Dynamic RTP and Volatility Management Using AI Analytics

About the Concept

Slots are classified by their theme, design, the number of reels and paylines, as well as the existence of additional functions and proprietary mechanics. However, several technical parameters also directly affect the profitability of iGaming products.

The key characteristics of digital slot machines include:

1. RTP (Return to Player). If, for example, the indicator is set at 96%, then, in the long term, casino visitors will get back 96% of the funds they deposited.
2. Volatility. This is the “risk level” of the slot. There are solutions with low and high dispersion. The first option is known for frequent but small wins, and the second — for rare but big prizes. It is also possible to install content with medium volatility, since, as practice shows, it is extremely popular with players.

Until recently, the mathematics of slot machines was “frozen”. Games had a fixed return percentage and a predictable level of variance. This approach helped providers plan the profitability of their casinos months in advance, but also made it unlikely to quickly respond to changes in audience behaviour.

In early 2015, manufacturers began to release video entertainment with flexible technical parameters. According to the developers (NetEnt, Microgaming, and Pragmatic Play), operators had to independently adjust volatility and RTP based on the characteristics of their startups.

In the 2020s, the idea of ​​dynamic control has advanced even further. Special AI systems that allow entrepreneurs to adapt the parameters of slot machines to the behaviour of customers in real time have appeared in the market.

How Artificial Intelligence Improves the Game

In classic iGaming solutions, RTP and variance are fixed and can only be changed by casino owners on rare occasions.

With the help of AI, the technical parameters of slots are no longer static:

• the system adjusts them to the profile of a specific user;
• the adaptation occurs in real time and without the provider's intervention;
• clients gain an individual experience that motivates them to stay on the website longer and launch new sessions.

Features of the AI Module

Artificial intelligence and machine learning algorithms help entrepreneurs automate several key tasks:

1. Data collection and analysis. AI processes the size and frequency of bets, reactions to wins or losses (for example, speeding up bets or leaving the game), and the duration of sessions in real time. Great attention is also paid to studying the use of bonuses, free spins, as well as the history of deposits and withdrawals.
2. Behavioural analytics. Based on the information received, the artificial intelligence-based model determines the probability of a client leaving the digital platform, the propensity of such a person to place new bids, and the customer’s sensitivity to bonuses, promotions, or push notifications. At this stage, the risk of developing ludomania and the necessary measures to prevent the disease are also identified.
3. Automatic parameter setting. After forecasting, the system makes changes that are invisible to clients. The program fixes RTP within acceptable values, adjusts volatility in accordance with the current expectations of players, and regulates bonus mechanics along with the frequency of special functions’ activation.

AI Implementation Scenarios

Let us consider how such algorithms control the features of slot machines:

1. RTP personalisation. For example, for beginners, the indicator can be slightly increased so that they win more often and stay on the entertainment resource longer. Experienced gamblers see the metric automatically returning to the standard value. It maintains the balance of profitability for operators.
2. Volatility’s flexibility. Casual bettors collect low-paid prize combinations more often than other categories of users, making them feel that they are having a “nice evening”. High rollers receive higher variance. Big wins occur less often, which fully meets the expectations of professional players.
3. Combined strategies. The system can automatically reduce volatility and increase RTP for a short time, if, for example, customers begin to get tired or lose. Such changes allow business owners to “moderate” an unsuccessful experience on an iGaming site and not lose regular visitors. If people start winning more frequently, the parameters return to normal, and the balance of payments is maintained.

Advantages of Dynamic Online Casino Management

The implementation of AI analytics in slot settings is not just a technological innovation but an important strategic tool. It directly affects the profitability and sustainability of entertainment projects, making them more flexible, competitive, etc.

Increase in the Audience’s Involvement

One of the main tasks of casino portals is to retain users. Most newcomers leave such virtual platforms after the first few sessions, especially if they fail to win or the gameplay seems too difficult.

AI algorithms adapt the parameters of slot machines depending on the current position of clients:

1. Beginners are offered content with a temporarily increased RTP and reduced volatility. Thanks to this, the probability of victories, a sense of luck, and a desire to return to the website again grow.
2. Experienced gamblers get rare but big prizes. As a result, their playing time increases, and the Retention Rate rises by tens of percent.

Higher LTV and ARPU Parameters

Lifetime Value and Average Revenue Per User are key metrics of any entertainment resource. Dynamic management of slot machine settings has a qualitative effect on these indicators, due to which the payback of gambling businesses also increases.

Content personalisation always increases LTV. Those players who see more winning moments on their screens are happy to make new deposits and return to the casino.

ARPU rises due to the growth in the duration of gaming sessions and the number of bets. Each bid becomes emotionally significant, due to which entrepreneurs get not just clients, but a valuable and involved audience.

Artificial intelligence algorithms can select slots with mathematics and mechanics that suit the style of users. This encourages them to try new products or modes and also directly affects the profitability of gambling brands.

Decrease in the Outflow of Players

The main reason for the departure of registered clients is a series of losses and a feeling of “bad luck”.

The AI system can smooth out such moments, thereby minimising customer churn:

• in the case of prolonged losses, the RTP rises, increasing the chances of winning and returning the interest of gamblers;
• in moments of fatigue, volatility becomes lower, and victories occur more often, which creates a sense of control.

Artificial intelligence algorithms track signals of possible departure (frequent pauses, decreased bids, closing the tab, etc.) and adjust the mathematics in real time. Thanks to this, people do not leave with a negative experience, but continue to play, feeling that there is always a chance to win.

Balance of Interests

An important aspect of dynamic management is maintaining the sustainability of the casino business.

iGaming portals do not “give away” extra money, but adjust RTP and volatility only within the specified rules. As a result, the profitability of entertainment projects is growing rapidly, as is the number of satisfied and maximally involved customers. Players get an honest and interesting experience, which builds their confidence in casino brands.

For regulators, the presence of a dynamic control system for slot machine parameters is a step towards a more transparent and safe betting industry, especially if such an AI program is supplemented with responsible gambling functions to monitor fraud and prevent the development of ludomania.

Legal Framework and the Position of Regulators

Let us consider how the leading government agencies interpret dynamic management of video slot metrics.

United Kingdom

The UK Gambling Commission is one of the strictest in the world, including in relation to changing the parameters of entertainment products:

1. Fixed RTP. The return percentage of each slot must be clearly stated and fixed. The indicator is displayed publicly, and its actual values are regularly checked by independent auditors.
2. Prohibition of hidden dynamics. Any changes to RTP in real time during a session are strictly forbidden unless they are approved in advance by the UKGC.
3. AI is limited by RG mechanics. Artificial intelligence can be used for responsible gaming, using such functions as detecting signs of ludomania, offering a timeout, or limiting the size of deposits.
4. Accounting and audit. Online casinos are required to provide regular reports on the actual RTP, matching the declared values. Inconsistencies can result in fines and loss of a licence.

European Union

The EU gambling regulation is considered more flexible than in Britain, but it is necessary to take into account the requirements of the AML directives and the AI Act:

1. Certified RTP profiles. Any change to the indicator must be based on pre-approved options (94%, 96%, 97%, etc.). Slots can only be switched between approved profiles.
2. Documenting changes. All possible scenarios are recorded and provided to the authorities and the test lab.
3. EU AI Act. Artificial intelligence-based systems that affect the financial behaviour of players fall into the High-Risk AI category. In this regard, entrepreneurs are required to provide an independent audit of models and protect customer data.
4. Responsible gaming. Particular attention is paid to the integration of special mechanisms that ensure an adequate attitude toward the placement of bets. These are limits, self-blocking, warnings about threats, and other flexible tools.

USA

Regulation in this country (in Nevada, New Jersey, Pennsylvania, and other iGaming regions) is focused on checking the technical parameters of slot machines:

1. RTP re-certification. Any changes to the metric require testing in accredited laboratories (GLI, BMM Testlabs, etc.).
2. Pre-approved profiles. Dynamic control is possible only within the framework of models that have been previously registered.
3. Transparency of switching schemes. Operators are obliged to demonstrate under what conditions and how exactly the RTP and variance are adjusted.
4. Focus on the fairness of the RNG. Changes should not violate the mechanics of the certified RNG or create the illusion of “fixing”.

Offshore Jurisdictions

Let us consider how the adjustment of slot machine parameters is regulated in non-domestic zones:

1. Malta. The DLT Sandbox Framework government organisation allows the use of new technologies, including dynamic RTP models and AI. The main condition is that all innovations must undergo sandbox certification, and each change should be displayed in logs, being available to auditors.
2. Curacao. Curacao Gaming Control Board obliges entrepreneurs to legitimise all game parameters, prohibits hidden RTP settings, and requires an independent audit. The regulator permits flexible changes to technical characteristics, but on the condition of full transparency and compliance with AML/KYC requirements.

Technology Development in 5–10 Years

The introduction of artificial intelligence in the gambling industry will inevitably lead to a transformation in the way slots are created and controlled.

Today, dynamic RTP and volatility management is an innovation available only in a limited number of jurisdictions. However, in the next 5–10 years, the market expects the mass implementation of customised slot mathematics. Neuroanalytics tools and new regulatory standards will play a key role in this.

Widespread Adoption of Personalisation

Individual experience will become the norm, not the exception:

• for example, for beginners, the system will increase RTP during the first sessions, creating the effect of a successful start;
• high rollers will be offered riskier options with an emphasis on rare but large wins.

AI will be able to determine the mood of users (growing irritation, fatigue, etc.) and adapt the game’s difficulty level.

The model based on artificial intelligence will also take into account deposits, as well as reactions to bonuses and promotions. All this will ensure full integration of AI and slot machine parameters with the habits of each client.

Interrelation with Biometrics and BCI (Brain-Computer Interface)

Neurogaming will be one of the most anticipated innovations in the next 10 years. It will allow entrepreneurs to analyse the physiology of players in real time and automatically change the settings of video slots based on the data obtained.

Biometric sensors (cameras and other wearables) will read:

• eye movement;
• facial expressions;
• pulse;
• the level of stress and attention.

Thanks to this, neural interfaces will be able to record emotional peaks and involvement, and artificial intelligence will instantly adapt RTP and volatility.

Certification of AI Models

Detailed reports created thanks to the technology will become a mandatory requirement for obtaining or renewing licences. Regulators will require detailed recording of all changes in return rate and variance, indicating the reasons for the innovations (for example, “an increased RTP by 0.5% to retain a beginning gambler”).

Independent laboratories (GLI, BMM, iTech Labs, etc.) will test AI models using the same principle as they currently test the random number generator. Besides, uniform standards for managing algorithms for the entertainment niche, similar to the EU AI Act, will appear.

The Main Things about Dynamically Changing Parameters of Slots

Key aspects that operators should take into account:

• The technology is based on automatic adjustment of the return percentage and variance using artificial intelligence. The program instantly changes the parameters of slot machines depending on the type of clients, their preferences, and the duration of sessions.
• The advantages of the approach include increased audience engagement, reduced customer churn, and increased trust in iGaming brands. The tool has a qualitative effect on LTV, APRU, and other KPIs of the entertainment business.
• The regulatory framework in the field of dynamic changes in RTP and volatility varies depending on the jurisdiction. The most lenient requirements for entrepreneurs are applied in Malta, Curacao, and other offshore zones. The strictest rules are in the UK and the US.

The studio’s unique system is presented in 3 basic versions: for land-based halls, desktop sites, and mobile devices. You can also order payment solutions, security software, and games from the best providers.