The iGaming industry is booming, offering gamers around the world immersive online experiences. However, with this growth comes major challenges, not least advertising fraud. According to a recent study by RockApp, fraud in digital advertising could exceed $100 billion a year by 2025, with iGaming being one of the sectors most affected.
The growing scale of iGaming fraud
Advertising campaigns in iGaming are increasingly confronted with fraudulent traffic. Research indicates that up to 40% of digital advertising traffic in this sector is fraudulent. This increases acquisition costs and distorts performance metrics, making it difficult to assess the effectiveness of campaigns.
Advertising fraud in iGaming takes various forms. Click fraud and bogus traffic are common strategies used by fraudsters. Automated bots and scripts generate fake clicks, draining marketing budgets without bringing in any real players.
Affiliate fraud and false attribution are also major issues. Some malicious affiliates manipulate tracking systems using techniques such as cookie stuffing or bogus registrations, resulting in unjustified commission payments.
Another tactic is to create multiple accounts to exploit promotional offers, thereby distorting retention data and increasing acquisition costs. Fraudsters also use methods such as ad injection and domain spoofing. Operators’ ads are then placed on unauthorised or low-quality sites, misleading advertisers and reducing conversion rates.
Financial and operational consequences
As well as wasted advertising spend, ad fraud has a significant impact on the industry as a whole.The increase in costs per acquisition (CPA) is a direct consequence, with costs rising by 30-50%. This increase makes the acquisition of real users much more expensive.
What’s more, bogus traffic distorts key performance indicators, making it harder to assess the effectiveness of campaigns. Operators therefore have to invest more to obtain reliable data. At the same time, fraudulent advertising practices can lead to compliance breaches, particularly in markets subject to strict responsible gambling regulations. Finally, associating a brand with fraudulent activities damages its reputation. Players and business partners risk losing trust, which can have long-term consequences for a company’s performance and growth.
Strategies to combat fraud
To counter the financial and operational impact of fraud, iGaming companies are adopting advanced prevention strategies.
Using artificial intelligence to monitor traffic and detect abnormal patterns, fraudulent users are blocked in real time.
Detecting affiliate fraud is also a priority. Advanced tracking tools identify irregular registrations and prevent fraudulent commissions.To combat multi-accounting and bonus abuse, operators are stepping up user verification procedures.Biometric authentication and multi-factor verification are increasingly being adopted to limit these practices.
Finally, to prevent domain spoofing and ad injection, some companies restrict ad placements to verified, high-quality sites. This approach ensures better visibility and conversion of campaigns.
The future of fraud prevention
Despite the progress made, the iGaming industry remains a prime target for fraudulent activity.
Fraudsters are constantly perfecting their methods, forcing operators to adopt increasingly sophisticated solutions.
Artificial intelligence plays a key role in this fight, improving detection of suspicious behaviour and significantly reducing fraudulent traffic. With a potential 50% reduction in fraudulent traffic, the industry is moving towards a more secure digital marketing environment.
However, constant innovation in detection technologies remains essential to maintain the growth and integrity of iGaming operations.