The gambling industry is one of the fastest growing out there. Millions of users are playing year over year, creating one of the biggest industries in the world. And like any other industry out there, certain challenges have presented themselves. Industry leaders are tasked with mitigating them and streamlining their businesses.
Security is a constant challenge for online casinos. Challenges like money laundering, scams, fraud, and other criminal enterprises are going to be at play because of the money involved. As Gayle Mitchell put it, “2024 was a good year with lots of new game mechanics being introduced.” There are, however, many challenges still at play for online casinos.
Cybersecurity Threats
Many online casinos attract new players with features like free spins, cashback offers, and bonus buys, making the experience more exciting. However, the influx of users also increases cybersecurity risks, from data breaches to sophisticated hacking attempts. Online casino software has been constructed to handle many of these issues, but it is far from a perfect system.
There have been large cyberattacks, data breaches, and a litany of hacks. MGM, one of the largest casino firms in the world, was the victim of a cyberattack that cost them about $100 million. More casinos are beginning to leverage blockchain technology in an attempt to make financial transactions safer and to provide a safer experience for online users while also expediting financial operations.
Internal Threats
One of the greatest challenges facing online casinos happens to be from internal threats. More often than not, it comes from employees of these casino companies. Employees can get involved in schemes to steal money, provide sensitive information, and more. More than 25% of casino fraud arrests happen to involve employees.
In an effort to combat internal concerns, online casinos have several policies in place. Background checks are now commonplace during the hiring process. Companies also maintain vigilance in an effort to spot potential red flags that can lead to fraud and other crimes.
Underage Gambling
In the age of the internet, it is a constant challenge for some industries to ensure that only users of age are able to gain access. For the online casino industry, it is imperative that all players be at least 21 years old for legal purposes. That does not, however, stop underage users from attempting to gain access. It is something that casinos must be vigilant about and the online landscape presents certain challenges.
It is estimated that anywhere from 60-80% of high school students engaged in gambling in 2021. That is a dangerous thing because it can lead to potential gambling issues later in life. In an effort to combat underage gambling, stringent age verification is required. This more often than not means providing a driver’s license or some other form of authentication to ensure that users are of legal gambling age.
Identity Theft
Arguably the biggest issue facing online casinos comes in the form of identity theft. It is a significant challenge for online casinos, in particular, because individuals have more access to potential avenues for fraud. Whether it be manipulating identification documents or using false identities, it is something that online casinos are having difficulty managing.
By using biometric authentication, casinos are finding a more consistent way to verify unique behavioral or physical traits, things like fingerprint scans or facial recognition. This offers greater security for legitimate players and a safeguard for their identities. The system isn’t perfect but it is far more secure than former processes, creating a more secure landscape for players and operators alike.
