Systems manufacturers like Konami and Light & Wonder have long sought to add facial recognition to EGM’s and tables to solve the problem of uncarded play. Past efforts failed because of system costs and compliance risks.
But now, industry heavyweights are partnering with a startup, Xailient, to integrate a new kind of facial recognition AI that promises to solve the issues of uncarded play while preserving privacy.
Privacy-safe facial recognition uses Edge AI to match patrons and rate play, replacing player cards for loyalty and anti-money-laundering programs.
“Casinos finally get the benefit of being 100% carded without the cards,” said Xailient CEO Lars Oleson. “It’s seamless for the patron, cost-effective for the operator, and aligned with global regulators.”
Already operating in pilot programs overseas, U.S. casino operators can see the product at G2E in Konami’s and Light & Wonder’s booths.
Facial recognition and regulatory compliance
Facial recognition helps casino operators meet their regulatory obligations, such as U.S. Title 31 and similar requirements globally. Uncarded play introduces blind spots in anti-money-laundering checks and responsible-gaming programs. Floor staff are trained to watch for warning signs, but these operational processes are imperfect, Oleson said. Last year global regulators handed down $184 million in fines.
By integrating facial recognition into games, Xailient can provide near-100% carded equivalence. Casino management systems, such as Konami’s SYNKROS and Light & Wonder’s Engage, leverage patron tracking to enforce casino policies and trigger alerts. The combination reduces casino-operator compliance risks through improved automation and intelligence, Oleson said.
Decentralized approach meets privacy requirements
Edge AI is an industry term for artificial intelligence that operates inside devices, making it unnecessary to collect data. Edge AI works by sending AI to the user rather than data to the cloud. Devices then calculate their own result without disclosing data to servers. Going one step further, Xailient’s AIs are pre-installed and run on-device, so no internet is required at all. The upshot is compliance with new data privacy and AI regulations, such as CCPA, CAIA, and BIPA, and in Europe, GDPR, Oleson said.
Operators benefit beyond compliance
Eliminating card handoffs speeds up table play, reduces kiosk traffic, and eliminates the problems of lost or duplicate loyalty cards.
“Every player interaction on every machine and at every table becomes a source of loyalty insight,” says Xailient vice president of product, Mallika Patel. “The customer experience feels more intimate and less transactional. Instead of handing over a card every time, guests feel like, ‘You know me personally.’”
AI adoption trending
AI technology has rapidly evolved, enabling casinos to enhance their operations, improve customer experiences, and ensure compliance with regulations.
“The customer experience of the future is one where everyone feels like a VIP — known, welcomed, and protected,” Oleson said.
