The Future of Sportsbooks: AI, Innovation, and the Human Touch - An Interview with Daniyar Imanbayev, Senior Sport Analyst at RISK.

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10 min
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Sep 24, 2024

Hello Daniyar! We're glad to have you here. Could you tell us a bit about yourself and your team? What is your department responsible for in the company?

Daniyar: Hello! I'm glad to be here too. I'm the Senior Sport Analyst at Risk. I have ten years of experience in the betting industry, starting my career as a Financial Markets Specialist. Currently, I'm part of the BPM team, which is responsible for business development using a data-driven approach.

My department specifically oversees sports-related aspects of our business. We understand that client preferences vary across different markets, so we ensure that our lineup is properly filled with all necessary sporting events and interesting outcomes. We determine which sports events to promote to engage clients and generate revenue. We also use an analytical approach to set the margins on coefficients for these events and outcomes to maintain our profitability.

What is a traditional Sportsbook? How did this field look until recently? How did traders work, and what tools were used for analysis?

Daniyar: A Sportsbook is a product, website, or platform (depending on how you refer to it) for accepting bets on sporting events. The betting industry as we know it today, with a vast number of live events, extensive outcome options, and live streaming, is relatively new.

I believe the main betting boom occurred in the late 90s and early 2000s, coinciding with the ability to accept live bets on events. Even then, live betting didn't look like it does now. Bookmakers offered only a couple of outcomes for live betting, which were available for half the match. The other half, outcomes were closed because bookmakers feared that clients (bettors) might outpace the trader.

Previously, to provide odds for a specific event, traders only used match statistics and calculated various probabilities. For example, in tennis, the foundation of the extensive range of bets available now is based on the probability of a tennis player winning a point on their serve. From these point probabilities, we derive the likelihood of winning a game, then a set, and finally the match, creating a probability tree of sorts.

Betting companies without professional traders simply copied (parsed) coefficients from larger "industry colleagues."

The industry is changing before our eyes thanks to innovations and new technologies. How and why has AI become such an important part of Sportsbooks? What are the advantages over traditional methods?

Daniyar: Currently, most top betting companies operate within the legal framework, giving players confidence that responsible gaming principles are being upheld.

Betting companies are trying to develop their products to suit their clients, make them as convenient as possible, improve service, and offer good odds. AI has become an important part of Sportsbooks. Coefficients are the most crucial component of sports betting. Traditional methods of calculating coefficients, based on statistics and probability formulas, are now supplemented by AI algorithms that can process much more data and cover a much broader range of statistics.

What tasks does AI help solve in Sportsbooks?

Daniyar: As I mentioned earlier, AI helps provide more accurate coefficients. Also, since AI can process much more data, it allows us to calculate probabilities for new and interesting outcomes and offer them to clients (for example, combined outcomes or outcomes based on the actions of a specific player in a team).

AI influences the personalization of bets for clients and makes their experience more individual. Let's talk about this.

Daniyar: Absolutely, AI allows us to personalize the product. Each of us, as a client of any product, wants to be treated not just as a consumer but also with care, making the product interaction experience as convenient as possible. Since there are so many clients, it's impossible to do this without AI algorithms.

AI can significantly improve the accuracy of predictions, benefiting both the company and clients. But sports betting has always had an element of chance and unpredictability, which is what makes it so exciting for many players. Where do you think the balance lies between automated predictions and the human element? Is the "soul" of betting lost when algorithms become too accurate?

Daniyar: Yes, you're right, AI can significantly improve the accuracy of predictions. There's always a kind of competition between betting companies and bettors. Some companies provide specific predictions for sports event outcomes based on their AI algorithms.

However, we shouldn't forget that all sporting events involve athletes - people - and we need to consider the human factor. This includes the moods of athletes, minor injuries that only the athlete might know about, personal concerns, and so on. For example, if we're talking about statistics bets in football or hockey matches, we need to understand that referees are also human and have their own moods.

Also, for outdoor sporting events, we need to consider weather conditions. Sometimes players can't adapt to changes - for instance, in tennis matches, wind can suddenly change the nature of the game, or in Formula 1, when it starts raining, the race can turn upside down.

Another factor is our emotions and preferences - everyone supports their favorite team. These human elements add an unpredictable aspect to sports that even the most advanced AI can't fully account for, maintaining some of the excitement and "soul" of betting.

What about the user experience? How does AI affect long-term customer loyalty? How do you work to maintain interest and complexity for experienced players when everything is being simplified?

Daniyar: The betting market is highly competitive, and long-term customer loyalty is crucial for us. 

We strive to balance the convenience and accuracy that AI brings with the excitement and challenge that experienced bettors seek. It's about enhancing the betting experience, not simplifying it to the point of boredom. We're always looking for ways to introduce new, complex betting options that challenge even our most experienced users.

What AI-based solutions have already been implemented or are planned at RISK? Are there examples where AI is already demonstrating its effectiveness?

Daniyar: We've implemented several AI-based solutions that are already showing great effectiveness:

1. We offer a wide line of sports events and live statistics, with a variety of outcomes. This is powered by AI algorithms that can process and update information in real-time.

2. We use AI algorithms in the fight against fraud, to detect and prevent fraudulent schemes, and to identify match-fixing.

3. Product personalization is another area where AI shines. Often, bettors place bets on 2-3 types of sports. For some, it's football/tennis/basketball, and these sports are usually at the top of the list and easy to find. But some bet on table tennis/badminton and beach volleyball, which are usually scattered throughout the list and require effort to find. We have functions that use algorithms based on client preferences to arrange sports in a certain order, as well as the arrangement of outcomes within a sporting event.

4. Our core approach to customer relationships is grounded in the principles of responsible gaming. We're currently working on using AI algorithms to analyze player behavior and identify certain patterns, and with the development and active implementation of these algorithms, we can now further strengthen and enhance this key focus.

AI allows for real-time decision making. How is this reflected in live betting, where odds change every second?

Daniyar: Live betting accounts for 85% of bets, and it involves a large number of sporting events. For comfortable acceptance of bets in live mode, AI is indispensable. Many different events can occur in a match - a quick goal, a goal cancellation, an accidental injury, a change in game format, insider information that professional bettors might possess, and much more.

AI algorithms of betting companies must be ready for all of this. The trader must have tools that allow processing the flow of bets on the events they're trading, tools for analyzing coefficients, ensuring they're not creating an arbitrage situation, and so on, to provide accurate coefficients.

AI brings many advantages, but it also raises questions about data privacy and security. How does RISK deal with these challenges?

Daniyar: Data privacy and security are crucial aspects of our company's operations. At RISK, we employ true professionals, and the servers where data is stored are reliably protected. We adhere to strict data protection regulations and continuously update our security measures to stay ahead of potential threats.

Despite the obvious advantages of AI, not all companies are rushing to implement it. Why, in your opinion, are some market players not yet ready for the mass use of AI in Sportsbooks? Could a slower implementation bring its own advantages?

Daniyar: Yes, I agree that not all market players are ready for the mass use of AI in Sportsbooks. I think it depends on the company's ambitions. There are betting companies that stay in their comfort zone, and that's enough for them. RISK is not one of those companies. Growth, development, and expansion into new markets are our core, which is why it's crucial for us to develop our product and our employees!

A slower implementation could potentially bring advantages in terms of learning from others' mistakes and fine-tuning systems based on observed results. However, in our fast-paced industry, being at the forefront of innovation is crucial to staying competitive.

In your view, what will Sportsbooks and betting look like in the future? What technologies or AI solutions will change the industry in the coming years?

Daniyar: In the future, I think Sportsbooks will offer an enormous number of outcomes related to statistics in sporting events. AI now allows us to process a huge amount of statistical information, as there are many subtle elements in sports.

Since AI is being developed not only by betting companies but also by services providing predictive data for bettors, I believe future betting will be a combination of emotions and a kind of battle of minds, where excitement will be combined with calculation and the thrill of smart bets, prioritizing responsible and enjoyable gaming experiences.

In the coming years, AI solutions will change the world of esports betting, as esports is still a developing discipline. Currently, AI algorithms are being used to study and understand certain nuances and important aspects of esports. Consequently, betting companies will have the opportunity to study more analytical data and provide clients with new outcomes and statistical data.

Which areas seem most promising for implementation at RISK?

Daniyar: I think one of the most promising directions is the further development of "responsible gaming". Many countries are now fighting against gambling addiction,  and we fully support these efforts. Developing this area ensures that betting remains a form of responsible entertainment, adding excitement and engagement to watching your favorite sporting event.

Another promising area is enhancing the emotional component of entertainment, particularly in esports. RISK's ambition is to provide the best entertainment to our users, and AI will play a crucial role in achieving this goal.

We're also looking into more advanced personalization features, predictive analytics for customer behavior, and potentially exploring the integration of virtual and augmented reality in our betting platforms to create more immersive experiences.

Thank you, Daniyar, for this insightful interview. It's clear that AI is revolutionizing the Sportsbook industry, and RISK is at the forefront of this transformation. We look forward to seeing how these innovations will shape the future of sports betting.

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We're about to delve deep into the core of what drives the Riskers. Just as our team charts the course for the entire company, it's the backbone of our team that steers us through these waters. So, let's dive into a sneak peek of the wisdom shared by our captain, Max Potomkin, CEO of RISK.
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How to thrive on the edge

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5 minutes
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December 27, 2023
High-risk businesses demand more from their leaders.
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What kind of tribe is the Risk.Inc team?

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6 minutes
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December 26, 2023
People shape and move any company. What brings professionals from around the world together under one roof? Shared principles and values.
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