Gaming - Investor Call Recap - Keeping an AI on Gaming

Research evidence excerpt

Gaming - Investor Call Recap - Keeping an AI on Gaming

versions perform 3x the floor average, while other variants perform marginally better

than floor average. A great example is the Buffalo franchise, which is a storied game that has covered over 20+ variants. Now, GenAI

can help create math models faster, or even personalize math models. For instance, one player may prefer persistence attributes but is

less animated by base-game win, while another is seeking jackpot volatility. GenAI can personalize the RNG components while keeping

return-to-player the same.

Further, the concept of persistence is under-utilized as a dynamic tool, with Mr. Peister seeing operators having an opportunity to enable

more complex/event-driven outcomes, personalized jackpots, and other new developments (such as 'leaderboard' competitions that have

enabled double-digit increases in adjacent segments.

Digital. By nature of the online industry, companies are comprised of tech-oriented people fostering an environment where AI is

a foundational tool rather than a bolted-on efficiency play. Thus, AI utilization in the digital space has evolved beyond basic offer

personalization, with operators now applying ML to trading, market making, risk management and other applications. This looks to be a

key area of structural margin expansion in the future as companies lean further into a tech-driven approach.

About Mr. Peister, Differential Labs and Hex Gaming. Mr. Peister is the founder of Differential Labs (Private), where he currently serves

as an MD/Analyst. Mr. Peister has previously held senior roles at major casino properties in Las Vegas, Macau and Australia, where

he either managed analytics or casino marketing departments (most recently the VP of Casino Marketing at Wynn Macau). Mr. Peister