Gaming Revenue Rebounds Amid Gambling Industry Fraud Concerns

A paradoxical shift has become recently evident in the gambling industry as Chinese tech firm Sohu.com saw a sharp 27% drop in online gaming revenue and US-based Golden Entertainment saw promising gains.

Gambling Industry Sees Gaming Revenue Recovery Shift 

According to Sohu’s Q2 earnings release, the company’s online gaming segment underperformed due to weakened user engagement and tighter domestic regulations. This decline comes across as one of the steepest annual drops for the firm, which once held a stronger share of China’s gaming and digital entertainment market.

Industry analysts cite the Chinese government’s increased regulatory pressure which in particular is targeting minors’ screen time and in-game purchases as a major factor behind the downturn. Sohu’s gaming division had been dependent on freemium and in-game monetization models for a long time. But now, it is seemingly susceptible to this policy change. 

Meanwhile, on the other side of the globe, Golden Entertainment’s latest earnings report paints a very different picture.

Golden Entertainment, the US casino operator that runs a portfolio of resort and gaming properties in Nevada and Montana, posted encouraging numbers. The growing figures are driven by a rebound in travel and hospitality spending.The company has successfully overcome post-pandemic challenges by focusing on personalized guest experiences and local market strength.

As a result, CEO Blake Sartini thinks the real reasons for his company’s turnaround are operational efficiencies, focused marketing and careful control of costs. The company has also increased expected gaming revenue growth through the end of 2025 to 7-9%, up from its previous estimate. The forecast appears to be a bullish signal as investor enthusiasm for brick-and-mortar casino results continues to manifest. However, on a macro level, the gambling industry still faces serious dangers mainly fraud and the rise of unregulated betting.

Beyond company-specific performance, gambling industry has been dealing with broader challenges as well. The latest gambling news reports highlight growing concerns about fraud and security threats that affect operators worldwide.

Another new study has indicated that sportsbook fraud is up nearly 30% in 2025. Criminal networks have caused a rise in attacks on betting platforms, which further exploits weak authentication systems and regulatory gaps. Sportsbooks and online operators are increasingly becoming targets of account takeovers, manipulated odds, and synthetic identity fraud.

This trend is similar to findings in North America. In Canada, a 2021 report revealed that billions of dollars are bet annually on unregulated offshore gambling sites. These findings point to a persistent grey market and enforcement issues.

Moreover, the US is also contending with fallout from expanded legal betting. In Massachusetts, a recent UMass Amherst SEIGMA report showed a steady increase in problem gambling. According to recent reports, the state is seeing higher demand for support services, with both casinos and online platforms under scrutiny for their responsible gaming policies.

All in all, for both investors and policymakers, 2025 has been a turning point in gambling industry news. The sharp decline in Sohu’s online gaming revenue shows how policy and platform vulnerabilities can erode even long-standing market players. At the same time, the growth seen by Golden Entertainment tells a different story and shows how traditional operators adapt to consumer expectations.