Getting Started with Risk Management in Esports: What Every Bookmaker Should Know

Esports has come a long way from its early days as a niche hobby. Today, it’s a global industry, attracting millions of passionate viewers and, increasingly, bettors. But with this rapid growth comes a whole new set of challenges—especially for bookmakers.

Unlike traditional sports, esports operate in an environment where game updates, player changes, and countless events can create complications that require specialized risk management strategies. Ensuring fair play and protecting your portfolio in this space is no small task; it demands a deep understanding of the games, real-time data processing, and effective esports fraud detection.

In this article, we’ll break down the unique challenges of esports betting, why data is so important, and cover the best strategies for managing risks to your operations.

Inside the Esports Ecosystem: Who’s Involved and Why It Matters

To put it simply, esports betting is like a bustling city, with various ‘districts’ all playing key roles in its overall operation. Unlike traditional sports though, the esports ecosystem involves a wide range of stakeholders, each adding their own layer of complexity to risk management.

• Game Publishers: The Rule Makers – Game publishers (or studios) are like the city planners—they create the game and set the rules. Any update, usually delivered in the form of a so-called patch, rarely by releasing completely revamped titles, can drastically change how the game is played, significantly impacting betting odds and strategies.
• Tournament Organizers: The Content Producers – These are the traffic controllers of esports, ensuring tournaments run smoothly. Their decisions on formats, participants, and data sharing directly affect the risk profile for bookmakers.
• Teams and Players: The Stars of the Show – Teams and players are like the city’s celebrity ‘headline acts’—they’re what everyone comes to see. Roster changes, player performance, or even rumors of foul play can create major shifts in betting markets.
• Betting Platforms: The Marketplaces  – Betting platforms are like the market square, where all the exchanges happen. They provide the space for bettors to place their wagers. To keep things fair and exciting, they need accurate real-time odds and strong risk management.

Managing these stakeholders is only half the battle, however. The real challenge for sportsbook operators is keeping up with the constant flow of bets and the ever-changing nature of the games themselves.

Taming the Data Tsunami

Esports events unfold quickly, generating a ‘tsunami’ of data. Thousands of in-game actions happen every minute—far more than in traditional sports. To stay competitive, this constant flood of information calls for thorough preparation, real-time processing and decision-making to ensure that your odds are always accurate.

Adapting to Game Changes ‘On the Fly’

Game updates are like sudden weather changes—they can disrupt everything. A small tweak by a game publisher can make a once-winning strategy completely obsolete or give a team a sudden edge. That’s why Oddin.gg continuously tracks these changes and their impact. Our esports experts and data scientists work together to make sure our odds and risk models stay accurate, no matter how the game evolves.

Esports Betting: Where Insight is King

As we touched upon in the previous section, data—whether it’s raw data points, odds, player statistics, or game metrics—flows continuously in esports betting. But simply having access to this data isn’t enough for operators to be successful; it’s about knowing how to use it effectively. 

With so many events happening simultaneously and in real time, the ability to analyze and interpret vast amounts of data is vital. To stay ahead, Oddin.gg leverages precise odds setting and proactive risk management to turn this data into actionable insights:

• In-Game Data – Whether it's through APIs, direct game feeds, or other sources, the data points from real-time player actions fuel our quick decision-making and odds adjustments.
• Historical Performance Data – By also analyzing how past teams and players have performed over time, we can spot trends and predict future outcomes more accurately.

However, it’s worth mentioning that just managing this data manually isn’t enough either. The sheer volume of information also requires advanced tools to analyze it effectively; this is where technology comes into play.

Oddin.gg: Building a Risk Management Team Fit for Esports

In esports betting, traditional risk management strategies just don’t cut it. The quick-evolving nature of the games, frequent updates, and the massive volume of data calls for a specialized approach.

At Oddin.gg, we’ve developed a system that combines advanced technology with human expertise to effectively manage these kinds of complexities, ensuring that our trading (the process of setting and adjusting odds) and risk management work seamlessly together. This harmony allows us to set accurate odds in real-time while proactively monitoring for potential threats, safeguarding our partners’ portfolios.

Advanced Technology and Human Insight

Managing the vast amounts of data in esports requires more than just human effort—it demands advanced technology. This is where machine learning (ML), artificial intelligence (AI), and powerful computing come into play, helping to analyze patterns, predict outcomes, and manage risks. For example, ML algorithms can detect subtle shifts in team performance that might not be immediately obvious, enabling traders to adjust odds before the market reacts.

However, technology alone isn’t enough. The human element adds a layer of intuition and understanding that machines can’t replicate. Our professional esports traders, many of them former professional gamers, use their deep knowledge of the games they analyze to interpret data in the context of the game’s nuances. Sometimes, their gut feeling—based on years of experience—can make all the difference when setting odds. 

It’s this perfect blend of cutting-edge technology and human insight that keeps our betting operations sharp, reliable, and always as accurate as possible.

Real-Time Adjustments and Vigilant Monitoring

In esports, timing is everything. As matches unfold, we continuously adjust our odds to reflect what’s happening in real time, ensuring they stay accurate, no matter how unpredictable the game gets. We also keep a close watch on potential threats by maintaining an updated Oddin.gg blacklist of suspicious teams and players. This proactive approach allows us to act quickly—whether adjusting odds or suspending bets—to protect the integrity of the betting environment.

What makes this kind of approach even more effective is how we extend these protective measures across all our partners, even those who haven’t opted in for our full range of solutions. By leveraging our extensive network and creating a feedback loop between odds provision and continuous bet monitoring, we’re able to identify suspicious betting patterns and, when necessary, stop offering odds on certain competitions. This approach ensures that all operators benefit from enhanced protection while maintaining the integrity of both the betting markets and their operations.

Cheaters Never Prosper (But They Do Keep Us Busy)

Cheating in esports can take many forms, from match-fixing to using unauthorized tools that give players an unfair advantage. Data from Riot Games—covering January 2022 to December 2023—revealed that in games like League of Legends, bots and scripters affected up to 15% of matches at their peak. 

While this kind of cheating primarily affects casual gaming outside of formal esports tournaments, the line between casual and competitive play can blur, especially in lower-tier online qualifiers. These events—often played remotely without strict supervision—can be vulnerable to the same cheating tactics that plague casual matches. This raises concerns for operators as the stakes increase in higher-level competitions.

Types of Cheating in Esports

Cheating in esports isn’t just limited to players underperforming intentionally, as seen in traditional sports. It often involves more sophisticated methods, including:

• Performance-Enhancing Tools – Just as athletes might use banned substances, esports players may use unauthorized software or hardware that gives them an edge, such as aim-bots for perfect accuracy, wallhacks for seeing through walls, or scripts that automate complex in-game actions.
• Unauthorized Access to Game Data – This type of cheating involves players or external parties gaining access to in-game data that isn’t available to others, providing them with an unfair advantage in predicting or influencing the outcome of a match.
• Match-Fixing – This occurs when players or teams deliberately manipulate the outcome of a match, often in coordination with outside parties placing bets on the predetermined result.

Detection and Collaboration: Keeping Esports Fair

At Oddin.gg, esports fraud prevention is a top priority. As outlined earlier, we use advanced tools to analyze in-game data and betting patterns in real time, flagging any anomalies that might indicate foul play. Sudden shifts in gameplay or unusual betting activity can be early indicators of esports cheating, and our systems are designed to catch these irregularities before they escalate.

However, preventing cheating isn’t something we just do alone. We also work closely with tournament organizers to identify and bar high-risk individuals from participating. By sharing information and monitoring suspicious activities together, we can stay ahead of potential threats and ensure the integrity of both the tournaments and the betting markets.

This combined approach—leveraging advanced detection tools and strong collaboration—helps create a safer and more transparent esports betting experience for everyone involved.

The Future of Esports Risk Management: What’s Next?

As esports continues its rapid expansion, the opportunities and challenges for risk management are evolving just as quickly. With more tournaments, higher stakes, and a growing global audience, the sector is becoming increasingly complex. Operators must be prepared to adapt to these changes to maintain a fair and secure betting environment.

Evolving Challenges and Growth Areas

Esports is expanding on all fronts with new games, larger tournaments, and an ever-increasing fanbase. This growth introduces more betting opportunities, but also amplifies the risks. Mobile esports, particularly in regions like Southeast Asia, India, and Latin America, is a key area to watch. In these regions, mobile gaming has leapfrogged traditional PC and console platforms due to widespread internet accessibility and affordable smartphones. Dedicated local esports tournaments with significant prize pools are also emerging in these same markets, further driving growth.

However, the esports ecosystem evolves rapidly, with constant updates to games and formats. Bookmakers need to stay adaptable to these changes, ensuring that they can manage the risks and challenges associated with shifting player performance, game mechanics, and tournament rules for all markets they cover.

Advancements in Detection Tools

As esports continues to grow, so does the need for more advanced detection tools. The future will likely see more sophisticated use of machine learning, AI, and real-time data analytics to detect irregularities and potential cheating faster and more accurately. As leaders in esports betting solutions, Oddin.gg are already investing heavily in research and development to enhance detection capabilities and stay one step ahead of those seeking to exploit the system.

Emerging Trends in Esports

As the esports sector evolves, several key trends are expected to shape its future:

• Mobile Esports – Continued growth in regions where mobile gaming dominates will require new strategies for managing risks unique to mobile platforms.
• Real-Time Detection – As esports betting grows, AI tools will become even more critical for identifying and responding to suspicious activity. Machine learning will increasingly help operators swiftly detect unusual betting patterns in real time, enhancing security and proactive risk management.
• Increased Regulatory Scrutiny – As esports betting grows, regulatory attention will intensify. Stricter regulations and higher compliance standards are on the horizon, requiring operators to be prepared.

As esports trends constantly evolve, so do the hurdles they present. To succeed in this space, bookmakers need to be watchful and open to innovation, continuously refining their strategies to address emerging risks to their betting operations. 

Takeaways: Why Risk Management Matters (And How It Can Help You Win)

Esports betting comes with unique challenges, and strong risk management is your best defense. Whether it’s handling real-time data, adapting to game updates, or detecting potential threats, mastering risk management ensures your esports betting operations are secure and resilient.

However, staying proactive and refining your approach isn’t just about protection— it’s about gaining an edge over the competition and staying prepared for whatever comes next. But remember, you don’t have to go it alone—learn more about Oddin.gg’s risk management solution and discover how we help our partners lead the way in esports betting.