Fraud in iGaming Advertising to Reach $100 Billion by 2025

Rising Costs and Increasing Sophistication in iGaming Fraud

The iGaming sector faces an escalating battle against fraudulent traffic, with industry research revealing that up to 40% of digital ad traffic in iGaming campaigns is fraudulent.

A report by RockApp highlights the extent of the issue, showing that fraud drains billions from marketing budgets each year. While operators have managed to block up to 50% of fraudulent activity, fraudsters continue to develop more sophisticated tactics, leading to higher acquisition costs and distorted performance metrics.

How Fraud Impacts iGaming Advertising

Fraud in digital advertising is a growing concern across industries, but iGaming remains one of the most heavily affected sectors. The nature of high CPA (cost per acquisition) campaigns and complex tracking systems makes it a prime target for manipulation. Key fraudulent tactics include:

• Click Fraud and Fake Traffic – Bots and automated scripts generate fake clicks, depleting marketing budgets without delivering real players.
• Affiliate Fraud and False Attribution – Fraudulent affiliates manipulate tracking systems using cookie stuffing, fake sign-ups, and pixel fraud, leading to inflated commission payouts.
• Multi-Accounting and Bonus Abuse – Fraudsters create multiple fake accounts to exploit promotional offers, distorting retention data and increasing acquisition costs.
• Ad Injection and Domain Spoofing – Operators’ ads are placed on unauthorized or low-quality websites, misleading advertisers and reducing conversion rates.

Financial and Operational Consequences

The financial impact of fraud extends beyond wasted advertising spend. Operators that fail to mitigate fraudulent activity face:

• Rising CPAs – Fraud can inflate acquisition costs by 30-50%, making real user acquisition significantly more expensive.
• Distorted Metrics – Fake traffic skews key performance indicators, making it difficult to assess campaign effectiveness.
• Regulatory Risks – Fraudulent advertising practices can lead to compliance violations, especially in markets with strict responsible gaming regulations.
• Reputational Damage – Brands associated with fraudulent activity risk losing trust among players and business partners.

How Operators Are Reducing Fraud

To counteract fraud’s financial and operational burden, iGaming companies are adopting more advanced fraud prevention strategies. According to RockApp’s research, AI-driven fraud detection tools have enabled operators to cut fraudulent traffic by up to 50%, improving the efficiency of advertising campaigns.

Key fraud prevention strategies include:

• AI-Powered Traffic Monitoring – Machine learning detects abnormal traffic patterns, blocking fraudulent users in real time.
• Affiliate Fraud Detection – Advanced tracking tools help identify irregular sign-ups and prevent fraudulent commissions.
• Enhanced KYC and User Verification – Biometric authentication and multi-factor verification reduce multi-accounting fraud.
• Whitelisting and Ad Verification – Restricting ad placements to verified, high-quality websites helps prevent domain spoofing.

 Future of Fraud Prevention

Despite the progress made in fraud prevention, the iGaming industry remains a key target for fraudulent activity. As fraudsters continue to refine their methods, operators must remain proactive, leveraging AI-driven solutions and stricter verification protocols to protect their advertising investments.

With fraudulent traffic reduced by 50%, the industry is moving toward a more secure digital marketing landscape. However, continuous innovation in fraud detection remains essential to ensuring sustainable growth and protecting the integrity of iGaming operations.