Gambling in the USA
The State of Online Gambling Fraud: An Interview with Declan Raines of TransUnion
First of all, could you give us a ‘status report’ about the current online gambling environment? How concerned should players be about fraud? Is it a widespread threat?
Online gambling has experienced enormous growth thanks to digital platform improvements, stay-at-home orders, and loosening regulations. The United States in particular reached record highs with more Americans gambling in 2021 than ever before. Mobile sports betting was one of the main drivers as many states turned to online gaming to capture tax revenue and bolster budgets. New York is a clear example; mobile betting went live at the beginning of the year and immediately set records with more than $1.6B wagered by residents in January. Large states like California, Massachusetts and Florida are considering similar legislation and it’s a matter of time before they join the mobile betting market too.
All this growth, attention, and revenue has been great for the industry, but naturally it’s also attracted the attention of criminals. The challenge with measuring fraud is that you have to catch it to count it, but even with that limitation, TransUnion’s 2022 Global Digital Fraud Trends Report saw a 19.2% increase in suspected digital fraud targeting the gambling industry.
We expect attention from fraudsters to keep pace with the growth of online gambling, and it should be a major concern for both players and gaming companies. That’s supported by what we’ve seen in Europe, where online gambling has been legal for some time now and fraud has been a continuous issue. The silver lining is that the U.S. can benefit from Europe’s example and adopt the most effective compliance, risk, and regulation best practices for consumers and the industry.
What are the reasons behind the rising number of fraud crimes committed?
Fraud will always follow large amounts of money, but much of the recent uptick in fraud can be attributed to bonus abuse. The competition from operators for all these new mobile customers is fierce. To stand out, companies are offering thousands of dollars in deposit bonuses when players sign up. These lucrative bonus offers, and incentives have become table stakes in attracting players to online operators.
In the rush to acquire new players operators have opened themselves up to fraud. They are susceptible to things like arbitrage betting where players make opposite sides of the same bet on different platforms but capture the deposit bonuses from each company. There are also bad actors using synthetic identities to create multiple fake accounts to try and clean funds or capture bonuses.
Bonus abuse will continue to be widespread when there’s such an emphasis on offering enormous bonuses to try and draw new players onto platforms. Ultimately bonus abuse in the US is somewhat of a commercial decision for operators as they strive to balance player acquisition with bonus abuse. Even in Europe, where there are more mature markets and smaller deposit bonuses, this type of fraud continues. It’s up to operators to take steps to protect themselves and customers.
What type of information is at risk? How can they be used against players?
The primary concern of players should be account takeover fraud. Fraudsters are actively looking to gain access to account credentials and are using increasingly complex techniques to accomplish that. Everything from phishing scams to SIM swapping to capture one-time passcodes have been used to gain access to funds in betting accounts. Once they gain access, fraudsters will directly withdraw the funds to one of their own accounts or sell that information on the dark web to other bad actors who will do the same.
Players can protect themselves with robust info security practices. When it comes to online gambling, using a password manager is still effective, but other techniques like VPNs aren’t available to consumers since regulation requires geolocation. Ultimately, good cyber hygiene and being vigilant in monitoring your account will be enough to repel most fraud attempts.
What can game providers do against these attacks? Is it possible to protect players without impairing player experience?
There’s a lot that online operators can do to vet and identify potential fraudsters – there are near-countless customer authentication methods available – but the industry as a whole has largely prioritized the player experience due to the risk of player abandonment. Player abandonment is estimated to be near 70% in the online gambling space right now and it’s easy to imagine why. Most people sign up for a mobile betting account with a specific bet in mind, something that’s especially true for sports wagers. A prospective player sits down on the couch to watch the game, decides they would like to make a wager, but only has a limited amount of time before the game starts. If that person has authentication issues or is impeded in any way during the onboarding process, they’re very likely to abandon the attempt or find a more lenient operator.
I would surmise that operators in the US are more tolerant of having fewer authentication methods in place because player acquisition is the priority right now. That will inevitably change as the industry matures, so operators will have to find a balance between a smooth player experience and better fraud prevention practices.
How does TransUnion ensure safety? What makes the company stand out?
Many online operators believe they must choose between the player experience and fraud prevention – but our team at TransUnion knows that’s not the case. Our experiences in Europe show that you can offer a frictionless player journey and a robust prevention strategy that does give you the best of both worlds.
The key to that is intelligence. Our approach measures confidence levels across three different data categories for each player: who they are, where they are, and what devices they are using. You can quickly identify fraudulent activity from any misalignments in those data elements. For example, if an address doesn’t match with the geolocation or an identity doesn’t match to a device, our team can flag for operators that this account needs an extra layer of scrutiny or friction before allowing access.
This is possible through the industry consortiums we support and work with to share information on potential fraudsters. If a device is associated with healthcare, credit card, or synthetic identity fraud, our gambling operator partners know and can act accordingly if the same information or devices are used on their platforms.
Our teams cast the widest net possible to ensure that online operators don’t have to ask for additional information and can avoid increasing friction in the onboarding process and improve the chances of legitimate players going through the experience seamlessly.
My belief is that with a fully accurate summation of fraud in the gaming market in the US would dwarf the fraud that happens Europe. Operators haven’t been able to put procedures in place to adequately protect themselves during the race to bring on new players. This is temporary; operators will eventually incorporate more robust fraud prevention into the onboarding process as the emphasis on player acquisition is reduced with market maturity. But knowing when to do it, and understanding how to preserve your player journey and experiences, will allow operators to apply a “friction-right” approach where they can have the best of both worlds.
Gambling in the USA
BetBlocker Recognised for Outstanding Contribution to the Prevention of Gambling Harm at NCPG Awards 2024
BetBlocker received the prestigious Jim Wuelfing Annual Award for Prevention at this year’s National Council on Problem Gambling Awards on Friday the 19th of July, which was received by the charity’s Chief of Safer Gambling Partnerships, Pedro Romero.
The award, which was named after a famed trainer and advocate for the prevention of problem gambling in the United States, recognises people or organisations who have advocated for the inclusion of prevention strategies in the spectrum of problem gambling services, developed effective prevention programs and who have worked to help problem gambling prevention programs reached underserved and at-risk groups.
This award comes off of the back of years of work by the BetBlocker team to deliver an effect and free blocking software that can be used anonymously by anyone, anywhere in the world. As well as a traditional blocking software product, intended for use after a crisis, BetBlocker is the only blocking software to offer a Calendaring feature, allowing users to plan ahead and set the block to switch on during known periods of vulnerability.
Alongside these features, BetBlocker has translated its services into 6 non-English languages with many more to come, to help minority communities access support that would otherwise be unavailable to them.
Founder of the charity, Duncan Garvie, had this to say about the award: “Recognition of BetBlocker’s work within the problem gambling space by the NCPG, one of the most influential voices within the sector, is amongst the highest possible accolades our organisation could receive.
I speak for the entire BetBlocker team when I say how deeply honoured we are to receive this award.”
Pedro Romero added the following: “It was incredibly humbling at the NCPG conference this year to speak to so many of the harm minimisation organisation in the USA that are already referring there service users to BetBlocker. Running an anonymous service and we don’t interact with our used frequently it’s easy to lose sight of just how many people are positively impacted by the support we offer.”
Gambling in the USA
The Cordish Companies Celebrates Major Construction Milestone During “Topping Off” Ceremony for New $270+ Million Live! Casino & Hotel Louisiana Project
LRGC Gaming Investors LLC, an affiliate of The Cordish Companies, marked a significant milestone in the construction of the first land-based casino in the Shreveport-Bossier market during the “Topping Off” ceremony for the new $270+ Million Live! Casino & Hotel Louisiana, a project that will serve as a regional destination for world-class gaming, dining, entertainment, and hotel amenities.
The Cordish Companies and General Contractor AnderCorp were joined by State of Louisiana, Director of Intergovernmental Affairs and Former Secretary of State, Kyle Ardoin; Louisiana Gaming Control Board Chairman Chris Hebert; Louisiana State Senator Sam L. Jenkins, Jr.; Bossier City Mayor Thomas Chandler; Bossier Parish Police Jury President Philip Rodgers, along with dozens of other state and local elected officials, and regional business, community and tourism leaders, to celebrate the final commemorative beam being raised to complete the superstructure of the new world-class property.
“Today marks an incredibly special day for The Cordish Companies as we continue to expand our Live! brand in the Southeast region of the country with the development of Live! Casino & Hotel Louisiana. With the first land-based casino in the market, Live! Casino & Hotel will be a transformative development that will bring a first-class gaming and entertainment experience to millions of visitors, create significant new jobs, and generate millions of dollars in economic benefits for the community for generations to come,” said Rob Norton, President of Cordish Gaming Group, the gaming division of The Cordish Companies.
Located along the scenic Red River in Bossier City, directly across from Shreveport, Live! Casino & Hotel Louisiana will feature more than 47,000-square-feet of gaming space; 1000+ slots and electronic table games; 40+ live action table games; a sportsbook; an upscale 550-room hotel, resort pool and fitness center; a 25,000-square-foot, state-of-the-art, multi-purpose Event Center for top name entertainment, meeting, conventions, non-profit and social gatherings; a 31-site RV park with concrete pads and full hook-ups; structured and surface parking; and 30,000-square-feet of best-in-class dining entertainment venues with new food and beverage outlets.
The project, which is scheduled to open in Q1 2025, is projected to generate more than $35 million in gaming tax revenues for Bossier City and more than $168 million for the State of Louisiana within its first five years of operation and create approximately 1500 new jobs including 750 new construction jobs and approximately 750 permanent jobs for local and regional residents.
Careers will be available in every field, including hotel operations, finance, marketing, human resources, information technologies, food and beverage, facilities, security and surveillance and casino operations. Live! Casino & Hotel Louisiana will also purchase tens of millions of dollars in goods and services in the region. As recognized leaders in community outreach with unparalleled track records of supporting local and regional businesses, The Cordish Companies is committed to ensuring contract opportunities for local, MBE/WBE, and veteran-owned companies.
“I am honored to lead the board at such an exciting time for the gaming industry in Louisiana. Our team has worked so hard to establish this first land-based casino in the Bossier market, and we are ecstatic to be one step closer to realizing it with today’s topping off of Live! Casino & Hotel Louisiana,” Chris Hebert, Chairman of the Louisiana Gaming Control Board, said.
“We have already seen the benefits that Live! Casino & Hotel Louisiana has brought to Bossier City. As we get closer to opening this landmark property, our anticipation continues to build, and I couldn’t be happier for my community and more appreciative of Live! for its partnership and positive impact,” Thomas Chandler, Mayor of Bossier City, said.
“Bossier Parish is very excited to have Live! Casino & Hotel Louisiana that will soon become a destination for many locals and visitors. We are very thankful for the investment they are making in this area and cannot wait to see it to completion,” Philip Rodgers, President of the Bossier Parish Police Jury, said.
“Live! Casino & Hotel Louisiana is a spectacular one-stop destination for excitement for everyone from gaming enthusiasts, foodies, sports fans, concert goers or just locals and visitors looking for their next night out. Hundreds of men and women are working hard to make sure that this property will be unforgettable the moment it opens its doors, promising an experience that will entice visitors from near and far to return again and again. Today marks a significant milestone in this journey, and we eagerly anticipate showcasing all the incredible offerings we have planned for early 2025,” John J. Chaszar, Executive Vice President and General Manager of Live! Casino & Hotel Louisiana, said.
Table Trac Inc. announced a new agreement to replace a competitor’s system with the CasinoTrac casino management system at Sac & Fox Casino in Powhattan, KS.
Eric Wright, General Manager of Sac & Fox Casino, stated: “CasinoTrac has come a long way since I first worked with the system. It should easily accomplish what we need at our property.”
Chad Hoehne, President of Table Trac, stated: “Eric and his team really put us to the test, drilling deep into the CasinoTrac revenue audit and accounting functions for compliance with their audit standards. These exercises were diligent and necessary in earning their trust, business, and our 41st Native American tribal partnership.”
Sac & Fox Casino will deploy PlayerLINQ-CasinoTrac’s 6.2” touchscreen player tracking interface, CTLoyalty for all patron marketing, promotions, and bonusing administration and management, KioskTrac promotional games with account management, and slot accounting solutions.
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