Tech Space, Not Gambling Media, Widely Covering DraftKings Customer Breach

Written by:
Gilbert Horowitz
Published on:
Dec/21/2022

If you are a regular follower of gambling and sports betting news, chances are you've missed the story about a breach impacting over 68,000 DraftKings customers.  That's because few in the space are actually reporting on the story. 

Where the gambling media has mostly dropped the ball, the tech space has stepped in to fill the void. 

The inherent problem, and something regulators will need to wrap their heads around in 2023, is that a rather large number of media companies are now essentially operating as online sportsbooks.  They've entered into affiliate deals and similar partnerships with the likes of DraftKings.  It's not in their best interest to report on negative stories such as customer account compromises after all.

As previously noted, ESPN's David Payne Purdum is one of the notable exceptions.  ESPN's parent company, Disney, appears less willing to jump into the sports betting media space since the return of Bob Iger as that company's CEO.  Stories like this are almost certain to ensure Iger and others steer clear of these types of relationships.  Activist investor Daniel Loeb’s Third Point hedge fund had been pushing Disney to get more involved in sports betting

 

 

Bleeping Computer is among the sites covering the DraftKings compromise.  They refer to the attack as one involving credential stuffing.  That's when automated tools are utilized to make a massive number of attempts at signing into betting accounts through user/password combos stolen from other online services.

Sergiu Gatlan of Bleeping Computer writes that "this tactic works exceptionally well against user accounts whose owners have reused the same login information across multiple platforms".

Sports bettors are also doing their part to spread the word.  Alfonso Straffon has been all over this story via his Twitter account.

Straffon also retweeted a story surfacing this week that BetMGM customer accounts were breached some time in May 2022.  BetMGM says it only became aware of the matter last month.

"We are taking this matter very seriously and are working quickly to investigate it. The security of our platform and our patrons' data is a top priority for BetMGM. We regret any inconvenience this may cause," said Adam Greenblatt, CEO of BetMGM.

BetMGM was approved for a Category 3 license to operate mobile betting in the state of Massachusetts this week while commissioners there appeared more concerned over the antics of Barstool Sports founder and personality Dave Portnoy. 

Over the summer, United Kingom regulators fined BetMGM parent company, Entain, £17 million, a record to date.

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- Gilbert Horowitz, Gambling911.com

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