Sports betting has changed a lot in the last couple of years. It has embraced new technologies and turned towards a global and somewhat younger audience. This was a smart move because it allowed the industry to take advantage of cryptocurrencies and become competitive with other forms of betting.
In this article, we’ll go over how technology is changing the industry with a special focus on AI, which is probably one of the biggest tech innovations of our time and one that will have the most effect on the sports betting industry.
Wide Acceptation
The first major change that affects all the others isn’t really technological in nature; it’s more of a change in attitude. There’s a growing acceptance of sports betting as a hobby. There’s also an increased interest in the tech changes involved – such as AI, augmented reality, and blockchain-based cryptocurrencies.
With this increased interest, there’s also a growing demand for innovation. To remain competitive, sports betting sites are increasingly turning to tech advancements that are cutting costs and creating better offers for the players.
Better Predictions
The primary use of AI in the world of sports betting is for its ability to churn data and make predictions based on previous outcomes. It’s an essential feature for a sports betting site, as good predictions make for fair odds. Using all the data that can be collected about a game, team, or league, AI can have a deeper insight into how an outcome can develop.
For instance, if you wager online on NHL matches, AI can predict not only an outcome but also which player will score and at what point in the game based on previous matches.
The Use of AI for Customer Service
Customer service is an essential tool for online sports betting sites. Most of them don’t have physical locations, and customer support is the only way they interact with the players, especially when something is wrong. AI is playing a role in improving the service and making it less expensive for sports betting sites.
Most of the players deal with the same problems and ask the same questions, so their customer service interactions can be automated. AI can refer the players to a human when the problem requires their attention, therefore cutting the expenses for the wagering site.
Adjusting the Odds in Real-time
AI allows gambling sites to provide real-time predictions. That means that the odds and, therefore, the potential winnings change based on the events on the field. Combined with the cash-back bonus, this allows the players to make decisions in split seconds and pull out of a wager or start one at the right time.
Predicting the odds based on live events is complex, and AI is a useful tool that can do it with a much higher precision than any human could have. A skilled player can also use the feature to carefully follow the game and make their wagers more strategic and calculated.
Sentiment Analysis
Public sentiment can’t affect the outcomes on the field. However, it can affect the odds as the betting sites tend to change their odds based on how the public reacts. Following the sentiment and quantifying it can, therefore, affect how and where the players place their wagers.
AI can play a major role in this, as it can scrape the internet for data and construct an image of how the public perceives the game. It can be a piece of a puzzle that will allow you to make better wagers.
Managing Risk
AI can be used to manage risk and optimize the betting strategy to mitigate the risks inherently involved in gambling. A good wagering strategy should take into account things such as bankroll management, odds, and historical performance. It may be a bit too much for a player to handle, especially if they are new to sports betting.
AI can handle most of it based on the parameters that the players have set up. The use of AI will, therefore, make wagers more accessible to new players, which is the market the industry is going for.
Market Arbitrage
The sports betting market is huge, and it continues to grow and expand to include more sites, more players, more leagues, and potential wagers. Experienced players will place their wagers while taking into account the market as a whole, or at least as much of it as they possibly can.
AI can compare and contrast the potential odds and wagers from across different sports betting platforms and come up with an offer based on the parameters the players set up. It can come up with the least risky offers, the ones that will be the most profitable, or a mixture of the two.
Simulation and Modeling
Simulation and modeling in sports betting involve using AI algorithms to create virtual environments. This is done by taking into account the thousands or even millions of simulated games or matches and playing them out based on the historical data. This can be done within seconds and inform the wagers the players will make.
In practical terms, the players can use the modeling software to create a potential outcome of a game based on the parameters they set up. For instance, how will a game turn out if a particular player won’t be able to play or if they are injured early on?
Betting Recommendation
There are countless bets a player can take, and it’s often difficult to find your way within a complex betting app or a site if you’re new to sports betting. AI can, therefore, play a role in suggesting and recommending potential wagers to players. This is done based on previous experience, but it can also go against that experience and suggest a wager that may be novel to a player.
This can lead to interesting outcomes, such as helping the players find new leagues, new teams, and even new sports to follow. Some small and regional sports, such as darts and bowling, have found mass audiences this way.
Complying With Regulations
AI can be used to comply with the complex and strict regulations that govern the world of sports betting. There are rules that both the sports betting sites and the players need to follow. These include age restrictions, tax regulations for winnings, and rules made to make sure responsible wagering practices are put in place.
All of these can be automated so that the process is easier for all the parties involved and less expensive from the infrastructure point of view.
Conclusion
AI technology has quickly become a big part of the sports betting world. The industry was always keen on accepting new technology and taking advantage of its benefits. AI technology is advancing quickly, and chances are that it will develop into new uses as more sports betting sites implement it.
AI can be used to predict the outcomes of matches, to suggest different betting options to players, and to provide customer service. AI can also be used to automate the regulation processes and make sure the sports betting site follows the complex laws in this regard.
