It’s been weeks since a cyberattack on SBTech shut down the company’s partners.
SBTech provides the online platform for gambling websites around the country, including Indiana’s BetAmerica sportsbook.
Even though the cyberattack took place on March 27, BetAmerica still isn’t back online. The Churchill Downs-owned product relies on SBTech for its entire platform.
The outage has the Hoosier State down a man in the sportsbook department, but that’s only one of the problems that the situation has caused.
Cyberattack delays SBTech’s merger with DraftKings
SBTech and DraftKings will have to wait a few more weeks to make their merger official.
Shareholders were originally going to vote on the merger last week, but the cyberattack threw that off course. The vote will now take place later in April. That gives shareholders a chance to evaluate the situation.
However, the situation has a financial cost for the merger as well.
Diamond Eagle Acquisition Corporation is the company acquiring SBTech and DraftKings to merge them together. DEAC had to set aside $30 million just to cover the claims and losses from the attack.
That’s a decent-sized hit and even that may not be enough to patch the damages. DEAC has an extra $25 million cash escrow and $45 million in locked-up shares it can dip into if it needs more money to cover the losses.
Most of SBTech’s global partners weren’t hit as hard as BetAmerica since they only partially rely on its online platform.
The majority of them were back online within six days, but they’ll still need to be compensated out of that $30 million fund for the downtime.
DEAC is working with those companies to iron out that compensation, so that extra cash is there just in case it can’t reach an agreement with its partners, and they take legal action.
It’s a fixable situation that won’t derail the merger, but it’s still certainly one that everyone involved would have preferred to avoid.
When will BetAmerica be back online?
The short answer is that no one knows exactly when BetAmerica will reopen for business.
SBTech needs approval from US regulators before it can bring its sites back online.
But after the cyberattack took place, SBTech told its partners that the hackers couldn’t steal data and that the setbacks would minimal.
So what’s the hold-up? The timeline to bring these sites back up is usually a pretty quick one.
BetAmerica is quickly approaching the three-week mark with no signs of coming back online soon. That’s a wildly long recovery time from a cyberattack, and the sportsbook still isn’t providing many answers.
Visitors to BetAmerica’s site and app see a vague “under maintenance” message.
That can be a frustrating situation for bettors, who have no idea when they’ll be able to access their accounts again. The funds tied to those accounts are frozen in limbo until SBTech sorts this out.
At first, BetAmerica might not have been the priority, since sportsbooks have a pretty limited selection these days due to COVID-19. Other SBTech sites that are more focused on online casino play or lotteries could have been the focus.
However, there’s clearly more to the situation now since most of SBTech’s other partners are already back up.
BetAmerica users are still waiting on an update about the outage. There’s been no new info from the sportsbook since it originally went down.
The incident isn’t going to shut down BetAmerica permanently. However, the sportsbook’s handling of the situation is certainly a hit to the trust that its users will have in the product going forward.