GSA invited us to speak on AI in the gaming industry. The attached doc outlines how operators can leverage AI and how the big AI vendors get it wrong in the casino industry.
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Gaming Standards Association AI talk
1. AI and the casino industry how AI
can better solve everyday casino
challenges
2. 2
Section 1
Getting beyond the hype. The
value of AI to the industry
Section 2
How AI enables us to be more
customer specific
Section 3 Case studies
4. 4
“Our AI engine can
help you increase your
customers spend”
- Sales pitch from a blue-chip AI vendor
5. 5
How do you define spend?
Actual win, theoretical win,
Blend of the two? Over what
period?
Increase how? Consolidation
or true incremental? Increase
avg bet, frequency, play-time,
length-of-stay?
Help how? Better insights are
a small part of the problem
AI HYPE
Unpacking this claim reveals significant complexity which requires casino
specific experience
“Our AI
engine can
help you
increase
your
customers
spend ”
- Sales pitch from a
blue-chip AI vendor
6. 6
UPSIDE
We think of AI as an enabler to help personalize our guest interactions at scale
Take proven
casino
strategies and
tactics and….
...AI can
personalize to
the player at
scale.
7. 7
Mainstream AI
solutions are a
poor fit
Casino industry has
very poor-quality data
Difficult to assess a
player’s true value
Behaviors are biased
by factors not in the
data
1
2
3
+
+
CHALLENGES
Implementation requires very casino specific thinking and tools…
10. 10
PROCESS
Personalization requires a rewiring in how most casinos work. AI is important
at every step.
Insights to
strategy loop
Integrated
data platform
Player level
upside,
strategies and
tactics
Dynamic
and context
relevant
Personalize
casino tactics
Segmentation
models, A | B
testing, model
supervision
Machine learning
and scoring
Models
dynamically
adapt
Scoring and
predictions.
Identify key
intervention points
11. 11
DATA
Integrated data platform
Stream key data and wired for
analytics1
Link to Casino Mgmt System
2
Machine learning platform3
Seamless real-time communication4
What’s not here, is a major pitfall
12. 12
Develop
strategies and
set objectives
Objectives
Strategic marketing or
analytics
• Diagnose issues
• Develop strategies
Execution
Campaign and
logistics
• Execute campaign
or changes
Sales and service
• Interact with the
players
• Manage day-to-day
Leadership
• Set broad
objectives
• High-level strategy Strategy
Tactics
Execution
INSIGHTS LOOP
We recommend more closely integrating insights into the decision process; a
goal which is part technical and part cultural.
13. 13
Rethink patron lifecycle: Managing patrons by share &
engagement
Maximize marketing ROI: Estimate reinvestment elasticity to get
the best bang for buck.
Preferences: probability to respond to actions, offer types and offer
bundles
Set player level strategies: personalized objectives indicate best
mechanics and T&Cs for short-term lift or long-term engagement
Create an efficient pipeline: Identifying & prioritizing new patrons;
apply tools broadly
UNDERSTAND UPSIDE
Personalization requires predicting hundreds of attributes at a player level.
14. 14
CONTEXT RELEVANCE
Next best actions adapt to the players’ current context.
Arrival Depart
$$
C
A
D
V
T
F
A
C
?
?
?
?
?
?
?
?
Right patron
is sent the
right offer
He accepts but
wants a suite
He wants
credit
He goes to
the casino
floor
He
increases
his avg
wager $
He has a
large win
Looks like he
will likely
move to the
competition
Optimal
Manual
Yielding
system
approves
request
Instant
approval
Right
product is
available
He receives a
point stretch
target offer
There is nothing
suspicious about
his win
Host intervention
with food offer
Follow-up offer
Optimized
trip profit
$$$
$0
Trip spend
with only
manual
decisions
Before the trip…
…During the trip…
…After
the trip
ends
Example of trip spend on an optimized guest journey versus
a manual journey
17. 17
Context:
Stopped &
large loss
Avg bet
significantly
up early in day
Friend has
large loss
Large win in
morning
etc…
Key intervention
points Lifecycle
Behavior
preference
Top 5 players in
pit X between
3pm and 6pm
win $1000. You
are one of 100
players invited
Click to enroll
Incremental
value
Weekday
warriors
Super-users
Avids
Goal Seekers
etc…
Best offer
right now
New
Non-loyal
Loyal
Defector
+$300
+$100
+$0
PERSONALIZED JOURNEYS
…Instead personalized and real-time marketing often yields a +20% to 40% lift.
Player increases
his wager $
20. 20
OPTIMAL PRICING
Table pricing ought to be a simple process but…
Turnover $
Avg bet
Hands played
Players
Game Speed
X
X
Simplified formula for calculating turnover volumes
21. 21
OPTIMAL PRICING
….turning the pricing dial has cascading; requires solving a circular and non-
linear equation.
Pricing
(mix of games
by min $)Elastic
ity
Demand
Game
speed
Avg Bet
Hands
played
Model of non-linear
relationship between
min and avg bet
Visitation
forecast
Model impact of
occupancy on
game speed
Elasticity between
pricing and playtime
