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IS CHINA OR NORTH KOREA BEHIND ONLINE GAMBLING RANSOMWARE ATTACKS?

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Are Chinese or North Korean state-sponsored hackers targeting online gambling firms?

According to reports from several cybersecurity companies, including Profero and Security Joes, in 2020 at least five unidentified online gambling operators were hit by ransomware attacks, most likely by a group known as Advanced Persistent Threat 27 (APT27) or Emissary Panda. 

In the attacks, hackers demanded a total of $100M USD worth of Bitcoin (BTC) to unlock their servers. However, thanks to diligent security measures and backups, no ransom was paid, and the companies involved managed to mitigate the damage and restore data from backups. 

Although the Chinese government is well known for using hackers to target enemies, its efforts are usually focused on corporate or defence espionage, rather than pure financial gain, and analysts are well versed on the tactics and methods employed by the main Chinese groups. 

 

Prime suspect: North Korea

Because of this, many suspect the culprit to be North Korea. For years, the North Korean government has courted hackers from around the world, using them to target financial institutions, and increasingly, cryptoexchanges, to help fund the country’s secret weapons programs. 

The country has gone as far as establishing its own network of shady gambling sites, using them to funnel money into state coffers, and has even held what it portrays as legitimate international blockchain and crypto ‘trade expos’ in its dystopian capital city, Pyongyang, in an effort to attract tech geeks.

 

Of course, given the way China has been trying to shut down the regional gambling industry, there is always the possibility that the operations targeting gambling operators are part of an effort to disrupt the industry – and prevent sites from accepting bets from Chinese residents (gambling is illegal in mainland China). 

 

Online gambling operators fare better than others

On the plus side, the fact that the gambling companies hit by the 2020 ransomware attacks managed to recover without paying up reflects very well on the industry’s preparedness compared to other sectors. 

For example, in September 2020, one of Chile’s biggest banks, Banco Estado, was forced to shut down operations nationwide after suffering a major ransomware attack from the REvil gang. While, in July, Evil Corp hackers attacked multinational tech company Garmin, with reports suggesting it was forced to pay $10M to regain its data. In the same month, US travel firm CWT confirmed it had negotiated a Bitcoin ransom down from $10M to $4M to regain control of its systems. 

And, in late August, what had the potential to be the most dramatic attack of all, against Tesla, was only foiled because of a loyal employee who turned down a $1M bribe to help facilitate a major crypto ransomware hack. 

Whoever was behind the attacks of 2020, and whatever their reasons, as we start 2021 it’s a reminder for online gambling operators to maintain vigilance and ensure their security systems are well-tested and up-to-date. 

 

 

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iGaming

BGC SAYS DOUBLING MACHINE GAMES DUTY COULD COST 16,000 JOBS

The Betting and Gaming Council has urged the Chancellor to rule out raising Machine Games Duty to 40%, citing EY modelling that puts up to 16,000 jobs, 1,500 betting shops and 34 casinos at risk.

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Bgc Says Doubling Machine Games Duty Could Cost 16,000 Jobs

The Betting and Gaming Council (BGC) has stepped up its campaign against a further rise in UK gambling taxes, warning that doubling Machine Games Duty (MGD) to 40% at the forthcoming Budget could cost up to 16,000 jobs.

In a statement published on 13 October, the trade body cited EY modelling showing that the increase would put almost 1,500 betting shops and as many as 34 casinos at risk, while leaving the Treasury up to £124m worse off as venues close and the tax base shrinks.

Betting shops and young workers

The BGC said betting shops support more than 36,000 jobs, with over 80% of them outside London. It said the workforce skews young: 19% of betting shop employees are under 25, against 11% across the wider economy, and 51% are under 35, compared with 35% nationally. Half of the workforce is female.

Of the jobs it says are at risk, 27% are in the North of England, rising to nearly 40% when Scotland is included.

“Britain’s betting shops support more than 36,000 jobs, and more than eight in ten of them are outside London,” said BGC chief executive Grainne Hurst. “Our message to the Chancellor is simple: rule out any increase in Machine Games Duty.”

Casinos warn of closures

The intervention followed a separate BGC statement on 12 October focused on land-based casinos. It said a 40% MGD rate would put up to 3,800 casino jobs at risk and could lead some operators to consider closing as much as a third of their estates. Half of the threatened closures would be in the North of England and Scotland.

The BGC said casinos directly employ more than 10,000 people, receive 14 million visits a year and contribute £515m in taxes. More than £50m of planned investment could be cancelled or scaled back if taxes rise, it added. Hurst described the proposal as “an existential threat to casinos across Britain”.

Where the proposal came from

The idea of doubling the duty on Category B gaming machines was put forward by the Social Market Foundation, which estimated it could raise between £275m and £458m a year in additional revenue. The industry disputes that estimate, arguing that closures would erode the yield.

The warnings land on a sector still absorbing the last round of increases. Remote Gaming Duty rose to 40% in April 2026, and the remote betting rate of General Betting Duty is due to rise in April 2027. Betfred founder Fred Done has said doubling MGD would force the closure of hundreds of the bookmaker’s shops, and a report by consultancy Regulus has argued the hike would put £92m of horseracing income at risk because of the sport’s reliance on betting shop turnover.

The BGC said the regulated industry as a whole supports 109,000 jobs, contributes £6.8bn to the UK economy and pays more than £4bn a year in tax.

What happens next

The Treasury has not confirmed whether MGD is under review, and the BGC’s figures come from modelling the industry commissioned. With the Budget approaching, the sector’s lobbying is now focused squarely on retail, after a year in which online operators bore the brunt of the tax changes. Whether the Chancellor treats machines as the next source of revenue will shape the size of the British high street estate for years to come.

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STAKE’S BRAZIL REPRIEVE ENDS AFTER ONE DAY AS TRF-3 SUSPENDS INJUNCTION

A federal appeals court has suspended the injunction that let Stake keep operating in Brazil until 25 October, putting the operator back under the government’s betting ban.

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Stake'S Brazil Reprieve Ends After One Day As Trf-3 Suspends Injunction

Stake’s attempt to keep operating in Brazil until the end of the month has collapsed after the president of the Federal Regional Court of the 3rd Region (TRF-3) suspended the injunction that had shielded the operator from the government’s betting ban.

Judge Luis Antonio Johonsom Di Salvo granted a request from the federal government, represented by the Attorney General’s Office (AGU), on 9 October, a day after the lower-court order was issued. Stake said in a notice on its Brazilian site that its website and app have been unavailable again since 10 October.

What the injunction had allowed

On 8 October, Judge Cristiane Farias Rodrigues dos Santos of São Paulo’s 9th Federal Civil Court partly granted Stake’s writ of mandamus. She rejected the operator’s main request to suspend Provisional Measure (MP) 1.394/2026 entirely and keep trading until 31 December 2029, when its federal authorisation was due to expire. She did, however, allow it to keep operating until 25 October, the date on which the MP brings existing betting authorisations to an end.

Until then, authorities were barred from treating the licence as expired, blocking or redirecting the stake.bet.br domain, or sanctioning the company solely for operating within the terms of the order. The relief came with 12 conditions, including a ban on new marketing campaigns and bonuses, guaranteed withdrawal of player balances, and responsible gambling controls.

Why the appeals court stepped in

The AGU argued that the order carved out an exception to national policy for a single operator, creating regulatory asymmetry and an undue advantage, and that it risked encouraging copycat claims from other licensees. Di Salvo agreed. According to Brazilian legal outlets that reviewed the ruling, he found “serious harm to public order”, said the MP was intended to apply uniformly across the sector, and pointed to the risk of a multiplier effect.

He also noted that the Supreme Federal Court (STF) is already reviewing the MP in three constitutional challenges, ADIs 8024, 8027 and 8028, under Justice Luiz Fux, and said the judiciary should avoid becoming the agent of instability while that review is pending.

The suspension holds until the underlying case is finally decided or the court’s presidency rules otherwise. With the order lifted, the MP’s effects apply to Stake again, including the redirection of its domain requested by the Ministry of Justice and Public Security. Stake can appeal to the TRF-3’s full panel. Meanwhile the writ of mandamus continues in the lower court, where the Secretariat of Prizes and Bets (SPA/MF), telecoms regulator Anatel and the Central Bank must provide information before the Federal Public Prosecutor’s Office gives its opinion.

A sector in limbo

Stake’s licence had been granted under the regime that launched in January 2025, when Brazil opened its regulated fixed-odds market to authorised operators. President Lula’s government moved to unwind that framework through the MP, giving licensees 30 days to wind down.

The consequences are already being counted. Trade press reports put job losses linked to the ban at more than 3,500, while some licensees, including Kaizen Gaming, have publicly said they remain committed to the market despite the uncertainty.

The decisive ruling is expected to come from the STF. Reports in Brazil suggest Justice Fux may wait until after the presidential election run-off before deciding on requests for preliminary relief against the MP. Until then, the TRF-3’s decision signals that operators seeking individual carve-outs from the ban are unlikely to find a sympathetic hearing in the federal appeals courts.

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NEW ZEALAND NAMES 11 WINNERS OF ONLINE CASINO LICENCE AUCTION AT NZ$15M EACH

New Zealand’s Department of Internal Affairs has named the 11 entities that won the right to apply for the country’s 15 online casino licences, with the clearing price set at NZ$15m per licence.

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New Zealand Names 11 Winners Of Online Casino Licence Auction At Nz$15M Each

New Zealand’s Department of Internal Affairs (DIA) has named the 11 entities that won the right to apply for the country’s first online casino licences, closing out an auction that drew 32 bidders and ran for 10 rounds.

All 15 licences on offer were taken up, with three of the winning entities securing more than one right to apply. The auction cleared at NZ$15m per licence, according to the DIA’s provider guidance page. It used an ascending clock format, in which the price rose in steps and bidders dropped out once it passed what they were prepared to pay. Bidding ran from 29 September to 12 October.

Who won

Baytree Interactive Limited secured the most rights with three. Playvia Gaming (NZ) Limited and Rock Swift Group Limited each took two. Single rights went to Christchurch Online NZ Limited, One Casino Limited, Rush Entertainment Limited, Skill On Net Limited, SkyCity NZ Online NO1 Limited, SkyCity NZ Online NO2 Limited, Stake New Zealand Limited and TAB New Zealand.

Several of the names map onto familiar groups. Trade press reports identify Playvia Gaming (NZ) as an Entain subsidiary and Baytree Interactive as the vehicle for Super Group’s Betway business. Entain is understood to be planning a third licence in partnership with TAB NZ, according to iNTERGAME. SkyCity holds two rights through two separate entities.

The DIA has not said which consumer brands will sit under each licence. Approved brands will only appear on a public register once licences are actually granted.

“We are excited to have been successful in the auction to apply for two licences,” SkyCity chief executive Jason Walbridge said, adding that the group would now proceed with its application ahead of the market opening next year. A Stake spokesperson told iNTERGAME the company was “really excited about the opportunity in New Zealand as the market moves towards regulation”.

A right to apply, not a licence

Winning the auction does not guarantee a licence. Successful bidders must now pay the auction price and submit full applications, which the DIA says will need to include a business plan alongside detailed strategies on advertising and marketing, consumer protection, harm prevention and minimisation, and compliance. Applications open this month, and the department has said guidance on how to submit them will follow.

The deadline that matters most for the wider offshore market is 1 December 2026. Any provider that has not applied for a licence by then must stop offering online casino gambling to New Zealand customers. Applicants can keep operating while their application is assessed, but cannot advertise, and must leave the market if they are declined.

Groundwork for a 2027 launch

The auction is the most visible step so far in implementing the Online Casino Gambling Act 2026, which caps the regulated market at 15 licences. The DIA expects the licensed regime to be fully operational in 2027 but has not set a launch date.

The supply side is already preparing. Testing laboratory GLI was recently cleared to certify games for the New Zealand market, and suppliers have been lining up content for licensees ahead of next year.

For the 21 bidders that missed out, and for the many offshore brands that took no part, the next seven weeks will decide whether they partner with a licence holder or withdraw from a market that has long been served from abroad. With licences priced at NZ$15m and the field capped, the DIA’s application assessments will now determine how quickly New Zealand’s regulated online casino market takes shape.

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