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Understanding the Impact of Invalid Traffic: How Online Betting Companies Can Protect Their Ads and Drive ROI

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We are honored to publish this byline by Richard Metcalf, Director of Business Development EMEA, TrafficGuard. Make sure to let us know your comments below the article.

The global pandemic has undoubtedly caused a massive increase in the number of active users that gamble regularly. A global statistic from Casino.org suggests that almost 26% of the world’s population gamble, and the global gambling market is expected to grow from $76.79 billion to an impressive $127.45 billion by 2025, according to Research and Markets.

Betting companies are having to distinguish themselves in such a highly competitive and evolving market by investing in digital campaigns and using premium ad networks. However, many of these channels may not be properly equipped to deal with invalid traffic and ad fraud, and as a result, could be losing large amounts of money every day to fraudsters.

The level of financial and competitor growth within the industry has created a strong attraction from fraudsters, and gambling companies can fall prey with little to no knowledge this is even occurring. And, with the betting industry only saturating further, companies cannot afford to suffer from low ROI and poor campaign performance.

 

Understanding the Risk of Ad Fraud

The risks associated with virtual gambling are unfortunately heightened with such lucrative rewards on offer and many betting companies deploy protection to help minimise the risk of fraudulent transactions or unethical behaviour. However, there is a real lack of awareness around ad fraud within gambling, and many companies don’t realise the level of impact it’s having on them.

Ad fraud is any traffic that is maliciously created and used to target companies’ advertising budgets, and is a subset of invalid traffic, meaning any advertising engagement that is outside of the target of an advertising campaign.

Here are just some of the ways ad fraud is threatening your ad campaign:

  • Bots – Bots are programmed to emulate human behaviour and vary in levels of sophistication and can do anything from clicking and viewing ads to watching videos. Promo abuse bots that click on paid search ads and then run scripts to claim free bets or free spins are highly prevalent in online gaming. As these bots ‘convert’, delivering misleading marketing metrics, it means you are likely optimising campaigns using the wrong data and towards winning more bot traffic.
  • Browser-Related Fraud – For example, location fraud, which involves manipulating users’ location information to match the advertiser’s targeting criterion, and domain spoofing, when bad actors monetise the traffic from low-quality sites by manipulating the domains and making it appear to come from high-quality sources.
  • Misattribution Fraud – A large volume of clicks on both affiliate and mobile campaigns are faked from a mobile device, even though the user never clicked the ad. If a user with a similar fingerprint then visits the target website and installs the app, the spammer receives credit for the conversion/install and is paid commission.

In reality, the result of ad fraud is inaccurate advertising results and wasted budget. One globally-renowned online betting company that was running a Google Ads campaign found that 23% of its clicks were invalidated, which equated to 28% of its advertising spend.

Without any prior visibility or protection, 71% of the gambling company’s wasted spend was attributed to just one of its campaigns. If the company had the visibility and awareness it truly needed to be able to address the problem, there was an opportunity to save $115,000, a mixture of media spend and potential losses in bonus deposits.

All gambling companies that run Google Ads campaigns are equally as vulnerable as this online betting company, which makes it crucial for marketers operating within this industry to proactively put themselves ahead of fraudsters with increased visibility, accurate analytics, and real-time protection.

 

Protecting and Saving Your Budget

With confidence in your data and analytics, the saving potential for gambling companies is around 10%, 7% higher than that of other verticals. The solution to invalid traffic starts with knowing exactly how it is impacting your business, and how you can combat it. With trustworthy data that analyses every bit of traffic quality, you can easily make a business case to combat bots, browser fraud and misattribution.

With visibility into the scale of the problem, betting companies can then properly evaluate the right solutions and the partner needed to help solve it. Once you’ve identified a partner with the right skills, technology and expertise for you, they can make an immediate impact.

 

Elimination with Prevention

Ad fraud currently dominates many betting companies globally, but a change of hands is within reach. Luckily, stopping invalid traffic doesn’t have to be complex or costly. In fact, the money you save will almost always outweigh your investment into stopping it, ensuring you can focus solely on making new savings.

By combining proactivity with visibility, betting companies can make enormous savings and address invalid traffic with confidence and ease. With many betting companies globally only looking to scale their digital marketing further, now is the time to understand your advertising losses and prevent them to achieve maximum growth and success.

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IBJR hails App Store approval as a milestone in the fight against illegal betting in Brazil

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The Brazilian Institute for Responsible Gaming (IBJR) considers Apple’s decision to allow the distribution of regulated sports betting and online gaming applications on its Brazilian App Store a key milestone for the consolidation of a transparent and integrity-driven sector.

This measure strengthens regulation by making it easier for users to clearly identify operators that are duly authorized to operate in compliance with national rules.

Following Google’s decision, made less than a year ago, to authorize the distribution of sports betting apps on the Play Store in Brazil, this initiative acts as a powerful cybersecurity filter and helps protect consumers from the risks of the illegal market.

Since only operators licensed by the SPA are allowed to offer services to iOS users, the process of channeling traffic into the regulated environment is further strengthened.

However, for the measure to be fully effective, continuous enforcement is required, as several illegal apps can still be found on major platforms.

Data from Instituto Locomotiva, in partnership with LCA Consultoria, indicate that the illegal environment—much of it controlled by organized crime—moves around R$40 billion per year in Brazil and generates an estimated annual loss of R$10.8 billion in tax revenue.

In this context, actions that help distinguish legal operators from unauthorized ones are essential.

The presence of applications on both the Play Store and Apple Store reinforces the commitment to Responsible Gaming, as they integrate functionalities required by legislation and audited by the platforms.

These include strict age verification to prevent access by minors under 18, clear risk warnings related to gambling, and self-exclusion tools.

The post IBJR hails App Store approval as a milestone in the fight against illegal betting in Brazil appeared first on Americas iGaming & Sports Betting News.

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Black Label

Pragmatic Play signs Latam Agreement with Black Label

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 Pragmatic Play, a leading content provider to the iGaming industry, has strengthened its reach in the regulated Latin American market through a multi-product deal with platform provider Black Label. 

The partnership will see Pragmatic Play’s premium portfolio, including Slots, Live Casino, and Virtual Sports, integrated into the Black Label platform, enabling regulated operators across LatAm to seamlessly access the supplier’s content. 

Pragmatic Play titles, including multi-award-winning slots such as Gates of Olympus and Sugar Rush, as well as popular crash games like High Flyer and Spaceman, are now available to Black Label’s partners in the region.

 Black Label, a 360‑degree online gaming experience, serves as an end‑to‑end integration platform for launching or scaling online casinos.

Built with a deep understanding of Latin American players and offered in Spanish, it provides locally aligned solutions for one of the fastest‑growing regulated markets in the industry. 

Victor Arias, VP of Latin America at ARRISE, a global iGaming software and services leader and a key partner to Pragmatic Play, said

“Latin America remains one of the most dynamic and fast-growing regions in the industry, and partnering with Black Label allows Pragmatic Play to further boost its reach across the market.  

“Combining Pragmatic Play’s award‑winning content with Black Label’s locally aligned platform to support operators and players across the region is another positive step, and one that further cements Pragmatic Play’s status in Latin America.”

 Roberto González, general manager at Black Label, added: “Pragmatic Play is a globally respected supplier, and integrating its multiproduct portfolio is a major milestone for Black Label. 

“Our platform is built specifically for the needs of Latin American operators, and adding Pragmatic Play’s high‑performing content further strengthens the value we deliver to our partners.       

The post Pragmatic Play signs Latam Agreement with Black Label appeared first on Americas iGaming & Sports Betting News.

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Advanced Compliance Technology

Advanced Compliance Technology partners with the Soccer Federation of Rio Grande do Norte

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ACT has been selected to collaborate in building integrity programs of Brazil’s football leagues through its independent, real-time Sports Integrity monitoring technology and specialized education programs  to strengthen Brazilian Sports Integrity.

Advanced Compliance Technology (ACT), a leader in compliance, sports integrity and risk solutions for the global regulated betting and gaming industry, has entered a partnership with the Soccer Federation of North Rio Grande, a regional member of the national Brazilian Soccer Confederation (CBF).

The agreement signifies an important step forward in Brazilian football’s vision for the future as it adapts to the needs of the country’s new sports betting regulations, with an equal focus on safeguarding the integrity of competitions and protecting the athletes.

Under the agreement, ACT will conduct a comprehensive analysis of the current status of the leagues’ needs operating within Brazil’s emerging regulated market.

ACT will also deliver educational programs tailored to the Brazilian sports markets, drawing on its expert sports leadership team, who share decades of experience and who have identified some of the largest match-fixing incidents in the United States.

The ACT team will combine their knowledge of sports betting, insider trading, and specialized analytics to address the growing need for sports integrity monitoring across Brazilian leagues. This will include the application of advanced technology through ACT’s proprietary online monitoring platform, the only real-time technology of its kind that is independent from betting operators and trading services.

Susan Bala, Co-Founder and Director at Advanced Compliance Technology, and former Delegate for the U.S. Commerce Department in Central and South America said: 

“We are entering a new chapter in global sports with the introduction of legalised sports betting in Brazil. The country has an incredible and proud history in soccer, producing many of the game’s greatest athletes.

ACT is very pleased to collaborate with the leadership of the Soccer Federation of Rio Grande do Norte league in their mission to build a strong future through education and application of the most advanced technology solutions to safeguard the sport.”

Felipe Silva, Acting President of the Soccer Federation of Rio Grande do Norte, and José Silva, Vice President of the Brazilian Soccer Confederation, said: 

“We are extremely pleased to be working with ACT on this initiative. We recognise the importance of educating our athletes and protecting the sport we love. It is our mission through this work to contribute to the future success of Brazilian football.

About Advanced Compliance Technology (ACT)

Advanced Compliance Technology is a leading provider of regulatory technology solutions for compliance and integrity monitoring in the global betting and gaming sector.

ACT’s all-in-one platform delivers the most advanced technology tools to help leagues, operators and regulators meet their complex compliance requirements with an independent expert service and real-time performance.

The company’s technology combines advanced geolocation intelligence, identity verification, advanced anti-fraud mechanisms, sports integrity and behavioural analytics to prevent circumvention, strengthen market integrity and support player protection.

The post Advanced Compliance Technology partners with the Soccer Federation of Rio Grande do Norte appeared first on Americas iGaming & Sports Betting News.

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