Bonus abuse in online gambling

In order to attract new users and differentiate themselves from the competition, online casinos typically offer attractive promotions. These can either be welcome bonuses for new members, or recurring bonuses to reward the most loyal players. While there is nothing wrong with using these bonuses as much as possible, it’s important to point out that there are also fraudsters who try to take advantage of them to gain an unfair advantage. This is called bonus abuse, and in the following article, we will explore its main aspects.

What is Bonus Abuse?

Bonus abuse consists of exploiting the promotional offers of online casinos in ways that violate the terms and conditions. This is a willingly vague definition because the term includes a constellation of possible methods within it. The most classic method of bonus abuse fraud is to create multiple accounts to get the bonus several times and thus have a better chance of turning the bonus money into real money. Another method that is quite popular at the moment is ‘matched betting’, which may seem legal but in truth is not.

We will look at the characteristics of all methods in more detail in a moment. For now, it is important to understand why this practice is fundamentally wrong. The impact is negative not only for casinos but also for other players. Platforms risk losing a lot of money and this leads to more restrictive measures and bonuses with hard-to-meet wagering terms, which will lower the chances of winning even for honest players.

In short, bonus abusers are not modern-day Robin Hoods who steal from rich casinos and redistribute the wealth. On the contrary, they put their personal (and criminal) interests first, to the detriment of all. 

Common Methods of Bonus Abuse 

Let's get into detail and see which are the most common methods of bonus abuse one at a time.

• Multi-accounting. Bonuses are personal, which means they can be used only by one person. To bypass this rule, players create multiple accounts in different ways. Sometimes they just use different email addresses, other times they create fake identities or steal personal information. This way, they can claim the same bonus multiple times, increasing their chances of winning. To do so, many use VPNs to mask their IP addresses, making it harder for casinos to detect them. 
• Matched betting. Also known as bonus stacking, this technique includes using a bonus on a casino and hedge betting on a different site, sometimes through a different bonus. It is a method used for sports bets, and it allows players to win a percentage of the bonus no matter the final result of the sports event. Of course, events need to have certain characteristics: for example, the odds of both opposite results must be as similar as possible. This is a practice that may seem legal and is certainly less criminalized than creating fake identities. However, it still violates the terms and conditions of most casinos.
• Collusion. This method consists of groups of players that work together to manipulate a game. This is typical of games like poker or, more in general, multiplayer games. These players coordinate their play and pool their bonus funds to make sure one member of the group wins.

Beware: this is only the tip of the iceberg, and new methods of bonus abuse gambling arise every month.

Experts Opinion of Bonus Abuse 

To learn more about these fraudulent methods, we engaged some international experts on this issue. Mila Roy, an iGaming expert from Gamblizard.ca, told us that “players should always read the fine print before claiming a bonus. Not all the illegal practices are perceived as illegal. It's important to know that what you do might have consequences.” 

“The problem is international,” adds Mathilda Schneider of Gamblizard.de. “Here in Europe, too, there are many players using VPNs who try to carry out fraudulent actions that jeopardize the quality of the game, even for those who just want to have some fun with bonuses in a completely legal way.” In short, the problem is serious and needs to be addressed seriously.

How Casinos Detect Bonus Abuse 

With the emergence of bonus abuse, casinos did not sit on their hands. They started to take action instead. Let us now look at some methods they have developed to detect bonus abuse. 

• KYC (Know Your Customer) Verification. Have you ever wondered why registering at casinos has become more and more complicated and often includes the upload of documents? This is precisely a strategy used to counteract the phenomenon of casino bonus abuse. The process involves verifying a player's identity through documentation of various kinds, such as an official ID card and proof of address. This allows casinos to know that the users are really who they say they are.
• IP and Device Tracking. By analyzing IP addresses, casinos can identify multiple accounts that are generated from the same location. This is definitely a red flag. Thanks to advanced tracking technologies, unusual patterns in device usage can be noticed and reported. 
• Behavior monitoring. Finally, casinos observe user activities, such as betting, depositing, and sign-up patterns, to detect suspicious activity. They then try to counter those who use bonuses passively without further participation in casino activities. 

What Players Need to Know to Avoid Bonus Abuse 

As we have seen, some bonus abuse methods are not really criminal practices, but rather violations of the terms and conditions of the casino and its bonuses. This means that bonuses are not always abused intentionally: sometimes, you can do it even without meaning to. 

How to avoid it, then? It is very simple. Just carefully read all the terms and conditions and all the rules associated with the desired bonus. It may seem tedious to read pages and pages of wagering limits, eligible games, and withdrawal conditions, but it must be done. In time, you will become familiar with the bonuses and realize that the limits are more or less always the same. 

In short, knowing the rules is the first step to playing legally. Conversely, ignorance won’t be considered a valid excuse and carries a high price to pay, as we will see in the next and final section.

Consequences of Bonus Abuse

There are many consequences of bonus abuse. First of all, there are consequences for casinos: they could lose potential revenue and face operational strain in managing the fallout. Furthermore, the costs of detecting bonus abusers are high, which could divert resources away from customer service and marketing efforts. Overall, it’s estimated that bonus abuse costs casinos 15% of their annual revenue.

The consequences are even more severe for players. Those caught practising bonus abuse methods can get their account banned and could even have their winnings confiscated. In addition, repeated offences can lead to blacklisting, thus preventing a player from playing at many casinos. Even in the case of methods that do not appear to be serious, such as matched betting, the consequences are similar. 

It’s better to stay away from these practices. Bonuses are an essential tool for players, but they must be used healthily and legally.

This article was written in cooperation with Mila Roy and Mathilda Schneider