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As eSports become more popular, time for the industry to get real about security
Police in Ukraine recently seized 3,800 PlayStation 4 consoles, which currently retail for around 290 each, and found to their surprise that the operation wasn’t mining cryptocurrency as they assumed but was in fact being used to generate content packs for FIFA Ultimate Team, a popular game mode in the FIFA football series.
The raid and its results underline a fact that may escape more traditionally minded members of the gaming community: eSports is a major industry, and like any industry it is susceptible to fraud. The fact that the games themselves take place virtually is irrelevant to fraudsters who can use the familiar toolkit of multi-accounting, bonus abuse and affiliate fraud to earn thousands.
With many sports teams unable to play throughout much of 2020 and 2021, eSports grew massively. League Championship Series (LCS), one of the largest eSports leagues, became the third most viewed professional sports league amongst 18-34 year olds in the U.S and has retained its corporate sponsors at a time when other leagues were shut down. Success stories like these are blunted by how pervasive eSports fraud is,
So, what kinds of fraud are taking place in eSports, what is it costing eSports organizations and what can be done to stop it?
What kinds of fraud are possible in eSports?
eSports attracts very similar types of fraud to regular sports betting, including:
- Bonus Abuse: Like other sports betting companies, eSports companies often give sign-up bonuses such as free bets to new players. By coding automated systems, a fraudster can sign up to hundreds of accounts and use the free bets to win real money. This can cost gaming companies up to 15% of their revenue.
- Multi-accounting: Similarly, a fraudster can use multiple accounts to perform other types of fraud, such as matched betting, ‘smurfing’ or arbitrage of affiliate fraud.
- Affiliate Fraud: Those eSports betting organizations that draw in some of their new players from affiliates are vulnerable to affiliate fraud in which an affiliate creates fake accounts to gain the pay-out.
- Account takeover: Using lists of passwords from data breaches, keyloggers or phishing a fraudster can gain access to a player’s account and drain their funds.
- Chargeback fraud: A player, who may be a legitimate gamer and not a professional fraudster, initiates a chargeback on a transaction. This is common in gaming when gamblers regret a bad bet and claim that their account was hacked.
The costs of eSports fraud
Fraud costs have a way of snowballing, with each $1 lost through fraud actually costing companies $3. The above techniques are hardly equivalent to the major data breaches of major banking and tech companies that cost on average $3.86 million, but the constant barrage of low-level frauds can soon drain your company’s security budget. Aside from the cost of the fraud itself, there are a number of hidden costs such as:
- Chargeback losses: Investigating and disputing chargebacks will take up your risk team’s time, leaving them little time for more valuable activities. More worryingly, a company with a large number of chargebacks is likely to find it difficult securing credit or loans. Visa and Mastercard’s resolution processes are making things even more difficult for merchants, so you are likely to lose even more.
- Affiliate budget waste: You could be paying for useless clicks from bot networks rather than legitimate customers, wasting your marketing budget and reducing overall ROI.
- Reputational damage: Once word of mouth spreads about customers losing the entire bank accounts to account takeovers it will not be long until players start deserting your site.
- Regulatory fines: The regulations around eSports are not as stringent as with other sports betting, but it will not be long before they catch up. With the industry growing it will not be long before countries put regulations in place to protect players, and without stringent security your company could be fined.
The solutions
You will notice that the majority of the types of fraud common in eSports have to do with fake accounts. These are easy for fraudsters to create using the wealth of publicly available data and leaked information, but fortunately artificial intelligence-based tools have been developed that allow companies to spot synthetic identities.
Through device fingerprinting, email profiling and IP analysis a complete picture of a new signup to your site can be created, allowing software to spot the tell-tale signs of a hastily created account. For example, it could find that an email address does not match any social accounts, or that they use VPNs and data centers to conceal their IP address.
Of course, a sophisticated fraudster could create a convincing fake identity, especially with the wealth of information available from data dumps, so modern technology can also spot the use of pre-paid credit cards or even the speed with which information is entered, which could indicate it is being filled in automatically by a script.
By combining data points from a large and ever-growing set a system can determine whether it is likely that any given new account is fraudulent. For the many cases in which it will not be fully clear whether an account is authentic or not adaptive Know Your Customer checks can be used – customers with several red flags will be given full tests to determine their identity whereas other customers will have less obtrusive tests for a smoother site experience.
eSports has gone from a niche concern to an Olympic sport in a few short years, and that success is going to attract fraud, so it is vital for the industry to pre-emptively defend against fraud by adopting the very highest levels of security.
To learn more, visit: https://seon.io/
The Board of Directors of Playtech, the leading platform, content and services provider in the online gambling industry, has announced that John Gleasure has been appointed to the Board with a view to his succeeding Brian Mattingley as Non-executive Chairman.
John joins the Board as an independent Non-executive Director and Chairman Elect, and is expected to assume the role of Chairman after Playtech’s annual general meeting in May 2025, at which time Brian will step down as Chairman and from the Board.
John brings 30 years of experience across the sports, media and technology sectors, in addition to relevant Board experience from a range of international companies. He currently serves as a Non-executive Director at DAZN Group, the leading global sports subscription service, and is a Non-executive Director (and previously Executive Chairman) at The Sporting News, a global digital publisher. John was a founder of Perform, a digital sports media business, growing it into a leading provider of live data and content to online betting groups before the business listed in 2011. John previously held leadership roles at Sky Sports, Hutchison 3G and Sony Pictures.
Brian Mattingley, commenting on the changes, said: “We are very pleased to welcome John to our Board as a new Non-executive Director and Chairman Elect. John’s significant experience and knowledge will be a tremendous asset for Playtech as it continues its transformation into a predominantly pure-play B2B business. I look forward to giving him every support during this period of transition.”
John Gleasure, commenting on his appointment, said: “I am delighted to be joining Playtech at such a pivotal moment in its history. Playtech is a unique and highly innovative business, underpinned by market-leading technology and relationships with the world’s leading gambling operators. I’m excited about the opportunities ahead, and I look forward to working with everyone at Playtech to drive forward its strategy and create further value for our shareholders.”
The post Playtech: Appointment of Non-executive Director and Chairman Elect appeared first on European Gaming Industry News.
Thirsk Racecourse has announced that Ladbrokes will sponsor the 2025 Thirsk Hunt Cup.
First run in 1859, the £50,000 mile handicap is Thirsk’s most prestigious race and highlight of Thirsk Hunt Cup Day on Saturday, May 3.
Ladbrokes is the biggest and best-known betting brand in the UK with over 1500 betting shops, a digital betting business and a long-standing association with horse racing dating back many decades.
The company boasts a strong sponsorship portfolio in horse racing, including Kempton Park’s Ladbrokes Christmas Festival, the Ladbrokes Chester Cup and the Ladbrokes Chase at the Dublin Racing Festival.
Ladbrokes also sponsors leading Jump trainer Dan Skelton, who writes a weekly blog as he bids to win the British Jump trainers’ championship for the first time.
Farhh is the most notable winner of the Thirsk Hunt Cup in recent years, taking the 2012 edition by six lengths before a memorable Group 1 double the following year in the Lockinge Stakes at Newbury and Ascot’s Champion Stakes.
Simon Clare, PR Director for Ladbrokes, said: “We are excited to sponsor such an iconic and prestigious race as the Thirsk Hunt Cup, and look forward to partnering with Thirsk Racecourse as we seek to strengthen our support and promotion of the sport.”
James Sanderson, Chief Executive and Clerk of the Course, said: “We are delighted to have Ladbrokes sponsoring the Thirsk Hunt Cup and its supporting programme in 2025. The £50,000 Ladbrokes Thirsk Hunt Cup is an early Flat season highlight in the North and we are very grateful for Ladbrokes’ most valued support.
“Over the past 10 years, northern-based trainers have held a vice-like grip on the contest, with the notable exception of Mick Channon (and STORTING) in 2021. Thirsk always welcomes challengers from far and wide but taking the 2025 Ladbrokes Thirsk Hunt Cup down south will be no easy task.”
The post Ladbrokes to sponsor 2025 Thirsk Hunt Cup appeared first on European Gaming Industry News.
We’ve recently sat down with Arturs Korolkovs, Head of Sales at affiliate marketing company Media 24, to talk about building long-term partnerships in iGaming, his approach to industry events, and key trends of the affiliate sector — from deal structures and listing fees to navigating increased competition.
When did you join Media 24 and how has your role evolved since then?
I joined the company in 2020, right in the middle of COVID. It was a time of big changes for a lot of people, both in work and in life. I was actually the company’s first employee, and together, we worked on launching our first website.
In the beginning, I had little formal experience in sales or partner management, so I was doing a bit of everything. Uploading content, editing videos, handling social media. But as the company grew, so did my role. Over time, I transitioned fully into partner management, starting as an account manager and working my way up to the Head of Sales.
You attend many conferences and industry events throughout the year. What are your main priorities and how do you measure success there?
In the early days, conferences were more like hunting. Pure acquisition mode, trying to get our name out there and sign initial deals. Now, it’s a far more strategic play. Maintaining relationships, gaining new insights, and staying ahead of industry trends. Conferences aren’t just about sales. It’s an opportunity to gather valuable information that helps both the company and my own professional growth.
How we measure success has shifted too. It’s not solely about the number of contracts signed right there and then, though we certainly track leads that convert into long-term partnerships. We evaluate success by asking: Did we meaningfully strengthen ties with our top-tier partners? Did we gain specific, actionable insights – perhaps about competitor moves or regulatory shifts that will impact our strategy? And did we initiate promising conversations that lay the groundwork for valuable, long-term collaborations? That deeper, strategic ROI is what defines a successful conference for us now.
What are the key factors you consider when deciding whether to start a partnership with a specific operator?
Beyond the obvious things like relevant GEOs and a strong product, the initial communication with the affiliate manager is a massive factor. Are they responsive? Do they communicate clearly? This is the person you’ll be working with long-term, so having a good connection is crucial.
And yes, reputation is critical. The industry is smaller than it looks. Over time, you build a network, and there’s always ways to ask around and get feedback about a brand.
What’s your approach to building long-term relationships with partners?
Radical transparency. We’re open about our traffic sources, our methods, and even potential challenges we foresee. And we expect the same from the operator. Hiding bad news does more harm than good in the long run.
Beyond that, it’s important to proactively add value. By sharing market insights, providing constructive feedback, and maintaining regular meaningful contact. It’s about creating a relationship where both sides feel invested in the other’s success. The more open and proactive the communication, the stronger the partnership.
A lot of affiliates are working with the CPA deals, others prefer Rev Share. What’s Media 24’s approach here and why?
Ideally, a hybrid model works best. But if I had to choose between CPA and Rev Share, I’d go with Rev Share. For SEO traffic, it’s the most effective and sustainable model in the long run. And it’s probably the fairest model for both sides of the deal.
CPA can be situationally useful. Maybe for testing a new, unproven GEO, or launching a new project. But if we’re talking about a long-term strategy and good traffic quality, Rev Share wins every time.
There’s a differing opinion about listing fees in the industry. What’s your take on this?
We see listing fees as a mechanism for building strong and sustainable partnerships. In most cases, especially with new partners, we prefer to work with listing fees. Look, when we onboard a new brand, we’re investing significant resources immediately. Creating content, SEO, traffic allocation — all that requires a budget. This happens before we see a single dollar in commission. And without any guarantees on performance, GEO stability, or long-term commitment from the operator.
At the same time, we always take a flexible approach. For trusted, long-term partners with a strong track record, we are open to alternative structures. It’s all about finding a setup that works for both sides and ensures mutual long-term growth.
How can affiliate marketing companies handle increased competition and what are the ways to stand out in the industry?
Quality over quantity. A lot of affiliates still focus on pumping out mass content, but that approach is becoming less effective. Today you seriously have to focus on product improvements and user experience. The best way to stand out is through strong branding, engaging content, and a clear value proposition.
Building long-term relationships with partners also plays a huge role. In a crowded market, reputation and the ability to collaborate strategically become powerful differentiators. At Media 24, we believe in growing together with our partners, and that long-term thinking continues to pay off.
The post Arturs Korolkovs, Media 24: “Radical Transparency Is Our Strategy” appeared first on European Gaming Industry News.
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