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Rising Bonus Abuse in Sports Betting: Fraudsters Leveraging Hidden AI Powered Bots
As digitalisation sweeps through the industry, the sports betting market has flourished. Taking betting online has made the experience more accessible, convenient, and interactive than ever. Artificial intelligence (AI) has made a big splash in recent years, giving sportsbooks access to more detailed data analytics. AI doesn’t only benefit sportsbooks however, as fraudsters have taken advantage of the technology for more malicious purposes. If sportsbooks don’t take action now, they face rapid losses to their budgets.
Sportsbooks frequently invest in pay-per-click (PPC) campaigns to drive first-time depositors (FTDs), using promotions such as bonuses to attract new users. However, these bonuses are a prime target for fraudsters, who leverage advances in AI to exploit them—driving fake sign-ups that drain budgets without delivering genuine new players.
To accomplish this, bad actors program AI-powered bots to rapidly create new accounts and take advantage of promotions without ever generating a conversion on the site. Bot networks like this are detrimental to advertising budgets, being responsible for nearly 40% of click fraud according to FraudLogix.
Most sportsbooks have fraud management systems in place to intercept and block these bad actors during the sign-up process. However, this does not prevent bots from clicking on paid search ads in the first place, driving up costs and draining marketing budgets before fraud can even be detected.
Sportsbooks need to take it upon themselves to develop a proactive strategy to identify fraudulent engagement. Without a strategy in place, sportsbooks risk significant profit loss and distorted campaign metrics.
Evolving Fraud tactics
Sportsbooks have been reaping the rewards of digitalisation, but this increased success comes with a hidden cost. The success of the industry has drawn the attention of bad actors, and with AI they pose a bigger threat than ever. Bad actors can now program AI bots to convincingly behave as a human user would. Bots can then carry out repetitive tasks repeatedly, allowing fraudsters to create floods of them to interfere with campaigns.
The PPC campaigns utilised by sportsbooks are often targeted by bots which repeatedly click on these paid ads. This drives up ad revenue for the publisher drastically, as bots increase the overall customer acquisition costs (CACs).
To carry out an attack, fraudsters use hosting servers. These servers can be used to store large amounts of data. From here, bad actors can then disguise themselves using a residential Internet Service Provider (ISP) to blend in with other users. Bad actors can mask their real location by routing their connection through a different server. This is typically carried out by using a residential IP address through a residential proxy, making the fraudster appear like a legitimate user to trick systems.
Fraudsters are experts at covering their tracks, as they can program bots to delete their information and cookies after clicking on a paid ad. Bots can then carry out the task on repeat by switching to a different device to appear as a new user. Fraudulent clicks from bots increase market expenditure without leading to a legitimate conversion, draining resources, and diluting return on investment (ROI). The problem is plaguing the industry as bots are responsible for approximately 24% of all clicks according to Imperva, and the risk is only increasing.
Bots Taking Advantage of Paid Promotions
A great way for sportsbooks to capture a new audience is through one-time special promotions. Bonuses like these are a popular hook, and encourage players to keep betting, even after the bonus funds are used up. Most of these promotions are offered once per account, but fraudsters can use bots to manipulate the system. These bots are programmed to generate multiple fake accounts and abuse the bonus repeatedly. Funds intended to drive FTDs are then diverted by bots without delivering genuine value, significantly draining resources.
Fraudulent traffic negatively impacts future campaigns as bot activity skews metrics. An influx of bot activity provides marketers with false positive results. Sportsbooks will then mistakenly direct more funds to these campaigns, setting them up for future losses and more bot activity.
Legacy fraud tools typically concentrate on the sign-up stage, targeting and blocking fraud there. However, this tactic doesn’t stop bots from siphoning media spend beforehand. Differentiating between sophisticated bots and legitimate traffic is difficult for these tools, allowing fraudsters to act before they can be identified. Attacks are on the rise, and if sportsbooks fail to take the necessary precautions to protect themselves against fraudulent clicks, they face considerable losses.
Utilising Transparency to Tackle Fraud
To ensure marketing efforts aren’t wasted and first-time depositors can be reached, sportsbooks need a strategy in place to combat fraud. Sportsbooks should be analysing their traffic for any sign of potential bot activity before they suffer multiple losses.
Monitoring traffic allows sportsbooks to identify irregular engagement, such as high bounce or click rates, or traffic from suspicious locations. To identify bots before they can impact campaigns, sportsbooks should continuously monitor their traffic for anomalies like these so they can be dealt with.
Fake accounts run by bots are a growing problem for sportsbooks, therefore sportsbooks should deploy strong identity verification alongside a trusted partner. This prevents fraudsters from creating multiple accounts to exploit promotions by forcing them to prove their identity.
Sportsbooks can also set click frequency limits for users. Setting limits prevents a particular user from repeatedly clicking on the same paid ad campaign. Bots are especially vulnerable to this tactic, preventing them from driving up costs by blocking them with a click threshold.
Ending Bonus Abuse
Digitalisation has provided both opportunities and complex challenges for sportsbooks. The pivot towards online betting has presented sportsbooks with the chance to reach a whole new audience. However, sportsbooks can’t truly capitalise on this new opportunity as long as bots are draining budgets behind the scenes.
To protect their advertising investments, sportsbooks need to take action. Sportsbooks need to take control of their traffic and identify any bot activity before bad actors have the chance to take advantage. By taking an active role in their defence, sportsbooks can ensure their bonuses stay strictly in the hands of their real audience.
Article by Chad Kinlay, Chief Marketing Officer, TrafficGuard
A driven, open-minded, creative senior marketer with a strong sense of dedication and commitment. With over 15 years of progressive international experience in marketing and communications management, Kinlay has a credible history of commercial success.
The post Rising Bonus Abuse in Sports Betting: Fraudsters Leveraging Hidden AI Powered Bots appeared first on European Gaming Industry News.
The blockchain gaming pioneer Fairspin has been shortlisted for “Best Crypto Casino 2025” at the SiGMA Central Europe B2C Awards.
This latest nomination follows Fairspin’s earlier victory at the AffPapa iGaming Awards 2025, where it earned the title “Crypto Casino of the Year.” Together, these honors confirm Fairspin’s reputation as a brand that delivers not just innovation but real value for every player — enjoy speed, transparency, and rewards at every step!
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Fairspin continues to expand its VIP program, offering tailored features as part of its broader crypto gaming platform.
Redefining Fair Play with Blockchain Technology
For those who know value, Fairspin delivers it without compromise. With over 10,000 premium titles from the world’s top studios, the platform seamlessly blends entertainment and technology to create an elite gaming experience.
Powered by its native TFS token, Fairspin rewards loyalty through Play to Earn and Hold to Earn — programs designed for those who play smartly and stay consistent. The more you play, the greater your benefits.
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The SiGMA Central Europe B2C Awards celebrate innovation and excellence across the online gaming industry. Fairspin’s nomination further strengthens its reputation as one of the most forward-thinking brands shaping the future of crypto gaming.
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QTech Games, the leading game aggregator across all emerging markets, has continued to maintain the momentum in its premium pipeline, as evidenced by its latest deal with BEON, an emerging force in the slots space, whose first raft of games is crash games-focussed.
Integrating a progressive portfolio from one of the most productive and innovative developers in the sector adds more muscle to QTech Games’ proprietary platform, which is leading the way across growth markets like LatAm and Africa. In a progressive production line that will span different slots genres, BEON is also committed to launching games tailored to specific partner requests, while simultaneously growing its portfolio with a new wave of titles in development.
As a result BEON is building a reputation for creating high-quality, immersive games with standout features that set them apart in any igaming domain, thanks to a smooth performance running off agile mechanics which are dedicated to gameplay precision and optimal retention. Its first five games to be released comprise Skydot, Fury Flight, Redy, Nomad and Orizon, while BEON’s unique Crash Game Generator tool allows operator partners to launch customised content inside 24 hours.
This collaboration delivers a targeted range of localized content, enabling QTech Games to continue to meet the varied preferences of players across emerging markets, while supporting both companies’ ambitions for global growth.
Philip Doftvik, QTech Games’ CEO, said: “BEON’s initial rollout of eye-catching crash games is premised on clever mechanics, easily intelligible gameplay, high payouts and colourful graphics, which are breaking up an often-copycat environment. This kind of content is well-suited to LatAm and African markets, which directly tracks our ongoing expansion throughout these territories. These games are robust, scalable, and future-ready – so, we look forward to seeing what’s next. ”
Saba Chkheidze, Managing Partner at BEON, added: “Partnering with QTech Games constitutes the perfect opportunity for us to bolster our product distribution across emerging markets and deliver our fantastic crash games to more and more top-tier operators.
“It’s a collaboration which marks a step-change in BEON’s growth strategy across untapped markets like Latin America and Africa, where we hope our games will connect with many new players. Aside from crash games, our roadmap is packed with fresh concepts and slots titles that aim to combine engaging gameplay with solid technical performance, ensuring that our partners and players always have something new to look forward to.”
The post QTech Games adds more creative content from BEON appeared first on European Gaming Industry News.
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GR8 Tech is adding a knockout dimension to its SiGMA Central Europe presence with Behind the Gloves. On November 3–6 in Rome, booth 5028-2 visitors can take up a challenge and train like a champion with Lee McFarland, iGaming veteran and founder of the Behind The Glove initiative.
Step Into the Ring
Each day at GR8 Tech’s booth 5028-2, Lee McFarland will lead 15-minute boxing training sessions on specialized pads, giving participants a taste of the discipline, focus, and resilience that define both elite athletes and elite operators. Sessions run:
- 11:00 AM – 12:00 PM: Morning knockout slot
- 2:00 PM – 4:00 PM: Afternoon power rounds
With a limited capacity of 12 slots per day, pre-registration is required at this LINK. Slots are available for individuals or pairs looking to share the experience.
Champions Train Together
The collaboration between GR8 Tech and Behind the Gloves is a natural fit. Lee McFarland, a British military veteran turned iGaming consultant, created the initiative to combine boxing with corporate wellness and social responsibility, proving that strong businesses are built on strong people and stronger communities.
“At Behind The Gloves, we’ve always believed in the power of sport to connect people, energize communities, and tell authentic stories. Partnering with GR8 Tech at SiGMA Central Europe is a natural fit; they’re known as the ‘heavyweight of iGaming,’ and our activations are built around that same spirit of strength, discipline, and drive. Together, we’re creating more than just a stand experience—we’re building a moment that unites delegates through energy, fun, and purpose”, said Lee McFarland.
The activation reinforces GR8 Tech’s Platform for Champions positioning and the elite Heavyweight Club community of operators who are ready to lead, not follow. The company’s boxing-themed booth and partnership with Ready to Fight by Oleksandr Usyk embody the same champion’s mindset: resilience, high performance, and the relentless pursuit of excellence.
“Champions don’t talk about performance—they live it,” said Yevhen Krazhan, CSO at GR8 Tech. “Bringing Behind The Gloves to our booth embodies the discipline and drive we build into our technology. If you want to compete at the highest level, you have to train like it.”
Where Business Meets the Ring
The Behind The Gloves sessions complement GR8 Tech’s showcase of the ULTIM8 Sportsbook and The Heavyweight Rulebook—a collection of Champions’ Rules gathered from iGaming’s top performers. Together, they create an immersive experience where attendees don’t just learn about championship-level technology—they feel first-hand what it takes to be a champion.
Visit GR8 Tech at booth 5028-2, SiGMA Central Europe 2025 in Rome, November 3–6.
The post GR8 Tech Brings Behind The Gloves Boxing Experience to SiGMA Central Europe 2025 appeared first on European Gaming Industry News.
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