After the success of the 2020 Futures Report, a new survey was conducted to reassess the industry's views on five crucial disruptive technologies: blockchain, the internet of things (IoT), virtual/augmented reality (VR/AR), artificial intelligence/machine learning (AI/ML), and edge computing.
This year, AI/ML was divided into three key use cases: strategic automation, personalization, and responsible gambling. Expert insights were provided through a webinar last month, moderated by Chad Stender, partner at SeventySix Capital, featuring Lauren Seiler, managing director at Four Wood Capital; Julian Buhagiar, co-founder of RB Capital; and Marcel Tobler, chief strategy officer at Grand Casino Baden.
Buhagiar encapsulated the main findings, stating, “We’re seeing the death of buzzwords. Whereas 2019 and, to a lesser extent, 2020, were about ML and blockchain, we’re actually seeing less of this. Most of that tech has become commoditized, and/or de-hyped.” He emphasized that investment should focus on specific platforms, viewing these technologies as tools rather than the primary selling points.
Tobler mentioned that the slow adaptation of new technologies in the industry is partly due to many operators still relying on outdated platforms. Despite surface-level trends, the survey results reveal detailed perceptions among industry stakeholders regarding the relevance of these emerging technologies.
Respondents were asked to select up to three technologies they viewed as immediately transformative for the igaming sector. Consistent with previous findings, AI use cases topped the list, with personalization chosen by 52.9%, followed by strategic automation at 51.8% and responsible gambling at 51%.
This interest aligns with the growing anticipation for mass adoption of AI/ML technologies. Existing tools, like BetBuddy, already use machine learning to manage at-risk gambling behaviors. Notably, the perceived potential for transformation across these areas is more balanced compared to the prior year, where personalization had a leading edge at 62.3%.
Tobler noted, “What we are looking at is automation to improve quality [rather than just reducing costs], especially in compliance,” pointing out the financial risks associated with compliance errors. He also expressed urgency in personalisation efforts, highlighting a lack of successful case studies in the industry.
“VR/AR was always going to have a challenge in monetisation. The truth is, we’ve tried it, and it doesn’t seem to be working much in gambling,” Buhagiar remarked.
After AI/ML, blockchain was regarded as the next most transformative technology by 31.8% of respondents, down from 34% in 2020. Seiler indicated that while blockchain remains appealing, the industry could soon face significant implementation hurdles. She warned that advanced technologies might be alienating to certain demographics new to online gambling, implying that not all innovations will fit seamlessly into the industry.
In stark contrast to 2020, IoT saw a notable rise in perceived transformability, with 29.41% of respondents considering it immediately impactful, up from just 12.26%. Edge computing also experienced growth, increasing to 14.12% from 5.66%. Buhagiar connected the spike in IoT interest to advancements in data processing capabilities, while forecasting positive trends for edge computing.
Education levels around these technologies also shifted. When asked about their understanding of blockchain, 27.1% felt the industry either didn’t comprehend it or deemed it irrelevant. In contrast, knowledge of AI/ML applications improved, with a decreasing percentage of respondents viewing them as irrelevant.
The survey also explored the necessity of innovation within igaming. Stender stressed the importance of continual innovation: “You either innovate, acquire or get your butt kicked.” Thirty percent of respondents expressed a strong likelihood of building in-house solutions with disruptive technologies, while Tobler emphasized the freedom that their new platform offers for future integrations.
Regarding which technologies companies are most inclined to leverage, 51.4% pointed to AI/ML applications, particularly in personalization and automation. In contrast, VR/AR's in-house potential was noted by only 11.43%.
Seiler remarked on the focus of investments towards retaining consumers, highlighting the dilemma of whether to build technologies internally or acquire them from the market.
Overall, 36.47% of respondents indicated a willingness to collaborate with startups to develop complementary solutions, showing a strong interest in the innovation potential within the igaming space. Recommended startups included Future Anthem and Synalogik, both of which offer ML and data analysis solutions.
The next installment of the Tech Futures report will explore where AI/ML is expected to have the most significant impact and the role of regulation in embracing new technologies.
