The world of online gambling attracts with its dynamics, high margins, and rapid growth. However, behind this facade hides a harsh reality: in the first year after the launch, entertainment startups most often face not a lack of traffic, but cybersecurity vulnerabilities.
Casino Market experts discuss mistakes that beginning entrepreneurs can make, and how to avoid them.
About Cybersecurity in iGaming
It is a set of measures, technologies, and policies aimed at protecting data, transactions, or the digital infrastructure from hacking, fraud, information leaks, and other threats.
The concept is especially important for casino brands since it performs the following tasks:
- handles clients' money;
- processes personal details (KYC, documents, and settlements);
- connects to external providers (payments, games, CRM, analytics);
- operates in jurisdictions with strict regulatory oversight.
According to Gambling Insider, the online casino niche risks losing more than $50 billion annually due to cybersecurity gaps. About 60% of incidents occur with new platforms during the first year. These errors do not simply slow down growth — they can result in the loss of a licence, lawsuits, and the downfall of the reputation.
The list of the most common threats includes:
- User profile hacking. It includes brute force attacks, phishing, and leaks from other services.
- Bonus and transaction scam. Offenders use botnets, multi-accounts, and fake KYC documents.
- DDoS attacks. This is blocking access to a website or application, especially during major tournaments.
- Malicious scripts and injections. A common technique is to replace withdrawal pages or download viruses when clients click on the “play” button.
- Attacks on providers. This is a break into the API or control system, as a result of which fraudsters gain access to the source code, RTP algorithms, or financial data.
It is worth noting that not only startups are subject to cyberattacks, but also large gambling companies:
- In 2023, the Stake.com platform suffered from a large-scale hacking attempt, during which more than $41 million in digital assets were withdrawn.
- The DraftKings bookmaker reported stolen funds from 67,000 customers as a result of mass phishing and password leaks.
- In 2023, BetMGM lost gamblers' data, including social security numbers and bank details. The damage was estimated at tens of millions of dollars.
What Vulnerabilities Casino Startups Face
Investment in cybersecurity is not a luxury, but a necessary condition for the sustainability of the entertainment business. Each leak or attack can lead to financial losses, as well as ruin the trust of customers and regulators.
Let us consider common mistakes in the first 12 months of the iGaming projects’ operation.
The Use of Open-Source Software without Proper Protection
To reduce costs at the launch stage, many companies choose free engines, platforms, or templates. However, such solutions often:
- do not contain built-in protection against SQL injection, XSS, and CSRF attacks;
- are not certified according to ISO/IEC 27001 or PCI DSS standards;
- are not updated regularly, which leaves vulnerabilities unpatched;
- have a poorly documented architecture, which prevents quick troubleshooting.
Any attacker can use gaps in such systems to access the admin panel, client database, or gaming algorithms.
The Absence of a CISO or an Internal Security Specialist
At the early stage, many online casino startups do not hire a Chief Information Security Officer or at least one experienced DevSecOps engineer.
Without such experts, brands cannot perform the following actions:
- build a data and access security policy;
- have a centralised incident management (SIEM);
- conduct backup, monitoring, and reporting procedures.
In the event of a data breach or DDoS attack, operators are not prepared to react, protect their legal rights, or maintain the established reputation.
Lack of Regular Security Checks
Without penetration testing and vulnerability audit:
- it is impossible to predict how the system will behave during an attack;
- weaknesses in the protection of APIs, databases, payment gateways, and backends are not identified;
- flaws remain undetected for months, until incidents occur.
As a result, an offender can gain access to critical components of the service without leaving any trace.
Poor Access Control and Differentiation of Roles
Beginning entrepreneurs often ignore the basic principles of access management:
- all programmers and operators can log in under the same username;
- multi-factor authentication and role-based authorisation are not applied;
- API keys and client information are stored openly.
One stolen password or leaked archive is enough for a fraudster to have full control over a gambling platform.
The Use of Freelancers Without NDA and Access Policy
Casino startups often hire contractors to speed up the development process.
If non-disclosure agreements are not concluded with specialists, and clear restrictions are not established, then a freelancer can copy the source code or compromise access keys.
Project owners risk completely losing control over creation and infrastructure. It is also possible to falsify players’ data or returns, which leads to fines from regulators.
What Safety Measures Should be Introduced
The implementation of cybersecurity in casino projects is not just a formality, but a necessary step to provide protection of players' money, licences, and reputation.
Let us consider the key measures that should be taken at the launch stage of an iGaming startup:
- Access control and identification. First of all, this is multi-factor authentication (MFA) for all employees. It is also important to provide RBAC (role-based access) with the required rights for each participant. The purpose of such actions is to minimise the risk of internal sabotage or hacking through stolen credentials.
- Penetration tests and vulnerability audits. The first step is carried out 1–2 times a year with the involvement of certified companies. The second stage (OWASP, CVE) should be passed more often — once every 2 months. Periodic inspections allow casino owners to find weaknesses even before attackers do so.
- Monitoring and incident response. The implementation of SIEM systems (for example, Splunk, Graylog, or Wazuh) will help entrepreneurs quickly respond to any attempts to intervene. It is also possible to set up automatic alerts in case of any suspicious activity and prepare an incident response plan (IRP) with roles and scenarios.
- Backup and fault tolerance. These are daily preservations of the entire critical infrastructure and its performance testing. Operators need to ensure that backup copies are encrypted and stored in another location. Besides, clusters and failover servers should be used.
- Security policies and staff training. An excellent decision would be to conduct regular lessons on phishing, safety, and social engineering.
- Audit of third-party providers and contractors. This is a check of counterparties for compliance with ISO 27001, PCI DSS, or SOC 2 requirements, concluding contracts with NDA and SLA. The purpose of such actions is to prevent leaks through integrations or unscrupulous vendors.
Regulatory Compliance
Certification and adherence to the rules are one of the cornerstones of cybersecurity in casinos.
The authorities see data and infrastructure protection not as a recommendation, but as a mandatory requirement. Violation of standards can lead to the revocation of permits, fines, and criminal liability.
Let us consider the main cybersafety requirements from licensing bodies.
UK Gambling Commission
Key obligations of the UKGC include:
- implementation of an ISO 27001 policy or equivalent information security measures;
- completion of a regular audit of the IT infrastructure;
- registration of all safety incidents and their investigation.
Malta Gaming Authority
In an application for an MGA licence, operators must describe the data protection architecture, confirm regular pentests, and demonstrate compliance with the GDPR for working with EU citizens.
The regulator also checks backups, a plan in the case of failures, and protection of the casino startup's payment systems.
Curacao Gaming Control Board
The updated regulations include:
- mandatory risk assessment and connection of security protocols;
- publication of accurate information about hosting providers and technical support, including access levels;
- support for AML/KYC compliance, especially in cryptocurrency transactions.
The Curacao legal body may temporarily suspend a licence if entrepreneurs have not eliminated vulnerabilities after a warning has been given.
Alcohol and Gaming Commission of Ontario
The Canadian regulator requires:
- completion of a SOC 2 Type II or PCI DSS audit, especially if the online project works with bank cards or e-wallet services;
- the presence of a person responsible for cybersecurity;
- confirmation of compliance with the local law on the protection of personal data (PIPEDA).
Strategies of the Gambling Market’s Leaders
Let us consider how well-known providers take care of the cybersecurity of their platforms.
Kindred Group
The company has focused on real-time monitoring and ISO 27001 certification.
In 2023, the vendor launched the innovative PS EDS (Player Safety–Early Detection System). The solution collects up to 27 parameters of user behaviour, including financial and activity aspects. This is done to identify dangerous patterns (for example, ludomania or fraud).
If critical signs are detected, the system automatically notifies specialists for further personal sanctions.
Flutter Entertainment
A 24/7 analytical service (Security Operations Center — SOC) follows security events, including:
- Dark Web monitoring;
- identification and elimination of vulnerabilities;
- integration of bug reports;
- investigation of incidents.
The brand has an internal policy for IT risk management, pentesting regulations, access control, and employee training.
The provider's CISO team consists of 250 specialists in programming and technical support.
The Main Things about Cybersecurity for Casino Startups
Protection of gambling platforms is a strategic priority for entrepreneurs.
Key aspects that operators should take into account:
- Businessmen are often vulnerable due to the lack of a CISO, security service, and the use of open-source or budget solutions without verification. Problems can be caused by weak control over contractors and internal access, as well as a disregard for penetration testing and infrastructure audit.
- Leading regulators require project owners to ensure protection from external threats, configure access control, and comply with identification rules (MFA). Violations often lead to the suspension of a licence, fines, or a ban on working in the country.
It is possible to buy modern security software from the Casino Market studio. We offer high-quality solutions from certified developers, quick setup, and subsequent maintenance of systems.
From us, you can order the creation of iGaming sites from scratch, assistance in legalisation, and marketing services.
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