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Engaging in casino bonus is not illegal per se, but breaking terms and conditions is. For example, all bonuses will typically include terms detailing that they have the right to confiscate any winnings if they suspect the account player to be involved in some form of bonus abuse. These terms can be murky but are typically referring to players who manipulate bonuses to their advantage.
In the online gambling world, you would be hard pushed to find a mainstream online casino that doesn’t attempt to entice new customers through bonuses. Offering bonuses to attract and retain bettors has become a staple for new and old brands in the industry, and there is no reason to believe this will not be the case for the near future.
Our highly configurable platform for identity proofing in the gaming market allows operators to keep abreast of constantly changing regulations, and new fraud schemes and scams, while ensuring a safe, secure and seamless gaming experience. With our latest round of platform enhancements, we now offer UK-specific data checks, and financial risk checks, which provide operators with insights into a player’s affordability indicators to comply with the latest updates to the UK Gambling Act.
Onboarding players is a critical part of the iGaming experience. With IDnow, operators can guarantee compliance with international regulatory standards and curb fraud without compromising the player experience.
Besides stricter protocols and spreading awareness, KYC and AML checks can reduce bonus abuse in iGaming, combat money laundering, and minimize financial losses. IDnow’s user-friendly, efficient, and secure AML and KYC solutions can help with player onboarding, financial risk checks, age verification checks, and more. With IDnow, operators can guarantee compliance with international regulatory standards and curb fraud, such as bonus abuse fraud, without compromising the player experience.
Bonuses are also designed to encourage players to continue betting using their own money when the bonus funds run out. Both parties should gain from a good betting bonus. For example, customers may receive bonus funds to bet with, while operators get to acquire paying customers. Challenges emerge when certain users start using bonuses for malicious activities like money laundering.
The same would apply for any suspicions that the account is being used in a fraudulent manner, such as the account being used by someone else other than the official holder. Fraudsters would be breaking many of these terms if they were to create multiple accounts under other people’s names.
Bonus abuse involves players signing up to a gambling platform to manipulate the promotion to their favor, unfairly manipulating the promotion incentives aimed at casino players who have yet to sign up.
For example, in 2019, Malta-based companies Genesis Global and AG Communications were fined by gambling regulator Spelinspektionen for allegedly offering recurring bonuses to their Swedish player base.
Operators must also work toward spreading awareness about the consequences of online gaming bonus abuse. This involves starting initiatives and collaborations among other operators and sharing best practices and helpful information to safeguard the industry.
While most gambling sites use technology to detect and prevent players from claiming bonus funds on forbidden games, bonus abuse invariably involves avoiding promotional restrictions to play games with bonus money.
It is worth mentioning that only some people who partake in bonus cheating are seasoned fraudsters. Most bonus abusers are regular gamblers who believe they are only ‘cheating the system’, and not venturing into illegal territory. However, there is a sizeable community of tech-savvy criminals who have the resources to utilize betting bots, virtual machines, emulators, and (simulated) residential IPs, such as mobile networks or Socks5 proxies, to leverage new IP addresses.
Attracting bettors and players is the main reason why sportsbooks and other operators provide bonuses. Players appreciate the chance to play with bonus funds, so seeing appealing offers from sportsbooks makes them more inclined to register.
In fraud terminology, this process is known as multi-accounting. Bettors typically target free bet promotions and bonuses with no deposit requirements, i.e., no deposit bonuses, such as free cash or spins.
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