EveryMatrix plays mythbusters on iGaming bonus abuse
Bonus abuse has evolved far beyond the outdated assumptions many operators still rely on. What was once seen as a manageable side effect of promotions is now a sophisticated, organised threat that directly impacts profitability, player trust and long-term growth.
Operators who allow bonus abuse are directly shedding their bottom line, handing it to those who are taking advantage of the frailties in their systems. The problem of bonus abuse is growing, too. According to a Sumsub report:
- 64% of fraud in iGaming comes from bonus abuse
- Bonus abuse is reportedly costing operators 10-20% of their revenue
- 83% of operators have reported that bonus abuse is worsening year-over-year
In light of this, iGaming Expert enlisted the help of Stian Enger Pettersen, Head of Casino at EveryMatrix and Tetiana Dychenko, Chief Product Officer Casino at EveryMatrix, to get a clear breakdown of the most persistent myths and the operational realities behind them.
Myth 1: Bonus abuse is an isolated, predictable cost
Reality: It is organised, scalable and exponential
Some operators believe bonus abuse and fraud losses can be predicted and therefore kept under control, but Dychenko warned that that’s simply not how modern bonus abuse works.
“Today, bonus abuse is organised and scalable,” she noted. “These aren’t individuals anymore. These are coordinated groups, often with dedicated teams, monitoring offers and testing weaknesses, and immediately scaling what they’ve found.”
“Once a loophole is discovered, whether it’s a bonus rule, game mechanic or a flaw in the onboarding process, it rapidly spreads across the network. So, instead of small losses, you get exponential growth. What looks like a small issue today can become a massive financial leak tomorrow. This is why reactive approaches no longer work.”
Dychenko is clear in her assessment that systems simply must detect patterns very early, before abuse scales. Once that abuse is taking place at scale, she noted, it means that it’s already too late.
Myth 2: Manual reviews are enough against bonus abuse
Reality: Manual reviews alone create dangerous blind spots
Once the bonus abuse has been identified, it is time to intervene. As Dychenko outlined, it needs to be done quickly.
She explained that some operators who choose to conduct manual reviews may feel safe because there is a human in control, but in reality, it’s one of the biggest blind spots operators have.
“Modern bonus abuse is not that obvious. It’s not just one red flag; it’s dozens of small signals such as unusual gameplay, deposit patterns, bonus behaviour or session timing that doesn’t quite fit.
“Individually they look normal, but together they tell a different story. It’s impossible for humans to process thousands of behavioural signals across thousands of players in real time. This is where AI comes in.
“It doesn’t replace manual review, but it makes it much smarter. It filters and surfaces the right cases, so instead of looking for a needle in a haystack, you’re looking exactly where you should be.”
Myth 3: Bonus abuse only happens during welcome bonuses
Reality: Abuse persists across the entire player lifecycle
While sign up offers are a common method for bonus abusers to commit fraud against operators, it is far from the sole point of abuse.
Dychenko asserted that while welcome bonuses and player onboarding are indeed high-risk moments, the harsh reality is that the bonus abuse is only just getting started.
“Sophisticated players and organised groups continue to exploit new bonus campaigns, free spins offers, different rewards, and new games,” she said. “Some of the most advanced abuse happens later in the lifecycle, when players look legitimate. They build trust first and exploit later. This is why only focusing on onboarding is risky. You need continuous monitoring across the entire player journey, from registration to long-term engagement, because bonus abuse isn’t a one-time event. It’s a behaviour.”
Myth 4: Bonus abuse is a necessary evil of promotions
Reality: Promotions can be designed to deter abuse
Stian Enger Pettersen pointed out that promotions can be made in a way that are unattractive to bonus abusers, while still appealing to genuine players.
“Typical examples are challenges, tournaments and loyalty systems that encourage engagement. A genuine player likes this, while it becomes more of a hurdle for a bonus abuser.
“They’re looking for hard cash, and as fast as possible. So, it’s about how you shape the offers and having the tools to detect and act on abuse as it happens. When word gets out among syndicates that abuse is detected at a certain operator, they will naturally move on to weaker targets.”
Myth 5: All GGR is good GGR
Reality: Revenue without context can be misleading
Did you think that GGR was the be-all-and-end-all of your iGaming operation? Think again, warned Enger.
“No, it’s not. Bonus abuse drives traffic, increases GGR and boosts deposits, but not all GGR is good GGR. It is vital to look at the cost of sales, stripping GGR down to what you are left with. The true value of a player is not measured in GGR, it is measured in what remains after deducting bonus costs, payment costs and affiliate costs.
“If the bonus cost is high relative to the GGR brought by a player, this may indicate bonus abuse and you should take a closer look.”
Bonus abuse is a system-level challenge
The common thread across all these myths is the tendency to treat bonus abuse as isolated or manageable. In reality, it is systemic, spans product design, player behaviour and operational strategy.
When it comes to bonus abuse, the shift is clear: from reactive control to proactive prevention because in today’s iGaming environment, outdated assumptions don’t just slow you down, they expose you to exponential risk.
The original version of this article was published by iGaming Expert.
