Why European Soccer Championship 2024 put betting operators to the test
The Euro 2024 European Football Championship presented not only enormous opportunities but also significant risks for betting operators and players. During a month from mid-June to mid-July, 24 teams competed for the title of best football team in Europe.
With competitions spread across cities throughout Germany. These events attracted worldwide attention and provided an important time for friends and family to come together. And in many cases to take a gamble both among themselves and via increasingly popular online gambling platforms.
Increase in Gambling Activities during Euro 2024
It is no surprise that global sporting events such as Euro 2024 see an increase in gambling activity. Both on legal and illegal platforms. In Belgium it even increased significantly. But it also stopped new players almost immediately when the European Championship ended.
The convenience and accessibility of online gambling platforms have increased the popularity of gambling during the European Championship. The number of bets increased. Unfortunately, this increase was not limited to regulated markets
New players can be enticed by ‘too good to be true’ bonus offers on unregulated platforms. Without being aware of the lack of consumer protection and the increased risk of financial fraud or data leaks. Gambling on the black market entails risks not only for the player but also for the gambling operator.
Challenges for Gambling Operators during Euro 2024
During Euro 2024, betting operators faced a series of challenges. Including an increase in site traffic that could be used by fraudsters as a smokescreen for malicious activity. Sudden spikes in traffic can make it more difficult for operators to detect anomalies that could indicate fraud.
For example, fraudsters could commit identity theft or attempt to take over accounts. This is done by launching phishing and cyber attacks on unsuspecting users. In addition, there was an increased likelihood of more attempts at cross-border transactions by bots. As well as the use of unsecured public WiFi networks. Which increased the risk of unauthorized access to user accounts.
During major sporting tournaments such as Euro 2024 there is always an increase in gambling fraud. Where chargeback fraud is a common problem. While identity verification solutions can help verify users’ identities and detect fraudulent activity, additional measures are needed to prevent chargeback fraud. Such as transaction monitoring and working with payment processors to identify and block suspicious transactions in real time.
Lessons for the future
Gambling operators also have to worry about losing market share due to increasing competition from illegal or unregulated operators, who may offer superior user experiences or sign-up bonuses without KYC (Know Your Customer) verification. Attracting new customers and retaining existing ones should be a priority for all operators.
In addition, operators will likely be under increased regulatory scrutiny during this type of period to ensure they are doing everything they can to protect end users. Those who do not have sufficient KYC, AML (Anti-Whitewash) and age verification checks could face fines.
As Roger Redfearn-Tyrzyk, Vice President of Global Gaming at IDnow, notes: “The challenges operators face during major sports tournaments are not necessarily different from their day-to-day compliance challenges, but the sheer number of new players from around the world, along with increased activity, will likely cause problems for unprepared operators.”