Millions Put Aside To Cover Possible SBTech Lawsuit

SBTech software is used by different land-based and online sportsbooks and casinos.
SBTech’s parent company has now set aside $30 million in the event that someone tries to sue the company over their recent cyber attack.
SBTech was set to launch its merger with DraftKings before the attack.

LONDON, England — A recent cyber-attack that targeted SBTech could cost the company millions of dollars as they have had to shut down some of their online and land-based operations.

SBTech was supposed to be merging with DraftKings before the attack and now that could be pushed back as well.

Diamond Eagle Funds To Help Relief Attack

Diamond Eagle Acquisition Corp., the company that was going to force the merger of SBTech and DraftKings, has filed SEC documents on Wednesday to use money from that merger deal in order to help take care of any future problems the company might face after being hacked.

Of their deal, $30 million will go towards fixing the issues on the sites that were affected as well as cover any lawsuits that they might face. If $30 million is not enough, they are able to use part of $70 million more that would be available if needed.

SBTech Attack

SBTech is a gambling firm that distributes its gambling software to many land-based and online sportsbooks as well as online casinos. Its software is scattered throughout six different states in the U.S.

Arkansas
Indiana
Mississippi
New Jersey
Oregon
Pennsylvania

Hackers had set up Trojan Horse on the companies software to look like a file of their own until it infected all of their software. Fortunately for SBTech, the cyber-attack did not capture any consumer data.

A company that is as big as SBTech has backup servers and different techniques to protect itself from a threat like this but It could still take time for them to be back up and running as normal.

Although the recent outbreak of the coronavirus has shut down many of SBTech’s land-based legal sports betting operations, they are now forced to shut down their online ones as well due to the hack.

This could turn out to be even more costly than it already is as they will still have to spend the money in order to repair the damage that has been done, but also the money that is being lost by not having any of their operations open at this time.

DraftKings Deal

The costly attack could not have come at a more inconvenient time. Diamond Eagle had a deal in place to merge both SBTech and DraftKings this week. That deal has been stalled due to the cyber-attack.

The deal is now expected to be pushed back at least a few weeks. The shareholders for Diamond Eagle were also expected to vote on Thursday to approve the transaction but that as also been pushed back.

This will give them more time to take in everything that has happened prior to the deal before making any decision. The closing amount of the deal was expected to be at an eye-opening $3.3 billion.

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Sam Profeta

Samuel has been writing professionally for 4 years. He comes from a sports writing background where he enjoys writing mostly about basketball and football both professional and collegiate. He is a recent graduate of Florida State University where he majored in Editing, Writing and Media with a minor in Communications. During his free time, you can find him watching or playing sports as well as playing videogames and listening to music.