Innovative approaches required to curb deception in internet-based gambling platforms
Online gambling fraud poses a significant threat to Ukraine, particularly as digital platforms have risen in popularity. The Ukrainian Gambling Council's Deputy Chair for Communications, Victoria Zakrevska, emphasized this concern, citing an increase in fraudulent activities due to the shift of the gambling industry to online platforms.
Traditional casino manipulations have been supplanted by a new landscape of fraud. Online sports betting is now at risk, with the use of anonymous accounts and offshore payment schemes expanding. Insider information and event participant collusion have also been observed.
For national operators, financial analysts have become crucial partners. The most prevalent schemes involve fixed-odds betting with predetermined outcomes, confidential information, and internal data access, as well as player or event organizer collusion.
The digital environment offers opportunities for hidden activity, which Brazil, a leader in combating fraud, is actively addresses. The Secretaria de Políticas Antidopagem (SPA) has signed agreements with Integrity Compliance 360 (IC360) to use real-time betting analysis systems. SPA has signed five such agreements, demonstrating a strategic approach.
Financial trails can expose violations, such as sudden spikes in bets on unlikely events and similar patterns of behavior among individual accounts, signaling potential fraud. Modern analytical systems aim to prevent damage before it occurs and can be utilized by both states and direct gaming operators.
The legalization of gambling in Ukraine in 2020 has led to an active growth in the online betting market, accompanied by a parallel increase in the risk of shadow schemes. Although the scale of fraud is currently smaller than in the EU or Brazil, relying on self-regulation is risky.
Zakrevska recommends proactive measures, such as implementing a national analytical platform, enhancing international cooperation and data exchange, and early monitoring of suspicious transactions and activities. In light of these challenges, Brazil's example can serve as a roadmap for all Ukrainian regulators.
By adopting and enforcing robust digital KYC and AML standards, strengthening the fight against money laundering and tax evasion, promoting interagency cooperation, and learning from international best practices, Ukraine can significantly reduce online gambling fraud and align its approach with leading international standards.
Online sports betting is now vulnerable to fraudulent activities, with the rise of anonymous accounts and offshore payment schemes in the online gambling industry. National operators in Ukraine are emphasizing the importance of financial analysts as they try to combat these schemes, especially in the context of fixed-odds betting, insider information, and event participant collusion.
