Data Protection vs. Cyber Resilience in the Complex World of Gambling

The gambling industry never sleeps. With online casinos, sports betting, and digital gaming platforms available 24/7, gambling is accessible at anytime, anywhere in the world. In this always-on, hyperconnected environment, CIOs must confront two equally important concepts: data protection and cyber resilience. 

As operators increasingly rely on data to power real-time odds engines, personalized marketing, fraud detection, and player analytics, the underlying IT infrastructure becomes more complex. In addition to the demands of hybrid workforces, cloud-native betting platforms, legacy systems, and edge technologies like in-venue gaming kiosks, the challenge increases. 

At the same time, a surge in sophisticated cyberattacks, rising cyber insurance premiums, pressure to reduce operational costs, and the industry’s need for continuous uptime make strong, scalable defenses and rapid recovery strategies essential. 

The Modern Challenge: More Data, More Points of Failure 

For gambling operators, IT systems span on-premises data centers, hyperscale cloud platforms, mobile endpoints, and edge devices. Each of these points presents its own set of risks and recovery complexities. 

Add to this the vast amounts of personal and financial data being handled across online betting platforms, casinos, and mobile apps and the stakes grow higher. This makes them prime targets for increasingly advanced cyber threats like ransomware, distributed denial of service (DDoS) attacks and credential theft. Breaches not only disrupt services, but can lead to significant regulatory penalties and reputational damage. 

Disaster Recovery Is Not Enough 

Traditional disaster recovery (DR) approaches designed for catastrophic events and natural disasters are still necessary today, but gambling operations must implement a more security-event-oriented approach on top of that. 

Legacy approaches to disaster recovery are insufficient in an environment that is rife with cyberthreats as these approaches focus on infrastructure, neglecting application-level dependencies, and validation processes. Further, threat actors have moved beyond interrupting services and now target data to poison, encrypt or exfiltrate it. 

As such, cyber resilience needs more than a focus on recovery. It requires the ability to recover with data integrity intact and prevent the same vulnerabilities that caused the incident in the first place. 

What Cyber Resilience Looks Like 

Cyber resilience requires a proactive approach based on the assumption that breaches will occur. It also demands a shift in strategies, paying particular attention to: 

Event-Triggered Recovery 

Recovery should not wait for human interventions or decision-making. Modern environments must integrate with intrusion detection systems (IDS), security information and management (SIEM) tools, and behavioral analytics to identify anomalies and initiate recovery processes when anomalies in data are detected. This necessitates a more stringent recovery process to ensure data cleanliness; this is important if it affects customer or employee data. 

Runbooks Over Failover Plans 

Failover plans, which are common in disaster recovery, focus on restarting virtual machines (VMs) sequentially but lack comprehensive validation. Application-centric recovery runbooks, however, provide a step-by-step approach to help teams manage and operate technology infrastructure, applications, and services. This is key to validating whether each service, dataset, and dependency works correctly in a staged and sequenced approach. This is essential as businesses typically rely on numerous critical applications, requiring a more detailed and validated recovery process. 

Isolated Clean Rooms for Recovery 

Recovering in production environments can be risky. However, having isolated “clean room” environments enables organizations to restore systems and validate their integrity without the threat of malware, compromised code, or other vulnerabilities. This process ensures that systems are secure before they are reintroduced into the on-premises environment or other appropriate locations. 

Recovery Prioritization by Business Impact 

Not all data and applications across an organization are equal. Systems crucial for customer engagement or revenue generation, such as e-commerce platforms or engineering CAD systems, for example, may require near-instant failover capabilities to ensure operations are uninterrupted, even in the event of unexpected failures. Less critical workloads, however, may withstand several hours of downtime. Thus, it is important to define recovery time objectives (RTOs) and recovery point objectives (RPOs) based on the specific needs of each system across the company. 

Testing: The Vital Missing Link Between Planning and Execution 

These strategies, however, are meaningless without regular testing. Yet many CIOs consider it a checkbox compliance exercise, overlooking the importance of this final step in the process. 

Regular testing provides the best defense against human error, assumptions and silent system drift. 

To maximize the benefit of a cyber resilience strategy, gambling operators should conduct tests for frequently updated systems every month. Scenario-based tabletop exercises should take place quarterly, and full failovers in clean room environments should occur annually to assess real-world preparedness. 

Edge Devices and Endpoint Recovery: Don’t Ignore the Frontlines 

The shift to hybrid work has extended the threat surface as mobile devices, remote workstations and IoT devices, for example, often hold sensitive or mission-critical data which is not monitored or secured due to their distributed or decentralized nature which makes it challenging, particularly when located in remote areas. Further, these devices may receive fewer software updates, leaving vulnerabilities open to exploitation. These factors make them an attractive target for threat actors. 

Security teams cannot afford to overlook these points and must implement data security strategies that scale to the edge, tailoring Recovery Point Objectives (RPOs) based on user roles and data sensitivity to ensure that critical data is prioritized for recovery, thereby minimizing the impact on operations and maintaining cyber resiliency. 

Cyber Resilience: Preparing For “When,” Not “If” 

Cyber resilience is now essential. With ransomware that can encrypt systems in minutes, the ability to recover quickly and effectively is a business imperative. Therefore, companies must develop an adaptive, layered strategy that evolves with emerging threats and aligns with their unique environment, infrastructure and risk tolerance. 

To effectively prepare for the next threat, CIOs and technology leaders must balance technical sophistication with operational discipline, as the best defense isn’t a hardened perimeter, it’s a recovery plan that works. Today, gambling operations cannot afford to choose between data protection and cyber resilience. They must master both — integrating cybersecurity, risk management and digital resilience to safeguard profits, players and platforms. 

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Sean Tilley

Sean Tilley

Sean Tilley is a senior director at 11:11 Systems. He's spent his career helping organizations of all sizes deliver beneficial and tangible business outcomes through consultative engagements. He's focused on ensuring customers can increase operational and cyber resilience while improving key business objectives, such as growth.

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