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Understanding the Impact of Invalid Traffic: How Online Betting Companies Can Protect Their Ads and Drive ROI
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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The slow death of grey markets in Europe and the increasingly clear line between regulated spaces and the black market is set to divide the entire industry in two, including suppliers.
With almost all major European markets having adopted or being well on their way to enacting a full licensing regime for online gambling, the battle lines between what is on- and off-shore are clearer than ever.
For those nations that persist with restrictions on some sectors, like the continued monopoly in Norway or France’s ban on online casinos, it’s becoming nearly impossible to justify doing business in spite of these prohibitions – even for suppliers.
Regulators in the rest of Europe increasingly expect their licensees to follow not just their rules, but those of their fellow authorities across the continent.
Where once expectations of good behaviour were reserved exclusively for operators, B2B companies are now subject to the same scrutiny.
For the past few years, there has been a general building of pressure on suppliers, but this year B2B compliance has moved from a growing trend to become the status quo for the sector.
Where do you stand?
The industry is being asked to pick a side and even to play the role of regulator itself, in some cases.
“We understand that at least one piece of recent B2B regulatory enforcement [in the UK] may have come as a result of a B2C operator effectively reporting one of its suppliers,” said Andy Danson, the head of Bird & Bird’s international gambling practice.
It’s becoming clear that a meaningful percentage of operators have fully bought into the idea that those who continue to exist in European black or grey are threats to their bottom line.
Speaking on a recent webinar organised by his firm, Danson added: “There is an increasing use of commercial pressure and accountability alongside regulatory enforcement, and there is this growing expectation that licensed businesses consider who they support.”
Danson notes that, in his view, the burden on operators to self-police their industry is probably becoming too large.
“How much can a regulator really expect B2C licensees to regulate their suppliers? It is ultimately the regulator’s job to do that, and B2C really should be able to rely on their suppliers having a local license.”
This backwards pressure is also being exerted on suppliers in jurisdictions where they are required to obtain their own licenses.
Regulators expect suppliers not to sell their content to operators who service their local black market and look dimly on supplying companies active in illegal markets in any part of the world.
Gone are the days when these authorities would accept the excuse that aggregators are ultimately responsible for providing game content to these offshore operators. Instead, suppliers risk enforcement if they do not have oversight of the entire supply chain their products exist in.
Dealmakers
This pressure coming in from every angle leads to only one inevitable conclusion: M&A activity.
As suppliers are forced to choose either to abandon their high profit margin offshore clients or their reliable onshore customers, the possibility of dividing into two parts becomes more and more compelling.
“I think businesses will very likely look to separate and restructure, particularly where they currently have a real mix of regulated and unregulated market activities,” said Danson.
“We certainly saw similar trends five to ten years ago when the regulatory focus on this sort of issue was more on the B2B side,” he added.
This move would be driven partly by modern regulatory complexities, but also the impact of US investors entering the gambling market more prominently over the past five years.
US-based capital tends to be more skittish about any activity with uncertain regulatory backing and its law enforcement authorities are not shy about exerting their authority extraterritorially.
“International market exposure is becoming more and more relevant in an investment and M&A context,” Danson confirmed.
A dilemma
Those gambling businesses choosing the regulated environment are at least finding their authorities more willing than in previous years to take proactive action against the black market.
In the UK, the Gambling Commission has received a grant of £26m from the government to step up its work against illegal online gambling, for example.
Regulators are also understood to be sharing more information than ever before about the main bad actors afflicting their markets, through organizations like the Gambling Regulators Europe Forum (GREF).
Although it’s worth noting that officials also say they are swapping notes on the activities of their licence-holders as well, in yet a further example of international compliance becoming a local issue.
This, along with an atmosphere of zero compromise when it comes to tightening regulations, has created a situation where the choice between on- and off-shore is not a simple one.
Andy Danson summed up the problem: “By creating an environment which has become so burdensome and challenging for regulated markets to operate, and then challenging operators and suppliers to pick a side, regulators perhaps shouldn’t be all that surprised when some operators out there might not necessarily choose the side that they want them to.”
The post European Online Gambling Industry Faces Tough Offshore Choice appeared first on Eastern European Gaming | Global iGaming & Tech Intelligence Hub.
Brazil
EGB Group launches institutional portal to strengthen corporate presence in iGaming in Brazil
EGB Group (Esportes Gaming Brasil), owner of Esportes da Sorte, Onabet and Lottu, has launched its new institutional portal, bringing governance, strategy and corporate operations together in a single digital environment.
The initiative aims to structure the group’s institutional presence and increase transparency across its processes, operational pillars and expansion projects.
The portal features dedicated sections such as Compliance, ESG, Ecosystem and a fully structured Press Room, improving access for partners, media and regulatory authorities to compliance information and strategic initiatives.
According to Iury Tavares, Media Relations Manager at EGB Group, the launch reflects an already consolidated internal evolution.
“The launch of our institutional website materializes EGB Group as an ecosystem.
We are no longer seen only as isolated consumer brands, but as an integrated structure with different business fronts connected by a common purpose of innovation and market leadership.”
Camyla Lima, Branding and Creative Manager, added that the new platform also improves how this structure is communicated.
“The new corporate identity balances the energy of entertainment with the rigor of a structured operation.
We developed an interface that prioritizes institutional storytelling and ecosystem navigation, making it easier to understand how the brands are integrated.”
The more sober visual identity reinforces the group’s institutional positioning in a regulated market and reflects its organizational culture, recognized by its Great Place to Work certification and a workforce of around 1,000 direct and indirect jobs.
With employees placed at the center of the communication strategy, the launch was also supported by internal activations across offices in São Paulo and Recife and corporate channels.
Beyond governance, the portal highlights the group’s broader social impact initiatives.
It showcases support for street carnival blocks and official sponsorships of major Carnival celebrations across Brazil, including traditional hubs such as Recife and Olinda.
Social responsibility projects such as Costura Cidadã, support for waste pickers during major events, and partnerships with NGOs focused on river cleaning are also featured.
In sports, the group maintains sponsorships with clubs including Corinthians, Náutico, Ferroviária and Ceará, as well as support for inclusive sports initiatives.
A key highlight of the portal is the company’s investment in Brazilian technology development that underpins its operations.
The group details its use of proprietary platforms to ensure technical autonomy and compliance with requirements set by the Secretariat of Prizes and Betting (SPA/MF).
This structure also includes the use of artificial intelligence for personalization and security, contributing to formal job creation and revenue generation across digital advertising and sports-related sectors.
Esportes Gaming Brasil
Esportes Gaming Brasil is one of the leading betting groups in the country, operating under a fully Brazilian structure with an official licence granted by the Ministry of Finance through SPA/MF. The authorisation covers its three brands: Esportes da Sorte, Onabet and Lottu, with nationwide operations across Brazil.
A benchmark in innovation and a strong advocate of market regulation, the group is committed to responsible gaming and continuous investment in user protection technologies, while generating hundreds of jobs.
Beyond sports betting, Esportes Gaming Brasil invests consistently in sports, culture and social projects. It is a master sponsor of clubs such as Corinthians, Ceará, Ferroviária and Náutico, and supports major cultural initiatives.
This include Galo da Madrugada and Carnival celebrations across Recife, Olinda, Salvador, Maceió, Natal, Caicó, Belo Horizonte, Rio de Janeiro and São Paulo, as well as the Parintins Festival. The brand also expands its digital presence through creative campaigns and influencer partnerships, strengthening its connection with audiences across online platforms.
The post EGB Group launches institutional portal to strengthen corporate presence in iGaming in Brazil appeared first on Americas iGaming & Sports Betting News.
2026 FIFA World Cup
Media Troopers brings its sports betting expertise to Peru ahead of the 2026 FIFA World Cup
Media Troopers, the leading digital and customer acquisition group, has announced it will enter Peru’s regulated market to offer its sports betting and prediction market services ahead of the 2026 FIFA World Cup.
The 2026 FIFA World Cup, which will be played from 11 June to 19 July across the US, Canada, and Mexico, is a defining moment for the global online wagering industry, and one that Media Troopers aims to help operators capitalize on.
Peru is one of LatAm’s newest regulated markets, launching in 2024.
It’s home to more than 60 online operators, with its gaming regulator having granted 120 licenses since the launch.
In 2024, Peru’s regulated market was valued at $2.7 billion, with analysts expecting projected growth to reach $7.6 billion by 2033.
Media Troopers CEO Shmulik Segal says that Peru’s current regulated market represents the early stages of regulated sports betting in the US, noting that it currently boasts strong consumer demand and rapid operator expansion.
“Media Troopers is bringing mature-market expertise into Peru at precisely the moment the market is ready to scale,” Segal said.
By entering Peru, Media Troopers can offer its wide range of marketing and acquisition tools to operators in the region.
That includes providing operators with soccer-focused marketing channels, access to a variety of existing publishers and affiliates, and localized features that help operators scale their platforms to reach a more tailored audience, increase engagement, and build a trusting brand presence in the area.
Media Troopers has positioned itself as the gateway between exporting North American betting infrastructure into new, emerging markets, as it prepares for the next evolution of online wagering.
MediaTroopers was founded in 2019 with the vision of providing legal, safe, and responsible gambling alternatives to sports bettors and casino players.
Since then, the company has grown to operate in over 40 jurisdictions across North America.
MediaTroopers leverages decades of digital marketing experience, extensive in-house media buying knowledge, mobile advertising expertise, a robust technical infrastructure, and an extensive network of in-house and affiliated publishers to acquire paying customers for the world’s top gambling operators, including BetMGM, Caesars, DraftKings, FanDuel, BetRivers and more.
The post Media Troopers brings its sports betting expertise to Peru ahead of the 2026 FIFA World Cup appeared first on Americas iGaming & Sports Betting News.
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