Sports betting is now one of the biggest industries in the world. With the easing of restrictions in the US in 2018, millions more sports fans now have the ability to place bets legally and that has obviously been very profitable for the operators. This growth has also coincided with technological advances that have further benefited all involved.
The best mobile sportsbooks all now use the latest technology to benefit the customers and the betting operators. The latest developments in this field have been the incorporation of machine learning and other artificial intelligence (AI methods).
These new developments have changed the way sports betting works completely. Gone are the days of tips and hunches and imposing bricks-and-mortar sportsbooks appealing only to a tiny majority. Now sportsbooks have gone mainstream and adverts for betting companies and products have become part of the daily media intake. Machine learning and AI have revolutionized sports betting – and there is more to come.
How Does Machine Learning Work With Betting?
There are a number of different AI practices that have been used in sports betting but machine learning has probably had the biggest impact for both operators and bettors. By analyzing huge amounts of data, machine learning algorithms can digest the information far more quickly than any human could.
The patterns and trends that are identified from all this data can then be used to predict the outcome of sporting events. This is obviously incredibly useful for both sides of the betting world and has resulted in a far more precise reading of what is going to happen in sports across the world.
Benefits for the Industry
At first glance, it may seem as though the use of machine learning should benefit the bettor. But sportsbooks and betting companies can also use this new information to great effect. Although these operators are looking to make money, they need to be offering the most precise insights and predictions.
Being able to provide a more accurate service – with the most precise odds – is a big selling point for operators who now work in one of the most competitive industries in the world. As well as odds calculation, machine learning and AI can also work to detect fraud, suspicious betting patterns, and even match-fixing.
Benefits for the Bettors
The benefit of machine learning for professional and even casual bettors is obvious. There is the potential for bettors to use this technology to more accurately predict the outcome of sporting events. As much as betting is supposed to be a fun, entertaining pastime, the main objective for most is to make money.
Machine learning is taking the laborious process of analyzing previous results, injury news, team changes, and other types of data, and almost instantly providing accurate predictions. Studying the form used to be what serious bettors would do. Now that hard work is being done for them, allowing them to concentrate on other aspects of betting, like managing their bankroll.
Types of AI Used in Sports Betting
Machine learning is possibly the most obvious form of AI used in sports betting. But there are a few different models that are changing the industry. By analyzing historical data, machine learning is providing better predictions as well as working on a highly individual basis.
Neural networks are also used to mimic the way that the human brain makes decisions. By taking in complex data and continually adapting, bettors have an edge with their predictions. Natural Language Processing (NLP) can also be used by betting operators to improve their understanding of how their customers think.
Limitations of AI
As much as artificial intelligence is proven to aid humans in a wide variety of ways, it is also the latest scare story in the media. We are bombarded with stories about how AI will “take over” and this has limited its ability to be seen as a positive for many. But there are also more general limitations to how AI can be used in sports betting.
Machine learning takes in a lot of information and data to produce its results. But there is the question of where that data is coming from. AI is unable to remove the potential for biased results and can also struggle with unforeseen incidents that play a major part in sports and sports betting.
Technological Advances
We mentioned before how the potential for sports betting companies to use machine learning and other AI models has come at the same time as other technological advancements that have revolutionized the industry. Many of these developments have worked hand in hand with other ways the industry has been transformed.
Betting apps are an obvious example of a way that gambling has changed dramatically and also benefitted from AI models. Apps give bettors far more convenience and immediacy for their selections and AI working in real time provides an even better and more accurate service.
The Future AI and Sports Betting
Machine learning has undoubtedly changed the way that the sports betting industry operates. Being able to analyze complex data sets has benefitted both sportsbooks and bettors and further developments in machine learning and more sophisticated algorithms will change things yet further.
But that is only one technological field that is changing the way sports betting looks. Other innovations will make it even more inclusive and precise. We are already seeing greater use of augmented reality (AR) and virtual reality (VR) and blockchain technology looks set to provide more security.
