Why Personalization Became the New Normal — And What’s Next with AI

The AI revolution is transforming the iGaming industry, driving rapid advancements in real-time game recommendations, behaviour-based promotions, and advanced player segmentation that are redefining how platforms engage and personalize experiences for players.

Introduction to Personalization

Personalization has become a cornerstone of the modern iGaming industry, transforming how online casinos engage with their players. As the sector continues to grow, the ability to deliver tailored gaming experiences that match individual player preferences is now a key differentiator. Today’s consumers expect personalized interactions at every touchpoint, and online casinos are no exception. By leveraging player data and advanced machine learning, iGaming platforms can craft personalized gaming experiences that not only foster deeper player engagement but also drive increased lifetime value. Personalized gaming is more than just a trend—it’s a strategic necessity that helps online casinos stand out in a crowded market, ensuring that every player feels seen, valued, and entertained according to their unique gaming preferences.

Where It All Started — The Early Days of Personalization

The late ‘90s marked the start of something big. Amazon pioneered large-scale recommendation systems, driven by a simple but powerful idea — use what people like to suggest what they might love next. Their iconic “Customers who bought this also bought…” feature wasn’t just smart; it was a game-changer. By 2006, 35% of Amazon’s sales came from these recommendations alone. For the first time, users felt like a platform knew what they wanted — or at least could guess.

Back then, personalization was mostly rule-based — if X, then Y. Limited data, limited processing power. But it worked because it introduced a powerful idea: people like feeling understood.

Personalization Gets Smarter — and Spreads Everywhere

By the mid-2000s, personalization was moving beyond products to content, search, and even social connections.

Google’s personalized search for logged-in users rolled out in 2005, expanding further by 2007. By personalizing search results, it made every query feel a little more like it "just knew" what you meant. YouTube’s early recommendation system evolved rapidly, shifting from simple views and likes to deeply analyzing watch time and engagement — driving over 60% of video clicks by 2012.

Social platforms caught on fast. Facebook’s News Feed, launched in 2006, transformed how we consume content — bringing the most relevant updates directly to users. Engagement skyrocketed. Pinterest, meanwhile, pioneered visual discovery, using image recognition to recommend pins based on what users were drawn to — not just what they searched for.

The Boom: Music, Social, and the Rise of Taste Profiles

From 2011 onwards, personalization wasn’t just a feature — it was the product.

In 2015, Spotify changed music discovery forever with Discover Weekly — a personalized playlist built just for you, refreshed every Monday. Behind the scenes? A proprietary algorithm analyzing billions of playlists to map cultural music trends and your unique taste profile.

Instagram shifted from a simple feed to a fully algorithm-driven experience around 2016, surfacing posts, stories, and even “close friends” based on how you engage.

LinkedIn brought the same logic to professional connections around 2011–2012 — turning “People You May Know” into a powerful networking tool that boosted connection rates.

Personalization Today: AI Takes the Lead

The last few years have been a turning point. Personalization, once rule-based and reactive, is now driven by LLM and predictive systems — real-time and incredibly nuanced.

TikTok’s algorithm, launched around 2018, set a new bar. It could understand your preferences within the first hour of interaction — something that took other platforms weeks. It wasn’t just good — it was addictive, forcing the whole industry to rethink how fast and how well AI could learn user behavior.

Other platforms followed suit. Snap’s Dynamic Stories in 2021 combined breaking news with real-time personalization. Anthropic’s Claude system (2022) personalized not just content, but the way AI interacted — adapting tone, style, and depth to each user. And OpenAI’s GPT-4o (2024) started to test persistent memory, allowing AI to learn and adapt over time — turning every interaction into a smarter, more tailored experience.

What Does This Mean for iGaming?

The evolution of personalization offers a clear takeaway for iGaming industry: user’s expectations have changed. Today’s people are used to apps and platforms that just get them. Having grown up in a digital world, they expect recommendations to be relevant, bonuses to match their behavior, and experiences that feel designed for them — not just the crowd.

The good news? AI has unlocked new ways to deliver that — in real time, at scale, without guesswork. Platforms that embrace it don’t just boost engagement and retention — they build loyalty. And that’s what keeps players coming back.

What started as a clever e-commerce trick is now a standard across industries. From Amazon’s product suggestions to TikTok’s For You page, personalization has redefined how we engage with digital experiences.

For iGaming, it’s no longer a question of if personalization matters — it’s about how fast platforms can put it to work. Because players know what personalized feels like — and they’ll stick with platforms that deliver it.

The Power of Personalization in the Gaming Experience for iGaming

According to Twilio’s 2024 State of Customer Engagement report, companies using AI to personalize experiences see up to a 54% increase in revenue. McKinsey’s research echoes this, showing that businesses excelling at personalization generate 40% more revenue than their competitors. The takeaway? Personalization works.

For iGaming industry, the opportunity is massive. iGaming operators are leveraging personalized marketing campaigns and personalized rewards to enhance player engagement and retention. Players aren’t just looking for games; they’re looking for experiences that feel uniquely theirs. McKinsey reports that 71% of consumers expect personalized interactions, while 76% get frustrated when it doesn’t happen. And in iGaming? Frustrated players don’t stick around — they’ll jump to a platform that gets it right.

Player Data Is the Key to Personalization Success

Both Twilio and McKinsey highlight a critical point: data is everything. It’s not enough to collect player data — the real value lies in how you use it. Twilio found that businesses capable of turning data into real-time decisions are the ones leading the pack.

Here’s where iGaming industry have an edge: they already have a treasure trove of player data. By analyzing betting patterns, detailed player behaviors, and spending habits, platforms can deliver experiences tailored to individual preferences. The challenge is leveraging that data to deliver personalized experiences that drive results — higher lifetime value (LTV), increased turnover, and greater player retention.

But here’s the paradox: while 81% of brands claim to deeply understand their customers, only 46% of customers agree. So, how can iGaming platforms embed personalization in a way players will truly value?

Role of AI in Personalization

Artificial intelligence is at the heart of effective personalization in online casinos. By harnessing the power of machine learning, iGaming platforms can analyze vast amounts of player data to uncover patterns, predict preferences, and deliver targeted promotions that resonate with each individual. AI-driven personalization enables online casinos to match individual player preferences with relevant game recommendations, personalized bonuses, lobby personalization and timely rewards, creating a truly unique gaming experience for every user. With the help of advanced AI tools, iGaming platforms can continuously optimize their personalization algorithms, ensuring that players always receive the most engaging and relevant offers.

Game Recommendations and Personalization

Game recommendations are a powerful way for online casinos to enhance the player experience and boost engagement. By closely analyzing player behavior, iGaming companies can offer personalized game suggestions that align with each player’s unique interests and gaming patterns. Whether it’s introducing new or similar games based on previous game choices, or offering personalized bonuses and loyalty rewards, these tailored recommendations help keep players engaged and coming back for more. Customized user interfaces further enhance personalized gaming experiences, allowing players to navigate content that matches their preferences.

At The Playa, We Make Personalization Simple for the iGaming Industry

At The Playa, we’ve made personalization easy. The Playa delivers tailored solutions for iGaming operators, addressing unique preferences and operational needs. Our AI-driven solutions analyze player data to deeply understand behavior, detect opportunities, and deliver personalized game recommendations and offers tailored to each player’s preferences.

Our secure, AI-powered technology ensures that players get the right content at the right time. The Playa has a proven track record in delivering personalized systems and working with industry experts to optimize personalization algorithms for scalable performance. Our AI-powered support teams provide enhanced customer support and personalized customer support, assisting players with onboarding, bet placement, and account setup. The Playa’s personalization engine caters to different player segments, such as casual gamers, and supports personalized experiences for sports betting enthusiasts. Our platform leverages machine learning to better understand and respond to player's preferences, personal preferences, and unique preferences, ensuring a truly individualized experience. The result? Higher retention rates, increased lifetime value, and a boost in gaming turnover.

Curious to see what The Playa can do for your platform? Schedule a demo today.