The gambling industry is one of the most tightly regulated industries in the UK. It will come as no surprise that gambling businesses deal with huge amounts of sensitive customer data and financial transactions, and this makes them incredibly attractive targets for criminals.
The Gambling Commission was created to help protect customers from poorly set up gambling businesses. If you run a gambling business, you must ensure that your gambling services remain compliant with the Gambling Commission’s legislation.
Cyber Security in the Gambling Industry
According to the Gambling Commission, the UK gambling industry generated £15.6 billion in the last fiscal year, and a significant chunk of these transactions took place online. This sort of money makes it particularly attractive to cyber criminals. Some of the threats that gambling businesses will regularly face are:
- Hacking or ransomware attacks
- Distributed Denial of Service (DDoS) attacks
- App-based hacking and phishing
New technologies such as cryptocurrencies and advanced gaming platforms are great business opportunities, but they further increase the complexity. To safeguard client information, financial resources, and the integrity of their business operations, businesses must use strong security measures.
Acting Swiftly When a Security Incident Occurs
As with most things in life, prevention is better than a cure. However, if a breach occurs it’s important to deal with it promptly. Gambling businesses need clear, well-defined incident response plans so they know how to deal with a breach. A basic plan should include:
- Identifying and isolating affected systems – how will this be done and by who?
- Communicating with stakeholders – again, it’s important to know who will deliver the bad news.
- Engaging IT support and security teams for remediation – if you’re working with an external IT support provider, such as IT Backbone, then you should understand exactly how they can support you with the above. As an experienced provider of IT support to gambling businesses, we can help you set up all the above.
A plan that covers the above, combined with ongoing monitoring, will mean you’re well placed to respond effectively to any security challenges.
Remote Gambling and Software Technical Standards
The Gambling Commission’s Remote Gambling and Software Technical Standards (RTS) are mandatory. Businesses are required to meet specific security and technical standards, which include:
- Systems that process sensitive customer data, such as payment card details e.g. PDQ machines to handle transactions, ATMs within the casinos themselves or cashless transaction options such as Playtech Neon.
- Systems responsible for generating game outcomes or storing gambling history e.g. Random Number Generator (RNG) systems, Game Server Platforms (e.g. Playtech’s IMS) and Gambling History and Player Analytics Systems (e.g. Playtech Analytics).
- Communication networks handling data transmission e.g:
- PCI DSS compliance – Ensures secure payment processing.
- AML and KYC integrations – Verifies player identities to prevent fraud.
- GDPR compliance – Protects player personal data under EU regulations.
- Security & Compliance:
- TLS 1.2+ Encryption – Ensures secure data exchange.
- DDoS Protection – Prevents gaming disruptions.
- Fraud Detection Algorithms – Flags suspicious network traffic.
- Cloudflare & Akamai CDNs – Ensures fast and secure content delivery.
These standards help protect against breaches and ensure fair gameplay. Businesses must also complete regular security audits aligned with ISO/IEC 27001:2013 standards to demonstrate adherence.
As you can see, there’s plenty to do to ensure compliance.
How IT Support Ensures Secure Transactions and Data Protection
Effective IT support can really help secure financial transactions and data protection. Some of the things an external IT support specialist will provide might include:
- Data encryption for financial transactions
- Secure payment gateways compliant with PCI DSS standards
- Real-time threat detection and mitigation
- Data backup and disaster recovery solutions
By implementing robust IT infrastructure, gambling businesses mitigate cyber risks and ensure the security of customer information. This is why it’s worthwhile using a specialist to guide you through.
The Importance of Compliance in Gambling
Compliance is the cornerstone of a responsible and lawful gambling business. Regulatory frameworks ensure that gambling businesses maintain integrity, protect players, and uphold fair practices. The termination of a gambling licence and fines (up to 15% of gambling yield) are possible consequences for noncompliance.
What Does the Gambling Commission Do?
The Gambling Commission regulates gambling activities in the UK to ensure fairness, transparency, and security. It is in charge of:
- Enforcing licensing conditions and technical standards
- Conducting compliance assessments
- Overseeing social responsibility initiatives, such as preventing underage gambling and ensuring customer self-exclusion options
The Gambling Commission’s regulations, including the Licence Conditions and Codes of Practice (LCCP), set the foundation for responsible gambling practices.
What security guidelines has the Gambling Commission established?
Gambling businesses will be required to undergo annual security audits to verify they are compliant with ISO/IEC 27001:2013. These audits must be performed by qualified and independent auditors, such as:
- ISO 27001 Lead Auditors
- Certified Information Systems Auditors (CISA)
- Certified Information Security Managers (CISM)
It will be the responsibility of the business to source an accredited auditor.
The audit scope includes critical systems that manage communication networks, game results, and private customer information. By adhering to these security principles, gambling enterprises can safeguard their operations.
PCI DSS Compliance for Remote Gambling Businesses
For gambling businesses processing payment card data, compliance with the Payment Card Industry Data Security Standard (PCI DSS) is non-negotiable. Strict controls are enforced by the PCI DSS to safeguard cardholder data, including:
- Encryption of payment data
- Regular vulnerability testing
- Access controls and monitoring
As payment card data is a prime target for cybercriminals, compliance with PCI DSS ensures secure transactions and mitigates financial risks.
How is compliance checked?
These will be examined during the yearly audit:
- Adherence to technical standards, including ISO/IEC 27001
- Security measures to safeguard confidential information
- Incident response and vulnerability management procedures
Regular audits help identify gaps and ensure businesses remain aligned with the Gambling Commission’s requirements.
How can we maintain gambling compliance?
Compliance is an ongoing process that requires regular maintenance. To maintain compliance, gambling businesses must stay updated with regulatory changes and then implement best practice recommendations.
Ensure Your Web Applications Are Secure
Web applications are common targets for cyberattacks. Businesses must conduct regular penetration testing to identify and fix vulnerabilities, such as:
- SQL injection attacks
- Cross-site scripting (XSS)
- Authentication flaws
By regularly securing web applications, you’re already half way there. Again, prevention is better than a cure.
Real-Time Monitoring
Real-time monitoring offers a handy tool that keeps a constant oversight of systems and networks. It will detect and alert businesses to potential threats. Real-time monitoring typically involves:
- Automated alerts for suspicious activities
- Performance and compliance reporting
- Threat intelligence and incident tracking
The Cost of Non-Compliance
Non-compliance with regulatory requirements can result in:
- Hefty fines (up to 15% of gambling yield) and legal penalties
- Suspension or revocation of licences
- Reputational damage and loss of customer trust
At IT Backbone, we assist businesses in mitigating these risks by providing proactive monitoring, compliance audits, and technical solutions to meet regulatory requirements.
Talk to an Expert About Gambling Compliance
Ensuring compliance in the gambling industry requires expertise, proactive measures, and ongoing improvements. Our company has experience in providing IT support for gambling businesses and the associated compliance requirements. We have worked with several clients in this sector and can give you the timely advice and support you need to stay ahead of the curve.
Some of the things we offer are:
- Security audits and compliance assessments
- Implementing technical standards (RTS, PCI DSS, ISO 27001)
- Enhancing cyber security measures
- ISO/IEC 27001 implementation and certification support
- PCI DSS compliance solutions
- Vulnerability assessments and penetration testing
- Data protection and incident response services
These services ensure that businesses meet regulatory requirements and address any identified weaknesses.
