Understanding and Detecting Betting Bots for Successful Gambling

Did you know nearly half (49.6%) of all internet traffic in 2024 came from bots? That’s the highest it’s ever been. In online gambling, the problem is even worse; 57.2% of all traffic to betting platforms came from malicious bots, according to Imperva. The industry saw a 103% year-over-year increase in automated bot attacks in 2023 alone.

These betting bots don’t just create fake accounts or spam your system. They place bets faster than humans, exploit bonuses, and mess with your data. This leads to significant financial losses and undermines the integrity of gaming operations.

As online gambling grows, from $93.26 billion in 2024 to a projected $153.21 billion by 2029, operators must learn to recognise and manage the risks posed by betting bots.

If you’re running an online casino or sportsbook, this blog will help you understand how betting bots work, how to spot them, and what you can do to protect your platform. It’s time to take control before bots start running the game.

To effectively tackle this issue, it’s crucial to first understand what betting bots are and how they operate.

What Are Betting Bots?

Betting bots play a significant role in modern online gambling by automating betting and gameplay, often at speeds and scales impossible for humans. They directly impact fairness, platform integrity, and user experience in sports betting and casino environments. These automated tools follow specific strategies designed to exploit market inefficiencies or gain an edge over competitors. Learn more below:

Types of Betting Bots

Betting bots come in different forms, each designed to perform specific tasks to gain an edge in the betting world. Understanding these types helps you recognize their roles and impacts on betting platforms.

The key categories of betting bots include:

Arbitrage Bots: These bots scan multiple bookmakers to identify discrepancies in odds, allowing users to place bets on all possible outcomes of an event to secure a profit regardless of the result.
Scraping Bots: They collect data from various betting sites to analyze odds, player statistics, and other relevant information, aiding in making informed betting decisions.
Casino Game Bots: These bots are programmed to play games like poker or blackjack, often using strategies to gain an advantage over human players.

How Betting Bots Operate

Betting bots operate through automated processes that connect to gambling platforms, analyze data, and place bets without human intervention. Their efficiency comes from speed and algorithmic precision.

Betting bots typically function by:

Connecting to Betting Platforms: Using APIs or web interfaces to interact with online gambling sites.
Data Analysis: Processing large volumes of data to identify favourable betting opportunities.
Automated Execution: Placing bets or making game moves based on predefined algorithms without human input.

These bots can operate continuously, making rapid decisions and executing actions faster than human users, leading to unfair advantages and potential exploitation of the gambling platforms.

Before you can stop bots from hurting your platform, you need to know exactly how much damage they can do and why they’re such a serious threat to online gambling operations.

Risks Posed by Betting Bots

Betting bots may operate in the shadows, but their consequences are front and center for iGaming operators. These automated scripts exploit vulnerabilities, distort key metrics, and undermine trust, putting revenue, player loyalty, and regulatory standing at serious risk. Read below how bots are draining revenue, distorting data, and putting your license at stake.

1. Major Revenue Drain

Bots fuel bonus abuse, arbitrage and fake play. In the broader iGaming sector, fraud losses climbed 64% year‑over‑year between 2022 and 2024, costing platforms roughly $1.2 billion in that period on mobile casinos and sportsbooks alone.

2. Skewed Business Metrics

When 29% of web traffic in online gaming is bad bots, your usage stats and win‑loss ratios become meaningless, leading to bad promotional decisions and wasted marketing spend.

3. Player Trust Erodes

A recent test found only 15% of gambling sites block all bot attacks, and 40% block only some, meaning real players often face bot opponents. That kills retention when users suspect they’re up against machines, not people.

4. Compliance and License Risk

Regulators in key markets (Philippines, Brazil, parts of Eastern Europe) demand fair‑play controls. If bots manipulate outcomes or bonus programs, operators risk fines or losing their license, especially as global sports betting GGR hit $94 billion in 2024, with 65% online.

5. Infrastructure Strain

High‑volume bot attacks can drive sudden traffic spikes and API calls. According to Imperva, 37% of all internet traffic in 2024 was malicious bots, up from 32% in 2023, adding load and potential downtime to your platform.

Mitigating these risks requires a strong, professionally tailored iGaming platform. With partners like Source Code Lab, you can safeguard your platform against bot threats.

To detect these risks, you need to understand how these betting bots operate. By detecting these bots, you can effectively counteract them.

How Betting Bots Operate?

Betting bots function by automating complex tasks on gambling platforms at speeds impossible for humans, giving users a distinct advantage. Knowing how these bots operate is crucial because it reveals their methods to exploit betting markets, promotions, and platform vulnerabilities. Understand how they operate to develop robust defenses, maintain fair play, and protect revenue. Learn about this in detail below:

1. Data Scraping and Analysis

Betting bots often begin by scraping data from various sources, including odds from multiple bookmakers, player statistics, and historical game outcomes. This information is then analyzed to identify potential betting opportunities.

For example, arbitrage bots exploit discrepancies in odds across different platforms to guarantee a profit regardless of the event outcome.

2. Automated Bet Placement

Once a favorable opportunity is identified, the bot can automatically place bets based on predefined criteria. This automation allows for rapid response to changing odds, giving bot users a significant advantage over human bettors. Some bots can even manage multiple accounts simultaneously, further amplifying their impact.

3. Exploitation of Bonuses and Promotions

Betting bots can be programmed to take advantage of promotional offers, such as sign-up bonuses or free bets, by creating multiple accounts and systematically meeting the requirements to claim these offers. This practice, known as bonus abuse, can lead to substantial financial losses for operators.

4. Continuous Operation

Unlike human users, bots can operate 24/7 without fatigue, allowing them to continuously monitor and engage with betting platforms. This persistent activity can strain server resources and potentially degrade the user experience for legitimate players.

Understanding these operational mechanisms is essential for developing effective strategies to detect and mitigate the influence of betting bots on online gambling platforms.

Recognizing the significant risks posed by betting bots, it’s essential to implement effective detection strategies to safeguard your online gambling platform.

Strategies and Technologies to Detect Betting Bots

Detecting betting bots is important to keep online gambling fair and secure. As bots get smarter, using different tools and methods together helps find and stop them more effectively. From watching traffic patterns to using AI, these strategies create strong protection against bots trying to cheat or cause harm. Here are several strategies and technologies employed to identify and mitigate the impact of these bots:

1. Traffic Monitoring and Anomaly Detection

Monitoring website traffic for unusual patterns can help identify bot activity. Sudden spikes in traffic, especially during specific events or promotions, may indicate bot attacks. For example, during the Euro 2020 tournament, certain gambling sites experienced up to 52,000 bad bot requests per hour, highlighting the need for vigilant traffic analysis.

2. IP Fraud Scoring

Analyzing IP addresses for signs of fraudulent activity is another effective method. Bots often use VPNs or proxy servers to mask their identities. Platforms can flag and investigate suspicious activities by assigning risk scores to IP addresses based on their behavior and origin.

3. Device Fingerprinting

To create a unique identifier, device fingerprinting involves collecting information about a user’s device, such as browser type, operating system, and screen resolution. This technique helps detect bots that attempt to spoof device information. Implementing device fingerprinting can uncover multiple accounts operated from the same device, a common tactic bots use.

4. Behavioral Analysis

Monitoring user behavior, including mouse movements, click patterns, and time spent on pages, can distinguish between human users and bots. Bots often show consistent and rapid interactions that differ from human behavior. Behavioral analysis tools can detect these anomalies and trigger security protocols.

5. CAPTCHA Implementation

While not foolproof, CAPTCHAs can deter basic bots by presenting challenges that are difficult for automated scripts to solve. However, advanced bots may bypass CAPTCHAs, so this method should be part of a multi-layered security approach.

6. Integration of AI and Machine Learning

Employing AI and machine learning algorithms allows for real-time analysis of user behavior and transaction patterns. These technologies can adapt to new threats by learning from data, improving the detection of sophisticated bots over time.

Implementing these strategies can significantly help detect bad bots before they become a problem. However, detecting these bots isn’t enough. Mitigating the risks they pose on time is also essential. Let’s look at the effective strategies to mitigate their impact and protect your online gambling platform.

Mitigating the Impact of Betting Bots

Betting bots can cause serious problems for online gambling sites, like losing money, inaccurate data, and losing player trust. Using strong and layered protection methods helps keep your platform safe and fair. This includes verifying users carefully, monitoring behavior closely, and working with others in the industry to stay ahead of bot threats. Read each of these in detail below:

1. Implement Multi-Layered Bot Protection

Utilize advanced bot detection solutions that combine real-time traffic analysis, device fingerprinting, and behavioral analytics. For instance, platforms like DataDome offer AI-driven protection capable of identifying and blocking sophisticated bots without disrupting genuine user experiences.

2. Strengthen Account Verification Processes

Enhance your Know Your Customer (KYC) protocols by incorporating biometric verification, document authentication, and two-factor authentication (2FA). These measures help prevent the creation of fake accounts often used by bots for fraudulent activities.

3. Monitor and Analyze User Behavior

Deploy machine learning algorithms to continuously monitor user interactions, identifying anomalies such as rapid betting patterns or unusual login times that may indicate bot activity. This proactive approach allows for timely intervention.

4. Enforce Strict Bonus and Promotion Policies

Design promotional offers with clear terms and conditions, including wagering requirements and limitations on account usage. Implementing such policies can deter bots from exploiting bonuses through multi-accounting schemes.

5. Collaborate with Industry Stakeholders

Engage with other operators, regulatory bodies, and cybersecurity experts to share intelligence on emerging threats and effective countermeasures. Collaborative efforts can lead to the development of industry-wide standards for bot mitigation.

By adopting these comprehensive strategies, online gambling platforms can significantly reduce the risks associated with betting bots, ensuring a secure and fair gaming environment for all users. However, one important factor to consider when avoiding betting bots is understanding the regulations of the market where you’re operating.

Compliance and License Risk

Operators in key markets like Brazil, Turkey, and the Philippines face stringent regulatory environments that demand robust anti-fraud and fair-play controls. Failure to address issues like betting bots can lead to severe consequences, including fines, license suspensions, or complete bans.

Brazil

As of January 1, 2025, Brazil’s Ministry of Finance mandates that all online betting operators obtain a federal license, costing BRL 30 million (~USD 6 million) for a five-year period. The licensing process requires operators to demonstrate strong anti-fraud measures, including systems to detect and prevent bot activity. Non-compliance can result in the suspension of operations and legal penalties.

Turkey

Turkey maintains a state monopoly on sports betting and has aggressively targeted illegal online gambling. In 2024 alone, authorities shut down over 233,000 illegal gambling websites. The government emphasizes the prevention of unregistered economic activities and financial crimes, focusing on combating unlawful betting and virtual gambling.

Philippines

The Philippines’ gambling sector, regulated by the Philippine Amusement and Gaming Corporation (PAGCOR), has seen significant growth. Gross gambling revenue increased by 24.6% in 2024, driven by a 165% growth in the iGaming market.

However, the country has also cracked down on illegal offshore gaming operators (POGOs) due to concerns over financial crimes. Operators must now implement stringent compliance measures, including robust anti-bot systems, to maintain their licenses.

Once you’ve taken steps to reduce bot activity, the next question is: Who can help you build a safer, more resilient gambling platform from the ground up? Source Code Lab is the answer. Read how.

How Source Code Lab Can Help?

Source Code Lab helps you launch and grow your iGaming business with the necessary tools and support. Especially in regions like Brazil, Turkey, and the Philippines, where rules can be strict and the risks of fraud or abuse are high.

1. Custom-Built Platforms That Fit Your Needs

Every betting operation is different. Source Code Lab works with you to build a platform tailored to your goals, be it a sportsbook, a casino, or a hybrid site. Customization options allow you to choose the features, design, and third-party integrations that match your audience. For example,

Brazil has introduced new laws for betting, including a high licensing fee of R$30 million and strong rules against fraud. Source Code Lab builds custom platforms that help meet these legal requirements.
Turkey only allows state-run online betting, and private operators face strict bans. Source Code Lab helps businesses stay compliant by tailoring platforms for legal markets or international use.

2. Seamless Game Integration with Player Protection

Want to expand your game catalog without building from scratch? Source Code Lab specializes in integrating third-party casino games, poker, slots, blackjack, roulette, and ensuring they run smoothly inside your ecosystem. This gives you more value to offer players, with zero coding hassles.

For example, in Brazil, many users have been tricked by fake betting tips shared on apps like Telegram. Source Code Lab helps protect your platform by integrating games that include built-in checks for fairness and fraud, helping you build trust with your players.

3. Tools to Scale Without Compromise

Brazil’s online betting market is expected to grow to over $3.6 billion in revenue by 2028. As traffic increases, you need a platform that can keep up. Whether you’re entering Latin America or growing in the Philippines, Source Code Lab’s platforms are built to handle traffic and user growth. You can upgrade, expand, or rebrand your platform without rebuilding it.

4. Expert Support When You Need It

Source Code Lab offers 24/7 technical support to make sure your platform stays live and responsive. From integration help to backend troubleshooting, the team is ready to assist as your business scales.

Summing Up

Betting bots can drain revenue, skew data, and shake player confidence in your betting platform. If you’re in the business of running an online casino or sportsbook, staying ahead of them is critical.

Understanding how bots work is the first step. Detecting and minimizing their impact is the next step. But building a platform that’s ready from day one? That takes the right partner.

At Source Code Lab, we don’t just help you build a gambling platform. You’re getting a flexible, scalable system you can shape, secure, and grow at your own pace. Whether you’re starting fresh or upgrading your current setup, it’s built to handle what’s coming, including bots.

If you’re considering launching smarter, safer, and stronger, now’s the time to act. Contact Source Code Lab for a tailored platform that works your way, is secure, scalable, and ready to go live.

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