While casinos and gambling are banned in mainland China, the gambling establishments operating in the Chinese territory of Macau have been using artificial intelligence and facial recognition techniques to predict which players are willing to take more risks and are more likely to lose.
A report by Bloomberg reveals that casino operators in Macau “are starting to deploy hidden cameras, facial recognition technology, digitally-enabled poker chips and baccarat tables to track which of their millions of customers are likely to lose the most money.”
With the use of Artificial Intelligence and advanced algorithms, the casino operators study the ‘appetite for risk’ of each customer. As such, this helps the casinos generate more revenue as when more is wagered, the house wins more.
Macau is one of the hottest gambling destinations in the world, and using AI casinos are engaging secretly in customer profiling and are also putting the identities of customers at risk.
While the use of AI and facial recognition technology is not new at casinos, it has been used to recognize problem gamblers at casinos across the world and also for security measures.
The gambling revenue at Macau casinos has been taking a hit due to the slowdown in the Chinese economy. Earlier in April Macau recorded its most significant gambling revenue drop since June 2016.
The figures released by the Gaming Inspection and Coordination Bureau revealed that the year-on-year gross gaming revenue for April fell by 8.3 percent to 23.5bn patacas ($2.9bn).