Inside the fascinating world of online casino insurance

Comparasino sits down with insurance specialist Grace Matthews to learn about why online casinos and game studios need insurance. 

Insurance. It’s probably not something you’d expect online casinos and slot studios to have but it turns out it’s a critical component for them to provide players with a fun and safe experience. 

But online casino insurance is complicated, and operators can’t just turn to well-known comparison sites to find the best policies and deals. Instead, they work with specialist companies such as Superscript to find bespoke policies that meet their unique needs. 

To learn more about online casino insurance we sat down with Grace Matthews, Senior Sales Executive at Superscript. 

First up, we ask Grace why online casinos need insurance.

Why do online casinos need insurance?

“Online casinos need insurance for multiple reasons, including regulatory compliance, cybersecurity, IP protection and coverage for potential negligence claims,” Grace says.

“Cybersecurity is a major concern. In 2024, there was a surge in DDoS attacks, web attacks and bot activity, with web attacks on games increasing by 94% from Q1 2023 to Q1 2024. By June 2024, the number of attacks exceeded one billion, highlighting the scale of the threat. 

“These attacks can lead to significant revenue losses from server outages and business interruptions. Cyber insurance helps cover data breaches, ransomware and fines, while Professional Indemnity (PI) insurance protects against claims of negligence, like software errors.”

Slot studios also need insurance to protect their IP at a time when we are seeing a surge of cases pass through the courts, especially when it comes to providers copying mechanics and even themes and characters. 

Check out this piece I wrote for SlotBeats on the issue of IP for game studios.

“The gaming industry sees frequent IP disputes, especially as studios heavily invest in creating unique content,” Grace says. “Studios face risks of infringement or accusations of using others’ IP which can lead to expensive litigation. IP insurance covers the legal fees, settlements and damages associated with these disputes.”

That’s not all. Fraud is a growing issue given the large volumes of payments and transactions that pass through online casinos. This is why casinos often take out Commercial Crime Insurance to protect against employee threats, fraud and chargeback disputes.

The people running online casinos need insurance, too

“Directors and senior executives also face personal liability risks for decisions made on behalf of the company. For example, if an investor or stakeholder makes a claim due to mismanagement, Directors and Officers Insurance can protect from that. 

“Finally, as online casinos and game studios expand into new markets, they face global expansion and jurisdictional risks. They must comply with regulations to operate legally, so insurance is essential for managing this.”

And you thought sorting your car insurance was a pain… 

But does online casino and slot studio insurance work in the same way as the policies you take out to protect your home, car or even your pet? Yes and no seems to be the answer, as Grace explains. 

“These policies work by providing coverage for a premium, protecting businesses from financial losses due to cyberattacks, legal claims or data breaches. When an incident occurs, the policy helps cover the costs so the business doesn’t bear the full burden.

“For cyber, if a studio experiences a data breach or ransomware attack, the insurance can cover expenses like investigating the breach, notifying affected customers and handling legal fees.

“PI, on the other hand, protects against claims of negligence, so if the software fails and causes a financial loss for a player or business partner, PI covers the legal costs and any settlements. IP insurance helps cover the legal fees and costs if the business is accused of IP infringement or needs to protect its own IP rights.” 

Compare cheap online casino insurance

To determine the cover offered and the price of the premium, insurers assess risk based on a company’s operations and tailor policies to meet the specific needs of an online casino or game studio. Businesses then pay a premium, either as a one-time annual payment or in monthly instalments, in exchange for financial protection. 

According to Grace, the process is pretty similar to what you have to do to insure your car. 

“To secure coverage, companies must complete a proposal form, providing details such as company size, revenue, forecasted revenue, and business activities. This information helps insurers determine the appropriate policy structure.”

As Grace points out, online casinos are constantly subject to cyberattacks and have plenty of measures in place to fend off those attacks and protect player data and funds. But what makes casinos such a target for cybercriminals? 

Billion dollar businesses attract bad attention

Grace says it’s to do with the billions of pounds the sector generates in revenues, with some of the bigger online casino brands processing millions of pounds in deposits and withdrawals each day. 

“Hackers know that these high-value transactions take place frequently, and are drawn to the amount of personal and financial data that is stored by operators, increasing the risk of breaches or ransomware attacks.” 

But studios are not immune from the threat, either. 

“Game studios invest months or even years into developing new titles”, Grace says. “If hackers gain access to the source code and threaten to leak it, companies may feel pressured to pay a ransom to protect their work – failure to do so could destroy a project and even force a studio out of business.

“Insurance helps online casinos in this regard because it covers incident response and forensic investigations, legal costs, regulatory fines, ransomware payments, recovery efforts and business interruption losses. With the right coverage, businesses can act quickly, recover from the attacks and reassure players that their data is secure.”

Casino insurance improves the player experience 

The good news is that by taking out insurance, online casinos can offer a much better player experience. As Grace says, “it builds player trust through having financial protection against cyber attacks and fraud”. 

She continues: “It reassures players that their personal data and funds are secure and they aren’t at risk of a financial loss from malicious attacks. Additionally, business interruption insurance minimises downtime, allowing casinos to recover quickly from attacks which creates a more seamless gaming experience.” 

It even helps to cover losses due to game errors and ensures operators meet regulatory requirements – remember, all online casinos that accept players in the UK must hold an active licence from the Gambling Commission. 

“When players trust a platform, they feel more confident and comfortable engaging with its games,” Grace adds. 

This is why insurance is now a must-have for online casinos and game studios. 

“With rising cyber threats, tighter industry regulations and IP challenges, insurance acts as more than a safety net, it’s a necessity,” Grace says.  

“Many clients now require it contractually to ensure all parties are protected from the very real risks we’ve seen firsthand at Superscript.

“Cyberattacks, lawsuits and financial fraud don’t just target the biggest names in the industry – hackers don’t discriminate. Any casino or game studio, regardless of size, can fall victim. That’s why having the right coverage is crucial, allowing businesses to operate with confidence, protect their assets, and deliver the best possible player experience.”

And that’s exactly what the online casinos listed on Comparasino are committed to doing.