SBTech constructing a digital repository for cyber aggression
In the rapidly evolving world of online gaming, a significant event has unfolded. SBTech, a major player in the iGaming and sportsbook software market, has experienced a cyberattack that has left its U.S. websites, such as BetAmerica sportsbooks in Indiana, New Jersey, and Pennsylvania, offline for an extended period.
The nature of this attack has led Chief Information Security Officer Geraint Williams of IT service provider GRCI Group to suggest that it could be a ransomware attack. Ransomware attacks involve hackers attempting to steal company data and specific codes by implementing malicious software, often demanding a ransom in exchange for the restoration of normal operations.
In response to this potential threat, SBTech has set aside a $30 million fund to cover liabilities from the cyberattack, as instructed by its shareholders. This fund, consisting of €28 million in cash and stocks, was agreed upon with the U.S. Securities and Exchange Commission (SEC). However, it's important to note that there is currently no indication that SBTech customers have filed or prepared claims for damages.
The attack, which occurred in late March, affected hundreds of international partners' websites for 72 hours. In Europe, websites are now back online, but the provider's websites in the U.S. remain offline, causing concern and uncertainty. The local gambling authority, the Nevada Gaming Control Board (NGCB), has initiated investigations in cooperation with the police, suggesting it may have been another ransomware attack.
It's worth mentioning that this is not the first time U.S. online gambling establishments have been targeted. Last month, there were cyberattacks on Las Vegas casinos Four Queens Hotel and Casino and Binion's Gambling Hall, owned by TLC Casino Enterprises. The slot machines in these establishments were hacked and were out of operation for six days, and both casinos had to rely on cash and table games.
While specific details about the SBTech cyberattack are still emerging, it's crucial for stakeholders to stay informed. Monitoring cybersecurity news outlets, official company press releases from SBTech and DraftKings, and regulatory filings related to the merger will provide the most accurate and up-to-date information on this matter.
As for the potential impact on the DraftKings merger, at present, no detailed case studies or analyses are publicly available. For a comprehensive understanding of this issue, it's advisable to continue following developments closely.
In the meantime, it's essential to remember that cybersecurity risks are increasingly prevalent in the iGaming sector. Companies of this size typically have data resources and backup servers to quickly restore their services in case of a cyberattack. However, ransomware attacks can take a long time to resolve and ensure system cleanliness, potentially leading to significant costs and disruptions. If costs exceed $100 million, the difference will be demanded from current SBTech shareholders.
In the face of these challenges, the iGaming industry must continue to prioritise cybersecurity measures to protect its customers, partners, and operations.
What could be the potential implications for casino-and-gambling customers if SBTech's ongoing cybersecurity issue leads to increased technology vulnerabilities within the iGaming sector? In light of recent cyberattacks on U.S. online gambling establishments, it might be crucial for cybersecurity experts in the casino-and-gambling industry to closely examine and strengthen their defense systems against ransomware attacks.
