The Impact of the Internet of Things on the Casino Industry

The Internet of Things (IoT) has garnered the attention of many industries in recent years and the gambling market is no exception.

00:11 10 March 2023

The Impact of the Internet of Things on the Casino Industry

The Internet of Things (IoT) has garnered the attention of many industries in recent years and the gambling market is no exception. From the introduction of smart chips to facilitating advanced data collection systems, IoT is changing the way casino operators are evaluating their business. Here’s how the Internet of Things is impacting the casino industry.

Smart chips

Casino chips are considered the casino currency when gambling and therefore they need to be secure against things like theft and forgery. Fortunately, the addition of RFID microchips is making chip theft and forgery increasingly hard. The installation of these small devices into casino tokens guarantees that no foreign copies can be substituted in a game or stolen.

With the help of these RFID microprocessors, casinos can pinpoint the location of their chips at all times. The sudden absence of the casino tokens at the table or their relocation from the site can be tracked using GPS software and IoT-powered sensors. That improves casino security to a better level compared to human personnel and cameras.

Data collection is the new “tell”

For decades, blackjack hands have been won or lost depending on the player’s ability to read their opponent’s face. When playing in land-based casinos, players must scan for changes in their opponent’s demeanor or expressions, commonly known as tells. This tells you how aggressively an opponent may play their hand or call bluffs.

With the rise of online casino sites like Betway, IoT technologies act as virtual players themselves. In so doing, they help you discern the opponents’ by analyzing large amounts of the players’ data. After that, machine learning applications can be applied to predictive analysis using algorithms that can determine a player’s most likely reaction.

Leading online gambling companies like Betway are already realizing the benefits of these technologies and applying them to understand the nuances that their players use when playing games. That tells the operators the likely reaction that a player might have to potential scenarios when playing a hand.

While it seems like the technology can be used to gain an unfair advantage over others in games, it can’t guarantee a win as the current data technologies simply collect information on the players’ habits in specific games. This collected data is aggregated, creating different player types depending on the playing styles of thousands of players.

Legal considerations

Whether you’re an existing online casino or a startup, the value of IoT in the gambling industry can’t be ignored. Fortunately, there aren’t any particular legislations or licenses needed to use the technology at the moment. You’ll only need an online gambling license and any other authorizations required by your jurisdiction.

Countries like Malta are already developing a regulatory framework for artificial intelligence, which is commonly used alongside IoT. That means if you’re using IoT in conjunction with AI under the Malta gaming authority, you might need to meet more legal requirements. That also applies to other tech trends like the blockchain and cryptocurrency. Nonetheless, the Internet of Things seems to be here to stay.