The iGaming and online sports betting industry is facing unprecedented cybersecurity challenges, and multi-factor authentication (MFA) is becoming a crucial element for compliance and protection against cyber threats.
In this blog, Justin Cosnett, Chief Product Officer at Continent 8, will explore the cybersecurity landscape within iGaming, analyse the regulatory requirements for MFA in the US, discuss strategies for effectively navigating compliance while enhancing user experience and illustrate how passwordless MFA can be a game-changer in the iGaming industry.
The growing importance of iGaming cybersecurity
In the rapidly expanding world of iGaming and online sports betting, cybersecurity has become a non-negotiable priority. As digital platforms proliferate, so do the threats aimed at them. Cyber criminals are constantly evolving their tactics, making it essential for operators to stay ahead of the curve. The stakes are high: a single breach can result in massive financial losses, reputational damage and erosion of customer trust.
Moreover, the nature of our industry, which involves real-time transactions and sensitive personal data, makes it an attractive target for cyber attacks. Implementing robust cybersecurity measures, including MFA, is not just about compliance; it’s about safeguarding the integrity of the gaming experience and protecting both the business and its players.
Understanding regulatory requirements for MFA in the US for iGaming and online sports betting
In the US, regulatory requirements for MFA vary by state.
Several regulated states have recognised the critical need for enhanced cybersecurity measures and have mandated the use of MFA for online gambling platforms. States such as Michigan, New Jersey and Pennsylvania are leading the charge – with others following suit – requiring operators to implement MFA to comply with state regulations.
These regulations are designed to protect consumers and ensure the integrity of the gaming environment. By requiring MFA, these states – and markets such as Brazil and Italy – aim to reduce the risk of unauthorised access and fraud, thereby fostering a safer and more trustworthy industry. Operators must stay informed about the regulatory landscape and ensure they meet all necessary requirements to avoid penalties and maintain their operating licenses.
Business challenges: Navigating compliance and user experience
Implementing MFA comes with its own set of challenges, particularly in balancing compliance with user experience. No operator wants to add friction to the login process, especially given the rise of live betting on mobile apps.
Statistics show that 20-30%* of users abandon login attempts due to friction caused by complex authentication processes. For iGaming and online sports betting operators, this can translate in a decrease in player engagement and potential profit losses of up to 20%*.
Businesses must navigate the tightrope of stringent regulatory compliance while ensuring a seamless and enjoyable user experience. This often involves investing in advanced MFA solutions that offer robust security without compromising on convenience.
Introducing Continent 8’s solution, powered by MIRACL: A passwordless MFA solution
Continent 8, in partnership with MIRACL, offers a cutting-edge passwordless MFA solution that addresses both security and user experience challenges. MIRACL’s technology eliminates the need for traditional passwords, replacing them with a single-step authentication process that is both secure and user-friendly.
Key statistics underscore the effectiveness of this solution: a 99.9% reduction in account takeovers, a 70% decrease in user login friction and a significant increase in user satisfaction and retention rates. By leveraging MIRACL’s passwordless authentication, operators can provide a seamless and secure login experience that meets regulatory requirements and enhances customer loyalty.
Quick. Easy. Successful.
How Continent 8 can help your business implement MFA
Continent 8 is committed to supporting businesses in the iGaming and online sports betting industry with their cybersecurity needs. Our team of experts works closely with customers to design and implement a tailored MFA solution that align with regulatory requirements and business objectives.
Trust Continent 8 to be your partner in navigating the complexities of cybersecurity and regulatory compliance in the gambling industry.
Are you compliant? Are you losing players at login? Are you missing out on revenue? See a live demo of our MFA solution on our rapid-fire webinar, ‘Passwordless MFA:
Improve player login and maximise profit potential’ hosted by Justin on Monday 10 March. Register here.
