US Gamblers Using Fraud Techniques to Hide Location on Foreign Sites

US Gamblers Using Fraud Techniques to Hide Location on Foreign Sites

May 16, 2019

Despite the 2018 U.S. Supreme Court ruling that gave individual states the power to regulate sports betting (paving the way for legal online betting in this country), online gamblers are using evasion techniques to try and hide their locations. Experienced online gamblers in the U.S. who don’t want to wait for legal operations are reportedly bypassing system controls on gambling websites and apps, according to findings released this week.

An analysis of online gambling transactions by iovation revealed that in 4.13 percent of activity originating from the U.S. going through European gambling operators, people are using evasion techniques such as geolocation mismatching. Alarmingly, the rate of using this and other evasion techniques is a whopping 119 percent higher in the U.S. than among online gamblers outside the U.S.

“There is indeed a pent-up demand in the U.S., where gamblers will go to rather extreme measures to try to get around restrictions to become a customer of a foreign gambling site,” said iovation executive vice president of corporate development and co-founder, Jon Karl in a press release.

Because of its assumed anonymity features, the Tor Browser is popular among those online gamblers who are trying to hide their locations. Additionally, people are leveraging proxy servers to mask their actual browser data, according to the findings.

“Device intelligence has proven effective at detecting customers trying to play on gambling sites from which they are restricted,” Karl continued. “This will be essential for gambling operators launching in the U.S. that will need to comply with interstate regulations and limit play by geographic boundaries.”

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