Artificial intelligence (AI) has been revolutionizing various industries, from self-driving cars to manufacturing and medical. Now, it is making its mark on sports gaming. InPlay Innovation, an industry leader, is utilizing AI to set real-time lines and odds for in-play gaming, transforming the way sports gaming operates. However, the impact of AI goes beyond real-time odds, as it is also revolutionizing risk management in the industry.
Traditionally, sportsbooks and daily fantasy operators rely on human traders to manage risk. These traders monitor markets and adjust lines and odds based on their observations. However, this approach exposes operators to substantial risks. InPlay Innovation has taken a different approach by integrating machine learning and AI into its risk management strategy.
InPlay Innovation’s AI Trader is a cutting-edge technology product that employs AI to manage risk across all markets and games. Gianni Settino, CTO at InPlay Innovation, explains, “AI Trader handles individual markets and games to ensure that there is not too much risk on a particular market or game, and it adjusts those lines and odds automatically.” This automated response to market events in real-time is crucial in the fast-paced sports gaming environment.
AI Trader enables dynamic adjustments based on real-time events. For example, if there is a sudden surge of interest in the over for a particular market, AI Trader will automatically decrease the odds or adjust the line accordingly. Unpredictable factors like injuries or breaking news can have an immediate impact on game outcomes, and AI Trader can swiftly respond to such events.
it offers several advantages over traditional risk management approaches. Firstly, it can respond faster than a team of human traders across multiple games and markets. Secondly, it takes a holistic view of the company’s overall risk, ensuring appropriate risk levels are maintained. Additionally, AI Trader automates risk management, eliminating the possibility of human error or oversight.
The Future of Automated Sports Gaming
Similar to the development of autonomous vehicle technology, automated trading in sports gaming is advancing rapidly. With technological advancements, automated trading is progressing towards full autonomy, where minimal to no human intervention is required. In the case of AI Trader, it is already operating at a Level 4 autonomy, capable of managing risk independently and paving the way for a future where human involvement is further minimized.
The growth of markets and the speed of information dissemination make technology a superior option for managing risk compared to human traders. AI can process vast amounts of data, including emerging forms like computer vision data, enabling accurate and timely adjustments to odds and lines. As technology continues to advance, data quality will improve, enhancing the performance of algorithms and further augmenting the role of AI in sports gaming.
Their Innovation differentiates itself by building a full-stack technology company. AI Trader can play a pivotal role in managing risk across all markets, while the company also leverages AI to create its own lines and odds instead of relying solely on external sources. This comprehensive approach potential can ensure greater control and innovation in every core aspect of their business.
Private Equity and Venture Capital firms such as TPG Growth, Andreesen Horowitz, FGA Partners, Sequoia Capital and Greylock Partners have been making strides in the AI space with strategic investments, partnerships and acquisitions. This is a trend that shows no signs of slowing down.
With the rapid advancement of AI and increasing availability of diverse data sources, the future of automated sports gaming looks promising. As AI continues to evolve, sports gaming will become more efficient, dynamic, and tailored to the preferences of players and fans.
Technology/Digital Assets Desk