Who’s Really Signing Up? The Hidden Risks Behind iGaming Growth

Games of chance and wagering money have a long and illustrious history around the world, from early lotteries in China and chariot racing betting in Greece, to more modern casino games like poker and gin rummy. Much like banking and marketplaces, gaming has adapted in recent years to become much more digital, allowing it to become more accessible than ever. In fact, iGaming platforms has been experiencing massive growth over the past few years with annual compound growth reaching roughly 18.92% from 2022 to 2023 and is expected to reach $100 billion USD by the end of 2025.

While Europe holds the largest share of the market at around 49%, regions like Asia-Pacific and Latin America have significant growth potential with increasing internet access and mobile device usage, as well as rising disposable incomes.

Not every new user is a win, unfortunately. Some become loyal players and bring long-term value, while others open the door to regulatory trouble, reputational damage, or financial loss. In a market that moves as fast as iGaming, there is very little room for error anymore. Whether it’s a teenager slipping past age checks, a player hiding their location, or someone gaming a generous bonus system, the risks are always present. These are the three types of players that operators need to stop before they get on the (digital) floor.

The Three Personas

1. The Underage Gambler: A Legal and Ethical Risk

This user isn’t old enough to be on this gaming platform, but they’re trying anyway. They might have borrowed a parent’s ID, lied about their age, or found a gap in the onboarding flow that wasn’t built to stop them. While gambling laws around the world prohibit minors from participating in any form, the responsibility goes beyond just legal obligation. Underage users might not understand the full consequences of their actions, but regulators sure do.

Regulators around the world don’t hesitate to act when gaming operators fall short of their legal obligations. Fines, suspended licenses, and extremely damaging press are all on the table. And for platforms trying to expand from low-compliance markets to high compliance countries like Sweden and provinces like Onterio (Canada), small missteps can cost millions.

2. The Border Hopper: When Location Becomes a Liability

This user isn’t where they say they are. They may live in a region where online gambling is banned or heavily restricted, but they still want to participate. This leads them to shield their geographic location from gaming platforms, whether it be through the use of a VPN, a proxy, or someone else’s identity. Their goal is simple: get access to games they shouldn’t be playing.

For platforms that operate under strict regional licenses, allowing access from restricted territories can violate licensing agreements, trigger significant compliance audits, or even lead to legal action. In high-compliance jurisdictions, a single lapse can damage operational standing and brand reputation. This can be especially troublesome for companies that are rapidly expanding from more permissive markets.

3. The Bonus Exploiter: Gaming the Game Before It Starts

This user isn’t here to play games and have fun. They’re here to collect. Armed with fake identities, recycled documents, or slight variations of real user data, they create account after account to farm referral rewards, deposit bonuses, and promo codes. No other industry offers real monetary value for something as simple as a signup the way iGaming does, making bonus abuse a high-return, low effort endeavor.

What may look like a surge in new users can often be the work of coordinated networks of fake profiles that exploit weak verification flows. And it’s no longer a fringe issue. Industry estimates suggest that bonus abuse can drain up to 15 percent of an operator’s gross revenue. It eats into promotional budgets, warps performance tracking, and ultimately forces platforms to limit offers or introduce friction that significantly impacts real users. Running a platform with that level of hidden loss is like sailing a boat that’s already 15 percent underwater. You can stay afloat, but you’re never truly stable.

Growth Depends on Control

The next wave of iGaming growth won’t be defined by global reach alone. It will depend on how well platforms manage risk, meet evolving regulations, and protect the integrity of their user base. Age checks, geographic restrictions, and bonus abuse are not edge cases. They are core challenges that expand as fast as the market does.

Shufti helps operators take control from the start. Our platform verifies users in real time across more than 240 countries and territories, supports over 150 languages, and detects deepfakes and synthetic identities before they can create exposure. Whether you are entering new markers, scaling promotional campaigns, or tightening onboarding controls, Shufti helps you reduce fraud, meet compliance requirements, and maintain player trust.

In iGaming, growth only works when it is built on a foundation of security and precision. Shufti gives operators both.

Learn More About Shufti’s Gaming Solutions or Schedule a Demo.