How the Online Gaming and Gambling Industry Can Reduce the Odds of Cyberattacks

Over the past decades we have witnessed so many businesses transition from traditional business channels to an online presence. Recently, we have seen this transformation accelerate for the gaming and gambling industry with the popularity of online sports betting. Gambling enthusiasts are no longer traveling to the casino to place a friendly bet as shown by the numbers:

Americans legally wagered $147.91 billion on sports in 2024, a 23.6% increase from 2023.

95% of all sports bets in 2024 were made online and 70% of all online wagers were placed on smartphones.

Year-to-date commercial sports betting revenue (May 2025) stands at $6.50 billion, 13.1% higher than the same period last year.

Online gaming represented 30% of all commercial gaming revenue in 2024.

What are the Cyber Risks in the Gambling Industry?

For most participants, online sports betting serves as entertainment, with average wagers under $10. However, securing the infrastructure that makes online casinos and betting possible is very serious business. While individual players typically risk modest amounts, gaming operators face significant high-stakes risks:

Data Breaches: Operators store a great amount of sensitive customer data, including IDs and payment information, all of which are prime targets for hackers
DDoS Attacks: Threat actors can launch distributed denial of service attacks to overwhelm betting platforms and temporarily put them out of commission until a ransom is paid
Account Takeovers: Cybercriminals can launch credential stuffing and brute force attacks to gain access to customer accounts to steal funds, launder money, or collect personal data for identity theft
Insider Threats: Current or former employees may abuse access privileges to steal data manipulate odds, or steal funds
Ransomware: No digital organization today is exempt from ransomware attacks, including gaming sites and online casinos
Software Exploits: Attackers may target software vulnerabilities to manipulate outcomes or betting odds to gain an unfair advantage

Online gaming sites are also made up of many moving parts as gaming operators often rely on third-party service providers (TPSP) for payment processing, game content, or customer support. Any lack of security on their part affects the gaming organization and its customers.

What are some of The Attacks and Losses in Gambling Organizations?

Anyone in the casino business knows of the infamous attack on MGM Resorts that took place in September of 2023. However, this attack is only one example of the growing attacks targeted at the booming online gaming industry.

In 2023, an 18-year-old from Wisconsin launched a credential stuffing attack to hack into a fantasy sports and betting website and steal nearly withdraw $600,000 from approximately 1,600 victim accounts.

In 2022, the popular sports betting site, DraftKings, was hit by a credential stuffing attack that allowed hackers to steal up to $300,000 after changing passwords and MFA settings to lock out the actual customers.

International Game Technology (IGT), a gambling technology vendor, experienced a cyberattack in November of 2024 that forced them to take their IT systems offline.

The Big Picture

As much as $1 billion dollars can move through online gambling sites in a single day. That is a lot of money. The payoff for attackers is huge, and the number of ways to get at that money has significantly increased. Every digital touchpoint is a potential path for cybercriminals to exploit. This includes internal systems, payment gateways, cloud services, and thousands of online user accounts. In addition to substantial financial losses, a cybersecurity incident can result in an erosion of public trust and market value. Since gaming platforms are tightly connected through payment networks, a published attack on one major platform or supplier can disrupt services or data for many others that pose systematic risks.

Why do Gambling Organizations Need Penetration Testing?

With billions of dollars at stake, online gaming organizations have an enormous amount of pressure to protect their operations, customer data, and financial assets. Regardless of industry, any cybersecurity initiative must include penetration testing to proactively identify and address vulnerabilities within the company’s environment before attackers can exploit them. When conducted by experienced security specialists, pen testing simulates real-world attacks to provide actionable insights such as:

Uncover flaws in web apps, APIs, authentication, and back-end systems
Identify insecure storage, weak encryption, or poor access controls
Validate implemented security controls against modern threats
Test third party integrations for weak links
Support compliance and regulatory requirements

Why is PCI Compliance Essential for Gambling Businesses?

Whether an online bet is for $5 or $5,000, that transaction is covered by PCI DSS compliance. PCI DSS is a global security standard designed to protect cardholder data and applies to all businesses that utilize credit or debit card transactions. Compliance is not optional, and failure to do so can result in hefty fines. Like other regulatory measures, PCI requirements continue to evolve in sync with technology and attack methods. An independent firm like HALOCK Security Labs that has years of experience navigating PCI compliance can ensure you meet the latest requirements that include tokenization, strong encryption, stricter access control methods, outsourcing criteria, vulnerability scans and ongoing staff training.

Conclusion

When approached responsibly, gambling offers entertaining experiences for informed enthusiasts. However, online gaming companies cannot afford to gamble with their reputation and business security. Learn how to assess your risk profile and how to secure your assets so that the payoff remains for you and your customers, not the hackers.

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