he/she makes, as well as a number of other nuances, which help simplify the analysis of the opponent's actions.

A decision-making algorithm is based solely on complex mathematical and logical actions. Information becomes variable and passes through the system of calculation of the rate. After the chatbot determines the response or reaction, it presents its action.

AI can give an answer not immediately so that the opponent does not guess that he/she plays with the machine. For this purpose, a third element was created, namely the simulation mechanism.

A simple poker bot (profile bot) does not use powerful algorithms in its game, so it plays to zero. Poker rooms with a lot of non-professionals are full of such bots because an experienced player immediately distinguishes who is who.

With the help of artificial intelligence, bots have learned to adapt their strategy to each specific situation. If earlier they just followed a certain system, copying the behavior of opponents, now they can use different tactics. Neural networks analyze the opponent's behavior and, in response, perform the most unpredictable actions for them.

 

Everyone characterize 2017 by two iconic confrontations, namely between artificial intelligence, sharpened for playing poker, and the human brain.

Of course, AI won an uncontested victory:

  • Deep Stack is a joint creation of Canadian and Czech scientists. It plays in Texas Holdem - the most difficult variant of the card game. Deep Stack won a brilliant victory in 852 hands. In addition, the efficiency he demonstrated was at the level of 492 mmb / g.
  • Libratus - development of a specialist from the University of Carnegie - Mellon. Before testing, the creator said that Libratus is the best poker simulator. In the competition against the leading players, in which 120 thousand hands took part, won the poker artificial intelligence. The team of players reported that the bot had won them with a powerful strategy, an operational response and the ability to self-learn.

Such artificial intelligence is able to play at any difficulty levels, pursuing different goals. However, you should be extremely careful when using such a bot in the poker room. If visitors start losing in each game, they will soon switch to another project.

There is no doubt that artificial intelligence in gambling promises to create a real revolution. It is also clear that it can be used to solve a variety of tasks: from optimizing routine processes to gaming solutions.


Related Jobs

Monomi Park
Monomi Park — San Mateo, California, United States
[11.16.18]

Senior Game Engineer
Cold Iron Studios
Cold Iron Studios — San Jose, California, United States
[11.15.18]

Console Gameplay Engineer
Cold Iron Studios
Cold Iron Studios — San Jose, California, United States
[11.15.18]

Infrastructure Engineer
Cold Iron Studios
Cold Iron Studios — San Jose, California, United States
[11.15.18]

Site Reliability Engineer





Loading Comments

loader image