Collusion in iGaming

There are three main types of collusion fraud in iGaming:

1. Syndicate collusion (a group works together to exploit systems and profit from a game, for example sports betting).
2. Player collusion (two or more players collaborate, for example, at a poker table to win). 
3. Insider collusion (an individual gains access to insider information about specific events and places bets based on that knowledge.

Yes, as it involves factors like secretly manipulating the game to switch up the outcome for personal gain. When used with other fraudulent tactics, it is illegal, as collusion is sometimes linked to money laundering if criminals use this way to clean dirty cash. However, not only collusion but various schemes are used in the iGaming and gambling sector, which is why it’s considered a high-risk industry and is heavily regulated via Anti-Money Laundering (AML) laws. 

This deceptive practice negatively affects the whole game and harms innocent players who actually want to play fairy. So, not only does collusion compromise the integrity of games but also gives unfair advantages to those involved. It damages the iGaming platform’s reputation, leading to an increased chargeback rate for those who want to regain their losses. That’s why collusion can result in financial losses, including legal consequences.

Some of the notorious scandals of real-life collusion schemes include:

• The Black Sox case. It involved fixing the 1919 World Series between the Cincinnati Reds and the Chicago White Sox. 
• The Hansie Cronje case. A cricket player was exposed for conspiring with a bookmaker to manipulate match outcomes and manipulate results.  
• Mike Postle scandal. This is a situation where the person became famous during live-streaming sessions and is known as a “poker god.” During one of the commentaries, a remark suggested that Postle might have inside information. However, some experts say that he was never guilty, just skilled. 

Online gaming platforms use identity verification to check players’ identities (their documents and selfie photos to match them with the photo on the ID). This helps identify multi-accounting and bonus abuse, which is closely tied to fraud, including collusion. Other measures include AI-powered software to analyze gameplay history and detect suspicious behavior. 

Some common suspicious behavior patterns that can be signs of collusion include:

• The same players often join and leave the table together.
• The same participants avoid taking action against each other.
• Suspicious chat messages are exchanged.
• Unusual betting patterns that don’t seem to favor the player.

Chip dumping is a form of collusion in the iGaming industry, known as the practice of two colluding players in poker (or a similar game) who intentionally transfer large amounts of chips between one another to gain an unfair advantage. For example, one player deliberately loses chips to another, effectively manipulating the chip distribution with one player winning the poker tournament with a substantial chip stack.