Secure Digital Transformation
Lottery & Gaming

Secure Digital Transformation

Traditionally, the lottery and other betting solutions were retail-focused and mainly targeted towards customers that were between 45 and 60 years of age. However, since the covid 19 pandemic, a new challenge for gambling has been presented - the much needed digital transformation of many gambling companies and the shift in their target markets - older audiences being offset by increased involvement in younger age groups. And with this shift - rapid growth of online and app-based gaming.

With the constantly evolving state of the lottery industry, alongside new opportunity and prosperity for the gambling world, comes new pressure from customers, regulatory and cybersecurity challenges as well as keeping a look out for non-traditional entrants entering the gambling industry as potential competitors.

Mobile, agile companies with flexible infrastructures will be key - secure, innovative products, technologies and consolidated platforms, allowing them to leverage the delivery and security features required.

Trusted Processes

Applications for Trusted Digital End-to-End Processes

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Hardware Security Modules - The Root of Trust

A non-penetrable and certified Hardware Security Module (HSM) assures non-tempered encryption of data, protected digital identities and secure public key infrastructures. This gives the foundation for a trustworthy and secure gaming and lottery infrastructure.

A HSM is a physical computing device that safeguards and manages digital keys for strong authentication, and that provides crypto processing. The code, data, and keys of an HSM are collectively considered a Root of Trust.

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Public Key Infrastructure (PKI)

PKI ensures confidentiality, integrity, authenticity and non-repudiation of sensitive information. Encrypting data at rest and in transit guards it against theft or tampering, and guarantees that digital identity provides secure authentication of users and applications to protect against fraud.

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Random Number Generator (RNG)

True random numbers are numbers or characters generated by a strong encryption key process, whose outcome is unpredictable and which cannot be subsequently reliably reproduced.

Random numbers are used to secure lotteries, bettings and online games such as poker where winning numbers are announced, in turn providing outstanding random number quality and a reliable operation.

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Trusted Timestamp

When a date and a time of an ‘event’ is recorded, it is classed as a timestamp. A ‘trusted timestamp’ is generated by using FIPS-compliant hardware so that the timestamp is not manipulated by any user. By using timestamping, organizations can protect their intellectual property and use the timestamps as strong legal auditable evidence. Strong use cases would be securing gaming transactions, lottery ticket issuance and electronic payments.

PKI based timestamping is protected by using a digital signature.

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Digital Signatures

Digital signatures leverage PKI certificates to offer the highest levels of security for regulated and sensitive document use cases like account openings, and agreements as well as modernization of internal administrative electronic processing. In compliance with regulations such as eIDAS, they also provide legal assertion.

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Multi Factor Authentication

Multi-factor authentication securely restricts access to the lottery infrastructure and reliably identifies the user. Hardware security modules (HSMs) generate, manage and store the secure cryptographic keys required for authenticating a user or device in a broader network.

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Code Signing

HSM-based code signing is the most secure way to physically and digitally secure code. If the code is tampered with after signing, then the signature will be invalid and no longer trusted. Signing keys are protected and can only be accessed by authorized users or systems.

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Tokenization

Tokenization turns financial data, such as a credit card number, into an unrecognizable string of characters that will provide no value to the hacker even if breached. It is a strong tool to protect communication and transactions along the digital value chain.

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5G

With 5G networks being built on software based models, ensuring security from the infrastructure layer to the application layer is an essential factor for consideration. HSM-protected 5G creates secure channels between devices and the gaming & lottery industry.

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Blockchain

The integration of HSMs into a blockchain solution secures the privacy and security that may be lost by distributing proprietary software to an untrusted network of blockchain operators. By storing private keys and data within the HSM, data integrity and user authentication can be dramatically improved. Proprietary code can even be stored and run fully within an HSM to protect intellectual property.

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Post Quantum Crypto Agility (Future Proofs and PQC)

At this time, no quantum computer can run quantum algorithms, however once they are able to, these computers will decimate the security infrastructure of the digital economy. Post-quantum crypto-agility is a necessity for the financial services infrastructure to be able to evolve in the advent of a new generation of attacks and consequently evolving cryptographic standards and algorithms.

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