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Late last week, Vantiv Entertainment Solutions, sent word to Draft Kings and Fan Duel that, as if February 29, it would no longer be handling payments from their US clients.
The announcement comes as a slew of US States have banned daily fantasy sports for their residents. As it stands, about one in four Americans lives in a state where playing daily fantasy sports are illegal.
According to the New York Times, Vantiv chief transaction and marketing counsel Jonathan Ellman recently wrote a letter to Vantiv DFS clients saying:
As you are aware, an increasing number of state attorneys general have determined that daily fantasy sports (‘D.F.S.’) constitute illegal gambling. Although in recent weeks D.F.S. operators have raised numerous arguments to the contrary, to date those arguments have been unsuccessful and/or rejected.
Ellman’s letter sends a clear message to the daily fantasy sports business that that its counterparts in the payment processing industry are not interested in being part of a grand experiment. They know from experience that American lawmakers are deadly serious when it comes to dealing with the online gambling industry.
The big question now is whether or not other payment processors, particularly PayPal, will follow Vantiv’s lead? As of this writing, PayPal is still on board with DFS, but there’s no telling how long the relationship will last.
Regardless of what PayPal does, it’s clear that things just keep getting worse and worse for the US-facing daily fantasy sports business.
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Though the attack was short lived, only about two hours total, its scope should be enough to leave lottery officials plenty shaken. After all, most DDoS attacks focus, and impact, an operator’s website. The fact that this attack shut down free-standing sales kiosks is deeply disturbing.
Officials at Premier Lotteries Ireland (PLI), the company that runs he Irish National Lottery, credits a robust DDos defense system for stopping the attack within hour of its start.
In a statement to the press, PLI officials stressed that the attack was short-lived and did not cause widespread damage saying:
The issues were resolved by the National Lottery’s DDoS protection systems, limiting disruption and restoring all operations within two hours. This incident is still under investigation. However, we can confirm that at no point was the National Lottery gaming system or player data affected.
The attack took place just hours ahead of a weekly drawing that had swelled up to €12 million ($ 12.97 USD), making it the lottery’s biggest jackpot in more than 18 months. Hackers frequently target operators, especially bookmakers, in the hours ahead of large events.
Attacking during busy times gives them more leverage when they eventually demand money to halt their activities. As of this writing, PLI has not commented on whether the hackers approached them with any particular demands.
That said, the Irish National Lottery will offer another very large jackpot this week and officials are bracing themselves for another potential DDos attack at that time.
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