In the modern world, big data collection and analytics are nearly a must for all businesses, and online gambling is no exception. Advanced technology, including artificial intelligence and machine learning, is used to spot a user’s behavioral patterns, identify their individual preferences, and offer customized services.
This scheme benefits a business due to the higher engagement level, but what about the user? Do algorithms improve the experience, or is it another threat to a user’s privacy? That’s exactly what we’re going to discuss in this guide.
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Understanding Personalization Algorithms in Casinos
Big data and personalization opportunities are of great interest to the scientific community, too. Recent studies confirm that big data allows iGaming businesses to segment markets effectively and target consumers more accurately, improve marketing campaigns, and boost the level of engagement multiple times. Simply put, algorithms collect information about a user’s behavior on the site, and in the end, a casino offers exactly what you like most.
However, researchers have also identified some ethical and privacy concerns. Hypothetically, algorithms can be used to keep a user playing more and more, and the threat of data breaches will always be real, too.
So, do the pros of big data analytics and personalization algorithms outweigh the cons? In fact, it depends on the brand’s approach to using such technology. We used the case of Pin Up to identify specific personalization algorithms in the casino. According to our analysis, they are as follows:
- Collaborative filtering and content-based filtering. The casino’s analytics system considers the similarities between players’ groups to suggest games that players with similar preferences usually choose. Also, it seems to analyze your personal preferences as well, offering games of a specific genre or with specific features that you’ve previously enjoyed.
- Real-time personalization algorithm. The system also adapts to a player’s experience in real time. For example, if you hit the jackpot, you’ll likely receive a personalized message, often with a custom bonus for a winner.
- Predictive algorithms. They also focus on the player’s previous behavior and forecast future behavior. Let’s say you prefer playing slots after 5 PM. The system may send you a custom bonus offer at 4.30 PM to meet your specific demand and potentially boost the experience.
- Propensity algorithms. Such models focus on specific actions like depositing, withdrawing, and playing to achieve a new level in the Pin-Up 9-level loyalty program, etc. So, the system assumes that you’re likely to top up your balance, and it may offer you a deposit bonus.
- NLP algorithms. The Natural Language Processing algorithm analyzes a user’s chat interaction, requests, reviews, and responses. This is necessary to provide personalized support services and give personalized updates on certain types of games, policies, deposit/withdrawal conditions, etc.
Note these are just the main types of algorithms, and as you can see, they all serve the main purpose. They collect data to provide a personalized player experience based on what you are most likely to be interested in.
However, special attention should be paid to how the users’ data is protected. In this particular case, the casino uses advanced data encryption algorithms and top software to protect data from any breaches. As for behavioral data collection, though the goal is to provide a personalized user experience, the system doesn’t really focus on the user as an individual.
It’s just spotting patterns, decisions, and preferences and offering something based on these analytics. Moreover, it can use this information to encourage responsible gambling behavior, and we’ll discuss such additional aspects of data analytics in more detail below too.
How Algorithms Analyze Player Behavior and Individual Preferences
Algorithms definitely focus on specific triggers, and most frequently, they are as follows:
- A user’s actions — game selection, secession lengths, betting patterns (size, frequency);
- Bonus engagement, response to promotions — type of rewards the user chooses, actions taken to meet wagering requirements, etc.;
- In-game behavior — interest in specific bonus features and win-loss patterns;
- Session patterns — the lengths, the time when a user plays most frequently, and the length and frequencies of breaks;
- Support interactions — level of satisfaction with the services, specific interests, and preferences.
That’s how the casinos create a user profile and spot things that can be improved for them personally.
Examples of Customized Services Offered to Enhance the Gaming Experience
Effective customer journey personalization isn’t something vague. A user gets specific services based on analytics, namely:
- Game recommendations. Let’s say you prefer movie-themed slots with high volatility, an RTP of 97% and more, and special features like Wilds and Scatters. The system will suggest such games to you.
- Personalized bonuses. If you prefer slot bonuses with a wager of 20x and free spins, you may get some customized bonuses that meet your specific preferences.
- Personalized support. The system identifies main issues, communication styles, and main concerns and enhances the patterns so you can get an accurate answer without asking repetitive questions.
- Custom recommendations on responsible gambling. If the game session analytics shows that the user is spending too much time and/or money at the casino, they’ll get a recommendation or even be limited in betting for some time.
- Personalized newsletter. A user gets notified about favorite games, favorite promotions, etc.
The last point in the list is essential. A good casino that aims to meet regulatory compliance and avoid predatory practices uses data analytics not only to enhance the experience and retain a user but also to spot problematic behavioral patterns.
In addition, the 2020 study showed that users are much more likely to bet significantly less money if they receive a personal message from the casino the same day and within the following week. Also, top casinos allow you to set personal limitations to prevent yourself from spending more, which basically solves the main ethical concern associated with big data analytics and personalization algorithms.
Benefits of Personalization at Online Casinos: From Personalized Support to Top Game Suggestions
So, let’s sum it up and identify the main benefits of big data analytics and personalization for the user:
- Improved responsible gambling system.
- More beneficial custom offers for a player.
- Seamless user experience.
- Faster, smoother support.
- Increased customer satisfaction and loyalty.
- Focus on the most popular and engaging games.
There are drawbacks, too. For example, some players may not feel comfortable knowing that their behavior is tracked, but again, paradoxically, there’s nothing personal about such data collection and analytics.
The Verdict on Personalization: Benefits & Controversies
To sum up, a casino giving personalized attention to every player is certainly not a bad thing. We can consider such technological advancements mutually beneficial for the platform and the user, but both must follow certain rules. It mostly goes for responsible gambling initiatives. Awareness about personalized offers should encourage the player to set a budget and time limits and stick to them. At the same time, the casino must use technology not only to retain the customers but also to prevent them from problematic behavior by sending PMs and providing an opportunity for self-restriction and self-limitation.
