Security an issue as Nevada delves into online gaming

By Richard N. Velotta, Las Vegas Sun

With the state about a month away from granting its first online gambling license, two experts told members of the Gaming Policy Committee on Monday that regulators needed to stay vigilant in their efforts to keep the online gaming environment secure.

One of them hopes to take the security of Nevada’s potential Internet gambling industry to a new level by using grant money to develop a system that not only would protect gamblers’ online transactions but detect and prevent underage players and cheaters from playing.

Online security strategist James Elste, principal for INOV8V CyberCQRT, told the advisory committee that his company was one of 27 finalists out of 186 applicants for a federal grant through the National Institute of Standards and Technology. Up to eight grants are expected to be awarded in several aspects of cybersecurity.

Elste’s company is working on behalf of the state to get $2 million a year for two years to develop the gold standard for Internet gambling security.

Committee member Mark Lipparelli, chairman of the state Gaming Control Board, said the state would demand the highest levels of security when regulators begin issuing licenses. Under regulations approved by the Nevada Gaming Commission, there’s no specific security standard in place since companies are using differing strategies to detect illegal play and participation.

However, applicants will have to prove to regulators that their systems will be able to identify players and prevent underage gamblers from playing and detect whether players are within the state’s borders.

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