Following a rocky 2022 marked by a series of fake websites that closely mimicked Melbet's domain, Country Manager Alexander Ezekiel detailed the uphill battles Melbet faced and the strategies employed to retain its reputation, writes Iyke Bede
Inarguably, the Nigerian sports betting scene has exploded. With over 60 million punters each day placing bets and generating more than ₦2 billion, the once unregulated sector has become every operator's dream destination, attracting newcomers and establishing a competitive market space led by technological innovations over the past ten years.
However, with this growth--particularly in the online scene, which offers a high level of flexibility and visibility--fraudulent entities continue to emerge, pilfering unassuming punters to the tune of millions of naira. These sites often pose as the real deal, grifting punters of their deposits, failing to pay out winnings, and evading regulatory taxes, thus harming the reputation of legitimate platforms and leading to significant losses by all parties--punters, operators, and regulators.
In 2022, during its third year in the Nigerian market, Melbet, a Nigerian sports betting company with international representation, was dealt a heavy blow. Several fake domains emerged, leveraging the brand's name to redirect users and divert funds, ultimately hindering the planned growth of the online-only platform that has a physical presence in Lagos. Recognising the urgency of the situation, Melbet took decisive action to protect its players and heal its brand-damaged reputation.
"We have Melbet.ng--that's the only legal company--but in 2022, thereabout, we had a tweak in the platform; we had to change platform providers," said Alexander Ezekiel, Country Manager, Melbet Nigeria.
He narrated the series of complexities that arose, necessitating immediate action for effective risk management.
"But before now, there were several variations of our site. Only early this year, they had to come out as melbet.com, MelBet, melbet.com and they've been operating without a licence. They've been taking out funds from the country, and that's why we plead with the government, the NLRC, the CBN and the other necessary bodies," he stated.
He noted that was because "these people are taking out their money in one way or the other."
Ezekiel added, "We've spoken to several payment gateways to assist in taking down these platforms whenever they try to integrate payment gateways on the fake sites. But over the years, since 2022, they've been misleading our people."
The activities of these fraudulent entities, primarily based outside Nigeria, extended beyond their websites to include various iterations of mobile applications. Over time, victims conned on these platforms expressed concerns after discovering the legitimate site and its customer service support.
"There was a period when we had people who claimed they placed bets on that site but did not receive their winnings," Ezekiel explained, detailing the convoluted series of events that spurred action. "So, when they complain about this to us, we appeal to them because we have put out a disclaimer on the NLRC website earlier."
Ezekiel also mentioned that "if anyone is in doubt, they can go to the NLRC website, where they'll see a disclaimer warning people not to buy into any of those fraudulent names or sites so they don't get scammed."
"We try to urge the public to pay attention," he added.
In addition to working with the NLRC, Melbet launched extensive customer awareness campaigns. They equipped players with the knowledge to spot potential scams and encouraged vigilance when navigating the online betting landscape.
"First of all, when the milk is spilled already, there's almost nothing we can do, but our best bet is to ensure they come back to the right site. We try to ask to what extent they were affected because we want to investigate and report those responsible to the appropriate authorities," Ezekiel explained.
He said, "We ask for more information about what happened so we can use that as a case while filing with both the NLRC and the relevant regulators to assist in resolving these issues. We also publish information periodically on our social media pages, in newspapers, and on TV to ensure people understand that this is the new tactic: beware and don't fall victim. We do this regularly."
While Melbet managed to reclaim a majority of its customer base, a whiff of doubt still lingered. To address this, it partnered with various government agencies to reassure punters.
"We've been working with the National Bureau of Statistics, and we reported over time because it is--I think it is--a crime for someone to come and take out the data of local individuals. You don't even know where they are taking it out to," Ezekiel stated. For us, for instance, we've registered with these people, we are licensed, we are partners with CBN, we are with their fraud team, we have a SCUML certificate, which is with the EFCC, so it shows that we are concerned about the people. We do everything possible to make sure their data is not out there in the wrong hands.
For anti-fraud, for instance, Ezekiel disclosed that there is a procedure for that. He explained that when "we notice there is fraud, maybe people making deposits from a card that is not registered to them, or there's an activity on the website, we are being asked to report to the EFCC for them to do further investigation, to ask further questions."
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"So, we make sure, from one angle, to be sure that the innocent public are not taken advantage of; that is one half. And then the other half is we also make sure the data of people on our site is completely protected," stated Ezekiel.
Averting a sinking ship, Ezekiel acknowledges the time lost and the importance of understanding people's ever-changing tastes in dictating trends. He revealed that the company is committed to providing a local sports betting experience on its platform, currently offering options for punters to wager on local leagues as a strategy to ensure continued growth in the competitive market.
With a majority of its demographics falling between 18 and 45 years, the company has strategised to include female-friendly casino games while branching out into the eSports realm, where it offers a variety of events for punters, diversifying away from the big three--football, basketball, and cricket.
Today, Melbet stands as a leader in online betting, not just for its offerings but for its unwavering commitment to protecting players from the dangers of pseudo-sites. Their journey illustrates the importance of innovation, collaboration, and education in overcoming challenges and ensuring a secure gaming experience for all.
