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Online Gambling Survey Report
Doing this for each customer takes a considerable amount of time. So, while on one hand the
technology exists to help speed up certain processes at various points in the customer journey,
there are few solutions to help speed up manual reviews. These manual processes increase
friction in the user experience for customers, causing frustration and potentially leading them
to abandon the gambling operator’s site in future. However, advancements in technology
will in turn support the online gambling industry to mitigate the manual side proves where
everything can come grinding to a halt, impacting the customer experience.
Customer experience is the key aim for the majority of online gambling operators
When asked which is more important for their business, our experts revealed 70% focused on
customer experience while 30% wanted to put an end to fraud.
With this in mind, we decided to find out more and asked our industry experts about additional
attitudes and challenges within the online gambling sector when it comes to fraud prevention.
The survey was answered by respondents across the industry, from individuals responsible for
operations and IT, to risk and fraud specialists, to payments and finance professionals, to C-suite
leaders. The insight provided by the respondents’ breadth of expertise offers a comprehensive
look at the state of the industry and the obstacles and opportunities faced by the online gambling
sector today.
Fraud in the customer journey
As stated in our previous report, Frictionless Customer Authentication In Online Gambling: A
Dream or Reality?, the sector is experiencing increasing levels of two key forms of fraud. Not
only are gambling operators seeing card-not-present (CNP) fraud or the practice of using others’
payment information to set up accounts themselves, they are suffering from “bonus abuse”
fraud too. This is when fraudsters take advantage of an operator’s sign-up bonus promotion
by opening a number of new accounts with different email addresses.
Perception of increased player verification
Fraud prevention and increased player verification will impact the customer journey. Unfortunately,
while the technology to fight fraud has come a long way, there remains no instant solution as
many still require a manual review layer of protection.
As the online gambling market
continues to grow, fraud prevention
technologies and increased player
verification will negatively impact
the customer journey.
50% Agree
50% Disagree
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Online Gambling Survey Report
What type of fraud most
negatively impacts your
business?
The impact of increased player verification on customer satisfaction is a worry for online
gambling operators
Interestingly, 50% disagree, which tells us that many operators are already seeing positive results
from the technologies they are already using.
63% Bonus abuse
13% Account takeover
7% Friendly fraud
7% ID theft
3% Card not present
3% Card testing
3% Synthetic ID
Online gambling operators care more about bonus abuse than any other form of fraud
However, when our researchers asked our industry experts, 50% agreed that “fraud prevention
technologies and increased play verification will negatively impact the customer journey.”
Bonuses are already an expensive way to incentivise new customers – with bonuses of up to
£550 being offered, they can cost 35% of gross revenue spend for some operators 4 . Fraudsters
engaging in bonus abuse, however, can cost operators an additional 15% on top 4 . Our own
survey found 63% of respondents said bonus abuse was the form of fraud that negatively
affected their business the most.
Many said this because they are already directly experiencing it. Any time a business needs to
involve a human compliance team to carry out fact-checking, the process takes longer. Right
now, operators must check identity documents and other key pieces of information to verify that
customer accounts and identities are genuine. Not only that but they must also run checks against
GamStop and other self-exclusion databases.
Account takeover was also identified by survey respondents as having a significant impact
on gambling operators, with 13% suggesting it was a concern. ID theft was highlighted by 6%
https://muchbetter.com/all/what-can-operators-do-to-limit-exposure-to-bonus-abuse/
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