The iGaming sector has been developing and becoming wildly popular at an incredible pace. And to keep this pace and be even more profitable, it is crucial to take advantage of the most in-demand tool – data.
iGaming companies can work more effectively by analyzing enormous amounts of data and making ground-breaking decisions following the statistics of this data. With the help of big data analytics, it is become possible to analyze the current situation in the market, make the right decisions, and predict the upcoming results.
In this analytical article, the Login Casino experts dive into the digital world of big data analytics, analyzing its importance and key technologies while defining the ways in how iGaming companies take advantage of this analytical technology.
What exactly is big data?
The definition of big data is usually deciphered quite simply – it is a tremendous amount of information, structured and unstructured, that is stored on some digital medium. However, the array of data with the prefix “big” is so vast that the usual means of structuring and analytics cannot “dig through” it. Therefore, the term big data is also understood as technology for searching, processing, and applying unstructured information in large volumes.
The Oxford Dictionary gives another definition of this term that big data is a sets of information that are too large and complex to handle with the use of the standard methods of analysis.
For the iGaming sector, big data means a nearly endless source of meaningful insight, which usually leads to operational improvements and new opportunities for companies to make unrealized revenue.
Four primary methods of big data analytics
Thanks to high-performance technologies, like grid computing or in-memory analytics, companies can use any amount of big data for analysis. Sometimes big data is first structured, and the companies are selecting what is needed for analysis only. Increasingly, big data is being used for tasks within advanced analytics, including artificial intelligence.
In our contemporary age, there are four primary methods of big data analytics, which include:
- Descriptive Analytics. This method answers the question “What happened?” by analyzing real-time and historical records. The primary goal is to determine the causes and patterns of success or failure in a specific area so that the data can be used for the most efficient models. Essential mathematical functions are used for descriptive analytics. A typical example is sociological research or web statistics data that an iGaming company receives through Google Analytics.
- Predictive Analytics. It helps to predict the possible development of events based on available data. It uses ready-made templates based on some objects or phenomena with a similar set of characteristics. Predictive analytics can be used, for example, to forecast a collapse or price change in the stock market. Or assess the ability of potential growth in revenue of your gambling business.
- Prescriptive Analytics. With big data and modern technology, it is possible to identify problem points in a business strategy or any other activity. This type of analytics allows business owners to calculate under what scenario these points can be avoided in the future and determine the optimal course of action. For instance, the online casino operator has a 20-dollar minimum deposit. According to prescriptive analytics, the level of income and the number of players can be increased if the online operator decreases the minimum deposit to $10.
- Diagnostic Analytics. This method uses data to analyze the causes of what happened. This analysis helps identify anomalies and random connections between events and actions.
Why is big data analytics important?
Big data analytics helps iGaming businesses collect and store an enormous amount of data to further use it to identify new opportunities and perspectives. Thus, the analytics make it possible to make more innovative business moves, operate more effectively in the gambling market, and get higher profits with many satisfied customers.
According to the report of Big Data in Big Companies, Thomas Davenport, an American academic, conducted research in which 50 businesses were involved. The essential idea of this research was to identify how all these companies benefited from big data analytics. He noticed three core aspects that were in common in terms of value for these businesses:
- Cost reduction. With the help of advanced software solutions, like Hadoop and cloud-based analytics, the businesses got cost advantages while reducing expenses on storing a large amount of data.
- Faster and better decision-making process. Hadoop and in-memory analytics helped companies analyze the information and receive data immediately. Consequently, this speed of analyzing data allowed the businesses to decide faster than competitors and get their piece of cake.
- Development of new products and services. Big data analytics collects and stores an insane amount of information. This information opens the door to analyzing the customers’ needs and wants. Knowing what the customers want led the companies to develop new products or services to satisfy the clients’ needs.
However, the primary goal of the usage of big data analytics and its importance lies in making real-time data-driven decisions with the purpose of improving the companies’ outcomes. Therefore, many contemporary iGaming companies have come to big data analytics to make this goal come true.
Key technologies of big data analytics
The operational process of big data analytics is not possible with the help of one technology only. Therefore, it uses a bunch of innovative technology solutions and advanced tools to get the most accurate results. And we conducted a list of the most significant players in the big data market.
| Name of technology | Description |
| Machine learning | This technology involves artificial intelligence to train a machine how to learn. As an end effect, this lifelong learning allows the machine to produce the patterns or models that can analyze more complex data and deliver results faster and accurately. Thanks to this technology, iGaming companies can identify their profitable opportunities and avoid undefined risks. |
| Data management | With the usage of big data analytics, the data flow is endless, so the importance of the high-quality data set takes one of the leading positions. Therefore, all the collected data sets should be reliable before getting analyzed. |
| Data mining | This technology was designed with a simple purpose to examine a very large scale of data and discover patterns in the records. With this information in mind, iGaming companies can solve complex business issues. The primary aim of data mining software is to sift all the chaotic information and provide business owners with the data to assess likely outcomes. |
| Hadoop | Hadoop is a freely distributed set of utilities, libraries, and a framework for developing and executing distributed programs running on clusters of hundreds or thousands of nodes. This foundational big data storage and processing technology is a top-level project of the Apache Software Foundation. Putting all these words in a simple concept, Hadoop is an open-source framework that collects, store, and process an immense scale of data. |
| In-memory analytics | In-memory analytics helps extract immediate insights from the data set and quickly make decisions by analyzing data from system memory. With the help of this innovative technology, it has become possible to test new scenarios faster, omitting the requirements to access disks. The only drawback of this technology is the possibility of losing data in case of the server’s failure. |
| Predictive analytics | The name says out of laud for itself. Predictive analytics uses data sets and statistical algorithms to forecast possible future scenarios via prior data. Predictive analytics is impossible with additional technologies like machine learning, data mining, and statistical modeling. As a final result, this analytical method shows what direction you should follow to reach your previously set goal. |
| Text mining | Text mining technology is closely related to data mining, but it is based on the analysis of text-based sources, like emails, blogs, Twitter feeds, etc. The essence of this technology lies in a more focused area of analysis – text. As a valuable part of this technology, iGaming companies can take advantage in the forms of new topics and terms relationships. |
Mostly, we gave you the information on big data analytics that can be used by all companies that intend to reduce costs, make fast and right decisions, and be able to outrun the competitors by developing new products and services. However, we are going deeper and diving into the gambling world and how big data analytics helps this business make a profit and shine in prosperity.
How do iGaming companies use big data analytics to grow the business?
Nowadays, many iGaming companies want to be the leaders in the market and take predominant positions. To reach this high goal, it is necessary to have the most reliable data sets and be able to process all the large-scale information as fast as possible to outrun the competitors. Therefore, the smartest decision that the owners of the iGaming business can make is to use big data analytics while following their specific aims.
To increase customer retention
It is impossible to have a profitable iGaming company without actual customers. Thus, all gambling businesses should think about attracting people to their products and keep them engaging in a long-term race.
Customers follow the relevant trends for them, and big data analytics allows gambling companies to collect and analyze the information about actual trends for a general audience and the targeted audience. The more data you have, the more accurate and precise results you get. And if you manage to learn what your existing and potential customers want to get, the more chances of success you will get.
For instance, you know have a large scale of data about the actual trend of welcome and regular bonuses (deposit bonuses), including data of the competitors. By analyzing the data, you may notice a tendency that most casinos have a typical pattern. Consequently, your primary goal is to adjust your current bonus deals to stand out from the competitors. Even a slight change or shift can significantly affect retention.
To create marketing campaigns
If you are a new player in the gambling market and wish to get your first clients, it is necessary to launch a marketing campaign that will help you reach this goal. And the snag is to create a truly good marketing campaign. Otherwise, it will bring nothing to you, except unnecessary expenses.
With the help of big data analytics, you can analyze the gambling sector and understand what your potential customers (players) want to see in your marketing ads. This aspect can be done while monitoring the industry, learning customers’ behaviors, etc.
For instance, you have recently launched an online casino operating in the European gambling region. Your primary goal is to understand the customers’ behaviors and their social media services. According to Statcounter GlobalStats, the predominant service is Facebook. Over 82% of Internet users use this social platform. So, it is better if you put your financial resources into Facebook Ads. Below, we put a graph with the usage of other social media services.
The next step is to analyze the behavior of the customers, and here big data analytics joins the game. With its large-scale data set, it has become possible to understand what these people require. And knowing their wishes and desires makes it easy to develop a successful marketing campaign.
To make better and faster decisions
Analyzing all the collected information and data sets manually seems like an impossible task that is time-consuming and requires a lot of effort. However, big data analytics was explicitly designed with the purpose to gather needed information, store it, and analyze it with incredible speed. This purpose turns into a great advantage for every iGaming company that wants to save time and profit.
Thanks to incredible processing speed, all the collected data can be analyzed within a moment. Consequently, the formed analysis can give the gambling business owners a more accurate picture of the current situation in the gambling market and help them make the right decision faster.
For instance, you want to launch a land-based casino, but the collected data set shows that the tendency of the land-based sector is going down from year to year. On the other side, big data analytics gives you an insight that the online gambling segment is precisely the segment that you should consider for your potential gambling business.
To predict the results
While making faster and smarter decisions, the collected data can simultaneously serve as a tool to forecast the upcoming results, outcomes, and consequences. And it is always great to know what happens next and what to expect from this or that decision.
The big data algorithms can apply different filters and sorting instruments. This moment allows combining historical data set with statistical modeling, machine learning, data mining techniques, and other analytical-related technologies to predict the results.
For instance, a sports betting company faced an issue of fraud many times in a row. However, the analytical experts used the analytical tool Microsoft Excel to do their analytical tasks preventing scams and fraud. After understanding that the specialist uses the obsolete tool, the company’s owners decided to apply data mining and machine learning. Thanks to this decision, detecting fraud was way faster and more effective. As a result, the betting company has saved much money and protected itself from fraud.
To analyze competitors
You probably have a question about why some of the competitive iGaming companies are more successful than you. And to get the answer to this complicated question, it is highly recommended to apply big data analytics to figure out the reasons for the success.
Big data analysis makes it possible to look at the competitors’ businesses from different angles. This moment allows you to explore and discover the strengths and weaknesses of the rival. The collected information will serve as a pendulum, which shows the road to success and prosperity. This data may inform you about:
- What games are mostly preferred by players;
- Which region has the maximum number of potential players;
- Some insights that may help you outperform the competitors.
For instance, you have an online gambling platform operated in India. The only available payment methods in this casino are Mastercard and Interac. The competitors have a great flow of players, and that online casino has no customers. After analyzing the market and the competitors, the casino owners see that they should apply payment methods that are more relevant for Indian citizens (PhonePe or PayTM). As an end effect, suitable payment methods were added to the online casino, and the flow of customers began.
For risk management
Nobody is secured from sudden threats and unpredictable bad situations. Therefore, it is always great to have a successful risk management plan to be ready for all the upcoming and unexpected challenges.
Analyzing internal big data analytics can conduct different risk management strategies for short-term and long-term perspectives. This data can be easily used for assessing and controlling various threats that your business may face. As a result, the company can be ready for all the problems and meet them without significant losses.
For instance, one sports betting company has collected and stored data about troublesome situations that had happened during the last years. This information indicates that some problems appeared repeatedly, and consequently, the company has developed different models of risk management to prevent these situations in the future. Thus, loss limits were designed.
For product creation
All gambling companies desire to impress their customers with something new and outstanding. Therefore, new products and games have been released almost every day. However, the only proper way to create a successful product is to get to know what customers want to have. And here, big data analytics comes in.
Thanks to the innovative technologies applied to big data analytics, it is getting easy to collect such data as previous customers’ feedback, players’ responses, competitors’ successive products and analyze this information while developing a new product that combines all the positive aspects.
For instance, Play’n Go, a leading casino supplier and game developer, released the Rich Wilde and the Aztec Symbols casino slot. This slot became famous almost instantly. The success of the project gives the company valuable insight that the development team should continue to develop this idea. As a result, the series of Rich Wilde’s adventures count many different games dedicated to different subtopics. And what does great success means? Of course, it means profit.
For boosting revenues
Many gambling companies operate in the market while following one goal to increase revenue. With the help of big data sets, it is possible to analyze different types of information and bring to the light what can be done to increase the outcomes.
It is necessary to have an accurate overview of the players’ behavior and attitude towards gambling products or services to boost revenue. Big data algorithms try to personalize all the data to create and offer a special deal to a player. Having this information, you can set up an advertising company that will provoke potential customers to make a purchase or invest money into something related to your business.
For instance, when a gambler plays in an online gambling platform for a long time, the casino collects the data and sends this gambler personalized offers that may be interesting for them. If the algorithm is correct, then it is a 100% success.
Big data analytics benefits for iGaming companies
Using big data analytics is a smart decision for every iGaming company. We have already gone through most ways of using it. However, it is always useful to know all the benefits and advantages of applying this data from analytics.
First and foremost, big data analytics helps to optimize or even reduce costs. Analyzing a large-scale data set, it is getting evident what can be improved or cut to achieve cost-reduction.
The second moment lies in better customer insight. Big data algorithms were developed to analyze customers’ behavior and interests and provide gambling companies with this information. Hence, these companies can use this data to improve or modernize their actual products for the customers’ sake.
Thirdly, big data analytics allows business owners to make decisions faster and smarter. It is a well-known fact that big data analytics can process large-scale data within a frame of a short time and without losing the quality and accuracy of data. Therefore, this accurate and fast analysis makes it possible to make smarter decisions almost immediately.
The fourth benefit of using big data analytics for iGaming companies lies in focusing on the local environment. With the data set, it is not complicated to monitor and analyze the current situation in a certain region or area. Moreover, it is a useful thing when it comes to a targeted audience. What is more, by focusing on the targeted audience, you can set up and develop your marketing campaign more accurately. And this moment can lead your business to grow and be prosperous.
The fifth beneficial side of big data analytics is the capability to predict the results and upcoming challenges. This aspect allows you to be ready for all the possible consequences, whether they are good or bad.
And finally, it is data-driven innovations. The information and insights you receive from big data analytics are the keys to innovations. With the help of this knowledge, you will be able to modify or update your actual products while creating and developing something new and innovative. These improvements can be applied to business strategies and marketing techniques as well.
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Big data analytics challenges
Big data analytics brings new opportunities to our modern world; however, it also brings challenges. Most of the problems related to computational and statistical fields, including the issues of spurious correlation, measurement errors, incidental endogeneity, and storage bottleneck, appear constantly. And to face and overcome these challenges, it is necessary to develop new statistical thinking and computational methods.
The data scientists conduct many research, surveys, and methodologies to understand and develop new ways and approaches, which will help to handle these challenges in a less-damaging way.
The future of big data analytics in gambling
It is impossible to be hidden from the influence of modern technologies, and the world of big data analytics is changing our world. At the current moment, the data-driven world will always be on, always tracking, always monitoring, always listening, and always watching – because it will always be learning. Thus, the gambling sector cannot be separated from the influence and impact of big data analytics because they are closely related.
The data of the latest statistics also depicts the significant growth of the data volume increase in the upcoming years. For example, if the data volume reached about 80 zettabytes in 2021, this amount would be increased to 181 zettabytes in 2025.
This difference is more than double. Therefore, the gambling companies that want to become successful and keep their predominant positions in the gambling market will use big data analytics for their purposes.
One more thing to consider is a chart that indicates the current financial situation of the big data market size revenue. Statista developed the chart.
This chart clearly displays that the market volume of the big data market has constantly been going up with tremendous steps. And by 2027, the big data market revenue will increase by 46.7% compared to 2021. This data serves as an additional sign that the demand for this segment will be increasing only, and iGaming companies will not be able to stay away from big data analytics.
What is more, Dr. Venkatesh Naganathan, Associate Professor, Dept. of MCA, Acharya Institute of Technology, Bangalore, India, in his article Comparative Analysis of Big Data, Big Data Analytics: Challenges and Trends, states that big data is one of the greatest weapons for companies (including iGaming ones), and these companies can use the collected data sets to their advantage. Moreover, he highlights that the companies that do not use big data analytics will fade away in the future.
Conclusion
Summarizing all the facts, it is worth indicating that iGaming companies cannot exist in a data-driven world without big data analytics. Thanks to the proper realization and application, this innovative technology allows gambling business owners to reduce their costs, make smart decisions faster, and develop different strategies to make their businesses prosper.
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