Beyond the Game: Policy Priorities for Responsible Esports Betting
Ayndri
Research Analyst - Policy & Advocacy, CyberPeace
PUBLISHED ON
May 1, 2025
10
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.
The rapid digitization of educational institutions in India has created both opportunities and challenges. While technology has improved access to education and administrative efficiency, it has also exposed institutions to significant cyber threats. This report, published by CyberPeace, examines the types, causes, impacts, and preventive measures related to cyber risks in Indian educational institutions. It highlights global best practices, national strategies, and actionable recommendations to mitigate these threats.
Image: Recent CyberAttack on Eindhoven University
Significance of the Study:
The pandemic-induced shift to online learning, combined with limited cybersecurity budgets, has made educational institutions prime targets for cyberattacks. These threats compromise sensitive student, faculty, and institutional data, leading to operational disruptions, financial losses, and reputational damage. Globally, educational institutions face similar challenges, emphasizing the need for universal and localized responses.
Threat Faced by Education Institutions:
Based on the insights from the CyberPeace’s report titled 'Exploring Cyber Threats and Digital Risks in Indian Educational Institutions', this concise blog provides a comprehensive overview of cybersecurity threats and risks faced by educational institutions, along with essential details to address these challenges.
🎣 Phishing: Phishing is a social engineering tactic where cyber criminals impersonate trusted sources to steal sensitive information, such as login credentials and financial details. It often involves deceptive emails or messages that lead to counterfeit websites, pressuring victims to provide information quickly. Variants include spear phishing, smishing, and vishing.
💰 Ransomware: Ransomware is malware that locks users out of their systems or data until a ransom is paid. It spreads through phishing emails, malvertising, and exploiting vulnerabilities, causing downtime, data leaks, and theft. Ransom demands can range from hundreds to hundreds of thousands of dollars.
🌐 Distributed Denial of Service (DDoS): DDoS attacks overwhelm servers, denying users access to websites and disrupting daily operations, which can hinder students and teachers from accessing learning resources or submitting assignments. These attacks are relatively easy to execute, especially against poorly protected networks, and can be carried out by amateur cybercriminals, including students or staff, seeking to cause disruptions for various reasons
🕵️ Cyber Espionage: Higher education institutions, particularly research-focused universities, are vulnerable to spyware, insider threats, and cyber espionage. Spyware is unauthorized software that collects sensitive information or damages devices. Insider threats arise from negligent or malicious individuals, such as staff or vendors, who misuse their access to steal intellectual property or cause data leaks..
🔒 Data Theft: Data theft is a major threat to educational institutions, which store valuable personal and research information. Cybercriminals may sell this data or use it for extortion, while stealing university research can provide unfair competitive advantages. These attacks can go undetected for long periods, as seen in the University of California, Berkeley breach, where hackers allegedly stole 160,000 medical records over several months.
🛠️ SQL Injection: SQL injection (SQLI) is an attack that uses malicious code to manipulate backend databases, granting unauthorized access to sensitive information like customer details. Successful SQLI attacks can result in data deletion, unauthorized viewing of user lists, or administrative access to the database.
🔍Eavesdropping attack: An eavesdropping breach, or sniffing, is a network attack where cybercriminals steal information from unsecured transmissions between devices. These attacks are hard to detect since they don't cause abnormal data activity. Attackers often use network monitors, like sniffers, to intercept data during transmission.
🤖 AI-Powered Attacks: AI enhances cyber attacks like identity theft, password cracking, and denial-of-service attacks, making them more powerful, efficient, and automated. It can be used to inflict harm, steal information, cause emotional distress, disrupt organizations, and even threaten national security by shutting down services or cutting power to entire regions
Insights from Project eKawach
The CyberPeace Research Wing, in collaboration with SAKEC CyberPeace Center of Excellence (CCoE) and Autobot Infosec Private Limited, conducted a study simulating educational institutions' networks to gather intelligence on cyber threats. As part of the e-Kawach project, a nationwide initiative to strengthen cybersecurity, threat intelligence sensors were deployed to monitor internet traffic and analyze real-time cyber attacks from July 2023 to April 2024, revealing critical insights into the evolving cyber threat landscape.
Cyber Attack Trends
Between July 2023 and April 2024, the e-Kawach network recorded 217,886 cyberattacks from IP addresses worldwide, with a significant portion originating from countries including the United States, China, Germany, South Korea, Brazil, Netherlands, Russia, France, Vietnam, India, Singapore, and Hong Kong. However, attributing these attacks to specific nations or actors is complex, as threat actors often use techniques like exploiting resources from other countries, or employing VPNs and proxies to obscure their true locations, making it difficult to pinpoint the real origin of the attacks.
Brute Force Attack:
The analysis uncovered an extensive use of automated tools in brute force attacks, with 8,337 unique usernames and 54,784 unique passwords identified. Among these, the most frequently targeted username was “root,” which accounted for over 200,000 attempts. Other commonly targeted usernames included: "admin", "test", "user", "oracle", "ubuntu", "guest", "ftpuser", "pi", "support"
Similarly, the study identified several weak passwords commonly targeted by attackers. “123456” was attempted over 3,500 times, followed by “password” with over 2,500 attempts. Other frequently targeted passwords included: "1234", "12345", "12345678", "admin", "123", "root", "test", "raspberry", "admin123", "123456789"
Insights from Threat Landscape Analysis
Research done by the USI - CyberPeace Centre of Excellence (CCoE) and Resecurity has uncovered several breached databases belonging to public, private, and government universities in India, highlighting significant cybersecurity threats in the education sector. The research aims to identify and mitigate cybersecurity risks without harming individuals or assigning blame, based on data available at the time, which may evolve with new information. Institutions were assigned risk ratings that descend from A to F, with most falling under a D rating, indicating numerous security vulnerabilities. Institutions rated D or F are 5.4 times more likely to experience data breaches compared to those rated A or B. Immediate action is recommended to address the identified risks.
Risk Findings :
The risk findings for the institutions are summarized through a pie chart, highlighting factors such as data breaches, dark web activity, botnet activity, and phishing/domain squatting. Data breaches and botnet activity are significantly higher compared to dark web leakages and phishing/domain squatting. The findings show 393,518 instances of data breaches, 339,442 instances of botnet activity, 7,926 instances related to the dark web and phishing & domain activity - 6711.
Key Indicators: Multiple instances of data breaches containing credentials (email/passwords) in plain text.
Botnet activity indicating network hosts compromised by malware.
Credentials from third-party government and non-governmental websites linked to official institutional emails
Details of software applications, drivers installed on compromised hosts.
Sensitive cookie data exfiltrated from various browsers.
IP addresses of compromised systems.
Login credentials for different Android applications.
Below is the sample detail of one of the top educational institutions that provides the insights about the higher rate of data breaches, botnet activity, dark web activities and phishing & domain squatting.
Risk Detection:
It indicates the number of data breaches, network hygiene, dark web activities, botnet activities, cloud security, phishing & domain squatting, media monitoring and miscellaneous risks. In the below example, we are able to see the highest number of data breaches and botnet activities in the sample particular domain.
Risk Changes:
Risk by Categories:
Risk is categorized with factors such as high, medium and low, the risk is at high level for data breaches and botnet activities.
Challenges Faced by Educational Institutions
Educational institutions face cyberattack risks, the challenges leading to cyberattack incidents in educational institutions are as follows:
🔒 Lack of a Security Framework: A key challenge in cybersecurity for educational institutions is the lack of a dedicated framework for higher education. Existing frameworks like ISO 27001, NIST, COBIT, and ITIL are designed for commercial organizations and are often difficult and costly to implement. Consequently, many educational institutions in India do not have a clearly defined cybersecurity framework.
🔑 Diverse User Accounts: Educational institutions manage numerous accounts for staff, students, alumni, and third-party contractors, with high user turnover. The continuous influx of new users makes maintaining account security a challenge, requiring effective systems and comprehensive security training for all users.
📚 Limited Awareness: Cybersecurity awareness among students, parents, teachers, and staff in educational institutions is limited due to the recent and rapid integration of technology. The surge in tech use, accelerated by the pandemic, has outpaced stakeholders' ability to address cybersecurity issues, leaving them unprepared to manage or train others on these challenges.
📱 Increased Use of Personal/Shared Devices: The growing reliance on unvetted personal/Shared devices for academic and administrative activities amplifies security risks.
💬 Lack of Incident Reporting: Educational institutions often neglect reporting cyber incidents, increasing vulnerability to future attacks. It is essential to report all cases, from minor to severe, to strengthen cybersecurity and institutional resilience.
Impact of Cybersecurity Attacks on Educational Institutions
Cybersecurity attacks on educational institutions lead to learning disruptions, financial losses, and data breaches. They also harm the institution's reputation and pose security risks to students. The following are the impacts of cybersecurity attacks on educational institutions:
📚Impact on the Learning Process: A report by the US Government Accountability Office (GAO) found that cyberattacks on school districts resulted in learning losses ranging from three days to three weeks, with recovery times taking between two to nine months.
💸Financial Loss: US schools reported financial losses ranging from $50,000 to $1 million due to expenses like hardware replacement and cybersecurity upgrades, with recovery taking an average of 2 to 9 months.
🔒Data Security Breaches: Cyberattacks exposed sensitive data, including grades, social security numbers, and bullying reports. Accidental breaches were often caused by staff, accounting for 21 out of 25 cases, while intentional breaches by students, comprising 27 out of 52 cases, frequently involved tampering with grades.
⚠️Data Security Breach: Cyberattacks on schools result in breaches of personal information, including grades and social security numbers, causing emotional, physical, and financial harm. These breaches can be intentional or accidental, with a US study showing staff responsible for most accidental breaches (21 out of 25) and students primarily behind intentional breaches (27 out of 52) to change grades.
🏫Impact on Institutional Reputation: Cyberattacks damaged the reputation of educational institutions, eroding trust among students, staff, and families. Negative media coverage and scrutiny impacted staff retention, student admissions, and overall credibility.
🛡️ Impact on Student Safety: Cyberattacks compromised student safety and privacy. For example, breaches like live-streaming school CCTV footage caused severe distress, negatively impacting students' sense of security and mental well-being.
CyberPeace Advisory:
CyberPeace emphasizes the importance of vigilance and proactive measures to address cybersecurity risks:
Develop effective incident response plans: Establish a clear and structured plan to quickly identify, respond to, and recover from cyber threats. Ensure that staff are well-trained and know their roles during an attack to minimize disruption and prevent further damage.
Implement access controls with role-based permissions: Restrict access to sensitive information based on individual roles within the institution. This ensures that only authorized personnel can access certain data, reducing the risk of unauthorized access or data breaches.
Regularly update software and conduct cybersecurity training: Keep all software and systems up-to-date with the latest security patches to close vulnerabilities. Provide ongoing cybersecurity awareness training for students and staff to equip them with the knowledge to prevent attacks, such as phishing.
Ensure regular and secure backups of critical data: Perform regular backups of essential data and store them securely in case of cyber incidents like ransomware. This ensures that, if data is compromised, it can be restored quickly, minimizing downtime.
Adopt multi-factor authentication (MFA): Enforce Multi-Factor Authentication(MFA) for accessing sensitive systems or information to strengthen security. MFA adds an extra layer of protection by requiring users to verify their identity through more than one method, such as a password and a one-time code.
Deploy anti-malware tools: Use advanced anti-malware software to detect, block, and remove malicious programs. This helps protect institutional systems from viruses, ransomware, and other forms of malware that can compromise data security.
Monitor networks using intrusion detection systems (IDS): Implement IDS to monitor network traffic and detect suspicious activity. By identifying threats in real time, institutions can respond quickly to prevent breaches and minimize potential damage.
Conduct penetration testing: Regularly conduct penetration testing to simulate cyberattacks and assess the security of institutional networks. This proactive approach helps identify vulnerabilities before they can be exploited by actual attackers.
Collaborate with cybersecurity firms: Partner with cybersecurity experts to benefit from specialized knowledge and advanced security solutions. Collaboration provides access to the latest technologies, threat intelligence, and best practices to enhance the institution's overall cybersecurity posture.
Share best practices across institutions: Create forums for collaboration among educational institutions to exchange knowledge and strategies for cybersecurity. Sharing successful practices helps build a collective defense against common threats and improves security across the education sector.
Conclusion:
The increasing cyber threats to Indian educational institutions demand immediate attention and action. With vulnerabilities like data breaches, botnet activities, and outdated infrastructure, institutions must prioritize effective cybersecurity measures. By adopting proactive strategies such as regular software updates, multi-factor authentication, and incident response plans, educational institutions can mitigate risks and safeguard sensitive data. Collaborative efforts, awareness, and investment in cybersecurity will be essential to creating a secure digital environment for academia.
Starting in mid-December, 2024, a series of attacks have targeted Chrome browser extensions. A data protection company called Cyberhaven, California, fell victim to one of these attacks. Though identified in the U.S., the geographical extent and potential of the attack are yet to be determined. Assessment of these cases can help us to be better prepared for such instances if they occur in the near future.
The Attack
Browser extensions are small software applications that add and enable functionality or a capacity (feature) to a web browser. These are written in CSS, HTML, or JavaScript and like other software, can be coded to deliver malware. Also known as plug-ins, they have access to their own set of Application Programming Interface (APIs). They can also be used to remove unwanted elements as per customisation, such as pop-up advertisements and auto-play videos, when one lands on a website. Some examples of browser extensions include Ad-blockers (for blocking ads and content filtering) and StayFocusd (which limits the time of the users on a particular website).
In the aforementioned attack, the publisher of the browser at Cyberhaven received a phishing mail from an attacker posing to be from the Google Chrome Web Store Developer Support. It mentioned that their browser policies were not compatible and encouraged the user to click on the “Go to Policy”action item, which led the user to a page that enabled permissions for a malicious OAuth called Privacy Policy Extension (Open Authorisation is an adopted standard that is used to authorise secure access for temporary tokens). Once the permission was granted, the attacker was able to inject malicious code into the target’s Chrome browser extension and steal user access tokens and session cookies. Further investigation revealed that logins of certain AI and social media platforms were targeted.
CyberPeace Recommendations
As attacks of such range continue to occur, it is encouraged that companies and developers take active measures that would make their browser extensions less susceptible to such attacks. Google also has a few guidelines on how developers can safeguard their extensions from their end. These include:
Minimal Permissions For Extensions- It is encouraged that minimal permissions for extensions barring the required APIs and websites that it depends on are acquired as limiting extension privileges limits the surface area an attacker can exploit.
Prioritising Protection Of Developer Accounts- A security breach on this end could lead to compromising all users' data as this would allow attackers to mess with extensions via their malicious codes. A 2FA (2-factor authentication) by setting a security key is endorsed.
HTTPS over HTTP- HTTPS should be preferred over HTTP as it requires a Secure Sockets Layer (SSL)/ transport layer security(TLS) certificate from an independent certificate authority (CA). This creates an encrypted connection between the server and the web browser.
Lastly, as was done in the case of the attack at Cyberhaven, it is encouraged to promote the practice of transparency when such incidents take place to better deal with them.
Introduction: The Internet’s Foundational Ideal of Openness
The Internet was built as a decentralised network to foster open communication and global collaboration. Unlike traditional media or state infrastructure, no single government, company, or institution controls the Internet. Instead, it has historically been governed by a consensus of the multiple communities, like universities, independent researchers, and engineers, who were involved in building it. This bottom-up, cooperative approach was the foundation of Internet governance and ensured that the Internet remained open, interoperable, and accessible to all. As the Internet began to influence every aspect of life, including commerce, culture, education, and politics, it required a more organised governance model. This compelled the rise of the multi-stakeholder internet governance model in the early 2000s.
The Rise of Multistakeholder Internet Governance
Representatives from governments, civil society, technical experts, and the private sector congregated at the United Nations World Summit on Information Society (WSIS), and adopted the Tunis Agenda for the Information Society. Per this Agenda, internet governance was defined as “… the development and application by governments, the private sector, and civil society in their respective roles of shared principles, norms, rules, decision-making procedures, and programmes that shape the evolution and use of the Internet.” Internet issues are cross-cutting across technical, political, economic, and social domains, and no one actor can manage them alone. Thus, stakeholders with varying interests are meant to come together to give direction to issues in the digital environment, like data privacy, child safety, cybersecurity, freedom of expression, and more, while upholding human rights.
Internet Governance in Practice: A History of Power Shifts
While the idea of democratizing Internet governance is a noble one, the Tunis Agenda has been criticised for reflecting geopolitical asymmetries and relegating the roles of technical communities and civil society to the sidelines. Throughout the history of the internet, certain players have wielded more power in shaping how it is managed. Accordingly, internet governance can be said to have undergone three broad phases.
In the first phase, the Internet was managed primarily by technical experts in universities and private companies, which contributed to building and scaling it up. The standards and protocols set during this phase are in use today and make the Internet function the way it does. This was the time when the Internet was a transformative invention and optimistically hailed as the harbinger of a utopian society, especially in the USA, where it was invented.
In the second phase, the ideal of multistakeholderism was promoted, in which all those who benefit from the Internet work together to create processes that will govern it democratically. This model also aims to reduce the Internet’s vulnerability to unilateral decision-making, an ideal that has been under threat because this phase has seen the growth of Big Tech. What started as platforms enabling access to information, free speech, and creativity has turned into a breeding ground for misinformation, hate speech, cybercrime, Child Sexual Abuse Material (CSAM), and privacy concerns. The rise of generative AI only compounds these challenges. Tech giants like Google, Meta, X (formerly Twitter), OpenAI, Microsoft, Apple, etc. have amassed vast financial capital, technological monopoly, and user datasets. This gives them unprecedented influence not only over communications but also culture, society, and technology governance.
The anxieties surrounding Big Tech have fed into the third phase, with increasing calls for government regulation and digital nationalism. Governments worldwide are scrambling to regulate AI, data privacy, and cybersecurity, often through processes that lack transparency. An example is India’s Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021, which was passed without parliamentary debate. Governments are also pressuring platforms to take down content through opaque takedown orders. Laws like the UK’s Investigatory Powers Act, 2016, are criticised for giving the government the power to indirectly mandate encryption backdoors, compromising the strength of end-to-end encryption systems. Further, the internet itself is fragmenting into the “splinternet” amid rising geopolitical tensions, in the form of Russia’s “sovereign internet” or through China’s Great Firewall.
Conclusion
While multistakeholderism is an ideal, Internet governance is a playground of contesting power relations in practice. As governments assert digital sovereignty and Big Tech consolidates influence, the space for meaningful participation of other stakeholders has been negligible. Consultation processes have often been symbolic. The principles of openness, inclusivity, and networked decision-making are once again at risk of being sidelined in favour of nationalism or profit. The promise of a decentralised, rights-respecting, and interoperable internet will only be fulfilled if we recommit to the spirit of Multi-Stakeholder Internet Governance, not just its structure. Efficient internet governance requires that the multiple stakeholders be empowered to carry out their roles, not just talk about them.
Your institution or organization can partner with us in any one of our initiatives or policy research activities and complement the region-specific resources and talent we need.