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Sep 4, 2018

Gambling Compliance Speaks with Michelle Cohen About DraftKings’ Recent Cyberattack

DraftKings entered the online sports betting and fantasy sports game in New Jersey on August 6. Just a few short weeks later, the company fell victim to a cyberattack that temporarily brought down their servers. Fortunately no customer data was compromised, according to a DraftKings’ spokesperson.

Chris Sieroty reported on the incident for Gambling Compliance and spoke with Ifrah Law Data Privacy & Cybersecurity practice group leader, Michelle Cohen.

“DraftKings is willing to be aggressive against those they think are interfering with their data,” Cohen said. “It’s a message to regulators
and customers that the company takes its data security very seriously.”

U.S. District Court Judge Mark Wolf in Boston late Friday granted DraftKings’ motion allowing the company to conduct a discovery
process with a number of companies that own the IP addresses responsible for the attack, with the hope of taking action against those
responsible, a company spokesman said.

Cohen told GamblingCompliance on Monday that fantasy sports companies are not a bigger target than other ecommerce sites that
collect a lot of consumer data.

“Sites that have a lot of financial information tend to be more careful than some other sites,” said Cohen, adding that any online-based
business “is a target for hackers.”

Being based in Boston, Cohen said DraftKings is subject to strict state data security regulations.”

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