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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.
Asia
PRONET GAMING BECOMES FIRST B2B OPERATOR TO ESTABLISH SCBPO ACCREDITED OPERATION IN THE PHILIPPINES VIA CLAYMORE SOLUTIONS
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Omni-channel turnkey provider Pronet Gaming is the first internationally-licensed B2B company in the gaming sector to establish an SCBPO-accredited operation in the Philippines via Claymore Solutions.
Claymore Solutions is accredited by the Philippine Amusement and Gaming Corporation (PAGCOR) as a Special Class BPO (SCPBO), which authorises them to provide employer of record & serviced office space to internationally licenced gaming operators enabling them to establish operations in the Philippines without taking bets or payments.
Pronet Gaming will now build out IT and Trading teams in Manila, further strengthening its operational presence and technical capabilities in the region.
Pronet Gaming CEO Alex Leese said: “Establishing an SCBPO-accredited presence in the Philippines is a milestone that aligns perfectly with our long-term strategy of expanding our footprint in Asia, in a fully compliant way. We’re happy to have made this possible through the collaboration and support of our trusted partner, Claymore Solutions.”
Paul Fox, Chairman and Co-Founder of Claymore Solutions, said: “We’re honoured to be working with Pronet Gaming, providing EoR and serviced office space solutions for their operations which underlines the quality of local staff and further boosts the Filipino economy.”
PAGCOR Chairman Al Tengco commented: “We’re delighted to have B2B operators such as Pronet Gaming establish their Trading and IT operations here through Claymore Solutions. I hope that more companies follow given the wealth of readily available Filipino talent in this sector.”
Claymore will announce additional client partnerships in the near future.
The post PRONET GAMING BECOMES FIRST B2B OPERATOR TO ESTABLISH SCBPO ACCREDITED OPERATION IN THE PHILIPPINES VIA CLAYMORE SOLUTIONS appeared first on European Gaming Industry News.
Fairspin Casino presents the Fairspin Royale Run Tournament, an event designed to offer participants access to high-value rewards. The circle of privilege is introduced as a thematic element of the tournament and is presented as part of the overall concept.
From November 15 to December 25, gameplay is structured as a progression-based format, with rewards that include a luxury car, a premium motorcycle, and a branded watch.
The Fairspin Royale Run Tournament combines entertainment with measurable advancement through Fairspin’s transparent Play to Earn system. Each action contributes to overall progress, bringing participants closer to the available prizes.
Royale Run Tournament Prestige Overview
The Fairspin Royale Run Tournament is presented as a competitive event within the platform, featuring rewards intended to highlight its premium positioning. The tournament links in-game activity with defined outcomes, offering items such as a car, a motorcycle, and a watch as part of the prize structure.
By combining an incentive-based format with these rewards, Fairspin outlines its approach to transparent, activity-driven gaming. The Fairspin Royale Run Tournament reflects the platform’s emphasis on structured progression and measurable results.
Tournament Participation Details
The Fairspin Royale Run Tournament follows a Play to Earn format in which each bet contributes to advancement on the leaderboard. A total prize pool of $50,000 USDT will be allocated among 100 winners.
Participation is outlined as follows:
- Users can join the event by selecting “Participate” on the tournament page.
- Users can engage in any preferred games* — each bet boosts overall ranking.
*All games are eligible for the tournament, except those listed in Section 7.1.2.
Results are determined by the number of TFS tokens accumulated during the event. TFS is Fairspin’s digital asset used to reflect activity within the platform. Higher token totals correspond to higher positions on the leaderboard.
The winners will receive the following prizes:
- 1st place: 20,000 USDT or a car certificate
- 2nd place: 10,000 USDT or a motorcycle certificate
- 3rd place: 6,000 USDT or a watch certificate
- 97 finalists will share 14,000 USDT in additional rewards
Each action recorded during the tournament contributes to overall standing and eligibility for the listed prizes.
TFS Token Usage Overview
TFS tokens are used within the Fairspin ecosystem beyond the tournament period. They function as a mechanism for in-platform utility, as accumulated TFS can be converted into game currency, staked for defined returns, or exchanged in the Fairspin Store for items such as bonus funds, free spins, free bets, and selected technology products.
The platform outlines its token mechanics, withdrawal processes, and loyalty structure as part of its overall operating model, with each action contributing to measurable activity within the system.
About Fairspin Casino
Since its inception in 2018, Fairspin Casino has been at the forefront of innovation, combining a rewarding gaming experience with unparalleled blockchain transparency. With more than 10,000 games from over 100 top-notch developers, fast withdrawals, and enticing promotions, Fairspin continues to set the gold standard in the online casino industry.
The introduction of Fairspin’s TFS token has adjusted engagement dynamics on the platform. TFS is accumulated through rakeback and progression within Fairspin’s 10-level loyalty program. Tokens can be staked for defined returns or exchanged for a range of available benefits, including additional gameplay options and platform rewards.
Contact
TFS PR
TFS
Fairspin
iGaming operators on the Vegangster platform can now deliver enterprise-level, hyper-personalised player support without expanding headcount.
Platform provider Vegangster has partnered with Cevro AI, the leader in iGaming AI support agents, to embed empathic and intelligent AI agents directly into the Vegangster ecosystem.
The integration enables even lean operator teams to provide 24/7, compliant, and personalised player support across casino and sportsbook brands. From onboarding and account questions to more complex payments, bonuses, and responsible gaming assistance, Cevro AI agents resolve issues instantly, take action on the Vegangster platform, and seamlessly hand off tickets to live agents when needed. The result is faster service, reduced workload for human teams, and higher player satisfaction at scale.
Cevro AI transforms customer support into a growth channel, combining automation, compliance, and empathy-driven engagement. Its agents operate across multiple languages and channels, providing VIP-level service while reducing operational load and improving retention.
“We build our platform to give operators the sharpest tools to launch quickly and scale with confidence. Partnering with Cevro AI means our clients can now provide round-the-clock support that is both personal and efficient, without increasing headcount.”
— Michael Oziransky, Chief Product Officer at Vegangster
Powered by advanced reasoning, deep iGaming expertise, and real empathy, Cevro AI transforms every support interaction into a seamless, trust-building experience. Through direct integration with Vegangster’s player account and engagement systems, it delivers a unified support solution that not only responds to issues but also resolves them. The AI takes real actions inside the operator’s back office and adapts to each brand’s size and growth stage.
“We are proud to join forces with Vegangster, a partner that shares our commitment to innovation in iGaming,”
— Chaim Heber, Chief Executive Officer at Cevro AI
About Vegangster
Vegangster provides a full-stack iGaming platform engineered for speed, scalability, and operator control. Its turnkey, white-label, and sweepstakes solutions integrate casino and sportsbook content, payments, CRM, compliance, and social features into a single mobile-first system. With Vegangster, operators can launch quickly and scale with confidence.
About Cevro AI
Cevro AI was built to transform how iGaming operators deliver support. Purpose-built for the industry, it combines deep domain expertise, human-level communication, seamless integrations, and compliance-first automation to resolve issues quickly and accurately. Cevro delivers personalised, human-quality support at scale so every player feels like a VIP while reducing workloads and eliminating the need to grow headcount.
Press Contact:
Romans Kozlovskis
Senior Content & PR Manager
Vegangster
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