The Prague duo of Fortuna Entertainment and Endorphina sound the alarm on 'Brand Spoofing', the replica of controlled brand names and innovations that is spreading out in CEE markets with no grounds for intervention.
In comparison to its neighbouring states, the Czech Republic has witnessed little drama in the governance of its gambling sector and licences.
The home market panel of the HIPTHER Prague Summit 2026 even applauded the oversight of the Czech Ministry of Finance (MoF) and Celní Správa, the Customs Authority, in using much-needed player protection steps introduced as of 2024.
In the subsequent years, Czech gaming licences (online and retail) have actually changed to heightened needs on civic security, as authorities and licensees collaborate to exclude up to 700,000 people from betting through the RVO register.
Yet not all is peaceful on the banks of the Vltava, as Czech leaders sound the alarm on a new and rising hazard of 'brand spoofing'.
No funny company
The term might stimulate the sale of fake handbags or low-cost fake products on beach resorts, however as criminal networks target online environments with AI-driven mechanics, brand name spoofing is no minor matter, according to Jan Holub, Compliance Lead and Member of the Supervisory Board of Fortuna Entertainment.
Holub offered a breakdown of "bad actors reproducing the digital identity of a betting brand name" copying web properties, domains, UX environments and even client interactions to trick users into "revealing sensitive info or downloading malicious software."
Enhanced by AI, Holub has actually witnessed the evolution of 'spoofed environments' that not only look like front-end brands, however likewise duplicate backend systems.
Piggybacking on the brand name acknowledgment and marketing activity of controlled operators, these spoofed platforms can generate high engagement with unsuspecting audiences and make millions in illicit funds.
"We have actually advanced in Czech. But I must raise this concern of brand name spoofing as a brand-new threat. In my function at Fortuna, I witness fake brands promoted online through Google, Facebook and app shops," Holub mentioned.
"We immediately ask the platforms to take them down, however the reaction is sluggish. These phony sites or apps can be live for a duration of two or three weeks."
Though cooperation with Czech authorities is strong, Holub questioned the lack of accountability for securing the IP of online betting brands among big tech and media platforms - where enforcement is clearly lagging.
A double jeopardy
These issues are shared by Jan Urbanec, CEO of Prague-based Endorphina, who kept in mind that spoofing is spreading across markets and rapidly expanding into "the B2B architecture of online gambling."
"This is a double jeopardy for our market, as the threats are not B2C alone. These actors can duplicate the UX of payment entrances, affiliate websites, CRM flows, and even provider innovations," Urbanec explained.
As a digital threat, brand spoofing develops a multi-layered risk for the balance of regulated markets. Reputational damage becomes immediate and tough to consist of, as customers often can not differentiate in between a legitimate website and a cloned interface.
Dealing with such a nuanced threat, Urbanec told delegates that Endorphina has tripled its resources to safeguard IP - highlighting what he views as the restricted capacity of regulators to step in effectively.
"For games designers, there is no real IP protection. We have to keep track of every environment, and it is really costly to track who is copying our brand name, engines and algorithms," he said.
Regulators soft on IP protection
Gambling regimes throughout Europe, consisting of the Czech Republic, have largely been created to identify and block unlicensed operators as standalone entities. They are less geared up to deal with stars camouflaging themselves as licensed B2C or B2B incumbents, exploiting brand name trust as their primary entry point.
