TrafficGuard, a leading digital ad verification and fraud prevention platform, has released a report revealing that up to 44% of traffic in paid acquisition campaigns for sports betting operators is fraudulent. The report, The Global Landscape of Sports Betting Operators: Key Market Trends, highlights how bots, fake clicks, and returning users are wasting ad budgets and hindering efforts to attract new bettors, even as the market continues to grow.
The study analyzed Google Search campaigns from over 100 operators, uncovering alarming trends across all levels of the industry:
- Tier 1 operators [industry leaders] experience a 44% invalid traffic [IVT] rate, losing 40% of their ad spend to fraud.
- Tier 2 operators [regional leaders] see a 29% IVT rate, wasting 17% of their budgets.
- Tier 3 operators [mid-sized players] suffer from a 42% IVT rate, with 37% of ad spend lost.
- Tier 4 operators [smaller businesses] face a 33% IVT rate, losing 19% of their ad budgets.
The TrafficGuard report also found that 76.8% of total website traffic for sports betting operators comes from returning users. Indicating that ad campaigns intended for new bettors are often used by existing customers to log in. They inflate costs without driving fresh acquisitions. Additionally, bots artificially increase click volumes, further draining ad budgets. Filtering out invalid traffic is crucial for ensuring campaigns effectively attract new bettors.
Mobile Key, But 20% of Small Operators Lag
“The sports betting industry relies on new user acquisition, but operators must control costs to succeed,” said Mathew Ratty, CEO of TrafficGuard. “Bots and returning users are consuming ad budgets meant for real, incremental bettors. The industry has enormous growth potential, but only if invalid traffic is addressed.”
Mobile adoption was another key focus of the report. While 84% of operators have a mobile app, over 20% of smaller operators still lack one, missing out on a critical opportunity. With 75% of wagers placed via mobile devices, operators without a seamless mobile experience risk falling behind.
Fantasy sports ads also face challenges with fraud detection, particularly for smaller operators.
“The global sports betting market is set to be worth hundreds of billions of dollars in the coming years,” added Ratty. “Operators must understand market trends and take strategic steps to attract genuine new users. Right now, bots and returning users are inflating traffic while reducing campaign effectiveness, limiting long-term growth opportunities.”
TrafficGuard’s report is based on digital analytics, regulatory data, and insights from operators who have used its platform, offering a precise view of the challenges and opportunities in the sports betting industry.
