Technology has radically transformed our everyday lives. Nowadays, it’s possible to find the answers to simple questions through a quick Google search, carry on banking operations, communicate via video calls and access a wide variety of entertainment from our electronic devices.
In recent years, the industry of online casinos has significantly evolved thanks to the rise of technology. Primarily a land-based activity in the past, casinos now offer websites and mobile apps with extensive game catalogues, which include slots, poker, roulette, live dealer games and much more.
Among the technologies that have boosted the success of online casinos and other gambling platforms is big data, which allows the collection of huge quantities of information that is later analysed and used to create a more personalised customer experience.
What is big data and why is it useful?
As the same suggests, “big data” refers to a collection of data that is massive in volume and will continue to grow exponentially as time goes by. Because the data quantity is enormous, complex and received at an incredibly fast rate, no traditional data management software can handle it adequately.
Although the concept has gained traction in recent years, big data’s origins date back to the 1960s and 1970s. By then, the world of data was in its infancy and just getting started with the development of the relational database and the first data centres.
It wasn’t until the early 2000s that the public began gaining greater awareness of the voluminous data generated through social media sites such as Facebook and YouTube. Around this time, the development of the NoSQL database and open-source frameworks like Hadoop was crucial for big data’s growth as they made it easier to work with and cheaper to store.
Thanks to the advent of the “Internet of Things” and machine learning, more and more data is being produced nowadays. Not only do these vast amounts of data help to address business problems that were impossible to tackle before, but they also offer valuable insights into customer user and product performance.
How do casinos use big data?
Whenever a player logs in at an online casino and plays a game, be it roulette, blackjack, baccarat or a slot, their actions are recorded. The information collected might include gender, age, location, the games they play, how long they play, at what time they normally play, how much they wager, bonus offers that hook them, how they navigate the site and more.
However, not all the information generated by players is useful. In fact, a lot of it is just “noise” with little to no value for the site. Through “smart data”, online casinos are able to filter out the noise and retain valuable data that is analysed and used to build accurate profiles of its players.
And why is this useful? Firstly, it enables the online casino to enhance its players’ experience and, in turn, grow its profits. By knowing which types of games someone prefers and what sort of bonuses entice a person to take action, a platform can send tailored emails, messages and other types of communication to keep the person engaged.
The data that is processed from a single, middle-aged man who likes to play roulette at 18:00, shortly after coming home from work, opens an avenue for the casino to send an email or on-site notification informing him about free spins on a slot game at 17:30.
Not only do these marketing tactics benefit casinos, but also give players an edge to choose from numerous sites. They can discover the most favourable welcome bonuses, the biggest jackpot prizes and raised odds of winning.
In addition to marketing, online casinos use big data for anti-cheating measures. Operators are able to determine if a player and a dealer share a phone number or live at the same address. Some also use big data to develop strong cybersecurity measures like two-factor authentication and multi-factor authentication to prevent data theft.
Through big data, online casinos can collect a high volume of information provided by their players. This information is later filtered out and analysed through smart data and used to provide a more personalised experience. More personalisation means that players can build a stronger and long-lasting bond with a platform that knows their interests and tastes.