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Rising Bonus Abuse in Sports Betting: Fraudsters Leveraging Hidden AI Powered Bots

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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.

Interview

Arturs Korolkovs on Leading Media 24’s Next Chapter

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To understand the story of Media 24, you really have to understand Arturs’ journey. He was the company’s very first employee, joining at the absolute beginning and helping build the foundation of what the business is today. After several years as Head of Sales, he has now stepped up to lead the entire organization into its next chapter.

In this interview, we’re going to talk about that transition from first employee to CEO. We’ll discuss Arturs’ vision for evolving Media 24 from a traditional affiliate into a modern digital ecosystem, his philosophy on internal leadership and delegation, and how the company is preparing for a massive 2026.

How does coming from a Head of Sales background change the way you view the CEO role compared to someone who might come from a product or tech background?

Coming from sales, you’re always focused on the finish line. A tech person might get caught up in making things perfect or adding features just because they’re cool. I don’t have that luxury. My focus is on things that actually move us forward. I’ve spent years talking to partners and seeing exactly what makes money and what doesn’t.

We’ve had that same philosophy at Media 24 since I started as the first employee. Act fast, check the data, and improve on what works.

Coming from sales also makes me more comfortable with the human side of the business. Being CEO isn’t just about decisions. But also about selling a vision to the team so they actually want to follow you. In sales, if people don’t believe in what you’re saying, you fail. I’m just applying that same logic here.

You were the first employee in Media 24, doing everything yourself. Now that you’re CEO, how do you handle stepping back and letting your team take the lead?

In the early days, If something needed doing, I did it. But you can’t scale a company if you’re making every decision yourself. My job now is to give my team the resources and the space to lead.

We’ve always believed in growing our own talent. For example, we recently promoted our new Head of Growth and our Head of Website Operations from within. Both have been with us for years. They’ve seen the company evolve, and I trust them completely.

I’m not looking for people who always agree with me. I want professionals who understand this business as well as I do, if not better. By promoting from within, I’m surrounding myself with people who have Media 24’s mindset but bring their own expert perspectives. My role now is to clear the path for them so they can build the products that will define our next few years in the industry.

We are seeing constant core updates. How is Media 24 protecting itself against the volatility of organic search?

You can’t ever truly be prepared for a Google update if your entire strategy is based on trying to trick an algorithm. If you spend all your time looking for shortcuts, you’re always going to be chasing the ones who lead.

Last year at Media 24, we took a serious look at our approach and redesigned our product strategy. Today, we aren’t building sites just to rank well. Instead, we’re building platforms that aim to be the undeniable go-to resource for each specific market

That means we’re investing heavily in the things that actually matter to a human being, not just a crawler. We’re re-imagining our content to provide real value, doubling down on UX, and constantly improving the product itself. By focusing on the end-user, search rankings become a byproduct of our quality rather than a lucky break we’re trying to keep.

Affiliates are often seen as “top of funnel.” How is Media 24 trying to own more of the user journey after the initial click?

It’s true that most affiliates stop at the click, but we see that as a missed opportunity. We understand that acquiring a new depositor is always significantly more expensive than retaining an existing one.

We’re moving toward building actual communities around our top platforms. A user might come to us for a specific bonus, but they are likely interested in other offers or new products down the road.

To capture that, we are creating touchpoints beyond just the website. We’re building a presence on social media and other channels where our users actually spend their time. If we can stay in front of the user where it matters, then we aren’t just sending traffic to operators. We’re delivering a much more loyal and valuable player.

There are cases when operators discontinue affiliate programs or cut commission rates. How do you future-proof a business that’s dependent on those relationships?

Unfortunately, that’s just the reality of the industry sometimes. You have to accept that these risks exist. For us, navigating those shifts is part of the process of building long-term relationships. You find out very quickly who your true partners are when things get tough.

That’s exactly why we invest so much time being present. We attend a lot of conferences and industry events throughout the year to meet our partners face-to-face. By staying close to the market and our partners, we can spot the red flags early and focus on the operators who actually value a fair, long-term collaboration.

Is Media 24 looking to diversify away from pure SEO traffic? Are PPC or social media traffic on your 2026 roadmap?

For 2026, our focus is staying on what we do best and what operators actually value most. SEO traffic is still the gold standard for quality in this industry. It takes a massive amount of work and patience to earn those positions, but the quality of that traffic is well worth the effort.

Regarding becoming multi-channel. It’s a conversation we’re having, and we are definitely exploring how to expand our expertise into new niches. But it won’t happen this year. 2026 is a massive year for us because of the World Cup. All our energy, investment, and product innovation are currently funneled into making sure our platforms are the best they can be for that event. We don’t want any distractions right now.

The lines between affiliate, media company, and data business are blurring. Does Media 24 see itself evolving beyond pure affiliate marketing?

I think affiliate marketing is really just a business model. It’s not the whole identity. If you look at the most successful players in our space today, they’ve already become hybrids.

We see ourselves the same way. We are a media company because we employ talented content writers and manage a social media presence. We are a data business because we have to understand user behavior at a very deep level to stay competitive.

The industry has evolved significantly. The best companies have evolved too. At Media 24, we don’t want to be put in a box. We are a digital business that uses an affiliate model to monetize. But our actual value lies in our content, our product, our data, and our ability to reach an audience better than anyone else.

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Behind The Gloves forms Advisory Board to scale beyond event activations

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Behind The Gloves has formed an official Advisory Board as it moves from event-led activations to what it describes as a scalable, long-term business and community.

The board includes Michael Brady, Founder and Chairman of Bede Gaming and Chairman of Connexus Group; Rob Fell, CEO of RiskCherry; and Katie Byers, former SVP of People and Capability at Light & Wonder.

According to the organisation, the appointments are intended to support expansion into new verticals including corporate wellness programmes, brand partnerships and future digital products.

Behind The Gloves said it plans to continue operating as a “business for good” by reinvesting a portion of profits into community initiatives and charitable causes.

Lee McFarland, Founder of Behind The Gloves, said: “The foundation of our Advisory Board reflects Behind The Gloves’ commitment to building a strong business that can expand globally and reach more people than ever.

“We’re thrilled to welcome Katie, Rob and Michael to the Board and look forward to leveraging our industry’s unmistakable energy to support good causes and deliver accessible activities for all fitness levels on a larger scale.”

The post Behind The Gloves forms Advisory Board to scale beyond event activations appeared first on Eastern European Gaming | Global iGaming & Tech Intelligence Hub.

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The UAE Lottery opens first retail shop in Musaffah, Abu Dhabi

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The UAE Lottery has opened its first retail shop in M40, Musaffah, Abu Dhabi, the company said on April 15, 2026.

The store offers in-person purchase of physical tickets for the Lucky Day Draw and Pick 3 games, with payments made at the location. The company said the shop is staffed to help customers understand available games and answer lottery-related questions.

The UAE Lottery also positioned the location as a branded customer-facing space with interactive displays and on-site support, aiming to complement its existing digital channels.

The company said all games are regulated by the General Commercial Gaming Regulatory Authority (GCGRA) and that it provides responsible gaming tools and resources for participants.

The post The UAE Lottery opens first retail shop in Musaffah, Abu Dhabi appeared first on Eastern European Gaming | Global iGaming & Tech Intelligence Hub.

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