By Ron Mendelson, Fast Offshore Founding Partner

Six ways big data analytics are transforming online gambling

Ron Mendelson says operators are integrating big data analytics into their business model to help them understand the market, their products, and most importantly, their players.

Ron Mendelson is the Director of Costa-Rica based International Business & Corporate Services consultancy firm, Fast Offshore. With over 24 years of real-world experience in iGaming Licensing and Payments, Regulatory Compliance, Tax-Efficient Corporate Structuring, Incubator and other Hedge Fund Licenses, Blockchain and Cryptocurrency related services, he advises a number of international clients on their business needs in the Americas, Europe, and beyond.

Reading time 3:17 min
In his latest column for Yogonet, the Fast Offshore's expert delves into the capacities of big data analytics in revealing player preferences, profiling competitors, tracking online security, enhance the marketing department, providing industry statistics, and keeping players engaged.

Times are changing and the way that online gambling operators learn about their businesses is changing as well. Surveys and polls are no longer de rigueur, instead, operators are integrating big data analytics into their business model to help them understand the market, their products, and most importantly, their players.

If you’ve heard about big data but aren’t quite sure if and how it can apply to you, this is a good place to start.

Revealing player preferences

Big data can help online gambling operators to understand their players better. The processing of information such as how long they spend on a game, which games they prefer, what times of day they prefer to gamble, and which kinds of games they spend more money on, can be incredibly valuable to operators. 

Additionally, data can tell you who your clients are. Their age, location, job, income, and general interests can all be used to build a profile of who your clients are. Previously, this information was available, but it required a lot of time and effort to compile, and even longer to quantify. With big data analytics, it can be done en masse and efficiently.

Once this information is in hand, games and user experiences can be tailored to the desires of the individual. This increases engagement, client retention, and loyalty across the brand.

Profiling competitors

As well as collecting data on your customers, you can use big data to do the same for your competitors. Getting an overview of their client base and the way they engage with their platform can help you improve yours. Knowing which games are popular and which aren’t so much, can help you tailor your offering accordingly.

Previously, this kind of analysis would have taken a lot of time and energy to complete. With big data, the information is available almost immediately and with little effort.

Track online security

Online gambling sites can be prone to attack and a loss of clients’ data could be devastating. While most operators take steps to keep their sites secure, even the most prepared can miss something sometimes. 

Big data can help analysts and those working in online security to detect any irregularities or loopholes in a system. It can weed out cybersecurity threats including different kinds of hackers, pinpoint weak points in the network, and alert the IT team to any malicious code lurking in software. While big data can’t protect a company on its own, it can be a useful tool when combined with other methods.

Enhance the marketing department

Advanced analytics like those provided by big data is a great tool for iGaming marketers. The information gained on player preferences and behaviour can be passed to the marketing department who can use it to create targeted marketing campaigns that focus on each demographic. It also helps marketers to know what is working, and what isn’t, meaning they can refocus their approach to generate the most return.

Furthermore, it helps the company to comprehend the needs of users and to be able to quantify the success of campaigns, bonuses, and special offers. It can even help marketing professionals decide what colours, interfaces, and game types they should use.

Provide industry statistics

Big data keeps track of all the current market conditions in the iGaming industry. It can monitor news reports and social media chatter, keep up to date with new regulations, and even help create more accurate odds for sporting events. This kind of insight into the sector is previously unparalleled and gives companies that use it, a significant strategic edge.

Keep players engaged

Online gambling is a very competitive sector and keeping hold of clients is one of the main challenges. It can be hard to build loyalty as an online casino brand, especially with so many other companies vying for attention. But the information provided by big data analytics can give operators insights that they can turn into actions. They can gain a deep understanding of what clients want, how competitors are doing, what the demands of the market are, and then, they can work to fill that niche.

Big data can also be utilized when designing bonuses and loyalty schemes. When an operator understands what kind of perks attract and retain clients, it’s much easier to keep them for longer. The power that big data has for detecting trends and patterns in behaviour is invaluable when trying to increase player engagement.

Fast Offshore doesn’t create big data solutions for online gambling companies, but we have over 23 years of experience in iGaming and emerging industries. We can help with the setup, licensing, payments, ongoing maintenance, and ancillary requirements of online gambling companies, and provide expert advice and guidance on other matters. If online gambling interests you, let’s have a chat about it!

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