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Gambling in 2023: How Technologies Are Changing the Gaming World

The entertainment field has become one of the fastest-growing sectors of the digital economy. This trend will remain relevant in the future. iGaming capitalisation is influenced by many factors, but the implementation of IT innovations has the greatest effect.

Gambling technologies: basic info

FinTech companies receive huge dividends due to the use of progressive technologies. Operators bring online casinos to a leading position in a highly competitive market.

The Rosloto studio describes tendencies that are worth paying attention to in 2023.

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Artificial Intelligence for Successful Administration

AI is a set of machines and systems that can imitate human behaviour, self-learn, plan and make informed decisions based on previous experience.

Artificial intelligence includes many directions:

  • neural networks;
  • machine learning;
  • computer vision, and other scientific achievements.

According to the American corporation Oracle, 79% of companies have already implemented or are planning to introduce Artificial intelligence algorithms in their working process by 2024. Entrepreneurs note increased business security, simplified management of large data sets, automation of routine tasks, and other advantages of AI.

In 2023, the neural network and machine learning will be used in many economic sectors. These are pharmaceuticals, healthcare, cargo transportation, tourism, finance, insurance and, of course, the gambling industry.

Artificial Intelligence and Online Casino Security

77% of all DDoS attacks in 2022 were directed at gaming sites and financial institutions. That is why entrepreneurs cannot do without modern AI programs.

Artificial intelligence controls the following areas:

Data protection

AI is the basis for creating virtual private networks (VPNs). They help keep confidential information safe thanks to encrypted connections between the online casino and the gambler's PC

Fight against cybercriminals

AI programs protect gambling sites from DDoS attacks, phishing, trojans and utilities, code obfuscation (reverse learning), and internal system failures.

The advantage of artificial intelligence is that it can learn and remember the experience of fighting hackers from competitors. If a new type of cyber attack appears on the Web, the online casino will be ready for it

Fraud prevention

The neural network and machine learning are capable of studying and analysing the actions of gamers. The data obtained is converted into behavioural models. The deviations from the norm can be identified based on them.

AI programs signal fraud with accounts, bonuses, and credit cards. Such tools can detect and block bots that give gamers an illegal advantage over honest players

Simplified verification

AI allows the operator to identify a person in two clicks using geolocation and face recognition technologies. The gambler does not need to upload dozens of supporting documents. The entrepreneur does not need to doubt the reliability of a particular user

Responsible gaming support

The computer vision technology remembers the behaviour of the gambler and instantly informs the operator about any deviations from the norm. This can be raising betting limits in case of frequent losses, increasing the time of using a site, and other atypical actions that indicate the risks of gambling addiction

Artificial Intelligence and Efficient Data Management

High-quality collection and analysis of information give online casinos a tangible advantage over competitors.

The implementation of artificial intelligence:

  • improves data statistics;
  • provides in-depth analytics on the key parameters of the iGaming start-up;
  • facilitates the management of the gambling site.

AI in an online casino simplifies the main processes:

  1. The prediction of gamers’ behaviour. Artificial intelligence algorithms study the previous gaming experience of each gambler. Based on it, they create various scenarios of actions. For example, AI tools indicate when users decide to end the session and offer them a good bonus or participation in a mini-tournament. Thus, it is possible to predict not only the behaviour of the audience in the short term but also the lifetime value of the client (LTV).
  2. Effective attraction of gamblers. The neural network collects and analyses global and local gaming trends (the demand for content, the popularity of software providers, and requested bonuses). The data obtained allow operators to create a well-thought-out marketing campaign. The entrepreneur will know how to attract new paying traffic and increase the conversion rate (CR).
  3. Improved customer retention. AI algorithms create interaction plans with each gamer or group of clients. They take into account gaming preferences, the nature of visits, betting limits, and other metrics that form an individual portrait of a gambler. Thus, audience retention statistics increase. Newcomers quickly move into the category of regular customers.
  4. The attraction of millennials. At the moment, the average age of online casinos’ target audience is 35–45 years. The use of AI will help businessmen to interest younger users aged 18–25.

Artificial Intelligence and Impeccable Customer Service

AI tools are the basis for building multitasking chatbots. They take on most of the operator's routine tasks, such as advising gamers, informing them about new promotions and bonuses, and providing technical support.

The ability of AI to remember and analyse the previous user experience allows the site owner to create personalised solutions. They can be directed both to a specific client and a group of gamers. These are individual bonuses, game offers, invitations to seasonal tournaments, increased cashback, and other useful options.

Blockchain for Increasing the Liquidity of an iGaming Platform

Blockchain in iGaming: strong points

A decentralised set of data pieces controlled by a large computer network consists of many digital blocks. They contain information about completed and only planned transactions, encrypted using cryptographic tools.

Blockchain gained worldwide fame in 2009 at the presentation of Satoshi Nakamoto, the first crypto-unit — Bitcoin. As mobile gambling has evolved, the popularity of the technology has also grown. Today, it is used everywhere — from cryptocurrency settlements in online casinos to the implementation of full-fledged blockchain gaming platforms.

The Polaris Research Centre predicts that the crypto gambling market will soon reach $1,020 billion with an average annual growth of 36.7%.

Industry capitalisation indicators will be as follows:

  • the investment in the digital environment;
  • the transition of companies to settlements in cryptocurrency;
  • the legalisation of blockchain operations in leading jurisdictions;
  • the distrust of traditional monetary units due to the unstable political and economic situation in the world.

Fast and Reliable Cryptocurrency Transactions

Digital money of the 21st century uses cryptography to secure transfers and control the creation of new units.

Unlike traditional fiat currencies (such as the US dollar or Euro), tokens operate independently of banks due to the decentralised nature of the blockchain. The issue of digital money is not subject to government regulation and is not tied to a specific country or financial institution.

The operator can add crypto settlements to an already operating online casino or create a new blockchain iGaming project. Another option for using the technology is the integration of a payment gateway. The solution supports transfers in various digital units (BTC, LTC, TRN, ETH). It contains the functions of exchanging funds and investing in ICO projects.

The benefits of using cryptocurrency are as follows:

  1. High speed of operations. Transactions are processed instantly, allowing players to deposit and withdraw funds quickly.
  2. Safety. Money is protected with advanced encryption methods. Operations cannot be reversed or faked. It is impossible to steal confidential information.
  3. Reduced operating costs. Direct transfers between BTC wallets of an online casino and a gambler will cost less compared to internet acquiring or payments through an eWallet platform. Savings are achieved due to the absence of intermediaries: banks, credit unions, and providers. It is impossible to reverse a blockchain transaction. This reduces the number of chargebacks.
  4. Anonymity. Gamblers replenish their casino accounts and withdraw winnings without disclosing their data. Thanks to this, blockchain iGaming projects have so many fans, especially from countries with an ambiguous attitude of the authorities towards gambling.

Unique and Profitable Crypto Games

Peer-to-peer blockchain is the basis of DApp applications. These are arrays of program code for creating original games.

The entertainment content is characterised by such features:

Decentralised applications are responsible for the autonomy of the play

To connect software to a gambling site, the operator does not need to transfer commission and rental payments

Cryptocurrency gives greater flexibility in settlements

You can make deposits in Bitcoin, Litecoin, Ethereum, and other tokens.

Players also have access to games in a demo version. This allows them to test products for free and evaluate their advantages

Blockchain ensures the uniqueness of game mechanics

Both 5-reel slots and multiplayer crash games are created based on the blockchain.

A new genre of content has even appeared on the Web. These are P2E (Play to Earn) games.

In the virtual space, users complete missions, buy and sell tokens, exchange gifts, and receive in-game items (weapons, skins, and lands)

The Legality of Blockchain Operations

Offshore zones are leaders in the number of crypto casinos. The first permission to launch an iGaming project was issued in Curacao in 2017. At the moment, the jurisdiction offers favourable conditions for doing business. They include a simplified licensing procedure, low taxes, and government support.

Investors’ expectations are related to the opening of blockchain casinos in Malta and Costa Rica. The legislation of the countries is fully adapted to the cryptocurrency market. It spells out the rules for the operation of blockchain gambling sites, the nuances of taxation, the responsibility of players and operators, and other aspects.

In most European countries (Spain, Italy, Germany, France, etc.), cryptocurrency is recognised as a means of payment. Entrepreneurs can use this financial instrument in all areas of business, including the gambling sector.

In the US, digital assets are equated with commodity futures and securities. Operators can buy, own, and sell cryptocurrencies. They are required to pay income tax if the acquisition and sale prices differ. Gamers should transfer deductions on winnings in digital assets — from 0% to 37%, depending on the state.

Every year, more and more jurisdictions give the green light to blockchain operations. Therefore, we can say with confidence that Bitcoin casinos are a legal and highly profitable business.

NFT for New User Experience

NFTs in online casinos: prospects

Non-fungible tokens are unique objects that are part of the modern gaming environment. They operate based on blockchain and include a unique set of hash functions. Each token has its owner. Information about it is recorded in a smart contract.

In the gambling field, non-fungible tokens are:

  • slots;
  • mini-rounds;
  • artefacts (weapons, clothes, and other props);
  • functions of the main characters;
  • design elements (gifs, avatars, JPEG drawings, and collages);
  • musical screensavers;
  • bonuses;
  • access to premium rounds.

In 2021, the Swedish provider Evolution Gaming presented a bonus collection CryptoPunk. It consists of four unique tokens drawn in the NFT Megaways line of slots. The solution was created based on the Ethereum blockchain and presented as cryptographic pixel characters with codes 914, 3008, 4701, and 8143.

Evolution Gaming is one of the first gambling companies to implement NFT in their proprietary software. The bonus program received enthusiastic feedback from the audience. The provider plans to continue using non-fungible tokens to attract and retain the audience.

Promising Development of NFT Games

The online media CoinTelegraph notes that content creation with NFT takes 33.5% of the total structure of GameDev projects. The second place is occupied by traditional action titles. The content for the metaverse closes the top three list.

According to experts, investments in the development of NFT games will increase in 2023. Users are attracted by the concept of such content — the opportunity to earn additional income through the growth of asset values and become part of the global NFT environment. Operators also make good profits by investing in innovative entertainment options.

The features of the up-to-date content are as follows:

  1. NFT games are built based on the Play to Earn model by earning tokens per play. Users can dispose of them in different ways; for example, sell the assets at a high price and exchange them for real money. Within the framework of the P2E model, different game mechanics are being used: crash options, multiplayer tournaments, and the rotation of cluster slots.
  2. NFT content is based on decentralised applications. They are responsible for the security of the system and the safety of user data. Tokens cannot be stolen or illegally transferred to a third party. All exchange channels are encrypted using cryptography tools.
  3. NFT games are open source. Thanks to this, gamers can track the ownership history of items, and operators can verify the authenticity of tokens.

Metaverse Development

This is a virtual world that exists based on the blockchain. The digital continuation of real life is decentralised. This means that it is not controlled by any organisation.

In the drawn space, it is possible to create various commercial projects, communicate with like-minded people and, of course, play favourite games.

The online portal U.Today reports that 60% of the activity in Decentraland (the most popular metaverse) falls on casino projects. The virtual world is overseen by the Decentraland Foundation online community. The developer is related to the NFT platform only indirectly.

Most projects have their tokens. They independently determine the rules of games, security levels and Responsible Gambling policies. Together they create a global digital space that will soon be able to compete with the real world.

Investing in the metaverse is profitable due to the growing cost of NFTs and the high interest in projects of this kind from the public. Top FinTech companies are already developing the metaverse: Google, Apple, Oracle, Meta, and others.

The Main Things about Popular Technologies in the Gambling Sphere

iGaming technologies: key notions

Gaming is a promising branch of the economy. Its development is associated with the active introduction of innovations.

  • Artificial intelligence is the leader in the number of requests and successfully implemented iGaming projects. Neural networks, machine learning, and computer vision are used to manage data effectively, improve customer experience, and modernise the casino's security system.
  • Fraud detection, data protection, accelerated verification and fighting against DDoS attacks — this is not a complete list of AI capabilities.
  • The use of blockchain is primarily associated with cryptocurrency. The installation of this type of payment gateway speeds up transfers and reduces costs, as well as provides anonymous and decentralised work from anywhere in the world. Digital assets are legal in many advanced economies.
  • Non-fungible tokens are used to create unique games and the metaverse. Play to Earn is the most popular NFT-based content model.

Rosloto offers you to buy innovative and profitable solutions:

We help our clients with licensing and marketing promotion of projects, creating business plans, and installing cryptocurrency payment gateways.

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Clara Hazel
Author: Clara Hazel
iGaming business expert
Updated 12.05.2023
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