The goal of the gambling industry is to ensure that people who are playing slots, online poker, or betting on sports are having a great time. Simultaneously, however, they must also ensure they are making money on those transactions.
Between blackjack, jackpot slots and Texas hold’em, there are so many popular games that keep gamblers coming back for more at their favorite local casino or online platform.
The use of data analytics has evolved over the years in the gambling industry as companies look to better understand consumer behavior and gambling trends. Using the data that companies are gathering efficiently lets them create even better, more immersive, and more rewarding experiences for gamblers, and ultimately more profits for themselves.
Below is a breakdown of the use of data analytics in the gambling industry.
The online gambling evolution
The most drastic change to the gambling industry took place in the past two decades with the advent of the online casino. Many people were skeptical when online casinos were first introduced, as they were unsure whether such experiences could compare with visiting an establishment.
While the skepticism was not unwarranted, online casinos have proven a huge hit around the world. People love playing games such as jackpot slots, video poker, blackjack, and roulette. If there is a casino in their local area, they will probably still visit that casino to play their favorite games and see their friends. Now those who are not lucky enough to live near a casino can have the same experience online.
Playing online is not identical to being at a physical casino, but the games can be equally thrilling and entertaining. Many online casinos also have chat rooms that encourage fun engagement with other players.
What is data analysis?
The concept of data analysis involves gathering information and then assessing it to come up with useful conclusions. Companies in nearly every industry are leveraging big data in the hopes of learning more about their products, services, and the people who are buying those products or services.
With the advent of technology, data analysis has become a lot easier. Companies can access faster computers, artificial intelligence analysis tools, and other software to help them make sense of the enormous amounts of data they are collecting from consumers.
Using data analytics in the gambling industry
An online casino can easily gather a great deal of data on each player who creates an account and uses their platform. They can assess when the player logs into the online casino, what games they play, how often they play those games, and how much money they spend.
Such information is very useful, but it’s even more helpful when it’s analyzed effectively. Online casinos can leverage the customer data they gather by presenting those people with more of the experiences they enjoy.
A person who plays a lot of slots may start to see advertisements for new slot games when they visit the online casino website or mobile application. Someone who plays a lot of poker may be informed about upcoming special poker events.
Understanding your target demographic
Not every online casino has the same target demographic, as one website may inadvertently cater to a specific group of people. By collecting and analyzing consumer data, an online casino can understand whether their customers are coming from a specific part of the world, fall under a particular age group, or are interested in specific hobbies.
For instance, an online casino that specializes in slots games may attract more younger, female users. In contrast, casinos that specialize in sports betting and poker may skew towards an older, male customer base.
Each of these websites can then tweak its marketing to ensure they are reaching out to such people to increase their user base. They can also better serve those demographics through the games and services they offer on their site and/or mobile app.
Data analysis and sports betting
People assume that when companies set sports betting odds, they are doing so solely based on the most recent results of each team. While that does play a part in the odds of a specific match, it is far from the only factor.
Online gambling companies that offer sports betting are constantly updating the odds of games, based on the way that people are betting on their platforms. For instance, if they start the odds at a specific level for the upcoming Super Bowl, but they notice that everyone is betting on a single team, they may adjust those odds according to the data they are seeing.
Sports betting often involves more complex data analysis as well. Betting companies can comprehensively analyze the results of each team leading up to a game, assess how they perform against each other, and analyze how the injury or suspension of a specific player may negatively impact a team.
Such analysis is essential for sports betting companies, as they are relying on outsmarting the people who are placing wagers on different teams. As data analysis tools become easier to access and more comprehensive, betting companies are likely to benefit tremendously. The better they can set odds for an upcoming event, the more likely they are to profit from the spread of bets.