Beyond the Game: Policy Priorities for Responsible Esports Betting
Introduction
Betting has long been associated with sporting activities and has found a growing presence in online gaming and esports globally. As the esports industry continues to expand, Statista has projected that it will reach a market value of $5.9 billion by 2029. As such, associated markets have also seen significant growth. In 2024, this segment accounted for an estimated $2.5 billion globally. While such engagement avenues are popular among international audiences, they also bring attention to concerns around regulation, integrity, and user protection. As esports builds its credibility and reach, especially among younger demographics, these aspects become increasingly important to address in policy and practice.
What Does Esports Betting Involve?
Much like traditional sports, esports engagement in some regions includes the practice of wagering on teams, players, or match outcomes. But it is inherently more complex. The accurate valuation of odds in online gaming and esports can be complicated by frequently updated game titles, changing teams, and shifting updates to game mechanics (called metas- most effective strategies). Bets can be placed using real money, virtual items like skins (digital avatars), or increasingly, cryptocurrency.
Esports and Wagering: Emerging Issues and Implications
- Legal Grey Areas: While countries like South Korea and some USA states have dedicated regulations for esports betting and licensed bookmaking, most do not. This creates legal grey areas for betting service providers to access unregulated markets, increasing the risk of fraud, money laundering, and exploitation of bettors in those regions.
- The Skill v/s Chance Dilemma: Most gambling laws across the world regulate betting based on the distinction between ‘games of skill’ and ‘games of chance’. Betting on the latter is typically illegal, since winning depends on chance. But the definitions of ‘skill’ and ‘chance’ may vary by jurisdiction. Also, esports betting often blurs into gambling. Outcomes may depend on player skill, but in-game economies like skin betting and unpredictable gameplay introduce elements of chance, complicating regulation and making enforcement difficult.
- Underage Gambling and Addiction Risks: Players are often minors and are exposed to the gambling ecosystem due to gamified betting through reward systems like loot boxes. These often mimic the mechanics of betting, normalising gambling behaviours among young users before they fully understand the risks. This can lead to the development of addictive behaviours.
- Match-Fixing and Loss of Integrity: Esports are particularly susceptible to match-fixing because of weak regulation, financial pressures, and the anonymity of online betting. Instances like the Dota 2 Southeast Asia Scandals (2023) and Valorant match-fixing in North America (2021) can jeopardise audience trust and sponsorships. This affects the trustworthiness of minor tournaments, where talent is discovered.
- Cybersecurity and Data Risks: Esports betting apps collect sensitive user data, making them an attractive target for cybercrime. Bettors are susceptible to identity theft, financial fraud, and data breaches, especially on unlicensed platforms.
Way Forward
To strengthen trust, ensure user safety, and protect privacy within the esports ecosystem, responsible management of betting practices can be achieved through targeted interventions focused on:
- National-Level Regulations: Countries like India have a large online gaming and esports market. It will need to create a regulatory authority along the lines of the UK’s Gambling Commission and update its gambling laws to protect consumers.
- Protection of Minors: Setting guardrails such as age verification, responsible advertising, anti-fraud mechanisms, self-exclusion tools, and spending caps can help to keep a check on gambling by minors.
- Harmonizing Global Standards: Since esports is inherently global, aligning core regulatory principles across jurisdictions (such as through multi-country agreements or voluntary industry codes of conduct) can help create consistency while avoiding overregulation.
- Co-Regulation: Governments, esports organisers, betting platforms, and player associations should work closely to design effective, well-informed policies. This can help uphold the interests of all stakeholders in the industry.
Conclusion
Betting in esports is inevitable. But the industry faces a double dilemma- overregulating on the one hand, or letting gambling go unchecked, on the other. Both can be detrimental to its growth. This is why there is a need for industry actors like policymakers, platforms and organisers to work together to harmonise legal inconsistencies, protect vulnerable users and invest in forming data security. Forming industry-wide ethics boards, promoting regional regulatory dialogue, and instating transparency measures for betting operators can be a step in this direction to ensure that esports evolves into a mature, trusted global industry.
Sources
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Introduction
CyberPeace Chronicles is a one-stop for the latest edition of news, updates, and findings in global cyberspace. As we step into the cyberage, it is pertinent that we need to incorporate cybersecurity practices in our day-to-day activities. From laptops to automated homes and cars, we are all surrounded by technology in some form or another. Thus, with the increased dependency, we need to eradicate the scope of vulnerabilities and threats around us and create robust and sustainable safety mechanisms for us and future generations.
What, When and How?
- WIN-RAR Update: CVE-2023-33831, a serious vulnerability, was identified in WinRAR versions prior to 6.23 in April 2023. When users attempted to access seemingly harmless files inside ZIP archives, this vulnerability allowed attackers to run arbitrary code. Cybercriminals transmitted malware families like DarkMe, GuLoader, and Remcos RAT by taking advantage of this vulnerability. It is essential to update WinRAR to version 6.23 or later in order to protect your computer and your data. Follow the following steps to secure your device -
- Checking Your Current WinRAR Version
- Downloading the Latest WinRAR Version
- Installing the Updated WinRAR
- Completing the Installation
- Verifying the Update
- Cleaning Up
- Indonesian Hacker Groups Target Indian Digital Infrastructure: As India geared up to host the G20 delegation as part of the Leadership Summit, various reports pointed towards different forms and intensity-based cyber attacks on Indian organisations and digital infrastructure. Tech firms in India have been successful in tracing the origination of the attacks to be from Indonesia. It is believed that hacker groups backed by anti-India elements have been trying to target the digital resources of India. Organisations and central agencies like Computer Emergency Response Team (CERT-In), National Critical Information Infrastructure Protection Centre (NCIIPC), I4C (Indian Cybercrime Coordination Centre), Delhi Police, Intelligence Bureau (IB), Research and Analysis Wing (R&AW), National Investigation Agency (NIA) and Central Bureau of Investigation (CBI) have constantly been working in keeping the Digital interests of India safe and secure, and with the ongoing G20 summit, it is very pertinent to be mindful of potential threats prevailing to prepare counter tactics for the same.
- CLOP Ransomware: The CL0P ransomware is thought to have initially surfaced in 2019 and was developed by a cybercriminal organisation that spoke Russian. The threat actor FIN11 (also known as TA505 and Snakefly), who is notorious for being financially driven, is frequently connected to the CL0P ransomware, which had its roots at the beginning of 2019. By utilising this technique, CL0P has targeted businesses utilising the "Accellion FTA" file transfer appliance's vulnerable version. Accordingly, it has been asserted that the following vulnerabilities have been used to access victim data and maybe switch to victim networks. Numerous well-publicized attacks carried out by CL0P have had an impact on organisations all across the world. Especially for Managed File Transfer (MFT) programmes, the CL0P performers are well known for their talent in developing zero-day vulnerabilities. The gang went after Accellion File Transfer Appliance (FTA) devices in both 2020 and 2021, then early in 2023, they went after Fortran/Linoma GoAnywhere MFT servers, and then later in June, they went after MOVEit transfer deployments. Up to 500 organisations are thought to have been harmed by this aggressive operation. Some of the ways to mitigate the risk are as follows:
- Regular Software Updates: Updating programmes and systems helps prevent known security flaws that fraudsters frequently exploit.
- Employee Training: Employee training can significantly lower the likelihood of successful penetration by educating staff members about phishing scams and safe internet conduct.
- Network Segmentation: By separating networks and restricting lateral movement, a ransomware attack's potential effects can be reduced.
- Regular Data backups: Data backups can lessen the effects of encryption and deter payment by regularly backing up data and storing it offsite.
- Security solutions: Putting in place effective cybersecurity measures like firewalls, intrusion detection systems, and cutting-edge endpoint protection can greatly improve an organisation's defences.
- Increased scrutiny for SIM card vendors: As phishing and smishing scams are on the rise in India, the Telecom Regulatory Authority of India (TRAI) has repeatedly issued notifications and consultation papers to address this growing concern. Earlier this year, TRAI notified that promotional calling will not be continued from 10-digit personal numbers. Instead, companies will now have to take authorised 9-digit numbers for promotional calls and SMSs. Similarly, to increase the efficiency of the same, TRAI has laid down that all the SIM card vendors will now have to be verified again, and any discrepancy found against any of the vendors will lead to blacklisting and penal actions against the vendor.
Conclusion
In conclusion, the digital landscape in 2023 is rife with both opportunities and challenges. The recent discovery of a critical vulnerability in WinRAR underscores the importance of regularly updating software to protect against malicious attacks. It is imperative for users to follow the provided steps to secure their devices and safeguard their data. Furthermore, the cyber threat landscape continues to evolve, with Indonesian hacker groups targeting Indian digital infrastructure, particularly during significant events like the G20 summit. Indian organisations and cybersecurity agencies are working diligently to defend against these threats and ensure the security of digital assets. The emergence of ransomware attacks, exemplified by the CL0P ransomware, serves as a stark reminder of the need for robust cybersecurity measures. Regular software updates, employee training, network segmentation, data backups, and advanced security solutions are crucial components of a comprehensive defence strategy against ransomware and other cyber threats. Additionally, the Telecom Regulatory Authority of India's efforts to enhance security in the telecommunications sector, such as stricter verification of SIM card vendors, demonstrate a proactive approach to addressing the rising threat of phishing and smishing scams. In this dynamic digital landscape, staying informed and implementing proactive cybersecurity measures is essential for individuals, organisations, and nations to protect their digital assets and maintain a secure online environment. Vigilance, collaboration, and ongoing adaptation are key to meeting the challenges posed by cyber threats in 2023 and beyond.
Executive Summary:
A video purporting to be from Lal Chowk in Srinagar, which features Lord Ram's hologram on a clock tower, has gone popular on the internet. The footage is from Dehradun, Uttarakhand, not Jammu and Kashmir, the CyberPeace Research Team discovered.
Claims:
A Viral 48-second clip is getting shared over the Internet mostly in X and Facebook, The Video shows a car passing by the clock tower with the picture of Lord Ram. A screen showcasing songs about Lord Ram is shown when the car goes forward and to the side of the road.
The Claim is that the Video is from Kashmir, Srinagar
Similar Post:
Fact Check:
The CyberPeace Research team found that the Information is false. Firstly we did some keyword search relating to the Caption and found that the Clock Tower in Srinagar is not similar to the Video.
We found an article by NDTV mentioning Srinagar Lal Chowk’s Clock Tower, It's the only Clock Tower in the Middle of Road. We are somewhat confirmed that the Video is not From Srinagar. We then ran a reverse image search of the Video by breaking down into frames.
We found another Video that visualizes a similar structure tower in Dehradun.
Taking a cue from this we then Searched for the Tower in Dehradun and tried to see if it matches with the Video, and yes it’s confirmed that the Tower is a Clock Tower in Paltan Bazar, Dehradun and the Video is actually From Dehradun but not from Srinagar.
Conclusion:
After a thorough Fact Check Investigation of the Video and the originality of the Video, we found that the Visualisation of Lord Ram in the Clock Tower is not from Srinagar but from Dehradun. Internet users who claim the Visual of Lord Ram from Srinagar is totally Baseless and Misinformation.
- Claim: The Hologram of Lord Ram on the Clock Tower of Lal Chowk, Srinagar
- Claimed on: Facebook, X
- Fact Check: Fake
Introduction
Meta is the leader in social media platforms and has been successful in having a widespread network of users and services across global cyberspace. The corporate house has been responsible for revolutionizing messaging and connectivity since 2004. The platform has brought people closer together in terms of connectivity, however, being one of the most popular platforms is an issue as well. Popular platforms are mostly used by cyber criminals to gain unauthorised data or create chatrooms to maintain anonymity and prevent tracking. These bad actors often operate under fake names or accounts so that they are not caught. The platforms like Facebook and Instagram have been often in the headlines as portals where cybercriminals were operating and committing crimes.
To keep the data of the netizen safe and secure Paytm under first of its kind service is offering customers protection against cyber fraud through an insurance policy available for fraudulent mobile transactions up to Rs 10,000 for a premium of Rs 30. The cover ‘Paytm Payment Protect’ is provided through a group insurance policy issued by HDFC Ergo. The company said that the plan is being offered to increase the trust in digital payments, which will push up adoption.
Meta’s Cybersecurity
Meta has one of the best cyber security in the world but that diest mean that it cannot be breached. The social media giant is the most vulnerable platform in cases of data breaches as various third parties are also involved. As seen the in the case of Cambridge Analytica, a huge chunk of user data was available to influence the users in terms of elections. Meta needs to be ahead of the curve to have a safe and secure platform, for this Meta has deployed various AI and ML driven crawlers and software which work o keeping the platform safe for its users and simultaneously figure out which accounts may be used by bad actors and further removes the criminal accounts. The same is also supported by the keen participation of the user in terms of the reporting mechanism. Meta-Cyber provides visibility of all OT activities, observes continuously the PLC and SCADA for changes and configuration, and checks the authorization and its levels. Meta is also running various penetration and bug bounty programs to reduce vulnerabilities in their systems and applications, these testers are paid heavily depending upon the scope of the vulnerability they found.
CyberRoot Risk Investigation
Social media giant Meta has taken down over 40 accounts operated by an Indian firm CyberRoot Risk Analysis, allegedly involved in hack-for-hire services along with this Meta has taken down 900 fraudulently run accounts, these accounts are said to be operated from China by an unknown entity. CyberRoot Risk Analysis was responsible for sharing malware over the platform and used it to impersonate themselves just as their targets, i.e lawyers, doctors, entrepreneurs, and industries like – cosmetic surgery, real estate, investment firms, pharmaceutical, private equity firms, and environmental and anti-corruption activists. They would get in touch with such personalities and then share malware hidden in files which would often lead to data breaches subsequently leading to different types of cybercrimes.
Meta and its team is working tirelessly to eradicate the influence of such bad actors from their platforms, use of AI and Ml based tools have increased exponentially.
Paytm CyberFraud Cover
Paytm is offering customers protection against cyber fraud through an insurance policy available for fraudulent mobile transactions up to Rs 10,000 for a premium of Rs 30. The cover ‘Paytm Payment Protect’ is provided through a group insurance policy issued by HDFC Ergo. The company said that the plan is being offered to increase the trust in digital payments, which will push up adoption. The insurance cover protects transactions made through UPI across all apps and wallets. The insurance coverage has been obtained by One97 Communications, which operates under the Paytm brand.
The exponential increase in the use of digital payments during the pandemic has made more people susceptible to cyber fraud. While UPI has all the digital safeguards in place, most UPI-related frauds are undertaken by confidence tricksters who get their victims to authorise a transaction by passing collect requests as payments. There are also many fraudsters collecting payments by pretending to be merchants. These types of frauds have resulted in a loss of more than Rs 63 crores in the previous financial year. The issue of data insurance is new to India but is indeed the need of the hour, majority of netizens are unaware of the value of their data and hence remain ignorant towards data protection, such steps will result in safer data management and protection mechanisms, thus safeguarding the Indian cyberspace.
Conclusion
cyberspace is at a critical juncture in terms of data protection and privacy, with new legislation coming out on the same we can expect new and stronger policies to prevent cybercrimes and cyber-attacks. The efforts by tech giants like Meta need to gain more speed in terms of the efficiency of cyber safety of the platform and the user to make sure that the future of the platforms remains secured strongly. The concept of data insurance needs to be shared with netizens to increase awareness about the subject. The initiative by Paytm will be a monumental initiative as this will encourage more platforms and banks to commit towards coverage for cyber crimes. With the increasing cases of cybercrimes, such financial coverage has come as a light of hope and security for the netizens.
