Posted in Industry September 12, 2017
Online Fraud: The Bane of iGaming Businesses As Proved by CASEXE Survey
Online fraud is a major problem for iGaming businesses. A recent survey by CASEXE found that 94% of gambling operators reported issues related to online fraud. Despite extensive discussions on iGaming forums, no effective solution has been found yet. While increased regulation and new software may help reduce fraud cases, a perfect security system has yet to be developed.
About the CASEXE Survey of Online Fraud
CASEXE is a well-known online casino software provider that focuses on developing innovative solutions and helping iGaming businesses grow. To stay up-to-date, CASEXE conducts various industry surveys. Their most recent survey included 50 gambling operators from European countries and the CIS.
The survey asked participants multiple questions about the challenges they face in their businesses. The results were quite alarming.
The main findings are:
Online Fraud is the Main Issue for Gambling Operators
94% of respondents reported regular problems with online fraud. The most common type of fraud is known as ‘bonus hunting,’ which was complained about by 85% of operators. Multi-accounting is the second most prevalent form of fraud, reported by 75% of respondents. Financial fraud is present in only 31% of gambling operators, but this number is still significant. It’s worth noting that the survey participants primarily operate in highly-regulated markets. The situation may be worse in markets with lax gambling control policies.
Online Casino Payment Systems are Far From Perfect
82% of online gambling operators are dissatisfied with the payment systems integrated into their casinos. The biggest problem, according to 72% of respondents, is regional restrictions that prevent many people from playing. Even if operators try to contract with multiple payment systems, limitations still exist.
Payment delays are another significant concern, reported by 55% of operators. Only a few online casinos offer instant payments, and even they may experience problems due to issues with the third-party payment service. In addition, 34% of operators mentioned that payment services charge high fees, which negatively affect the casinos’ terms and competitiveness in a highly competitive market.
Online Gambling Software isn’t as Good as Players Think it is
Surprisingly, many online gambling operators are dissatisfied with the content offered in their casinos. While games from leading developers like Microgaming, NetEnt, Playtech, and Evolution Gaming are visually appealing and entertaining, operators argue that they are not suitable for business. The main complaints include frequent winning streaks in online slots (cited by 65% of respondents) and cooperation terms with developers (mentioned by 44% of operators). Technical problems with games were reported by 29% of participants, which is still a relatively high percentage considering the demand for stable performance in today’s software solutions.
Another issue mentioned by 19% of operators is related to the platforms on which online casinos operate.
All of this suggests that, from a business perspective, casino software developers still have room for improvement, even though players may not notice these shortcomings. Casino operators cannot choose obscure game developers because players often judge the casino by the software they use. Therefore, major operators must offer games from reputable developers to maintain their reputation.
It remains to be seen if the challenges faced by online gambling operators will change in future surveys. Currently, there is no clear solution to any of these issues. While fraud can be reduced through stricter regulations, this may also negatively impact player enjoyment and interest. In the meantime, players can choose to play at leading online casinos like PlayGrand Casino, QueenVegas Casino, RiveraPlay Casino, and SlotsMagic Casino, which have proven to overcome these challenges and provide a safe gaming experience.