Technological progress does not stand still, and the betting business is no exception. One of the most promising innovations of the present and the future is the use of neural networks. Experts explained what they are and how they help bookmakers.
What are Neural Networks?
Neural networks are an area of artificial intelligence research, based on attempts to replicate the human nervous system. More specifically, it replicates the nervous system’s ability to learn and correct errors. This makes it possible to simulate, although not exactly, the functioning of the human brain.
Our brain is a complex biological neural network that receives information from the senses and processes it (recognition of faces, sensations, etc.). An artificial neural network, on the other hand, is a structure that receives a signal, transforms it (in much the same way as real neurons do) and transmits it to other neurons (which do the same).
But that is where the similarities between biological and artificial neural networks end. The structure of the human brain is much more complex, so it is not possible to reproduce it, albeit with less precision.
An important property of neural networks is their ability to learn. “Learning” consists of changing the “strength” of the synaptic connections between neurons.
How does this work? Recall scholar Pavlov’s experiment with a dog. He rang a bell when he ate, and after a while the dog learned to associate the sound with food intake. All because the synaptic connections between the areas of the brain responsible for hearing and the salivary glands became stronger.
As for artificial neural networks, they are a system of simple connected and interacting processors (artificial neurons). The training of a network consists of finding the coefficients of the connections between neurons. During learning, a neural network is able to detect complex dependencies between inputs and outputs and also to perform generalization.
Why do Bookmakers need this?
Neural networks and machine learning algorithms help en estos sitios de apuestas deportivas solve a number of problems related to the analysis of large amounts of data. The more data there is, the more difficult it is for a specialist, even with a lot of experience, to find dependencies. Typically, a solid analyst can find correlations between three and five statistical parameters, but more data requires third-party software.
Implementing this type of technology makes it possible to reduce the amount of manual work and automate business processes as efficiently as possible. In addition to reducing costs, it also minimizes the possibility of “human error,” i.e., errors due to inattention.
Pros and Cons of Neural Networks
The main advantages of neural networks are prediction accuracy, elimination of human error in business processes, and cost optimization.
Neural networks help to see what the human eye cannot see. Almost everything that is common practice in gambling came out of some successful case study or the opinion of certain respected experts. This opinion has become dogma, but it is not really dogma. To verify these claims and assumptions, one has to collect a huge amount of statistical data and carry out a lot of costly analytical procedures, which for most traders is simply not financially viable.
As for the drawbacks, they are related to incorrect integration of the solution or lack of understanding of its use.
If we look at traditional e-commerce, we can see that companies are investing millions of dollars in automation with the help of neural networks and ML algorithms. These types of solutions are the future. Every year, the tasks solved by these technologies are becoming more advanced. Whereas in the past the computer brain was relied on for simple tasks such as selecting recommended movies or books, today self-driving cars are already proving to be safer on the roads than normal drivers.
Another drawback of neural networks is that their application, like any basic research, is expensive, time-consuming and often for many may not give a serious return on investment on a small volume of business.
How are Neural Networks now used by Bookmakers?
At present, neural networks are used by betting companies only in the field of marketing. However, there is no doubt that in the future bookmakers will use neural networks in the development of game and pre-match odds, in risk management and player categorization, and in the fight against fraud (behavioral factors), as well as in customer service.
What is the Degree of Development of Neural Networks in Betting?
Bookmakers are starting to master these technologies, but so far they are rather at the middle level of research. In addition, the objectivity of the information is affected by factors such as the reluctance of most companies to share information on how their internal operations are organized.
At present, neural networks are not yet widely used in bookmakers. But companies are aware of them and are trying to implement them. The number of implementations is increasing every year, and that means only one thing. In the near future it will not be easy, if at all, to survive without this development in the betting business. And players will have to “compete” not with humans, but with artificial intelligence in an effort to bankrupt the bookmaker.