Since the U.S. Supreme Court’s ruling in Murphy vs. NCAA (2018) overturned the federal ban on state-sponsored sports betting, online sports gambling has skyrocketed. The industry, valued at $76 billion in 2021, is projected to grow to an astonishing $167 billion by 2029.
With billions in transactions and vast amounts of personal data flowing online, cybersecurity is no longer optional—it’s mission-critical. Ensuring robust security is the only way for the online sports betting industry to thrive in the long run.
Why Cybersecurity is Critical for Online Sports Betting
Online sportsbooks handle highly sensitive customer data—names, addresses, payment details, and betting history. If this information falls into the wrong hands, it can lead to identity theft, financial fraud, and significant regulatory consequences.
A cyberattack not only impacts users but can permanently damage the reputation of a sports betting platform. One notable case occurred three years ago when a cyber breach compromised an online sports betting portal, impacting thousands of users, including the Oregon Lottery. These breaches erode customer trust, result in regulatory fines, and empower cybercriminals to exploit stolen data.
Key Strategies to Strengthen Cybersecurity in Online Betting
The good news? Implementing strong security measures is entirely achievable. Below are essential steps sportsbooks should take to protect their users and infrastructure from cyber threats:
1. Access Control & User Management
- Enforce the principle of least privilege—grant users the minimum access required.
- Regularly review user access logs and adjust permissions.
- Avoid outdated practices where systems default to open access. Instead, start with restricted access and open only what is necessary.
2. Secure Configuration
- Restrict operating system and application functionality to only what’s needed.
- Follow industry-standard configurations from the Center for Internet Security (CIS) to prevent unnecessary vulnerabilities.
3. EDR (Endpoint Detection & Response)
- Deploy and maintain EDR solutions to detect malicious code and suspicious activity.
- Actively monitor endpoints for real-time threats and remediate quickly.
4. Internet Gateways & Firewalls
- Implement strong perimeter defenses with regularly updated firewall rules.
- Use web proxies and content filtering to block access to known malicious domains.
- Prevent unauthorized devices from communicating with harmful external sites.
5. Patch Management
- Keep software, applications, and firmware updated—no exceptions.
- Enforce a proactive patching policy to prevent cybercriminals from exploiting vulnerabilities.
- Too many breaches happen because organizations fail to install critical security updates in time.
6. Password Policies & Multi-Factor Authentication (MFA)
- Require strong, regularly updated passwords across all platforms.
- Enforce MFA to add an extra layer of protection, but stay ahead of evolving bypass tactics.
- Implement adaptive authentication to flag suspicious login attempts.
Beyond Technology: The Human Factor in Cybersecurity
Even with the best technical safeguards, human error remains the biggest cybersecurity risk. Social engineering attacks—phishing, pretexting, and insider threats—are constantly evolving. Conduct regular security awareness training to ensure employees recognize threats and follow best practices.
Virtual Security Operations Centers (vSOC) as a Cost-Effective Solution
For sportsbooks without the resources to operate an in-house Security Operations Center (SOC), a vSOC (Virtual Security Operations Center) can provide 24/7 monitoring and incident response at a fraction of the cost. Investing in proactive cybersecurity measures today will save substantial losses tomorrow.
Final Thoughts
Online sports betting platforms must prioritize cybersecurity to protect users, financial assets, and long-term brand reputation. Cybercriminals are relentless—if your defenses are weak, it’s only a matter of time before an attack happens.
The stakes are high, but so are the solutions. If you need expert guidance in strengthening your platform’s cybersecurity posture, contact us today. Let’s ensure your sportsbook stays safe, compliant, and competitive.