As betting restrictions are loosened worldwide, the number of digital betting sites is rising. Every day, there seems to be an advertisement for a new sports betting platform on TV, online, or on social media.
According to Statista, the online sports betting market is growing at an annual rate of 17.33% and will reach US$14.4 billion by 2027. To stay competitive, business owners are implementing new approaches. One of them is developing sports betting software using AI solutions.
Six steps to build an AI-powered sports betting platform
In the 2011 movie Moneyball, Ivy League analysts worked to create a formula for winning baseball games by applying sabermetrics and statistical data. Today, bookmakers don't need such resources as advances in artificial intelligence have made predictive analytics more accurate and efficient.
Artificial Intelligence-based deep data analysis is an excellent solution to improve the quality of predictions. However, this is not the only application of AI in the iGaming industry.
Popular solutions to employing AI solutions in sports betting. Source.
While building an AI-powered betting platform, include the following features:
- Data analysis and forecasting
- Live betting
- Simulators and fantasy sports
- AI chatbot for betting
- Data personalization
- Fighting Gambling Addiction
- Fraud detection
We've talked about how to create a betting site using traditional development methods before. In this article, you will learn six steps to help you create a sports betting platform using AI solutions.
In the AI integration step, we will detail the above use cases. After reading, you'll have a complete understanding of the software development roadmap and which AI solutions are best utilized on the platform.
Step 1: Gather ideas for web design
AI helps in website development by providing ideas for web design. Instead of exploring different resources and platforms on your own, AI tools visualize ready-made templates, building off your query.
The DALL-E image generator is suitable for this task, as its diffusion model creates realistic illustrations based on your request. The minimum cost of using this solution is $15
To use DALL-E, create a web design request describing what you seek. It should include the type of site and pages, their purpose, color scheme, and web design style.
For example: "Bookmaker's home page. Bright green color palette. The web design style is brutalism."
Midjourney is another platform that allows you to generate images. You must make a Discord account and join the Midjourney server to use it. Use the command "/imagine" and insert your request.
As with DALL-E, make your request as specific as possible. Name the type of company, the page, its color scheme, and your preferred aesthetic. Server subscriptions cost $8/month.
Step 2: Build the structure of the website
When starting a sports betting software development project using AI solutions, you may not have a clear idea of how to structure it properly. In this case, artificial intelligence tools such as ChatGPT can help you.
ChatGPT is a free AI solution that handles user requests and helps you create textual content, write code, and generate most ideas. In addition to the free version, you can buy Plus, which costs $20/month.
Step 3: Integrate AI solutions for a sports betting website
Historically, humans have always been interested in predicting sports outcomes, and modern history is no exception. Human bias is one of the most significant drawbacks to effective sports betting. However, this is one area where AI has a significant advantage over us.
Artificial intelligence refers to the ability of a computer to perform tasks that would typically require human intelligence. And while it may seem at first glance that the only option for integrating AI is predictive analytics, the technology can actually give us so much more.
In this section, you'll learn about the most effective ways to integrate AI solutions for sports betting. We'll cover how they impact you and your users, as well as give you practical steps for implementing them.
Data analysis and prediction
Bookmakers rely on historical data and intuition. However, as sports evolve, there is more and more information to consider. By utilizing AI solutions, betting shop owners will give punters better predictions about events and increase their engagement with betting.
Predictive analytics model based on AI. Source.
Artificial intelligence processes data from sources such as:
- Sports leagues
- Analytical portals
- Forums
AI provides accurate odds and predictions, increasing the popularity of the platform and the bookmaker's revenue. Users believe an interested party can create authored predictions, while AI sports betting solutions are independent.
AI-based prediction models handle variables that humans overlook. For example, when predicting the outcome of a Champions League match, AI takes into account:
- player injuries and recovery period
- the ratio of fans in the stadium
- the time of day and the weather in which the game is played
To implement such a feature, you must create your solution or use one of the ready-made tools—for example, IBM Watson Studio, Microsoft Azure Machine Learning, or H2O.ai.
Live-betting
Live betting, also known as in-play, allows players to predict various aspects of a game while it is in progress. AI-powered solutions process data instantly and provide odds and predictions within seconds.
This dynamic approach increases players' excitement and encourages them to stay engaged throughout the match.
AI also provides valuable insights, such as:
- Which team is gaining momentum
- How an athlete's play affects the outcome of the match
- The accuracy of a striker's shot
- The level of ball control
Players find that numerous variables enhance their prediction. Users use this data to make betting decisions during the game, adding an edge to their real-time strategy.
Simulators and fantasy sports
According to Mordorintelligence, the fantasy sports market will grow at an annual rate of 12.92%, reaching a value of $49.53 billion by 2028. The forecast correlates with the development of artificial intelligence. This technology can provide an impetus for popularization and user engagement in this niche.
Deciding on player selection, as well as analyzing injuries and other information, requires a deep understanding of the game. Users spend dozens of hours analyzing statistics and reading expert materials to gain an advantage. However, even this data is not enough for them.
The role of AI solutions for fantasy sports betting:
- Predicting player performance. AI processes historical data to predict individual player performance, such as scoring, passing, and touchdowns.
- Injury Risk Analysis. Process data on the player's condition and recovery period to predict the risk of potential injuries.
- Recommender systems. AI models analyze games, player statistics, and opposing teams' tactics to recommend optimal lineups to the user.
Central to AI solutions in fantasy sports is the concept of Fantasy Bot, an AI chatbot for betting. A sports analyst, soccer coach, and data analyst are all rolled into one.
The chatbot not only provides statistics but also concludes. Let's say a forward on your team has historically lost to a particular defender. Fantasy Bot can notice this and alert you to replace the player.
AI chatbot for betting
Besides Fantasy Bot, there are other uses for AI chatbots for betting sites. For example, users need constant feedback. Therefore, it would be more efficient instead of creating a support department.
An AI chatbot should perform the following functions:
- Understand and respond to user queries
- Handle commands, such as setting reminders and placing bets
- Be integrated with the payment gateway to help with deposit funding
There are two ways to integrate an AI chatbot for sports betting: develop your own or use an off-the-shelf solution. Popular chatbots for betting shops include AlphaChat, Mindsay, and SnatchBot.
Off-the-shelf solutions are less flexible and scalable. Therefore, if you want to create an easily adjustable chatbot with multiple features, contact an AI development company.
Data personalization
According to a McKinsey & Company study, 71% of consumers expect personalized interactions from companies, and 76% of them get frustrated when it doesn't happen. What's more, companies that are growing faster generate 40% more revenue from personalization than their slower-growing counterparts.
Betting platforms use AI to analyze players' past bets, preferences, and behavior. This approach creates personalized recommendations and promotions that will improve user engagement.
Aspects of data personalization for a sports betting site:
- Betting recommendations. You can provide relevant offers in real-time using data about the bet you just made.
- Built-in push notifications. Notifications about offers, events, and upcoming matches are a great way to ensure punters use your platform rather than a competitor.
- Streamline navigation. Adapt your navigation based on what sports, competitions, or games the user is interested in.
Study your customers' specific behaviors to create a custom AI-powered personalization solution. Offer players only content that interests them, using data based on page visits, betting interactions, and placements.
Combating Gaming Addiction
According to Addictions.com, 3-5% of betting shop users in the US suffer from gambling addiction. Therefore, one of AI's most significant contributions to the iGaming industry is to promote responsible gambling practices.
AI analyzes player behavior patterns and detects signs of gambling addiction at an early stage. Symptoms of gambling addiction:
- Systematic increase in deposits through new deposits
- Constant use of risky bets
- Prolonged presence on the platform for one year
Keep these patterns in mind while building an AI sports betting website. Explore current research on this topic to complete our list.
AI tools alert operators who intervene and offer solutions for responsible gambling. This proactive approach protects vulnerable players and builds loyalty among regulators and other users.
Fraud detection
According to TransUnion, iGaming fraud increased by 50.1% in 2022. This trend negatively affects the revenue and credibility of online gambling sites, which is why they are developing new AI-powered security solutions.
Integrating AI into sports betting as a security tool positively impacts user loyalty. The use of AI not only prevents hacker attacks but also fights unscrupulous platform participants.
Types of fraud that AI fights against:
Multiple Account fraud. Scaling is the most essential part of a scammer's activity. The long time to get bonuses incentivizes abusers to scale their scams to hundreds of accounts. This process happens with the help of special scripts and bots.
Artificial intelligence-based solutions recognize suspicious activity and instantly block any fraudster's actions. Most often, this happens by detecting identical IP addresses, cookies, and payment data.
Traditional and Synthetic Identity Fraud. Source.
Synthetic IDs. Synthetic IDs are the fastest-growing type of fraud that fraudsters use to bypass KYC checks. They combine false information and real documents that are harder to detect than completely fake profiles.
Self-exclusion fraud. Government agencies are increasing their scrutiny of gambling companies to combat gambling addiction. Scammers have taken notice of this and have begun to exploit it.
They blackmail betting companies by marking themselves as "problem players" on the gambling establishment's website and then demanding refunds, claiming their self-exclusion was not honored. This is essentially a multi-accounting problem that can be solved with AI.
Video ID deepfakes. Like other technologies, AI isn't just being used for good causes. As AI becomes more accessible, fraudsters are using it to bypass video identity verification systems installed as part of the KYC process.
The challenge for providers in the iGaming industry is creating AI solutions recognizing deepfakes. Take care of this aspect while creating a sports betting website.
Step 4: Develop a brand identity
Artificial intelligence tools help create the visual style of your sports betting website, including the logo, color palette, and typography. One such solution is Hostinger AI Logo Maker.
There are two AI modes to choose from:
- Generates an image based on another brand's name, slogan, and industry. This option is suitable for those who are not sure what the design should look like and want to see different ideas.
- Generates an image based on a description of the logo. Specify everything you want to see in the end, such as "A boot that kicks a coin."
Those having trouble choosing a color palette for their website can try Huemint. It's a free AI web design tool that selects shades that best complement your specific color.
In addition, when choosing colors, you can set the artificial intelligence's creativity level. It will also show you how they will look together on different website layouts.
To choose font designs - use Fontjoy. This tool allows you to choose a font for headings, subheadings, and body text. AI will then suggest other options that go along with the chosen one. This will create a cohesive and visually appealing typography for the site.
Step 5: Content Creation
Content creation is one of the most common steps in developing sports betting software using AI solutions. Tools like ChatGPT and Jasper create unique content and save web designers time.
AI tools by content type:
- Text. The best solution for creating compelling and engaging taglines is ChatGPT, Copy.ai, and Notion AI. Create a query that specifies the topic, the purpose of the text, and a portrait of the reader.
- Video. You don't have to hire a professional actor or speaker to create a video presentation of your product. Solutions like Synthesia AI have learned how to do this with artificial intelligence.
- Images. In addition to creating a website layout, DALL-E and Midjourney create custom illustrations. They generate visual content that fits your needs.
AI editors are also helpful when making changes to an image. For instance, Canva offers such functions as photo enhancement, deleting background elements, and adding photorealistic features.
