Why Bookies Need to Invest In Cybersecurity – It is no secret that cybercrime is rising and hackers are coming up with unique ways that make even big sports betting organizations fall to their knees. Bookies are a common target for hackers. Why? Well, we are talking about a multi-billion-dollar industry where they can exploit sensitive information that will give them some kind of monetary advantage.
Let’s say that you are a bookmaker, your sportsbook is working smoothly, bets are rolling in and your profit margins are high. Then, bam – a cyberattack hits, your customer data’s leaked, and your reputation is sinking in the blink of an eye.
A total nightmare scenario.
Cybercriminals are like circling charts, and since bookies handle a goldmine of sensitive data like credit cards, addresses, and betting histories, they are a common target.
So, in theory, a single hack on a bookie can ruin the company forever, leading to bankruptcy, even if it is a small one.
But is there a solution? Well, nothing can stop cybercrime, and experts even suggest that it will continue rising in the future. The only thing that bookies can do is invest in new technologies that will help them get one step ahead of cybercriminals.
Let’s dive deeper into cyberattacks on bookies and find out the solution to this problem.
Why Bookies Are Hacker Bait?
I mean, it is kind of obvious. Bookies for hackers are just like hitting the jackpot. Every bettor is required to make a profile, adding their name, email, bank details, and even uploading sensitive documents.
This means that they hold very valuable data that hackers can exploit. They can steal identities, credit card information, and even target specific accounts to get their betting money.
The global average cost of a data breach in 2024 was $4.88 million, up 10% from 2023, according to IBM’s Cost of a Data Breach Report, and shocking this does not include the PR nightmare and the costs of customers lost in the process, which may be the most devastating hit for bookies.
In some cases, breaches can hit harder, and we’ve had plenty of ransomware attacks, where they lock the system until a ransom is paid. This might not be a big problem for bookies but dealing with unethical hackers who cannot be trustworthy puts them in a very sensitive position.
Some hackers are also not in for the data. They want to get access to the bookie’s system just to manipulate odds, rig bets, or crash apps during peak events like the Super Bowl, costing them millions of dollars.
On top of that, the hackers that target such organizations aren’t your average nerds with a hoodie and a laptop sitting in the nearby cafe, but sophisticated gangs that use AI and other strategies to exploit weak links in the software.
Fraud Prevention
Not many people know that cybersecurity also tackles fraud. This is a massive headache for bookies since they are dealing with such things every day. The UK Gambling Commission’s 2024 guidance flags fraud as a top issue, which is why they require bookies to verify identities via third-party tools.
Fortunately, AI can help bookies detect fraudulent activities. AI can flag suspicious patterns like 50 accounts from one IP address, and other things that the human eye could miss.
But hackers are getting more creative and sneakier. They use stolen credentials to hijack accounts where they drain their balances faster than you can enter your password. So, you are excited to make a horse racing bet, and you are browsing the Belmont Stakes winners list just to see your balance at 0.
That’s why most bookies now have multi-factor authentication addons, which cut down brute force attacks by 99%.
There will always be fraud in the world of online betting, but the good thing is that most of the fraud is for gaining personal advantage and doesn’t jeopardize the reputation of the bookie and doesn’t put the funds of the other customers at risk.
Cybersecurity also tackles fraud, a massive headache for bookies. Fraudsters open multiple
Regulatory Compliance
We also have regulators in the process, who aren’t here just to play nice. The UK Gambling Commission and Malta Gaming Authority update their guidelines every year, and cybersecurity is one of their top priorities to protect bettors and prevent money laundering.
In other words, they are forcing bookies and gambling companies to invest in cybersecurity measures. But what if bookies deny? Well, non-compliance risks license loss, which means that the bookie won’t be operational anymore.
This movement inspired cybersecurity investments like SOC 2-certified platforms, just to prove you’re legit, and other innovations that make sure such hack attacks happen as rarely as possible.
Customer Trust
It is safe to say that the bookie’s biggest loss after a hack attack is in reputation. Nobody touches a bookie they don’t trust, and if you know that a sports betting website was recently hacked, would you make an account? Of course not.
The amount of money here cannot be measured, but their ruined reputation can put bookies out of business really fast.
The Cost of Doing Nothing
Skimp on cybersecurity, and you’re rolling dice with your business. The 2024 average breach cost ($4.88 million) is no joke—small bookies could fold under that. I verified this with McKinsey’s 2022 report, which pegs cybercrime costs at $10.5 trillion annually by 2025.
Downtime’s brutal too; a crashed app during a major race loses 5-10% of daily revenue. Regulators can suspend licenses, as seen with Matchbook’s 2020 UK ban,
Even big players aren’t immune. A 2024 SEC case fined four firms $990,000-$4 million for misleading post-breach disclosures.
Smaller bookies, with tighter margins, can’t afford these hits. Investing upfront—$10,000-$100,000 for robust systems—beats paying millions later. It’s like buying insurance before the storm, not after your roof’s gone.
How to Get Started?
Ready to armor up? Start small but smart. Encrypt data with tools like AWS Key Management ($1/key/month). Roll out MFA across your platform—Okta’s free for basic setups. Hire a cybersecurity consultant ($100-$300/hour) to audit your systems.
Monitor threats with real-time tools—Datadog ($15/user/month), tracks system anomalies. Stay compliant with GDPR and Gambling Commission rules; a lawyer ($2,000-$5,000) can review your policies. Test your defenses yearly—penetration tests catch 95% of vulnerabilities.
So, the situation is very serious, and it will get even more difficult from here. That’s why bookies need to devote a portion of their profits to cybersecurity improvements.