The online gambling industry is projected to experience significant growth in the coming years, with an expected annual growth rate of 7.76% and a projected revenue of $138.1 billion by 2028. However, this rapid growth has also led to an increase in fraudulent activities within the industry, which is posing a challenge for gaming operators.

One of the most common types of fraud in the gambling space is bonus abuse, which accounts for over 50% of all fraud cases. Additionally, affiliate fraud and deepfakes, which have been on the rise globally, are also becoming significant concerns for gaming operators. These fraudulent activities not only impact the financial stability of the organizations but also tarnish their reputation, affecting how players perceive the company in the long term.

To combat fraud, regulators are placing a heavy emphasis on compliance and imposing fines for violations of anti-money laundering and responsible gaming requirements. One of the key measures being implemented is Know Your Customer (KYC), which verifies the identity of new players to prevent fraud and money laundering. While KYC checks are typically carried out once funds are withdrawn, the majority of gaming fraud occurs before this stage, making fraud prevention a critical challenge for operators.

To address this issue, gaming platforms are turning to solutions specifically designed for the industry, which enable them to establish customizable rules to prevent suspicious activities, flag unusual behavioral patterns, and detect potential addictions in players. Automating these rules not only reduces the cost and time of manual work but also minimizes the risks of human error.

In addition to fraud prevention, gaming operators are also focused on remaining compliant with evolving regulations. Organizations like the American Gaming Association are promoting responsible gaming and urging operators to implement measures to protect vulnerable players and ensure regulatory compliance. Failure to do so can result in significant penalties, fees, and loss of customers.

Ultimately, gaming operators are seeking comprehensive solutions from a single vendor to address their compliance and fraud prevention needs, especially as they expand globally and need to work with multiple regions. The hope is that these efforts will lead to a reduction in fraud within the industry in the coming years.

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