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As eSports become more popular, time for the industry to get real about security

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Police in Ukraine recently seized 3,800 PlayStation 4 consoles, which currently retail for around 290 each, and found to their surprise that the operation wasn’t mining cryptocurrency as they assumed but was in fact being used to generate content packs for FIFA Ultimate Team, a popular game mode in the FIFA football series.

The raid and its results underline a fact that may escape more traditionally minded members of the gaming community: eSports is a major industry, and like any industry it is susceptible to fraud. The fact that the games themselves take place virtually is irrelevant to fraudsters who can use the familiar toolkit of multi-accounting, bonus abuse and affiliate fraud to earn thousands.

With many sports teams unable to play throughout much of 2020 and 2021, eSports grew massively. League Championship Series (LCS), one of the largest eSports leagues, became the third most viewed professional sports league amongst 18-34 year olds in the U.S and has retained its corporate sponsors at a time when other leagues were shut down. Success stories like these are blunted by how pervasive eSports fraud is,

So, what kinds of fraud are taking place in eSports, what is it costing eSports organizations and what can be done to stop it?

What kinds of fraud are possible in eSports?

eSports attracts very similar types of fraud to regular sports betting, including:

  • Bonus Abuse: Like other sports betting companies, eSports companies often give sign-up bonuses such as free bets to new players. By coding automated systems, a fraudster can sign up to hundreds of accounts and use the free bets to win real money. This can cost gaming companies up to 15% of their revenue.
  • Multi-accounting: Similarly, a fraudster can use multiple accounts to perform other types of fraud, such as matched betting, ‘smurfing’ or arbitrage of affiliate fraud.
  • Affiliate Fraud: Those eSports betting organizations that draw in some of their new players from affiliates are vulnerable to affiliate fraud in which an affiliate creates fake accounts to gain the pay-out.
  • Account takeover: Using lists of passwords from data breaches, keyloggers or phishing a fraudster can gain access to a player’s account and drain their funds.
  • Chargeback fraud: A player, who may be a legitimate gamer and not a professional fraudster, initiates a chargeback on a transaction. This is common in gaming when gamblers regret a bad bet and claim that their account was hacked.

The costs of eSports fraud

Fraud costs have a way of snowballing, with each $1 lost through fraud actually costing companies $3. The above techniques are hardly equivalent to the major data breaches of major banking and tech companies that cost on average $3.86 million, but the constant barrage of low-level frauds can soon drain your company’s security budget. Aside from the cost of the fraud itself, there are a number of hidden costs such as:

  • Chargeback losses: Investigating and disputing chargebacks will take up your risk team’s time, leaving them little time for more valuable activities. More worryingly, a company with a large number of chargebacks is likely to find it difficult securing credit or loans. Visa and Mastercard’s resolution processes are making things even more difficult for merchants, so you are likely to lose even more.
  • Affiliate budget waste: You could be paying for useless clicks from bot networks rather than legitimate customers, wasting your marketing budget and reducing overall ROI.
  • Reputational damage: Once word of mouth spreads about customers losing the entire bank accounts to account takeovers it will not be long until players start deserting your site.
  • Regulatory fines: The regulations around eSports are not as stringent as with other sports betting, but it will not be long before they catch up. With the industry growing it will not be long before countries put regulations in place to protect players, and without stringent security your company could be fined.

The solutions

You will notice that the majority of the types of fraud common in eSports have to do with fake accounts. These are easy for fraudsters to create using the wealth of publicly available data and leaked information, but fortunately artificial intelligence-based tools have been developed that allow companies to spot synthetic identities.

Through device fingerprinting, email profiling and IP analysis a complete picture of a new signup to your site can be created, allowing software to spot the tell-tale signs of a hastily created account. For example, it could find that an email address does not match any social accounts, or that they use VPNs and data centers to conceal their IP address.

Of course, a sophisticated fraudster could create a convincing fake identity, especially with the wealth of information available from data dumps, so modern technology can also spot the use of pre-paid credit cards or even the speed with which information is entered, which could indicate it is being filled in automatically by a script.

By combining data points from a large and ever-growing set a system can determine whether it is likely that any given new account is fraudulent. For the many cases in which it will not be fully clear whether an account is authentic or not adaptive Know Your Customer checks can be used – customers with several red flags will be given full tests to determine their identity whereas other customers will have less obtrusive tests for a smoother site experience.

eSports has gone from a niche concern to an Olympic sport in a few short years, and that success is going to attract fraud, so it is vital for the industry to pre-emptively defend against fraud by adopting the very highest levels of security.

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ANJL challenges Rio Grande do Sul law banning lottery advertising in court

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The National Association of Gaming and Lotteries (ANJL) is challenging, in court, Law No. 16.508/2026, enacted in the state of Rio Grande do Sul, which bans lottery advertising in the state.

The entity has filed a Direct Action of Unconstitutionality (ADI No. 7971) before the Federal Supreme Court (STF), arguing that the state law interferes with matters under federal jurisdiction, particularly by imposing restrictions with direct effects on broadcasting activities and on the placement of advertising in media outlets regulated at the federal level.

The central issue in the dispute goes beyond the lottery market.

The controversy primarily concerns the limits of state authority over advertising content broadcast on radio, television, and other media subject to nationwide federal regulation.

By establishing a broad advertising ban, the state law creates practical obstacles for broadcasters, media outlets, agencies, and operators acting in compliance with federal legislation, generating legal uncertainty about which messages can be transmitted, through which channels, and under what conditions.

According to the association, the state restriction also creates a significant regulatory issue: by preventing advertising from companies authorized and supervised at the federal level, the law reduces the communication capacity of the legal market without effectively addressing illegal platforms operating outside the regulatory framework and ignoring public authority restrictions.

In practice, the measure may shift the debate away from consumer protection toward a generalized restriction on communication, with direct impacts on broadcasting and on the freedom to advertise lawful products.

For ANJL, responsible advertising is an essential tool to differentiate licensed operators from illegal websites.

It is through advertising that consumers can identify regulated companies, protection mechanisms, official channels, and responsible gaming practices.

A broad ban, on the other hand, tends to create asymmetry: while legal companies lose the ability to communicate through formal and auditable channels, unlicensed operators continue using aggressive, unregulated strategies often aimed at vulnerable audiences, without any state control.

The post ANJL challenges Rio Grande do Sul law banning lottery advertising in court appeared first on Americas iGaming & Sports Betting News.

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Flutter Brazil brings Betnacional and Betfair in Copa do Nordeste to promote Responsible Gaming

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The semifinal clash of the Copa do Nordeste between Sport Recife and Fortaleza, taking place on May 20 and 27, will feature Flutter Brazil’s brands in a joint activation aimed at reinforcing the commitment to safe entertainment and player protection.

Flutter Brazil, the group that operates Betnacional and Betfair, will promote the “Flutter Brazil Game” during the semifinal ties, with Sport Recife,  sponsored by Betnacional, facing Fortaleza, which will feature Betfair’s spot sponsorship for the decisive stage of the regional tournament.

Beyond the on-field competition, the initiative will serve as a platform to amplify messages around Responsible Gaming, balance, and safe entertainment in the betting sector.

The initiative reflects Flutter Brazil’s strategic goals for 2026, focused on brand building, reputation, and the consolidation of a transparent and responsible operation aligned with Brazil’s regulated market framework.

Controlling two of the sector’s leading brands in Brazil, the group recently marked its first year of operations in the country, combining local expertise and regional management with Flutter Entertainment’s global scale and governance standards.

Flutter Brazil emphasizes that responsible entertainment is a non-negotiable pillar and defines betting strictly as a recreational activity, not a source of income.

“The Flutter Brazil ecosystem was built with the purpose of raising standards of integrity, safety, and responsibility in the Brazilian betting environment.

By integrating Betnacional and Betfair sponsorships in a moment of high visibility and regional relevance, we reaffirm that responsible play and balance are not just messages, but part of our operational philosophy and communication DNA,” said Álvaro Garcia, CMO of Flutter Brazil.

Reinforcing its Responsible Gaming agenda and in line with local regulation, Betnacional has developed awareness and player protection initiatives, including the “Play Like a Senior” campaign featuring Vinícius Júnior, focused on safe entertainment practices.

The company also partners with institutions such as IBJR and EBAC, actively contributing to education, prevention, and player support initiatives.

To ensure safety, Flutter Brazil continuously invests in technology, education, and consumer protection. Its platforms offer configurable tools throughout the player journey, allowing users to set deposit limits, loss limits, session time limits, and self-exclusion options.

The Sport Recife vs Fortaleza activation also reinforces how regulatory progress has increased sector maturity in Brazil, highlighting the importance of operators committed to transparency, innovation, technology, and responsibility.

Flutter Brazil is one of the largest betting ecosystems in Brazil, formed by the merger between NSX Brasil (owner of Betnacional) and Flutter Entertainment, a global leader in the sector and owner of Betfair.

With Brazilian-led operations, the company combines advanced technology with deep local market understanding, promoting a safe, transparent, and responsible entertainment experience. Flutter Brazil also maintains a strong partnership with the Brazilian Institute of Responsible Gaming (IBJR).

The post Flutter Brazil brings Betnacional and Betfair in Copa do Nordeste to promote Responsible Gaming appeared first on Americas iGaming & Sports Betting News.

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Alea returns to NEXT.io Valletta with Alexandre Tomic joining key industry discussions

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Alea is returning to NEXT.io Valletta from May 26th to 28th, with Founder Alexandre Tomic taking part in several sessions focused on leadership, regulation, and the future direction of the iGaming industry.

The week begins on May 26th during NEXT Focus: Start-Up & Investor Day, where Alexandre will join the panel “Founders Anonymous – The Conversations That Don’t Make the Press Release.” The discussion will focus on the realities behind building companies, from fundraising and acquisitions to the difficult decisions founders face as businesses grow.

On May 27th, Alexandre will also moderate “The Day the Lights Go Out,” an interactive keynote built around a simulated regulatory crisis scenario, challenging industry leaders to react live to the sudden shutdown of major markets.

Later that day, he will present “The World Under One Lens,” a keynote exploring how behavioural data at an aggregator scale is reshaping the industry’s understanding of player behaviour, game performance, and global market trends.

Beyond the conference stage

Alongside the conference agenda, Alea will once again sponsor the Ice Bath & Yoga/Breathwork session on the morning of May 26th, led by world-record open water swimmer Neil Agius.

The session has become one of the more unique traditions surrounding the event week, giving attendees a slower start before the pace of the conference takes over.

That same evening, Alea and NEXT.io will host an exclusive CXO dinner at Contessa Restaurant inside The Phoenicia Malta, where selected industry leaders will meet for an evening of conversation, vegetarian dining, cocktails, and live music ahead of the conference opening.

Supporting the Malta community

To close the week, Alea will also attend the BGaming Charity Gala on May 29th in support of DAR Bjorn, the Maltese neurological home founded by ALS advocate Bjorn FormMosa.

I came to the DAR Bjorn gala last year not knowing very much about Bjorn or the foundation. And then I saw him there, in his bed, while we were all standing on our two legs having a good time. That changes you.

You can’t unsee it. We take so much for granted, the body working, getting up in the morning, walking across the room. Bjorn is fighting for all of that and still showing up. I’m coming back because I believe I have to. If you’re in Malta that week and you’re on the fence, come. There’s something about that room that stays with you,” said Alexandre Tomic, Founder of Alea.

Representing Alea in Malta will be Alexandre Tomic alongside members of the company’s Business Development, Partnerships, Account Management, and Marketing teams.

Event Schedule

  • NEXT Focus: Start-Up & Investor Day – May 26
  • NEXT.io Valletta – May 27 & 28
  • BGaming Charity Gala – May 29

About Alea

Alea is a leading iGaming aggregator, offering a customizable platform that provides operators worldwide with seamless access to over 23,000 games from 170+ top-tier providers through a single API integration.

Known for its innovative technology, Alea simplifies the integration journey and delivers a flexible, scalable solution designed to enhance game variety, player experience, and operational efficiency.

Alea is highly committed to a security-first infrastructure, ensuring reliability and trust at every level. In 2024, the company strengthened its cybersecurity framework through a strategic partnership with Continent 8 and achieved VAPT certification.

In addition to game aggregation, Alea has introduced Alea Pay, an exclusive payment gateway that further optimizes financial transactions. With a strong focus on security, compliance, and ongoing support, Alea continues to empower operators with cutting-edge tools to thrive in the evolving iGaming market.

For more information, visit www.alea.com.

The post Alea returns to NEXT.io Valletta with Alexandre Tomic joining key industry discussions appeared first on Americas iGaming & Sports Betting News.

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