How TRUEiGTECH's AI-Powered Prediction Software Reduces Licensing Costs by 30%
Project Snapshot :
A U.S.-based sweepstakes operator facing a high licensing cost wanted to expand on various regulated platforms. They had an issue with delayed approval cycles due to manual compliance. Their previous association was dependent on a GGR model that reduced profits and caused them limited access to platform operations.
We deployed our AI-powered prediction software that automated compliance management, estimated approval outcomes, and identified regulatory inconsistencies before submission.
Due to this, we reduced their dependence on third-party VRM consultants and accelerated their licensing process.
The project helped the client to reduce manual checks and optimize their licensing cost by up to 30% with the help of our prediction model. We helped them attain full ownership over the codebase and customizable compliance structures. After launch, we also provided legal consultation along with guidance to regional compliance.
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Client Summary
The client is a well-known operator in the sweepstakes and iGaming ecosystem. They aim to expand their platform into various regulated states with strict licensing and compliance systems. Their focus is on quick scaling with controlled costs, along with improving profit margins. They want to offer players an entertaining and secure platform that meets their regional needs and serves a mobile-first experience.
Existing Challenges Faced by the Client
Before approaching TRUEiGTECH, the client faced several difficulties that slowed down their launch and strained their budget:- Increase in Licensing Costs: The client faced a rise in margins associated with previous companies. This happened because they offered revenue-sharing models.
- Increased Turn-around Time for Launch and Slow Licensing Process: The launch of the client’s platform was postponed by 4 to 6 months. Due to this, the client missed opportunities during high-demand seasons.
- Constricted Customization and Vendor Lock-in: Off-the-shelf platforms constrained the client in matters such as regional customization. The client also didn’t have any ownership of the source code, and thus could not scale independently.
- Inadequate Fraud Management and Weak Risk Mitigation: Other systems didn’t offer any kind of advanced fraud detection, which resulted in suspicious registrations and ineffective player defense.
- Poor Mobile User Experience: The clients faced issues with unoptimized mobile-friendly interfaces. This resulted in lags, weak responsiveness, and low trust from the players, eventually losing customers.
What Objectives did the Client Have When They Approached TRUEiGTECH?
While choosing TRUEiGTECH, the client had a clear set of goals:
- Reduction in Licensing Costs: Restrain the usage of GGR models and reduce compliance consulting fees via automation.
- Accelerated Market Entry: Launch time was requested in weeks, not months, and to align with the seasonal market demand for maximum profits.
- Ownership of Entire Platform: Gain access to the source code in its entirety. Full freedom to scale independently and customize.
- Conformity and Legal Assurance: Automation of KYCor AML processes. Ensuring approvals of prediction and passing licensing approvals on the very first submission.
- Integral Assistance: Providing support from concept to launch and assisting with ongoing compliance even after deployment.
- Upgrade in Security and Fraud Protection: Launch AI-supported fraud detection with continuous monitoring. To build a suitable environment for players to increase trust and loyalty.
User Persona
The primary users of the mid-sized online iGaming operator are mainly from U.S. markets, but are now expanding to parts of Europe. The average age of players on the platform ranges from 28 to 45 years, among whom the majority are looking for a mobile-based experience that can adjust to any operating system, delivering a smooth and secure gaming experience.
These players enjoy thrilling gaming platforms with adequate and immediate prizes. They want to be a part of a trusted gaming platform where they can track their progress and gain access to personalized offers and features.
Players are frustrated due to longer loading times and unoptimized mobile platforms, as it’s cutting out on their “ on the go” experience. Some players have lost trust due to fraud, malpractices, and weak security measures. Limited access to themes and localized customization makes it a bad experience, causing high churn.
Our Approach, Tech Stack, and Solutions
TRUEiGTECH mapped out the client’s existing problems, like postponed launch, poor customization, high licensing costs, and weak fraud protection. These were dealt with by first conducting workshops to get a picture of the primary business goals as well as the players’ needs.
The project was continuously monitored with client feedback at every step. They focused on solving the issues promptly and ensured adaptability. Prototypes were tested, and players’ responsiveness was observed.
As per the client’s request, the team integrated support for multiple languages, localized payment methods, and targeted compliance. The team also provided legal consultations on sweepstakes regulation.
Tech Stack
- Frontend: React.js
- Backend: Express.js and Node.js
- Database: PostgreSQL
- Cloud infrastructure: Docker, AWS, and Kubernetes
- Compliance and Security: Algorithms for fraud detection, and Player Account Management.
- Integrations: Dashboards with real-time analytics, loyalty program modules, and systems with push notification.
Team Composition
- 1 Project Manager
- 1 UI/UX Designer
- 2 Backend Developers
- 1 Frontend Developers
- 1 DevOps Engineer
- 1 Legal and Compliance expert
- 1 QA Analyst
- 1 AI Specialist
Development Methodology
We approach with an agile methodology with short sprints of 2 weeks. This allowed us to impose quick prototyping, frequent feedback, and steady gains. Collaborative workshops helped capture not only the business requirements but also the players’ needs. Our steady compliance integration embedded licensing validations, which saved a lot of time. Regular demos with the client kept both parties updated about meeting the needs and schedule of the launch.
Challenges Overcome with Innovations
- On-time delivery: Instead of taking months, we helped launch the client’s platform within 50 days.
- Market-specific customization: We provided tailored gameplay and design as the player demanded.
- AI-Powered predictions: Our AI-powered engines regulated market patterns and analyzed data, decreasing licensing costs.
- Anti-fraud measures: We provided the client with real-time fraud detection tools that monitored automated KYC/AML validations.
- Ownership of code: We eliminated the GGR model by ensuring full source code ownership, leading to long-term independence and scaling.
Results and Impact
Collaboration with TRUEiGTECH delivered transformative and immediate solutions to the client’s issues. We helped the clients launch within the next 50 days of collaboration with our extensive benefits and work plan:
Reduction of Licensing Costs by 30 %: The AI-powered software used by TRUEiGTECH automated all licensing checks and optimized the compliance workflow, which saved the client 30% in their regulatory expenses.
On-Time Launch: Our platform assisted in launching the project within 3-4 months compared to other companies. This allowed the client to enter the market early and increase revenue streams.
Increased Margins: Assisting the client to receive full code ownership by removing GGR modules resulted in an improved profit margin of up to 20% in the first quarter.
Improved Fraud Protection and Player Retention: Incorporating advanced anti-fraud detection reduced the number of such activities by 40%. This, in turn, also helped improve player retention, increasing the customer lifetime value by 50%.
The results positioned the client as a competitive participant in their targeted market, with cost-effective measures, scalability, and compliance. TRUEiGTECH not only helped the client resolve their issues but also helped them attain a stronghold in their department with continuous guidance and extensive work plans.
If you are also looking for such reductions in licensing costs, book an appointment with TRUEiGTECH immediately and build the best experience to launch your platform into the market!
