What is Gambling Fraud

There are a few different types of fraud when it comes to gambling. Gambling fraud includes both casinos seeking to fix the odds against the player, and also players seeking to gain an illegal edge over casinos or otherwise take their money illegally. There are also different threats when it comes to live gambling and online gambling. These threats are serious, and it is important to be careful, whether you are an owner of a casino or a player.

Live Casino Fraud

In live casinos, both players and owners need to beware of fraud. For the owners of casinos, there are basic fraud methods employed by many seeking to defraud casinos of their money.

A unique and famous scam against casinos was the use of laser scanners to predict where a roulette ball would drop based on the spin of the wheel. This was eventually figured out and now casinos also are on the lookout for this and other high tech ways of avoiding the risk in gambling. As technology evolves, so do player scams, and casinos are always on the lookout for new methods.

Of course, there are other casino scams that require a more down-to-earth approach. People can team up to cheat in card games or attempt other forms of fraud.

Casinos can also defraud players. Both brick-and-mortar casinos and online casinos have shown that it’s far from impossible to scam casino goers.

The scam most people are afraid of is the one that includes the casino tampering with their slot machines or other games. When you go to a casino, you expect to lose money. But, you at least expect to have a relatively fair chance to win.

If a casino “fixes” their slot machines to prevent them from ever paying out high-value jackpots, the player doesn’t really stand a chance. Of course, such activities are illegal and casinos usually avoid them as they stand to lose large amounts of money in the long run. After all, if players lose faith in a casino they will simply stop visiting that casino.

banking cards in casino

Online Fraud Against Casinos

Online casino fraud is now more prevalent since it is a new market. The online aspect also makes it easier for fraudsters to take advantage of the technology and manipulate it to their profit. Many types of online fraud against casinos happen through the use of multiple accounts. Using multiple accounts, people are able to take advantage of the various sign-in bonuses, new account bonuses, or other bonuses without having to make large deposits to play. Online casinos should guard against this by not being overly generous with their bonus handouts.

Another way people use multiple accounts is to join the same multiplayer card game with their accounts. That way, they can have access to information other people simply don’t have. They can know the value of almost every card on the table and plan accordingly.

That also happens in the form of having several accounts join in a poker game so that the other players there will be influenced when a few “players” fold after betting in order to convince the different real players to fold so that the main account can win the pot.

And, having more than one account on a poker table also means having more than one chance to have the winning hand.

Other ways players defraud casinos involve payment scams. They can use stolen credit cards in order to fund their own wallets. Players can also top up their account and then request a chargeback from their bank or credit card at the expense of the casino. This can cost online casinos a lot of money. Another fraudulent way of cheating casinos involves tricking burner phone owners into refilling their account balance, but instead, the money goes to funding the fraudsters casino balance. These are big problems since 2.1% of account logins are fraudulent. As well, 4.6% of new account creations and 3.5% of all payments are also fraudulent according to ThreatMetrix.


Fraud by Online Casinos Against Players

Online casinos can also defraud players. They can make online slots harder to win money from. They can also rig other games against players to make them harder to win. With online casinos, there aren’t really inspectors who can check the machines and so there isn’t a surefire way to protect yourself against casino fraud. Another way online casinos can defraud players is to not pay out as much as players are owed. They can also take your money and not give you credit, or to give you less credit than is paid. The best way to avoid being defrauded is to choose an online casino with a good reputation and, ideally, in a regulated market.

These are the basics of gambling fraud. Both the casinos and players can defraud the other, and both types of fraud are illegal. Knowing what to look for is key in determining if you have been defrauded. By choosing a reputable establishment if you are a player, you are less likely to be defrauded. If you are a casino, having good security and checks on player accounts is important to guard against fraud.


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