Cyber Attacks Impact Online Casinos, Cyber Insurance Deals

Constant cybersecurity attacks appear to spark friction between online casino operators and cyber insurance companies.

Casino operators need cyber insurance deals to protect their community members from cyber attacks. But insurance companies are somehow making it impossible for them to secure decent deals in recent years.

Since database hacks and cyber attacks have become a constant issue not only in the USA online gambling scene but also the global iGaming industry, there is a growing concern for the safety of user data on gambling sites.

In response to the growing need for cybersecurity, cyber insurance companies have been increasing their subscription prices, LA Progressive reported this week.

Compared to 2019, cybersecurity threats in 2021 soared by more than 1,000%. Several online businesses have had their systems hacked and their user data exposed to various cyber crimes, including identity theft and bank fraud.

After underwriters saw cyber attacks making headlines regularly, they started to add more zeros to their insurance premiums. In just one year, the average risk insurance payment went up 82%, said Lance Erwin, of the San Manuel Band of Mission Indians.

Per the latest data report by the American Gaming Association, the US already has more than 3,000 online casinos. Since these platforms offer convenient gambling through their virtual slots, table games, sports betting, and other features, they are expected to provide a safe and secure gambling arena to their users.

Online casinos hold sensitive information from their players, but insurance companies are reluctant to offer them reasonably priced safety nets. This could trigger a conflict between the two parties, especially if they fail to reach a compromise. The result could seriously affect online gamblers.

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