What Risks Does Online Sports Betting Face from Big Data?

Big data refers to increasingly large and complex sets of data that are generated from various sources. The data sets involved are immense and require technologies far beyond the capabilities of traditional data processing to be able to handle it.

The storage, processing and analysing of computational power are phenomenal, but what is it that Big Data provides? It can be used by your local supermarket to help with factors like supply and demand to reduce wastage and cut losses, as well as break down and analyse areas like customer feedback to know where improvement could be made.

Big Data has many applications for things like predictive modelling and machine learning. It can operate behind the scenes in industries such as online gambling across sites listed at https://legalbet.uk/.

Here we look at some of the main challenges and threats that big data brings to the online betting industry.

Big Data And Online Betting

Online betting is one of the many industries in which businesses have embraced Big Data in an attempt to gain a competitive edge. Online betting platforms use it to analyse customer behaviour, preferences, and patterns.

The information collected via Big Data can be used to offer personalised recommendations, promotions, and odds to customers. But does it also pose some risks and dangers for online betting?

Does Big Data Present A Risk For Online Betting?

Big Data from online betting is collected from many diverse sources like computers and mobile devices. Everything that is performed on such a device involves the processing and transfer of data.

That data then gets recorded and stored away. Now imagine the size of the online betting industry and the millions of sourcing streams that feed into the datasets that are collected. Of course, it is not all immediately analysed on the fly, but by storing it, companies have the opportunity to perform deeper analytics with the datasets.

In the case of online betting, players have to legally provide personal details like name and date of birth, plus will link payment credentials like an e-wallet or debit card to a third-party site. There are two main points of risk factors that end-users will most think about when it comes to data. The first is the sharing of personal data and the second is the storage of that data.

Privacy and Security

Naturally, therefore, the main concerns with Big Data are privacy and security due to the sensitive information that is given out and then sitting in storage. If things like bet history, financial transactions and even location data are out there, the perception is that it then becomes valuable for hackers to go after.

The filing away of all such information immediately brings to mind famous data breaches that have hit major online presences like LinkedIn, Facebook, Adobe and Marriott International and rapidly play into fears.

Bias and Discrimination

Another potential challenge with Big Data is bias and discrimination because of the collected data. Another recognisable fear is that the datasets will separate customers into different groups, based on things like age, finances and their betting behaviour.

If bookmakers can tailor offers and experiences to individuals, it could lead to risk-based decisions, such as some customers being excluded from certain promotions or offers because of their age, gender, race, or location.

Big Data feedback could also be used to charge different prices or offer different odds to different customers based on their perceived risk or profitability.

Addiction and Harm

Leading on from the bias and discrimination concerns, it also raises a point about addiction, something that already poses a problem to some people in the gambling world. Online betting platforms use Big Data to increase customer engagement, loyalty, and retention.

That in turn can have a big influence on the behaviour and choices of individuals and their willingness to play because of those targeted nudges, incentives, and feedback.

Conclusion

Online betting platforms have to ensure that they have robust security measures in place to protect their data from unauthorised access, breaches, or leaks. Regulated and licensed betting operators have to comply with regulations regarding how they protect customers.

There is never just one side to technological advances. The same computational power and advantages that consumers fret about, can be put to use to protect them. Advances in encryption for example can strengthen payment security, as can authentication methods and customers’ privacy rights. Big Data can be used to detect fraud, prevent money laundering, and ensure compliance.

The natural inclination is to blame and fear technology when things go wrong. However, a 2020 Stanford University report suggested that 9 out of 10 data breaches were caused by human error. So end-users shouldn’t rely entirely on technology like encryption to keep them safe.

Due diligence on the simplest of things like creating secure passwords, using secure network connections and not sharing login credentials can go a long way towards boosting security.

Big data is a powerful tool that can help online betting platforms gain insights into their customers and improve their products and services. As long as there is a balance where risks and dangers are minimised, customers’ rights, interests, and well-being can be addressed.