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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.
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BetHog Chooses Optimove as its Marketing Solution through Ignite+ Program to Jumpstart its Marketing
Cryptocurrency casino and sportsbook startup harnesses Optimove’s Ignite+ Program to scale campaigns, gain predictive insights, and deliver personalized player journeys at scale
BetHog, a cryptocurrency casino and sportsbook from the creators of FanDuel, has chosen Optimove as its marketing solution through its Ignite+ program. Ignite+ gives BetHog access to enterprise-grade CRM and AI-driven marketing capabilities, enabling the company to accelerate campaign execution, gain predictive insights, and deliver more personalized player experiences at scale. Optimove is the creator of Positionless Marketing and the #1 Marketing Solution for iGaming and sports betting operators.
“Optimove has been an incredible platform and partner in speed-to-market from day one,” said Kyle Wachtel, Chief Marketing Officer at BetHog. “Their team didn’t just provide us with a platform. They became an extension of our marketing team, bringing expertise, predictive models, and industry knowledge that we simply couldn’t replicate in-house at this stage.”
Tomer Imber, Senior Director of Sales, US Gaming at Optimove, commented: “From the start, the BetHog team has shown incredible vision and drive, already boasting an innovative product and burgeoning brand, and we are excited to be part of their journey. BetHog is leveraging our platform to build lasting player relationships and accelerate growth.”
The partnership highlights BetHog’s rapid path from integration to execution. Within weeks, the company completed its IP warmup, validated data quality, and began sending campaigns. Optimove’s out-of-the-box predictive models and churn analytics now serve as a BI function for the startup, enabling it to focus on growth without the burden of building a large internal team.
“The Ignite+ Program was the perfect fit for us as a fast-growing startup,” Wachtel added. “It gave us access to enterprise-grade CRM capabilities and AI-driven insights without the overhead of building out a full BI and CRM function. From onboarding to campaign launch, Optimove executed at startup speed to get us live.”
With Optimove in place, BetHog is now poised to embrace Positionless Marketing, a breakthrough approach that frees marketers from traditional role constraints and gives them the ability to independently harness Data Power, Creative Power, and Optimization Power.
“We still have many opportunities to explore with Optimove, and we are confident that Positionless Marketing will help us move faster, personalize more deeply, and maximize every player interaction,” Wachtel said.
The Ignite+ Program has already supported the growth of dozens of iGaming and sportsbook operators. For BetHog, leveraging Ignite+ represents a key milestone in its journey to scale rapidly while building a foundation for personalized, AI-powered marketing.
The post BetHog Chooses Optimove as its Marketing Solution through Ignite+ Program to Jumpstart its Marketing appeared first on Gaming and Gambling Industry in the Americas.
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VSiN Launches Fall Programming Lineup, Giving Fans More of Their Favorite Sports Betting Shows and Hosts
Sports Betting Network Adds Hour of Sharp Bettor Favorite “A Numbers Game,” Announces Hosts Mitch Moss & Pauly Howard Join Sunday Programming, Sees Return of Fantasy Sports “Guru” John Hansen
VSiN, The Sports Betting Network, announces its new programming lineup, delivering more of the network’s most popular sports betting shows and hosts. As the 2025 NFL season ramps up, VSiN’s new fall schedule launches to the largest audience in its history.
“With more viewers and listeners than we’ve ever had going into football season, we’re thrilled to launch VSiN’s new programming lineup as an answer to fans asking for more of the quality programming they want and need to inform their wagering and fantasy decisions,” said Steve Cohen, EVP of Talent and Programming at VSiN. “As our competitors across all media continue to pull back and even disappear, it’s that continued commitment to content that sets VSiN apart and fuels our continued growth.”
VSiN’s full live programming lineup launches today and can be viewed at VSiN.com. Highlights include:
- VSiN adds one additional hour to “A Numbers Game” with Gill Alexander and producer Kelley Bydlon. The longest running show on VSiN now airs weekdays from 10 a.m. – 1 p.m. ET. Each day, Alexander and his roster of expert guests take fans deep into the numbers of gambling, leveraging advanced metrics in his handicapping.
- Hosts of VSiN’s popular weekday afternoon show “Follow the Money,” Mitch Moss and Pauly Howard, will add a sixth shift each week to anchor the live NFL pregame discussion on “VSiN’s Pro Football Tailgate Show” Sundays from 9 a.m. – noon ET. Analytics expert Warren Sharp and props analyst John Hansen will be among the regular guests. Having moved the show’s weekday timeslot from mornings to afternoons last fall, Moss and Howard return to mornings one day each week for the Sunday football action.
- “The Guru” John Hansen returns as the host of “Prop Points,” bringing decades of fantasy expertise to weekdays from 1 p.m. to 2 p.m. ET. Hansen has been an industry leader since 1995. He was the first individual to contribute to ESPN’s coverage of fantasy football online and on ESPN Radio and TV in 1996, before roles at Yahoo! Sports, “NFL Fantasy Live” on NFL.com, and as chief fantasy analyst for a ground-breaking “Fantasy Zone” channel on DirectTV.
- The popular Circa Friday Football Invitational show, hosted by Matt Youmans, returns for a third season. Twenty-five pro bettors and handicappers compete in a weekly pro and college football pick’em contest for $30,000 in prizes. The show will be expanded by an hour, from 7 p.m. – 10 p.m. ET.
- VSiN’s own Dustin Swedelson takes the anchor desk permanently on “Cashing Out,” the network’s last live show and the final word on the day’s betting action. Each weeknight from 11 p.m. – 2 a.m. ET, Swedelson savors the wins, analyzes the losses and sets the board for tomorrow’s betting menu.
- “VSiN by the Books” has moved its home base to VSiN’s new studio in Circa Sports sportsbook located at The Mint Gaming Hall Kentucky Downs in Franklin. The morning show and some Saturday programming will broadcast live from the recently launched retail sportsbook, which is the largest in the state of Kentucky.
- Beginning on Saturday, Aug. 30, VSiN’s weekend programming will start an hour earlier at 9 a.m. ET to deliver all the news, analysis and insights sports fans and betting enthusiasts need on gameday.
Broadcasting 24/7 from the entertainment capital of the world in Las Vegas, VSiN empowers sports fans and bettors with the news, analysis, and insights they need to make informed wagering decisions, including 18+ hours of daily live linear sports content. Featuring some of the industry’s most knowledgeable sports betting and fantasy experts, as well as legendary book makers, VSiN’s goal is to inform and entertain the growing number of Americans betting on sports – whether they are sharp bettors or brand new to sports betting. VSiN’s exclusive content sets the stage for the day’s biggest sports betting events and includes expert tips and predictions on college and pro football, college and pro basketball, baseball, hockey, golf, tennis, NASCAR, and more.
Fans can access VSiN content on YouTube TV, SiriusXM (158), Rogers’ Sportsnet, NESN, Marquee Sports Network, MASN, Spectrum SportsNet LA, SportsNet Pittsburgh, iHeartRadio, TuneIn, more than 350 terrestrial radio stations throughout the U.S., VSiN.com, and the VSiN Watch app.
VSiN’s newsroom studio is located in the sportsbook at the Circa Resort and Casino in Las Vegas.
The post VSiN Launches Fall Programming Lineup, Giving Fans More of Their Favorite Sports Betting Shows and Hosts appeared first on Gaming and Gambling Industry in the Americas.
Fast Track will unveil its new AI-driven natural language platform on 2 September during its annual Fast Track House event in Malta. The launch will also be streamed live online from 4 PM CEST, giving the iGaming industry an exclusive first look at the future of player engagement.
For the past decade, Fast Track has pioneered real-time data integration, the Singularity Model, the only Gameplay Risk Engine, and Rewards, the first AI-ready gamification system. Each innovation has moved the company closer to its vision: to digitalise the iGaming industry and deliver the first self-learning engagement platform.
Fast Track AI is trained on over 10 years of iGaming expertise and designed to transform how CRM teams work. It can perform technical analysis on terabytes of real-time data, deliver advanced insights into CRM performance and player behaviour, and uniquely take direct action on those insights across the platform.
“This isn’t just AI added to CRM. This is CRM re-engineered for the natural language era,” said Simon Lidzén, CEO and Co-Founder of Fast Track.
“Even your wildest imagination can only take you so far; minds have been bound by constraints for so long that it is hard to picture the full power of Fast Track AI. You simply need to see it to believe it. This is why I am organising a live session to unveil it; to showcase what a native iGaming CRM, built on the most comprehensive real-time data infrastructure together with the Singularity Model, is capable of. I urge the whole industry to sign up.” Lidzén added.
The big reveal will take place during the Fast Track House event in Malta and will be streamed live online. The broadcast begins at 4:00 PM CEST on 2 September.
Registration is now open: https://app.livestorm.co/fast-track/fast-track-ai-in-action
The post Fast Track AI to change the face of iGaming CRM appeared first on Gaming and Gambling Industry in the Americas.
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