On November 7, several media outlets and Telegram channels broke news of a massive personal data leak from international betting platform 1win. According to sources, over 450 million rows of data – including clients' names, surnames, phone numbers, and email addresses – have been exposed. A Russian-language Telegram channel reports that a user named 'fe0dor' posted the leaked database on the forum exploit.in.
Later that evening, the Owner 1win Telegram channel, reportedly run by the platform’s founder and CEO, confirmed the 1win data breach. The channel's author acknowledged that a portion of the company’s database had indeed been breached, compromising data of 100 million users. They also revealed that the attackers attempted to blackmail the 1win team.
Initially, the hackers demanded $1 million to prevent the database leak, but as negotiations went on, the price spiked, eventually reaching $15 million.
‘The blackmailers decided to release part of the database and ramp up pressure to squeeze out more money,’ stated the channel's author.
At the end of his message, the platform’s representative assured that 1win’s infrastructure is currently secure, stressing that he does not blame the company’s employees for the data leak.
The issue of personal data security and safe online gambling is a pressing concern for the entire casino and gambling industry, a market worth over $300 billion in 2024, according to respected portal Statista. Unfortunately, frequent reports of data breaches and platform vulnerabilities have become a persistent issue, casting doubt on the reputations of affected platforms among current and potential customers.
Recently, clients of well-known platforms like Stake, Strendus, Pin-up, and numerous other so-called secure online casinos have fallen victim to hackers. The true impact of these personal data leaks is difficult to measure, as compromised information often includes names, phone numbers, addresses, passport details, and other sensitive data that fraudsters can exploit repeatedly.
Blockchain and Web3: The Future Fix for the Gambling Industry?
It's worth noting that the threat to clients' personal data is a broader Web2 issue, impacting not only betting sites and online casinos but any platform that collects, processes, and stores personal data. In other words, any such site can be a prime target for hackers.
In this context, a central question arises about the necessity of handling personal data in certain industries—a concern that helped drive the rise of GambleFi. By shifting traditional gambling services to the Web3 space, GambleFi platforms align with DeFi values, maintaining user anonymity and eliminating the need to collect players' personal data.That applies to anonymous betting as well.
Over the past few years, the GambleFi industry has shown strong growth, increasingly competing for player trust with traditional Web2 casinos. According to SOFTSWISS, by mid-2023, the number of cryptocurrency-based bets had surged by 83.6% compared to the same period in 2022.
Negative reputation cases faced by Web2 casinos may further boost the influx of new players into the DeFi gaming niche, strengthening the positions of key crypto casinos that don’t require users to disclose personal data at all. The recent incident with 1win caused significant uproar in the gambling sector, prompting key figures to address the issue of user data security. For example, the team behind Dexsport, a safe no-KYC crypto casino, quickly reassured its clients about the safety of their personal information.
"We, the Dexsport team strive to meet the highest security standards to ensure that our customers' data and user experience are protected from any intruders. To keep our customers safe, we have adopted the Web3 model, which eliminates the need to collect any personal data. Dexsport does not require personal information or KYC procedures, enabling our clients to enjoy the game without exposing sensitive data to potential risks," said the Dexsport team in a statement.
Given the rapid growth of the iGaming industry, it's clear that cybercriminals will continue targeting its clients. This means users must be more cautious when choosing bookmakers and try to avoid blacklisted casinos to minimize the risks of negative consequences. In this climate, DeFi sports betting platforms and Bitcoin casinos may appear as safer alternatives, positioning GambleFi for steady growth and an influx of new customers.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
