Why Licensing Bodies Are Now Prioritizing Cybersecurity in Online Gaming
May 30, 2025 • César Daniel Barreto

Online gambling has quickly grown in popularity over the past few years, with millions of users now logging onto their favorite casino sites whenever they fancy a game of poker or slots. This increased popularity has, however, also coincided with an increased risk of cyberattacks, data breaches, and fraud as malicious parties look to capitalize on the huge sums of money in circulation.
As a result, many of the world’s leading licensing authorities, including the UK Gambling Commission (UKGC) and Malta Gaming Authority (MGA), have since taken additional steps to better protect players and maintain trust in the industry, which is now more important than ever.
In this article, we’ll take a closer look at why these bodies are taking cybersecurity more seriously and how this could impact all involved stakeholders, which we hope will help build trust and ensure that everybody can buy into the process.
Why Cybersecurity Is a Growing Concern
With the rise in the number of online incidents, primarily relating to hacking, phishing, and data breaches, it’s easy to understand why there is a complete selection of new online casinos that are now taking more proactive steps to protect themselves and their customers. To put this into context, cybersecurity ventures stated in 2020 that global cybercrime costs were expected to grow by 15% per year over the following five years, soaring to over $10 trillion by 2025.
Casinos are rightfully concerned because they handle and store a huge amount of incredibly sensitive data online, including both personal details and payment information. This significant amount of data, which can be very valuable in the wrong hands, makes them a prime target for online criminals. And with online casinos being more popular than ever before, and this popularity set to increase further moving forward, they’ll continue attracting cybercriminals looking to make a quick buck.
Data breaches can absolutely cripple a company because of the hit that their credibility and reputation can take, even if the company itself isn’t at fault. It only takes a single incident for users to lose all confidence. Aside from the reputational risk, governments and regulators are also applying pressure and demanding that casinos have stronger protections in place to protect players, adding the threat of financial penalties and suspended licenses for those who fail to do so.
How Licensing Bodies Are Prioritizing Cybersecurity
As those responsible for issuing licenses and ensuring that those within the industry behave in the best interests of all stakeholders, licensing bodies, such as the UKGC and MGA, have strict standards for those seeking to receive approval for a gambling license application. An example of these legal hurdles, at least for those in the UK, is being granted ISO 27001 certification for data security standards.
Aside from meeting the requirements set out by their domestic or target location’s licensing body, gambling companies may also need to meet the wider requirements set out by those in the region in which they operate. Those operating in the United Kingdom, for example, may be required to be compliant with the EU’s GDPR framework, and similar regulations for player data privacy due to the trade agreements between the two entities.
Aside from requiring online casinos to meet certain standards and ensuring that they have the relevant certifications from respected trade organizations, licensing bodies will also enforce their frameworks by periodically auditing gambling companies to identify any potential vulnerabilities and areas of malcompliance. Similarly, they’ll also work with cybersecurity experts to provide industry-wide support and address issues that they’ve noticed as being particularly prevalent.
Impact on Operators and Players
For casino operators, the impact of implementing cybersecurity measures can have a massive financial impact on the business, especially if they decide to head down the AI-driven route. Any AI tools must be developed internally and closed off from anybody outside of the company. These new-age cybersecurity measures will also need to be compliant with the current regulations while also being future-proofed to ensure future compliance, all while being effective at preventing crime.
On the other side of the chasm, players need to see casino operators doing everything they can to protect them from cybersecurity threats in order to play with confidence and continue engaging with the platform. We’re now much more aware of the potential impact of identity theft and financial fraud, which is why our expectations are higher than before. As important as this is, players will expect their online experiences to be seamless with minimal disruption to their gameplay, which can further complicate matters.
It’s clear that for those within the industry, the key challenge will be balancing the demands for the tightest possible security measures with the need for the user experience to remain largely unaffected. While users want to feel safe and secure, they don’t want to feel as though they’re being treated as a suspect, which can be a fine line to walk. This doesn’t come cheaply either, and this approach could prove too costly for small operators wanting to provide the best of both worlds without using external software.
Future Trends in Cybersecurity for Online Gambling
While it can be almost impossible to predict what the future may hold for the cybersecurity industry, based on what we’ve seen happening with online casinos, here are a few things to keep an eye out for:
- Predictive AI models being used to better anticipate potential threats
- Identity verification being required at multiple stages of the same process
- Bets and wagers being logged on the blockchain for greater transparency
- Facial recognition and fingerprint scans being used for logging in
- Harmonization of regulations across different leading licensing bodies
Final Thoughts
While some players may be a little frustrated with the many new stages of security added to their favorite casino sites, it’s hard to argue against the necessity. Cybercriminals are becoming much more sophisticated in their attempts to extort users. With the huge advancements in recent years, it’s vital that players, platforms, and licensing bodies do as much as they can to stay ahead of the curve.

César Daniel Barreto
César Daniel Barreto is an esteemed cybersecurity writer and expert, known for his in-depth knowledge and ability to simplify complex cyber security topics. With extensive experience in network security and data protection, he regularly contributes insightful articles and analysis on the latest cybersecurity trends, educating both professionals and the public.