The high-stakes world of esports risk management

The esports betting market presents lucrative opportunities but also unique challenges. Compared to traditional sports, the esports betting ecosystem involves several more stakeholders, including game publishers, tournament organisers, teams and players. There are thousands of events per minute that must be considered for odds construction and trading. This large volume of data points takes place in an extremely short period of time – metrics incomparable to traditional sports. Managing all the risks is a complex matrix that combines the aforementioned volume and timeframe with frequent game patches, roster changes and the looming threat of match-fixing.

Esports traders rely heavily on a variety of data to set accurate odds. Thousands of data points flow from the games’ APIs, enriched by historical performance data of teams and players. Advanced technology and computing power are essential, but even machine learning and AI are not enough. The best companies, such as Oddin.gg, combine these tools with human insights from professional esports traders, who are often former gamers themselves. This allows traders to adjust odds in real time as matches unfold, blending mathematical models, trader expertise and bettor information to deliver the most accurate and up-to-date odds possible.

As the industry evolved, Oddin.gg concluded that a dedicated risk team armed with special technology, structure and systems was needed to minimise threats by bettors (from sharps to fraudsters), teams and individual players while maintaining the highest possible uptime. Uptime and a variety of interesting, game-relevant and fun markets are what bettors look for, and the ability to deliver this, regardless of the tier and data supplied, is key to succeeding in the esports market.

One keystone is maintaining a blacklist of suspicious teams and players, allowing us to raise awareness anytime one of these teams or players participates in a tournament, even if under a new nickname, team or territory. The next step is ensuring early detection of cheating through a combination of ticket and in-game data analysis, during which the risk management team continuously cooperates with traders. This sophisticated approach allows us to stay ahead of potential threats and safeguard our clients’ investments.

Oddin.gg’s esports-tailored risk management team provides an additional layer of security. This dedicated team constantly looks for anomalies, tracking unusual player behaviours and potentially fraudulent actions by bettors. This collaboration between game specialists and mathematicians ensures accurate and adaptable betting models, enhanced by human insight and instinct.

Cheat sheet

Cheating is a significant concern in esports risk management. Whereas in traditional sports, players often intentionally sabotage their own or their own team’s performance by deliberately underperforming. In esports, we more often see unfair advantages comparable to doping in other sports. Esports introduces the complexity of software and hardware-based cheating such as performance-enhancing tools and unauthorised access to game data. To combat these risks, Oddin.gg utilises sophisticated tools to detect market anomalies and collaborate with tournament organisers to prevent high-risk individuals from participating.

The continued proliferation of esports, with more live-streamed tournaments and in-person events, will likely lead to increased scrutiny and better tools for detecting cheating. By combining advanced technology with human expertise and committed collaboration with tournament organisers, we aim to ensure a fair and transparent esports environment. Simultaneously, we allow our clients to offer a high number of matches and markets while maintaining high uptime, even in lower-tier tournaments. Cleaning up the esports ecosystem and clearing the game of fraud is a key part of Oddin.gg’s mission to bridge the world of esports and igaming.

Vlastimil Venclík is the CEO of Oddin.gg, the leading B2B provider in esports betting. An industry pioneer, Venclík recognised esports’ need for specialised odds and risk management, specifically tailored for competitive video gaming. He co-founded Oddin.gg in 2018 and helped build and create the innovative products that empowers Oddin.gg partners worldwide. Under his leadership, Oddin.gg’s end-to-end ecosystem has become the go-to choice for operators.