Gambling industries rely heavily on machines. Online casinos, sports betting, and other forms of games of chance and skill use algorithms to make things fair. What if those algorithms could learn from the previous mistakes? What if they could learn how to improve themselves?
Let us discuss the issue of machine learning and its potential applicability in the gambling industry. Will it be useful or dangerous?
What, exactly, is machine learning? It is a process during which a computer system uses algorithms and mathematical models in order to solve problems better. This is done so that the machine in question would be able to gather some experience and do what needs to be done without explicitly being ordered to do it.
A thing that needs to be pointed out is that machine learning sometimes overlaps with and uses methods of statistical computing. With the data and the change of the data over a period of time, a computer system should be able to do some predictive analysis. This is used in business models, politics, and, as of late, in the gambling industry.
In spite of casinos and betting houses earning money, there is still so much we don’t know about how a person would react in certain situations. This refers to gamblers most of all, as they are fairly unpredictable in their actions. Some lose small, others big. Some know when to walk away, others stay until the end. How can we tell how someone will behave in the betting setting?
Machine learning and AI can come together, analyze the data of the gamer’s credit history, bets placed, bets won and lost, casino games played, and the amount of money invested in this hobby. With a sufficient amount of data, companies in the gambling industry will know exactly how to market their services and to whom, searching for those that will make them more money.
It is not just human behavior that becomes easier to predict. It is also the vast number of sports outcomes, using the data from all of the previous races, matches, player history, and statistics to come up with the likely outcome of the sports event in question.
The computer system that does all of this is priceless to those working in the betting industry, as well as those that want to profit from it. With a machine that can learn the outcome, you will know how things stand without paying attention to the odds given to you by your bookie.
Limitation and Disadvantages
Like any system, machine learning isn’t perfect. This isn’t to say that there is something wrong with the method of analyzing the data per se, but proper analysis requires time and a huge amount of information. This is where things get tricky.
The solution a computer system develops for an issue doesn’t always work. This is due to privacy issues, lack of information, information bias, and insufficient resources. Basically, if there are variables the computer doesn’t have access to, the results will be skewed at the very least. If a human is entering the data with their own interpretation and bias toward a certain result, the computer will consider this the correct behavior towards finding a solution. That means that there will be faults within its logic and the result will be wrong.