2025 Top 7 Trends and Priorities for Casinos, Gambling & Lottery

The Challenge

The gambling industry is a target for cybercriminals amid underinvestment and high turnover.

With significant financial transactions and sensitive data being captured, the gambling industry is a prime target for cybercriminals. The sector's vulnerability is amplified by chronic underinvestment in cybersecurity and high staff turnover, which hinders consistent security practices. Additionally, there's often a reluctance to implement additional security measures because they may disrupt seamless patron transactions.

Why It Matters

Data breaches impact financial stability and brand reputation.

Nearly 31% of organizations across the hospitality sector have experienced data breaches (Cyber Magazine, 2023), leading to significant financial losses, as seen when MGM Resorts International faced a $100 million impact on its third-quarter results in 2023 (Cybersecurity Dive, 2023). These incidents expose sensitive customer data such as Social Security numbers, negatively impacting brand reputation and causing long-term effects in a highly competitive market.

The Solution

Develop robust security protocols

Implement advanced security measures that can effectively protect against cyber threats while ensuring minimal disruption to customer transactions. By establishing strong security practices, the industry can better safeguard sensitive data and maintain customer trust.

Consistently train staff

Implement regular training programs to ensure employees are aware of the latest security practices and can effectively respond to potential threats. This helps create a security-conscious culture within the organization, reducing the likelihood of breaches caused by human error.

The Challenge

Adopt advanced technologies.

Labor shortages and rising costs pose significant challenges for the gaming industry, making it increasingly difficult to maintain success and resilience in the market. Embracing technological advancements is crucial for automating and autonomizing processes to address labor gaps, control expenses, and enhance workflows. However, overcoming the industry's challenges with change management and culture remains essential for achieving these goals.

Why It Matters

Leverage the game-changing impact of the technological revolution.

Cutting-edge technologies like robotics, AI, and the Internet of Things are a game changer for the industry. These advancements are pivotal in elevating the patron experience to new heights and boosting operational efficiencies, with potential improvements of up to 15%, according to the American Gaming Association. Beyond operational benefits, this strategic move positions the organization for success in an ever-evolving landscape.

The Solution

Automate and autonomize processes

Integrate advanced technologies into organizational processes to transform operations. This automates routine tasks and autonomizes select IT operations and business capabilities, enabling competitive advantages to sustain the business while simplifying repetitive processes for staff.

Enhance staff experiences

Leverage technology to enhance staff experiences, allowing employees to focus on higher-value tasks and improving overall job satisfaction. This boosts productivity and retains talent in a competitive market.

The Challenge

Meet the demands of a mobile-first generation.

Evolving consumer expectations, technological advancements, and digital business models are shifting the industry's path to success. Digitalizing and integrating experiences with mobile technology is now a necessity, not just a nice-to-have. This is crucial to meet the demands of over 3 billion smartphone users, especially younger demographics that show little interest in the gambling industry. However, meeting these demands is challenging due to the typical legacy environments in which most gaming environments operate.

Why It Matters

Innovate or fall behind.

Implementing digital-first experiences is crucial as the industry's significant growth highlights the increasing importance of digital interactions. With 81% of patrons seeking digital customer service from resorts (Hospitality Net, 2023), blending in-person and digital experiences can enhance service efficiency. Additionally, leveraging data from customers' digital footprints allows businesses to target new customer segments and drive revenue growth in this rapidly evolving industry.

The Solution

Integrate digital ecosystems

CIOs must lead the co-ownership of digital transformation by integrating digital ecosystems. This involves modernizing operations and enhancing customer experiences through technology. Establish a seamless connection between physical and digital platforms.

To meet the demands of a mobile-first generation, operations must be modernized. This includes updating legacy systems to support digital interactions and ensuring that all technological advancements are seamlessly integrated into existing workflows.

The Challenge

Overcome technology and skills gaps.

Not all organizations currently have the necessary infrastructure and expertise to adopt AI and machine learning (ML), making it challenging to prioritize their use. Additionally, fostering a culture of co-ownership across departments to enhance operations and create a customer-centric approach, is difficult in a legacy operating model.

Why It Matters

AI plays an essential role in modernizing gaming operations.

Integrating AI and ML is crucial for staying competitive and driving innovation in the industry. Over 80% of casino operators plan to increase their investment in AI technologies within the next five years, highlighting the importance of these technologies and refining business strategies to harness these technologies and use cases for business growth.

The Solution

Cultivate a culture of co-ownership

To fully harness the power of AI and ML, CIOs must cultivate a culture of co-ownership throughout the organization. Promoting a collaborative approach to AI and ML opportunities ensures that all departments are aligned and working toward common goals.

Invest in AI and ML solutions

Develop the necessary infrastructure and expertise to support advanced technologies and strategically invest in AI and ML. By doing so, organizations can modernize their operations and stay ahead of the competition.

The Challenge

Address the data management dilemma.

The effectiveness of hyperpersonalizing guest experiences relies heavily on the quality, volume, and availability of data. Investing in robust data management infrastructure is critical yet often not prioritized within the industry, causing siloed and unusable data.

Why It Matters

Unlock loyalty and profitability through data.

Data-driven organizations are much more likely to acquire and retain customers and be more profitable. Investing in robust data capabilities is essential for driving AI-enabled hyperpersonalization, which improves the guest experience, loyalty, and lifetime value. Additionally, predictive capabilities can be enabled to customize marketing strategies, optimize service delivery, and increase cross-selling and upselling opportunities.

The Solution

Ensure data accuracy and accessibility

Invest in data capabilities to ensure data accuracy, accessibility, and security, as well as appropriate use. This allows organizations to leverage data and advanced technologies to tailor services to individual preferences and predict patron behavior in real time.

Leverage advanced technologies

Enhance data management practices by implementing AI and ML to analyze data and provide insights that drive hyperpersonalization.

The Challenge

The role of the CIO is becoming commoditized.

Traditionally, CIOs are responsible for enhancing efficiencies, innovation, and financial performance in IT and technology. However, the CIO must progress into playing a more central role in driving strategic growth and digital innovation before the role of CIO is commoditized and replaced by other organizational leaders and vendors.

Why It Matters

Secure the future by preparing today.

For CIOs aspiring to transition into roles such as chief digital officer (CDO), COO or CEO, it's essential to develop a strong synergy between the business and IT. This involves deeply understanding the business and its key value outcomes, which is vital for driving success and securing your position within the organization.

The Solution

Cultivate a collaborative culture and transition to a CxO

The effective management of CxO relationships and an outcome-focused IT culture is crucial. Developing strategies that align with business objectives enables profitable and effective outcomes. This approach has led to CIOs moving into roles such as CDO, COO, and CEO.

Develop a formal digital business strategy

Create a formal digital business strategy that aligns IT capabilities with business objectives to identify profitable digital opportunities and ensure that IT initiatives support the overall business goals.

The Challenge

Avoid cost overruns and delays in construction chaos.

A high percentage of construction projects experience cost overruns or delays, where the owner is faced with issuing construction change orders, impacting the budget, timeline, and original design blueprints.

Why It Matters

Neglecting early IT involvement derails construction projects.

The CIO is a key stakeholder in every construction project, from integrating the latest technologies with business objectives and physical building design to upgrading IT infrastructure. However, the lack of early involvement from IT leads to inefficient project management processes, cost overruns, change orders, potential issues, and more.

The Solution

Assume the role of an owner representative

The CIO must assume the role of an owner representative, ensuring technology integration aligns with the project's objectives and the owner's goals. This involves advocating for the owner's technological interests and coordinating communication between the owner and key stakeholders.

Align technology solutions

Effective communication between the owner and key stakeholders is essential for aligning technology solutions with construction objectives. Ensure that all parties are on the same page and that technology integration supports the project's goals.