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

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.

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 by local law enforcement;
• 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 and any financial crime.

Casino owners can outsource these functions. As a rule, there are specialised organisations that solve financial and legal problems. They can deal with comprehensive risk problems in any sphere or can be related to the casino industry directly.

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:

How Well-Known iGaming Providers Manage Risks

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. It helps the vendor keep up with the requirements of law enforcement officers, sustain a stable gaming operation, and ensure transparent activity with no financial crime problems.

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.

For sustaining the risk assessment process, 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 gaming industry employees.

Casino Security Software as an Excellent Way to Avoid Risks

The product performs a number of casino risk management 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.

Casino risk management has become an integral function in the gaming industry. 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. It will also minimise the chances of conducting any financial crime due to comprehensive risk assessment tools.

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

The selection of creators of programming support for the risk assessment process is abundant. An inexperienced operator has to know its best representatives. So, to ensure proficient casino risk management, it is beneficial to work with a guide company with extensive possibilities.

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). This is one of the latest achievements in the risk assessment process. 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 thus, eliminating any comprehensive risk. 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.

• 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!