Online casinos have a habit of giving back to people by offering them rewards. Free spins, discounted new games, cryptocurrencies with local use or cashback vouchers are among the most famous promotions that betting sites and casino games offer their customers. Trying to do good for people who spend real money also attracts fraudsters who want to take advantage of the system.
Bonus abuse is a fraud, but it’s hard to catch and fine the culprits if the industry is not updated with the laws and regulations. Some data shows that the market has around 15% annual revenue losses due to fraudsters who take advantage of promotions.
The industry generates billions of dollars each year and helps local infrastructure and growth by paying taxes, licenses and fees to most countries that allow gambling. Although at first, it might not seem important, these types of fraud can strengthen the basis of larger law violations with implications that can put many people's lives in danger.
Other data show that the biggest names in the industry spend up to 20% of their gross revenue on gifts for their customers. However, medium and smaller-sized online gambling websites rely more on this type of advertising and getting people. They invest in third parties, ad campaigns, affiliate plans and rewards programs for almost 54% of their gross revenue.
False names and IDs
The most popular casino offer is the Welcome Bonus. This is usually automatically given to any customer who opens a new account. It can be anything from free spins without deposition requirements, cashback, no withdrawal fees, or deposit money to spend at live dealers' tables.
People who want to trick the system and get more benefits from a single casino go beyond the law’s limits and create false users. Having multiple identities is illegal everywhere around the world, and the internet is no exception.
In order to access a one-time offer, some gamblers create betting accounts with their relatives, friends or partners' names and identification data. Some use fake names and payment methods that help them remain anonymous.
Although this practice is illegal and the industry fights against it, opening a new account on distinct platforms is legal. You can legally sign in with your real name and data on every legal gambling website in your country and use their Welcome Bonus. You don’t have to be faithful to a single platform, but you should take care of yourself and have other hobbies besides gambling for free.
Differences between bonus abuse and reward systems
Bonus abuse can take many forms, as the analysts from King Casino Bonus have documented in a recent report. Fraudsters try to find new ways to access rewards and hope to win from them.
Reward systems are internal protocols that explain what benefits each client has. All can use some gifts and get special rewards on their birthdays or anniversaries with the platform, but loyalty or VIP schemes are available only for some. Loyalty plans work on certain levels. As you increase in rank (that is, you bet more), the casino offers you more benefits, promotions and even a personal assistant.
The line between loyalty plans and bonus abuse is drawn when a player starts looking for less honest methods to benefit from related promotions. Methods such as using fake identities and VPNs to access promotions on restricted websites and others.
If the casino you’re interested in has promotional pages with active, recurring offers for customers, and you choose to use them every time, this does not mean you are abusing the site. All promotions have regulations that include this aspect. So you can make sure in less than two minutes if you are allowed to use an offer or not.
What bonus abuse means to gamblers?
Casino bonus abuse often leads to an unhealthy relationship with gambling. The allure of free money and increased chances of winning can be highly addictive. Fraudsters are drawn to getting more free spins from a place where the offer is good, so they can become overly obsessed with winning without paying, and addiction can happen faster.
Individuals engaging in bonus abuse often disregard responsible gambling practices and proper bankroll management. As they wager larger amounts or become caught in a cycle of debt, they will have significant money losses.
There are also negative consequences on a person’s mental health. The stress, anxiety, and guilt associated with this activity can have detrimental effects on mental health. These feelings and the will to keep on searching for new ways to access promotions are also associated with problematic gambling behaviours.
Last but not least, they ruin other gamblers’ experiences. Casino bonus abuse undermines the trust and integrity of online gambling platforms. It harms the industry's overall reputation and makes it harder for legitimate players to enjoy fair and transparent gaming experiences. Acts of this kind are one of the roots that push the authorities to limit gambling access and create stricter laws.
