Although artificial intelligence (AI) has been widely applied in the online gambling sector, its deployment in physical gambling venues is still in the early stages. Online operators have already implemented AI to achieve personalized experiences and operational optimization, while land-based gambling is just beginning to realize the potential of this technology.
Craig Stapleton, Product Director of Gaming Solutions at Advantech, detailed in an interview with iGB how physical casinos can embrace AI to meet future transformation opportunities.
Online Gambling Leads, Land-Based Gambling Follows
AI has long been seen as a natural ally of online gambling, especially in recommendation algorithms, risk control, and user behavior prediction. Since online platforms have rich data touchpoints, operators can easily collect and analyze user behavior to provide personalized gaming experiences. However, physical casinos face more challenges in technology and system integration, hence their relatively slower focus on AI.
But this situation is changing. According to data from the American Gaming Association, despite the rapid growth of mobile and internet gambling, physical casinos will still account for 61% of all US gambling revenue in 2024, with a total expenditure share of 56%. Facing the rise of younger player groups and the reality of slowing growth, land-based gambling institutions urgently need technological upgrades to attract customers, improve efficiency, and ensure continued profitability.
Young Users Drive Personalization Demand
Twilio's "2024 Customer Engagement Report" indicates that Generation Z and Millennials prefer brands that offer personalized interactions. With the average age of casino visitors dropping from 50 to 42, traditional operators must rethink how to attract these new generation users through technology. AI is a key tool to achieve this goal.
Craig Stapleton believes: "AI can not only enhance player experience but also help operators gain insights from data, predict preferences, and even identify potential gambling problems early, achieving responsible gambling."
Advantech's AI Strategy: From Hardware to System Integration
As a global provider of embedded systems and industrial computing, Advantech has integrated AI into its core gaming products. Its DPX series platforms, aimed at applications such as slot machines, sports betting terminals, and lottery kiosks, have strong processing capabilities and reserve technical interfaces for future AI applications.
Stapleton stated: "Our platforms are designed with a future-oriented architecture, allowing operators to seamlessly integrate AI systems without major hardware modifications." The DPX platform supports various application scenarios from real-time data analysis to complex graphics rendering and behavior recognition through scalable GPUs and AI computing units.
Additionally, Advantech emphasizes that its products are certified by international authoritative institutions like GLI and BMM, ensuring compliance with strict regulations worldwide. This is particularly important in the highly regulated physical gambling environment.
AI Empowers Operations: From Personalization to Maintenance Optimization
The application of AI in physical gambling is not limited to improving player experience but also aids in operational optimization. For example, by analyzing players' dwell time, betting frequency, and game preferences, AI can adjust recommended content in real time, enhancing player retention.
Furthermore, AI systems can monitor machine operational status, predict potential faults, and automatically schedule maintenance, thereby reducing operational costs and increasing equipment availability. AI can also detect suspicious behavior or violations, enhancing security.
Application Challenges and Regulatory Barriers
Despite promising prospects, deploying AI in physical gambling still faces several challenges. First is the issue of hardware updates. Many existing gambling devices use outdated technology, making them incompatible with AI systems. Secondly, the complexity and high cost of system integration deter some operators.
The bigger obstacle lies in regulation. Different jurisdictions have strict and complex regulations on physical gambling, and many operators are cautious about the compliance risks that AI might bring. Stapleton pointed out that this is why Advantech focuses on cross-regional regulatory compatibility when designing products.
Looking Ahead: The Increasingly Important Role of AI in Physical Gambling
As technology matures and regulatory clarity improves, Stapleton believes that AI will play an increasingly important role in the physical gambling industry. "We believe that the widespread adoption of AI in retail gambling is just a matter of time. Technology is rapidly evolving, and we hope to empower the entire industry through innovative solutions."
In the global gambling industry's ongoing shift towards digitalization and personalization, Advantech is attempting to build a bridge to the future. Through AI-driven hardware and platform solutions, the company hopes to inject new vitality into traditional gambling venues, helping them maintain relevance and competitiveness in an increasingly fierce market.
