Gamification of betting, which involves integrating game elements into all aspects of gambling design, has become extremely popular on gambling platforms worldwide in recent years.
The trend of gamification not only attracts a large number of players and enhances the entertainment experience but also brings considerable profits to operators.
However, the gamification of gambling is not without its drawbacks, and the risks and negative impacts behind it should not be overlooked.
PASA will use this article to discuss in detail the pros and cons of gamification, revealing its inevitable impact on users, operators, and the industry, helping everyone to better understand this complex situation.
The Trend of Gamification in Online Gambling
Every bet in online casinos is a game process based on the player's desire to win. During the development of online casinos, what were once traditional gambling activities have now become real laboratories for studying how game mechanics can attract and retain audiences.
Now, online casinos not only offer games but also create an entertainment atmosphere. For users, each bet is a step towards new challenges, and each victory brings new excitement and entertainment.
As such, users gradually enter an addiction phase, thereby placing more bets to gain more varied pleasures.
Clearly, considering profitability, operators will inevitably work harder to provide content most relevant to their products, further accelerating the trend of gambling gamification.
The Downsides of Gamification Emerge
But in reality, users bet not only for entertainment but also to try their luck or win big prizes through their skills.
When users find themselves trapped in gamification, only left with the enjoyment of the game, in this world, game elements and mechanics do not bring big prizes to users; instead, they hinder the direct betting experience.
While gamification can bring benefits to players, its dark side should also be noted, as it may backfire in the long run, leading to problems.
What Risks Does Excessive Gamification Pose to Businesses?
First, PASA believes the most significant risk is the increase in operator costs, leading to increased marketing expenses.
The marketing conversion rate plays a crucial role in the online gambling industry. It reflects the product's ability to convert new users into active players ready to make their first deposit.
However, due to poor user experiences, gamification not only fails to encourage players to deposit but can lead to adverse consequences, with excessive gamification likely reducing conversion rates by 15-40%.
This is particularly true for traffic markets from social networks.
The reason is that capturing players' motivations is most important in marketing.
Gamification, as a strategy intended to increase engagement, can attract more users but may also distract them from their main goals—depositing and betting again.
For example, excessive gamification of web pages leads to overly diversified channels for first deposits and repetitive choices of reward packages.
Furthermore, gamification may cause players to focus on achieving game objectives, such as character progression or obtaining virtual rewards, rather than focusing on real betting and winning rewards, thereby reducing actual ARPU (revenue per user).
Second, excessive gamification is likely to reduce user loyalty.
The gamification of online casinos is likely to replace traditional loyalty systems. Instead of providing levels and unique cash returns for each level, gamification offers achievements, badges, loot boxes, wheels of fortune, character progress, etc.
While this helps operators save on bonus payouts, it is also likely to reduce user loyalty.
According to industry experience, this move may consume 0.3-0.7% of the casino's GGR, so keeping loyalty expenditures and gamification expenditures within set limits is crucial for operators.
Third, a less obvious risk is that it can cause players' attention to be distracted, unable to focus on expanding the user experience. Too many promotional mechanisms and operations can confuse players, thereby reducing their overall user experience and potentially increasing the workload of customer service call centers due to the complex game processes.
In summary, while gamification can enhance player engagement and operator revenue in the short term, its long-term potential risks cannot be ignored. In the gamification process of operator businesses, it is essential to maintain a balance and control risks.
Therefore, artificial intelligence is the best choice for operators. In the gamification of online casinos, AI can play a key role, helping to create more personalized and engaging game experiences for players without exacerbating its drawbacks.
A clear positive trend in gamification is increasing social interaction among players through interactivity. Operators need to play with users, not form opposition.
Introducing AI, online casinos can benefit a lot in the future:
- AI can provide personalized suggestions and bonuses based on analysis of gaming behavior (preferences and betting history).
It can identify when players are likely to redeposit or increase their bets, predict user behavior to optimize game design and user experience, and calculate promotable bonus amounts.
- AI generates individual lists of game tasks, exploration, and progress parameters. Customized game content can enhance player satisfaction and retention rates.
Each level can be independently dynamically set, including progress conditions and the rewards obtained—all controlled by artificial intelligence.
In the future, as artificial intelligence technology continues to advance, operators will be able to more accurately control player needs, create richer and more engaging game experiences, and thus address the drawbacks of excessive gamification.
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