Looming in the purview of gaming leisure industry is the utmost importance of artificial intelligence (AI). Its burgeoning preponderance can be straightforwardly depicted by the following conundrum: imagine you walk through into a dazzling casino in Macau aiming to play “Baccarat.” As soon as you sit down in order to initiate your gambling journey, you actually realize that the casino table dealer has been replaced by a cutting-edge robot fully equipped to enhance even further casino’s house advantage (that in the realm of “Baccarat” is very narrow). What would be your immediate thought? Should you proceed with your gambling endeavors? Should you refrain yourself from initiating your gambling endeavors? Or has your self-confidence just been boosted by this unexpected challenge? Nonetheless, if you scratch deep enough, underpinning these nonrhetorical questions is a rather twisted question: what if the casino patron or high roller (player) decides himself to foster his gambling skills through AI aiming to curb or even override casino’s “house advantage?” In any event, should not we take AI on the scope of gaming leisure industry very seriously in order to avoid disrepute or moral hazard of casino gaming leisure industry as a whole in light of its corporate social responsibility? This chapter will provide an overview about the current prominence of AI or simulation-based AI in gaming leisure industry, mainly for research purposes in the context of problem gambling and of forecasting online casino patron’s churn behavior. Finally, this chapter will carve out the foundations of candent challenges gaming leisure industry will face in the forthcoming future about the “moral hazard” deeply enshrined in the breadth of AI, especially if robots are due to replace humans as casino table dealers in the realm of table games.
- artificial intelligence
- gaming leisure industry
- corporate social responsibility
- moral hazard
- fiduciary duties
- fiduciary norms
- problem gaming
- responsible gaming
- predicting churn behavior
- Turing test
- electronic gambling machines
- harm minimization strategies
- intelligent ambient
- big data
- data mining
- empiric research gathered through AI-based technology
Artificial intelligence plays a pivotal role in the realm of gaming leisure industry. Its prominence stretches from the cradle of the biggest breakthroughs in gaming leisure industry (enabled by the research-based approach) to the scope of the table games. This very statement poses a sizable challenge to the gaming leisure industry altogether. The thriving of artificial intelligence in this profitable industry – namely in table games – is deeply intertwined with corporate social responsibility and with moral hazard of gaming leisure industry. More artificial intelligence in table games could bring along disrepute and opaqueness to this business activity. In the long run, artificial intelligence in table games could spark an outbreak of gambling-related crimes over the control of this cutting-edge technology, wreaking havoc in gaming leisure industry.
Future, as you may know, is not up for grabs. Even though, one does not need to have a capacious imagination to foresee that artificial intelligence is definitely a “game changer” in gambling leisure industry, as it tends to increasingly replace “human intelligence” in the ambit of “simulation” and “gaming,” concretely for research purposes, but not all. Just imagine the possibility of a robot taking over the place of humans as casino table dealers in the context of table games, namely Baccarat. Inextricably linked with this anecdotal possibility, just imagine if a human (casino patron or high roller) decides to use AI to enhance his ability to thwart casino’s house advantage. In these grounds, one should foresee that a “moral hazard” is intertwined with this issue. In this axiom, lies the importance of moral boundaries that ought to be swiftly set out for the sake of long-term stability of gaming leisure industry.
2. Artificial intelligence: definition
Definitions of artificial intelligence may vary according to recent textbooks. These definitions vary along two main dimensions. The ones on top are concerned with
Historically, all four approaches have been followed. As one might expect, a tension exists between approaches centered around humans and approaches centered around rationality. A human-centered approach must be an empirical science, involving hypothesis and experimental.
How can one know if a robot playing the role of a human casino table dealer acts like one? One shall use the Turing test, whose feasibility has sound importance in regards of AI in table games.
As for gaming leisure industry, the issue of acting like a human comes up primarily when AI programs (robots) have to interact with people (casino patrons or high rollers) in a regular casino in Macau or elsewhere. To ascertain robot’s intelligent behavior, Turing’s test should be a reference. To pass Turing’s test, robots (or AI programs) must behave according to certain normal conventions of human interaction in order to make themselves understand . Again, aforementioned underlying representation should be tested in light of
2.1. Background: main importance of artificial intelligence (AI) and simulation in gaming leisure industry in present days: the empirical research related in electronic gambling machines (EGMs) and problem gambling context
The acute significance of AI speaks for itself as it not only dates back centuries as likewise depicts a perennial human aspiration to acquire transcendent intelligence (AI). The evolution of research-based approach in the realm of problem gambling portrays, in a certain way, the prominence of artificial intelligence and simulation.
Electronic gambling machines (EGMs) represent a large part of the gaming leisure industry. AI and simulation-based AI play a pivotal role for gathering empiric evidence related with EGM’s and problem gambling.
EGMs are the core of gambling leisure industry, except in the casinos of Macau, where the table games, namely the
Furthermore, EGM’s are markedly the domain of the loss-chasing behavior, the core characteristic of problem gambling, which can be thoroughly explained because approximately 13% of EGM gamblers meet diagnostic criteria for problem gambling (PG), which is one of the highest rates of among all other forms of gambling. EGMs can be found everywhere. They are interactive, computerized gambling platforms that operate indistinctively across this boundless and globalized data-driven world. Licensed betting offices, casinos, and other leisure facilities, of course, are no exception.
What is the role of EGMs as for bolstering problem gambling? What is more, do EGMs enhance player’s illusion of control as for the outcome of game or bet? EGMs reinforce addictive patterns of gambling behavior. It is really an empiric axiom: EGMs have been shown to instill and maintain irrational and superstitious beliefs, as well as distort concepts of randomness and probability that can contribute to illusions of control. Such features may act to maintain or indeed contribute to the onset of PG behaviors.
This empiric axiom (EGMs contribute to instill and maintain addictive patterns of gambling behavior) is inextricably linked with sizable prize sizes: EGMs offer high maximum stake and prize sizes and the fact that accessibility of EGMs are abundant on the high street brings along another simmering danger: even inexperienced and leisure gamblers are at risk of increased rate and volume of loss, irrespective of whether they would be classed as PG or not. A rapid speed of play provided by EGMs offers fewer opportunities between bets to break trancelike dissociative states gamblers experience, as well as less time to consider one’s decisions in an informed and controlled manner.
Furthermore, EGM play also allows for a high rate and volume of loss, which is allowed to further exacerbate if one engages in
In this regard, a recent research (simulation) has investigated how these EGM characteristics interact with winning and losing outcomes and the resulting gambling behavior, as there is wide body of evidence outside of gambling research that suggests gains and losses have an asymmetrical impact on affect and arousal, as well as cognitive capacity and decision making – essential components to be controlled and rational gambling decisions .
Conversely, losses compared to wins, have a larger effect on physiological arousal. Hochman and Yechiam reported significantly larger pupil diameter and increased heart beat in response to losses compared to equivalent-sized wins .
AI research-based approach has had a pivotal role as for ascertaining that losses lead to a greater increase in psychological arousal, this may result in the gambler’s optimal level of arousal being surpassed, which may be detrimental to rational decision making and lead to a loss of control during gambling, where the fast-paced and high stakes features of EGM play may exacerbate the harm caused by a loss of control .
Having this body of evidence very firmly in mind, it is very important to implement strategies that enable a gambler to remain in control during the gambling session so that gambling-related decisions are made in a rational manner. The implementation of that assortment of measures embodies the deemed harm minimization strategies that have been put in motion pursuant empiric evidence gathered through computerized simulation (and AI). In this axiom lies the uttermost relevance of simulation-based AI as this body of evidence would never surface in gaming leisure industry’s horizon if it were not its invaluable contribution.
2.2. Background: the importance of artificial intelligence and simulation in the scope of gambling leisure industry: empirical evidence in the context of electronic gambling machines (EGMs) and the harm minimization strategies: the pop-up messages and the personalized feedback
If wins and losses do indeed result in an asymmetrical impact on a gambler’s behavior during EGM gambling, it is important to implement harm minimization strategies in a timely manner before harmful behavior augment or escalate.
Nonetheless, prior to the implementation of any harm minimization strategies whatsoever, there is a major paradigm shift yet to be undertaken: the problem gambling should be approached in a proactive manner rather than a purely reactive one.
That very statement emphasizes the major importance of AI or simulation-based AI in the context of problem gambling in present days, as the bulk of empirical evidence gathered contributes for the creation of healthy gambling environments, in a timely manner.
A striking example of this is the research conducted into cognitive psychology of gambling. This simulation-based AI has shown that irrational gambling-related cognitions and misunderstandings linked to randomness and probabilities represent some of the key components contributing to the initiation and maintenance of problematic gambling in general, and in electronic gambling in particular [3, 4]. Furthermore, it has been shown that problematic gambling behavior can be curtailed pursuant to cognitive-behavioral therapy and similar cognitive interventions gathered through simulation-based AI. As a consequence, some organizations and gaming operators are beginning to offer players information about common gambling myths and erroneous beliefs. Furthermore, players can now access general advice on healthy and responsible gambling [3, 4].
A small body of empirical research gathered through simulation-based AI has shown that educational programs about erroneous beliefs can successfully help change the targeted cognitions. Take the example of the simulation-based AI conducted by Wohl et al. He has developed an animation-based educational video regarding the function of slot machines, their results depicted that the animation was indeed effective in promoting responsible gaming as demonstrated by those viewing the video staying within their pre-set limits. The aforementioned survey also demonstrated that animated educational information on slot machines (EGMs) can be an effective to enhance user adherence to pre-set limits [3, 4].
Simulations based on AI have also shown that the way the information is presented is significant. Several studies and simulations based on AI have investigated the effects of interactive pop-up messages during gambling sessions. Static messages do not appear to be as effective, whereas interactive pop-up messages and animated information can change both irrational beliefs and behavior [3, 4]. Stewart and Wohl reported that participants (in simulation-based AI) who received a monetary limit pop-up reminder were significantly more likely to adhere to monetary limits than participants who did not [3, 4].
Increasingly arising on the horizon of the gambling field is the personalized feedback, developed for responsible gambling purposes through simulation-based AI.
Personalized feedback is a behavioral tracking tool, for responsible gambling purposes. There are several programs that constitute a striking example of it, such as
Scholars emphasize that players receiving tailored feedback about their online gambling behavior are more likely to change their gambling behavior (as measured by the amount of time and money spent) compared to those who do not receive a tailored feedback [3, 4].
A recent simulation-based AI analyzed the behavioral change in vast array online gamblers (279, to be accurate) that received personalized feedback after they had signed up to a voluntary service (i.e., mentor or any other responsible gaming feature) at a European online gaming website. Those signing up to use the personalized feedback system were compared with 65, 423 have managed to match controls. The precursory results of that study demonstrated that personalized behavioral feedback within a motivational framework appears to be both an effective and accurate path of changing gambling behavior in a positive way (i.e., players notably curbed the amount of time and/or money they spent gambling after receiving personalized feedback). For example, if a player remarkably augments the amount of money they have deposited over a certain time frame (for instance, half year time period), they received the following message: “Over the last 6 months the amount of money deposited into your account has increased. Are you spending more money than you intended? You can check the amount you have spent gambling on your account page and use our helpful tools to set a daily/weekly/monthly limit” [3, 4].
Overall, the personalization approaches carved out above intend to overhaul a person’s behavior through behavioral feedback. Such approaches are supported on both the “Stages of Change” model and motivational interviewing. He et al. specifically emphasized the importance of tailored information. They have managed to synthesized a vast array of motivational psychology literature to develop a motivational framework based on the transtheoretical (i.e., states of behavior change), which asserts that individuals making efforts to overhaul their behavior in a certain way experience a series of stages (i.e., pre-contemplation, contemplation, preparation, action, maintenance, and relapse). For each stage, they asserted the motivational aim (s) and recommendation (s) as to how technologies (simulation-based AI, to be precise) can boost sustainable energy usage behaviors by people [3, 4].
In sum, behavioral feedback systems enable an optimistic approach of responsible gambling, as they achieve the targeted goal of helping the players sensibly limit the amount of time and money spent gambling.
Again, that could never be achieved without the inestimable guidance of simulation-based AI that has enabled all stakeholders of gaming leisure industry to be cognizant of exciting pieces of research gathered through empiric evidence.
2.3. Background: the importance of artificial intelligence and simulation in the scope of gaming leisure industry: empirical evidence to predict
online casino patron’s churn behavior
Both in professional and everyday life, people have to interact with and reason about a large number of computerized systems. Artificial intelligence (AI) based on computer simulations can be used to construct interactive environments by means of which people can develop knowledge about the behavior of these systems. The steadfast increase in computing power has in fact given simulation a solid position within the area of gaming leisure industry. However, quite a few studies have shown that simulation-based AI is only effective when proper and sound guidance is duly provided. Automating certain tutoring and training functions aiming to provide such guidance requires the simulation-based AI model to be
Empirical evidence gathered purposefully to predict online casino patron’s churn behavior constitutes a striking example of prominence of artificial intelligence (AI) based on computer simulations.
Recent research has focused on customer retention in the online gaming industry by predicting player churn propensity (the likelihood to leave or stop playing at an online casino) at the individual player level. More specifically, that empirical research examined whether a
In the prediction of customer churn behavior, researchers have employed various
Overall, the application of the predictive churn model advanced by these renowned researchers can help casino managers identify potential churners before they churn. Once the potential churners are identified, a more effective retention program and targeted marketing messages can be created and deployed to intervene and prevent customer attrition. If a customer appears to have churned, casino managers can prioritize their reactivation efforts according to the customer’s churn propensity scores. Those customers with low propensity scores could be relatively easy to convert into active players in comparison to those with high churn propensity scores. It may not be worth spending the time and marketing dollars to convert some of the players with high churn propensity scores and low gaming values to the casino .
In these grounds lies the importance of simulation-based AI that keeps gaming leisure industry abreast with the newest developments of empiric research aimed to accelerate the benefits of global innovation.
2.4. The importance of
artificial intelligence( AI) and its brotherhood with intelligent ambient( IAm) in gaming leisure industry
Evidence presented throughout this chapter is overwhelming: AI is everywhere. It spans through every aspects of our daily life, even tiny and apparently insignificant ones. As for gaming leisure industry, one cannot forsake or disregard the utmost importance of
The concept of
Conversely, casinos have a remarkable apparatus of objects (enshrining the taxonomy of digital ambient) embodying one capacity of analysis of context and of adjustment (standardization) to the needs of the casino patrons and high rollers of the casinos [14, 15].
Those intuitive interfaces capture, collect and store, in real time, the high rollers personal data (or quite simply gamblers). Those intuitive interfaces ultimately intend to shape and standardize their real necessities, habits, and attitudes. Therefore, those intuitive interfaces allow casinos to maximize and optimize the intelligent ambient in which those intuitive interfaces were primarily created. This is only achievable due to AI proficiency and accuracy that precedes
Having that specific goal in mind, systems of
In the realm of intelligent ambient of the casinos (or overachingly, gaming leisure industry), systems of surveillance (constituted by
The aforementioned brings along an imperilment: in the cases of use of personal data for spurious purposes (
This approach brings up the first caveat regarding
One can outrightly foresee the grounds for these enmeshed concerns: there is an
In this light, the use of personal data of casino patrons or high rollers for strange purposes (e.g., blackmail) to the services trade and of functionalities given by the casinos comprises a “
artificial intelligence( AI) and gaming: what lies ahead?
I came across AI a few years ago through insightful thoughts of Stefen J. Karoul that reportedly was working with a group of scientists who have developed a very effective new AI model for Poker. Back then, he told me that AI opens up many creative new thoughts and opportunities going in different directions ranging from educational to just learning how to become a better Poker player or a more skilled gambler. He wondered how long it will be before they begin to focus on other casino games such as Baccarat, Blackjack, or Roulette? That will in effect change the face of legal casino gaming again. How will gaming management react to AI? Will it be viewed in the same vein as card counting? How will surveillance detect and monitor AI on the casino floor? However, most importantly, how will players or consumers react to AI? Will they view it as something positive and try to learn more about it, how it works, the benefits, and or the risks? Or will players view AI as something negative that will now put them in an unfair position when they visit legal casinos both land-based and online to gamble? Will they think that casinos can afford to develop and exploit AI to help guarantee that they will win more money from players? What else will change in the future that will impact casinos as we know them today?
The aforementioned array of remarkable thoughts poses a far more intriguing question: will gaming leisure industry ever be the same when (and if) robots or AI-computerized humans replace casino table dealers in table games, such as Baccarat?
Gaming leisure industry landscape ought to be drastically overhauled if that replacement is to be undertaken. Foundations of our concerns can be summarized as follows: firstly, if robots or AI-computerized robots who can perform human tasks according to the
In this chapter’s abstract, a hazy gaming leisure scenario has been depicted in the event of replacement of casino table dealers by robots or AI-computerized robots that can perform human tasks according to the
artificial intelligence( AI) and gaming: corporate social responsibility of gaming leisure industry is not a chimera and should be taken seriously or reputational damages may otherwise occur: beware of what you wish!
Moral boundaries regarding AI are to be set out for the sake of the long-term stability of gaming leisure. This very statement does not jeopardize the cardinal importance of AI and simulation in the context of empiric research, but quite the opposite, as abundantly shown in
Fiduciary duties and especially corporate social responsibility of gaming leisure industry are not a grotesque product of imagination. They actually exist. If they are to be disregarded by the very guardian that ought to hold them dear (casinos) reputational damages may occur. Conversely, moral hazard of gaming leisure industry shall not fall far behind.
How can one outline corporate social responsibility (CSR) [26, 27, 28]? CSR has been a trendy issue for many years now. Corporate social responsibility sprout (or quite simply, germinate) of the community’s and social groups’ expectations  that enterprises should not only care about short-term profits. Instead, enterprises must take appropriate actions to foster the well-being of the community in which they operate and make business with. Because most companies operate within the boundaries of human communities, they should also have social responsibilities that they are duty-bound or even compelled to fulfill [30, 31] – to make the world a worthier place to live in. Enterprises should perpend the impacts of their business activities on all stakeholders including their customers (casino patrons or high rollers), trade partners, employees, investors, and community at large. Needless to say, a vast array of enterprises view CSR as a way of surrender some prosperity to the community in which gaming leisure operates. Oftentimes, corporate social responsibility is ordinarily viewed as public relations. However, these conventional and long-established views of CSR are too narrowly outlined. While there is diffuse adoption of the concept due to societal pressure, many enterprises and people still erroneously lucubrate that CSR does not make good business sense. The fact is: CSR encompass much more than just the mere meaning of good business – it can be an apposite path to achieve a sustainable competitive advantage  for gaming leisure industry . A long-term imperishable competitive advantage (to be accurate: business sustainability) of the gaming leisure industry. To be clear-cut: a long-term stability of the gaming leisure industry in the forthcoming future. In this light, corporate social responsibility is inextricably linked not only to business sustainability but likewise with long-term stability of the gaming leisure industry in the forthcoming future.
Finding a balance between corporate resources, profit objectives, and social expectations is a key factor in CSR concept . It is not just about social responsibility; it is about socially integrating the operator’s values with societal values  – a delicate balance of values. Operators must realize that in operating a casino in Macau or elsewhere, they should find common values between themselves and the society.
These values become essential for business sustainability  – again, the aforementioned positive play and the creation of a healthy gambling environment, which means that gaming industry’s efforts to curb AI in table games should not be spared. Social responsibility of casino industry encompasses the economic, legal, ethical, and discretionary expectations that society has of organizations at a given point in time [37, 38, 39]. The CSR firm, for instance gaming industry, should strive to make a profit, obey the law, be ethical, and be a good corporate citizen .
Should gaming leisure industry fails to comply with their corporate social responsibility by replacing the human element (casino table dealer in table games such as Baccarat) aiming to boost house advantage, reputational damages may occur. What does reputational damage mean?
It means damages to the social image of the gaming leisure industry [41, 42] – these are “indirect patrimonial damages” [43, 44], as its occurrence may cause an effective downturn on casino’s revenues.
Reference to the indirect patrimonial damages means also reputational damages  of gaming industry  essentially relates to their reputation  – a precious asset when it comes to a long-term business sustainability. In these grounds, one can find plausibility of corporate social responsibility (CSR)  of gaming leisure that, if obliterated, might just give rise to a turmoil. Furthermore, ought to create “moral hazard” for gaming leisure industry.
In this scope, take the example of Canada. It is assertable that Ontario,
artificial intelligence( AI) and gaming: gaming leisure industry ought to uphold/comply with fiduciary norms or bear the costs of “ moral hazard”
AI architecture in gaming leisure industry has already been put in motion. One can straightforwardly confirm that in the ambit of Poker. AI and Poker make an exquisite alignment (or shall we say combination?) but it is also to some extent a new testing ground for intricate AI research. While producing computer agents that are apposite and prone (thus, able) to play poker, scientists face many appealing and perplexing problems, which need to be thoughtfully addressed and tested. One Russian software company has created a vast number of new artificial intelligences to play poker at a professional level. The Poker games include both
It is now crystal-clear that an unrelenting drive to excellence, aiming to bolster player’s skills in Poker, has already begun. An immediate question emerges: how long until this drive broadens its horizons to Baccarat or any other table games? Should not this unanticipated spree or race to capitalize benefits of cutting-edge technology such as AI be as equivalent as opening a Pandora Box in gaming leisure industry? Our assessment on this is adamant and very clear: should gaming leisure industry fail to take this issue seriously and accordingly take appropriate actions to prevent proliferation of AI in table games its moral hazard might surface as an outbreak of gambling-related criminality will darken this lucrative industry. Gaming leisure industry ought to step up and lead the way against proliferation of AI in table games. In order to achieve that gaming leisure industry ought to uphold fiduciary norms that are deeply ingrained in its corporate social responsibility.
Gaming leisure industry ought to abide to fiduciary norms deeply intertwined with their corporate social responsibility. Fiduciary norms are apposite to gaming leisure industry as its three main features bear striking resemblance with norms of contract, tort, and criminal law that are intrinsically connected with gaming leisure industry activity as a whole. Fiduciary norms are sharply linked to corporate social responsibility as gaming leisure industry ought to drive its focus to do no harm to the social community in which operates. One can forthrightly understand the grounds for this linkage. First, fiduciary norms impose deliberative requirements: they make specific types of demands on an agent’s deliberation in addition to her behavior. Second, complying with fiduciary norms requires a special conscientiousness, a corporate social responsibility consciousness. Living up to a fiduciary obligation depends not only on how gaming leisure industry behaves and deliberates, but also on whether she does so for the right reasons such as performing adroitly their corporate social responsibility for the sake of the long-term stability of gaming leisure industry. Third, fiduciary norms impose “robust” demands, which require the fiduciary to seek out and respond appropriately to new information about the interests of her beneficiaries (the whole community in which gaming leisure operates). As a result, our thesis is that fiduciary principles can be fruitfully applied to many domains of public law such as gaming law. A note in our use of the terms “fiduciary norms” and “fiduciary principles”: according to a definition of norms that we find appealing, every norm has both a normative element (that is, it is constituted by “normative principles”) and a
Failing to perform adroitly those fiduciary duties (that enshrines fiduciary norms and principles, as seen above), and foremost, its corporate social responsibility, as for preventing proliferation of AI in table games, originates gaming leisure industry’s moral hazard.
Moral hazard in the realm of gaming leisure industry lies in a simple question: what obligations do gaming leisure gaming have to perform in order to prevent or alleviate the suffering of others or to eschew disrepute to this lucrative business altogether?
When it comes to corporate social responsibility, the concept of “moral hazard” is one of the most prominent, and least well understood, of the cogent tools applied to these and other social responsibility questions. Whether the issue is related to products liability law, workers’ compensation, welfare, health care, banking regulation, bankruptcy law, takings law, or business law, moral hazard is a cardinal part of the law. From a law and economics standpoint, moral hazard sheds light about how things are and came to be as they are. Moral hazard is punctiliously related with moral boundaries that ingrain corporate social responsibility. The tandem between corporate social responsibility and moral hazard explains why moral boundaries ought to be outlined in the ambit of AI in table games: the long-term sustainability and stability of gaming leisure industry depends on whether this lucrative industry abides to its fiduciary duties to curb AI in table games.
The best way to portray the ubiquity of the moral hazard lens on corporate social responsibility in gaming leisure industry is to quote a well-known writer that described the “lesson of moral hazard” as follows: what moral hazard means is that, if you cushion the consequences of bad behavior, then you encourage that bad behavior .
Moral hazard encompasses a simple lesson: less is more. As for gaming leisure industry, less AI in table games is definitively more corporate social responsibility and a bullet-proof hope in the long-term stability of this profitable industry. Should AI door be wide open to table games, requirements for a perfect storm are met and gaming leisure industry might not be able to bounce back from its sequels.