Risk Management in the Gambling Industry: Effective Strategies from 2WinPower

Posted by Andrew Price
2WinPower Partner, owner of the gambling establishments network.
2021/04/23

Companies from various economic sectors face various risks every day, and gambling startups are no exception. Such risks can be effectively managed, thus increasing the profitability of the casino business and polish the operator's image.

Risk management in the gambling industry

Installation of the security software for a gaming site is an essential part of the risk management system for gambling providers. From 2WinPower, you can order turnkey security solutions.

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What Is Risk Management in the Gambling Field?

This is a comprehensive system, which is based on strategic planning, operational control, and rapid anti-crisis measures. The aim of the solution is to anticipate as many problematic situations as possible and minimise their impact on the work of entrepreneurs.

Risk management in the gambling sphere is often used in connection with:

  • the launch of new projects, including joint programs with B2B partners;
  • access to international markets;
  • changes in the corporate policy or the legislation of a particular country or region;
  • inspections on the part of regulatory authorities.

In big iGaming companies, the board of directors is responsible for risk management, while operators with a small annual turnover have to independently perform active and strategic tasks.

If an entrepreneur has established a gambling business under a franchise agreement or a White Label scheme, then the parent company will deal with the anti-crisis management issues.

Casino owners can outsource these functions. As a rule, there are specialised organisations that solve financial and legal problems.

What Are the Challenges that Operators Can Face?

At the beginning of 2021, the Enhanced Due Diligence analytical resource analysed the risk management work of 60 large gambling providers from Europe, Asia, Africa, and America.

Based on the results of this study, EDD specialists identified 5 core groups of risks faced by the representatives of the gambling industry:

Regulatory

Risks associated with legislative amendments and the use of administrative measures ― the imposition of a fine, suspension of a licence, freezing of investment projects

Reputational

The risk of unfair competition in the gambling market, which damages the image of casino operators. It includes the publication of untruthful information in the media, the organisation of aggressive advertising, and other similar actions

Cyber

Threats related to the violation security of gambling projects and intellectual property theft

Financial

Risks of unplanned financial expenses of entrepreneurs ― payment of penalties and fines, theft by fraudsters, and inappropriate use of bonuses

Transparency risks

Problems due to the non-compliance with international policies that are aimed at anti-money laundering and combating the financing of terrorism

How Well-Known iGaming Providers Manage Risks

Risk management: reliable instruments

Leaders of the gambling market actively use risk management tools in their current operations and strategic activities.

Let us consider several software vendors of the most in-demand iGaming solutions:

NetEnt

The organisational structure of the Swedish manufacturer of slot machines has a dedicated risk evaluation department.

NetEnt minimises the impact of any risks due to:

  • investments in IT infrastructure and staff training;
  • registration of licences in promising regions with a stable tax status;
  • protection of intellectual property rights;
  • adherence to the principle of responsible gaming when working with non-profit organisations;
  • anti-money laundering.

Sazka Group

This is the biggest lottery and betting company in Europe. Due to the specifics of activities of the brand, the main part of its risks is associated with daily losses due to the gamblers' winnings. Therefore, the provider uses the average cost method when setting the sizes of bets.

The company rations out the odds across all popular sports events and lottery drawings. In the long run, it brings the average profit on a large number of bets. Even if some of the customers hit the jackpot, expenditures for the payment of the prize money will not change the overall level of the operator's income.

Evolution Gaming

The risk management strategy of the live casino provider boils down to:

  • timely patenting of new live games and proprietary solutions;
  • active promotion in regulated markets with the help of casino licensing and the acquisition of a stock of shares of local companies;
  • protection of infrastructure and programs against hacker attacks;
  • attraction and retention of talented employees.

Casino Security Software as an Excellent Way to Avoid Risks

From 2WinPower, you can buy or rent reliable software for the comprehensive protection of your iGaming business.

Order Service

The product performs a number of tasks related to:

  • support for the stable network interconnection;
  • prevention of technical failures in the operation of the gaming site and server equipment;
  • protection of confidential data during its transfer, storage, and processing;
  • control of access to casinos for minors and those gamblers who have ludomania;
  • protection of the platform against cyberattacks and inappropriate actions of employees.

The installation of security software will raise the level of protection of a gambling project against internal and external threats and increase the level of confidence of users.

Entrepreneurs can focus on the strategic business scaling, while dedicated security services will be responsible for operational risk management.

The Best Developers of Security Programs

Security programs: best developers

The 2WinPower catalogue contains complex solutions from the following software vendors:

  1. Yoti. The company specialises in the installation of multi-factor verification systems (based on age, personal data, geolocation, biometrics, documents, and the analysis of cookies). The identification service from Yoti is based on artificial intelligence technology. Operators can order the E-signing electronic digital signature to minimise risks when working with documents.
  2. AcuityTec. The developer offers a universal payment processing module. The system checks all transactions in online casinos for compliance with the legislation of a particular jurisdiction, and then approves or rejects money transfers. The solution also helps entrepreneurs to fight against money laundering and inappropriate use of bonuses.
  3. Arxan Technologies. The company uses patented White-Box Cryptography technology to protect confidential information. It includes a set of measures for data encryption, obfuscation (transformation) of the website's program code, multilevel coding of static and dynamic access keys.

The Main Things about Risk Management in the Gambling Industry

From 2WinPower, you can buy solutions for the protection of gambling resources. We offer security software separately or together with a ready-made gaming site.

By cooperating with us, you will receive a multifunctional platform that will help you to quickly enter the iGaming market. The solution contains a catalogue of video games, financial aggregators, and casino management tools.

Buy a casino

  • Risk management in gambling can prevent unbudgeted expenses and the loss of reputation, fight against cyber-attacks and money laundering.
  • Connection of the security software automates the risk management system in casinos. The program provides multi-level user verification, analyses money transfers, and protects the platform against all types of threats.
  • 2WinPower offers operators to install software from Yoti, AcuityTec, Arxan Technologies, and other trusted vendors.

To connect a free demo version of a turnkey casino and security software for the iGaming project, please contact our manager!

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