Top Trends Transforming the Gaming Industry

The Institute of Internal Auditors annual Gaming & Hospitality Conference was held last week in Las Vegas, Nevada. My first trip to Vegas and first time attending the conference left me with one major impression—the casino industry is changing as quickly as a game of blackjack can go south.

Technology is rapidly changing industries, and the casino industry is no exception. Millennials and Gen Z have grown up in a world filled with mobile apps and interactive video games and as a result, traditional brick and mortar casinos will be faced with increased pressure to adapt to attract the generations. Two areas casinos must focus on: exceptional client service and interactive gaming. Mobile Apps could provide instant connectivity to patrons, providing the ability to view player points, offers and loyalty benefits in real time.

Automation and digitalization of business processes is another change the industry is experiencing. Historically, casinos retain documentation manually, which is often stored in warehouses. Technology has provided the option to retain the required documentation digitally. Imagine the cost savings in the long run of eliminating the storage space used to house paper documents. Automation of Cage Banks is another process change expected in the future. Although the automation could aid in staffing optimization, a change in control procedures would likely be necessary.

Predictive analytics is making a debut in the casino industry. Utilizing predictive analytics to develop trends and predict customer behavior could ultimately guide decisions such as staffing optimization, customer offers and pricing. Predicting a patron’s future betting habits could prove far more beneficial than a historical analysis alone.

We’ve all heard the buzz around data analytics, but have you weighed the benefits for the casino industry? Data analytics can be used in numerous processes to increase value and efficiency. Compliance procedures are a key area to utilize data analytics. Data analytics allows for an entire population to be evaluated, potentially forming meaningful patterns. Management would be able to identify riskier gaming days, riskier slot games or even unusual patterns for a particular patron. Although a sampling approach is still effective in compliance testing, data analytics can add significant value.

And as changes in technology increase, we are never surprised to hear the term cybersecurity. Internal audit departments in the casino industry can expect major changes in their role, largely related to IT compliance. The day is coming when internal audit departments will have a big hand in ensuring the IT department is in compliance. Internal audit departments need to begin planning for additional training and resources needed to meet future compliance needs and aid in cybersecurity. In an effort to alleviate the cost of maintaining a specialist on staff, many casinos are shifting toward co-sourcing with a third-party to assist in IT and cybersecurity functions.

Rapid changes in technology can often mean outdated process controls. Companies should begin planning now to determine outdated or expiring processes and controls. A plan of action to replace or mitigate should be the next step. Change is inevitable, and casinos must transform to remain ahead of the curve and survive the change.

For weekly insights into enterprise, please sign up here: