As we’ve seen this year, the groundbreaking and rapidly evolving technology powering artificial intelligence (AI) is sure to revolutionise the economy, including the world of sports betting. In the second part of this two-part series, Russell Karp, senior vice-president of DataArt, focuses on the many ways sportsbooks can benefit from harnessing the art of AI.
Today, one of the most promising uses of AI in sports betting is bettors’ ability to use the technology to place bets more strategically and attempt to minimise their losses.
Apps like BettorTakes and Juice Reel aim to boost users’ performance through comprehensive analytics of their past betting behaviours. As BettorTakes CEO Steve Rubenfaer described in an interview with DataArt this year, the app “show[s] you your patterns, biases and things you might not know about yourself”.
With these apps, AI can be used to assess bettors’ gambling history, in addition to player or team stats. AI can then present digestible, comprehensible suggestions for optimised bets.
Reducing the risks
Industry leaders are cognisant of the possible risks that come with making gambling more engaging and seamless than ever before. Earlier this year, I had a fascinating conversation with Voxbet’s managing director Jonathan Power and Voxbet board member and investor Ian Marmion.
Voxbet offers users real-time, hands-free voice betting, which is powered by AI. This gives gamers a chance to place their bets more easily than ever.
I was curious to know how Voxbet’s concept jives with safer gambling laws and how the company also plans to implement a “location check”, ensuring that bettors are legally allowed to place their bets. This is based on their GPS data.
Another concern is the vast amount of sensitive data that sportsbooks have access to. This is particularly concerning as they begin using AI at greater frequencies.
Last year, I chatted with US Integrity’s Matthew Holt to discuss his company’s experience of collaborating with sportsbooks. I wanted to see how they managed user data, privacy and security risks. As Holt explained, online betting has become significantly safer in the last several years.
Before the US began legalising sports betting in waves, many European countries did not have consistent or reliable systems in place for transmitting user data.
Responsible gaming and AI
Holt clarified that his company does not have access to bettors’ personal information. However, it’s still a very complex process to sift through the data US Integrity works with.
“We don’t pull in any personal information,” Holt told us. Instead, they have account IDs, but little other bettor related information. “We intentionally do that, because we don’t want to store that type of data.
“The second you do, your cybersecurity risk and insurances go through the roof.”
In addition to making betting more engaging, stickier for new and old audiences and easier than ever to place, it’s paramount to mitigate the potential negative effect on vulnerable users.
For example, the very same tools that are being used by BettorTakes and JuiceReel to scrutinise player behaviour for optimal bets can also be used to flag unusual or potentially harmful betting patterns.
In addition to putting up safeguards to minimise the risk of excessive gambling, these tools can also be deployed to flag possible events of fraud.
Human judgment can’t be beaten
In the world of sports betting, it’s all about balance. While AI offers incredible possibilities for the sports betting industry, it should be perceived as more of an innovative complement to human expertise – not a replacement.
No algorithm can match human judgment, intuition, and experience. By integrating AI to support human insights, we can make the most of both technology and individuality in sports betting.
As AI continues to offer new, engaging and unprecedented tools for the sports betting industry, staying up-to-date with evolving technologies is essential to maintaining an edge on the competition.
Sportsbooks need to focus on leveraging sophisticated technical solutions, managing data and harnessing AI integrations while keeping bettors’ sensitive information safe and secure.
Those with technological prowess can develop sophisticated AI algorithms to analyse vast amounts of data. This can provide real-time insights into sports events and trends. Moreover, technological proficiency ensures the secure and compliant integration of AI systems. In turn, this safeguards sensitive users’ data and ensures regulatory adherence in the highly regulated sports betting landscape.
The importance of technological expertise
Change is coming to sports betting – are you ready for it? In my two-part exploration of this landscape, I discussed some of the greatest potentials and challenges to come as AI continues to improve.
While it’s possible that AI can offer enhanced content for sportsbooks and users alike, it’s also imperative to ensure that we remain vigilant about adhering to industry compliance. Moreover, while AI’s powers are remarkable, they are no true match for the unique character of human judgment, which cannot be replaced by the use of these tools.
As the sports betting industry continues to embrace AI, technological expertise is essential in order to navigate this complex landscape.
