I believe that if operators do not widen their player base, the industry cannot be both profitable in the long term and support the goal of protecting the consumer and society as a whole. The business model that overly privileges high rollers over more casual customers must end. We must fight against this trend while fostering the image of consumer protection 24/7 through the use of AI to ensure best practice. Juan Espinosa, Director General, Spain Directorate General for Gambling Regulation


and accidents. How do you ensure that AI is used solely for positive purposes?


IAGA


The International Association of Gaming Advisors (IAGA) will hold its 38th Annual International Gaming Summit June 4 - 6 at The Ritz Carlton Half Moon Bay in California


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In gambling, I understand that the objective of the operator is to make the business as successful as possible. However, this is a dangerous proposition if AI is optimised for this purpose. AI must not be used to manipulate the conduct of the customer in such as manner that they lose control. Tat said, I also believe that we need to make the case for AI that it can be a ‘friend and ally’ for the protection of the player, as opposed to simply being an anti-consumer tool.


I believe there is a case to be made for fostering a business model that shifts away from the current norm in which 70-80 per cent of business is generated from 30 per cent of the customers. To put it clearly, from a marketing and product standpoint, rather than create high intensity customers, we need to widen the player base by incorporating fun games that do not require a huge investment from the player, but can be sustained over time, much in the same


fashion as social gaming. Tis can only be achieved by shifting the business model and mindset of the operator. It will not be easy, but I believe that without such a move, the businesses will suffer in the medium term.


I believe that if operators do not widen their player base, the industry cannot be both profitable in the long term and support the goal of protecting the consumer and society as a whole. Te business model that overly privileges high rollers over more casual customers must end. We must fight against this trend while fostering the image of consumer protection 24/7 through the use of AI to ensure best practice.


Are operators voluntarily moving towards this goal?


Regulation can only extend so far. We must leave a margin for operators to explore their own corporate social responsibility goals. We must let the industry develop its own solutions to these problems. I do not believe that it is efficient to prescribe a restrictive regime. It is better to find a middle ground for regulators and operators in which social responsibility works for everyone, and to achieve this it has to be a joint effort. However, it would be naïve to neglect that clear enforcement signals by authorities in the event of lack of action from Industry do have a bearing towards moving forward. In Spain, we have specific experience where this has worked extremely well through a combination of industry input and regulatory guidance and surveillance. We have experience in this area and I am looking forward to sharing this with the audience at the IAGA Summit.


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