Macau casinos leverage AI and facial recognition for further growth
Gaming companies in luxury hotspot Macau have got a secret weapon in their arsenal: big tech. Resorts in the world’s gaming epicentre are deploying facial recognition technology and artificial intelligence in a bid to better service guests, and optimise the efficiency of their business model. Devices in use range from the commonplace (hidden cameras) to the fantastical (digitally enabled poker chips). The strategy focuses on one thing: determining which players have the greatest appetite for risk.
Over the last month, Galaxy Entertainment Group’s share price has appreciated by 11%
Source: Yahoo Finance
The new tech being rolled out around Macau uses algorithms that process how each gamer behaves at the table, figuring out who is willing to take the most chances. This is a crucial piece of knowledge for casinos to have, as riskier gamblers tend to lose more… meaning the house wins more as a result. Hosting gamers who are less risk averse can have multiply a casino’s takings by a factor of ten.
The strategy is this: figure out which gamblers are happiest to take big risks and offer them special perks to keep them at the table. This could be as subtle as a little extra attention, or it could be free meals and drinks for the evening. With facial recognition tech, casinos can be notified when high-value customers enter a venue, or sit down at a table. Then, staff can be dispatched to attend to them personally. In other cases, behavioural cues will be spotted by algorithms and the house can be notified instantly.
While surveillance tech and free perks aren’t new to Macau, these new systems will go further than ever before, tracking and rating each customer, creating a powerful data set that could help operators in the Chinese territory to drive growth more efficiently than ever before.
Dominion holds Galaxy Entertainment Group in its Global Trends Luxury Fund.
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