Ozric Vondervelden, Co-director of Lovelace Consultancy, leading experts on risk management within the online gambling industry has a warning message for US Sports-betting and casino companies : “You are not ready!”
Bonus abusers are “printing money from these operators that naively believe the U.S market might be different.
Vondervelden, one of the leading experts on bonus abuse, multi-accounting, and risk segmentation within the online gaming industry warns about how matched betting offers can be exploited by advantage players and fraudsters, at the expense of operators.
Matched betting (sports offer abuse) is every bonus abuser’s first step, before upskilling to other forms of bonus abuse. The appeal is that it is quite simple, it’s risk-free, and can be significantly more profitable than your typical day job.
Betting exchanges play a key role in determining the adoption of matched betting in any given jurisdiction. Exchanges are a very important part of the matched betting process, and matched bettors provide much-needed exchange liquidity. They have a symbiotic relationship.
Exchanges are P2P, which simplifies matched betting by replacing the need for a process called dutching (covering all possible outcomes) with a much simpler and quicker process of backing and laying (betting for and against an outcome). This streamlined process has allowed for mass adoption and participation in matched betting.
Exchanges actively promote bonus abuse forums, provide preferential exchange rates and great odds to bonus abusers, which build their liquidity and makes them more appealing to recreational betters.
With massive offers and much of the US having an understanding of traditional stock market exchanges, the US is primed for matched betting. But, due to the Wire Act, liquidity has to be generated state by state which makes them far less appealing, and harder to get off the ground.
(images via legalsportsreport.com/nj/)
For now, matched betting is out of bounds for the layman. It’s limited to those that put up with poor liquidity (if an exchange is available at all), those that take the time to dutch each bet, those that use grey/black market exchanges, use betting brokers, stolen non-US ID’s or those that reside in multiple countries and use VPN’s.
Those that are ahead of the game currently have the space to themselves and they are scaling their multi-accounting operations by recruiting in college campuses and online forums. Without mass abuse from the public, they are able to fly under the radar. They are experiencing the golden age that the UK matched betting community experienced a decade back.
They are printing money from these operators that naively believe this market might be different.
Providing subscription based matched betting guides is big business. My prediction is that it is not going to be long before the liquidity issue is solved either through a natural increase in the use of exchanges or because of a regulatory workaround. If the UK is anything to go by we can expect this topic to be once again thrusted into mainstream media by those that it benefits.
Contributed by Ozric Vondervelden, Co-director of Lovelace Consultancy | Linkedin