Making a safe bet with colocation in the iGaming universe

By Bob Wright, Chief Data Centre Officer, Ilkari

Bringing data sovereignty to iGaming

The online gaming industry has grown dramatically this century. Smartphone technology, the rise in cloud gaming, and regulated online casinos have fuelled the expansion of what we call iGaming.

Today, that sector is worth around $93.2bn. But with the next wave of artificial intelligence (AI) and virtual reality (VR)-driven enhancements, the sky is not the limit. Increased accessibility, driven by 5G networks, means the iGaming sector could be worth a staggering $153.2bn by 2029, with an annual growth rate above 10%.

This increase will require massive amounts of computing power. The industry relies on connectivity, reliability, and security. The last thing customers want is a network lag or failure just when they have a magical Royal Flush. One user’s slow connection is everyone’s slow connection, having a knock-on effect on everybody in a game.

A competitive edge

The most obvious solution for computing power is not, in this instance, reliance on the new breed of hyperscale data centres. These may provide the computing muscle needed, but what is more important is the speed of response, latency, and the end-user experience. In this case, location is much more critical. So, smaller edge computing centres play a crucial role in delivering the quality of service required.

Providing an environment for an uninterrupted, fast connection with 100% uptime is critical to guaranteeing the quality of gameplay.

However, data centres must also have an appetite for iGaming and be prepared to guarantee sovereignty, privacy and protection of operator and user data. Several factors come into play, both technical and logistical.

Amongst these considerations are whether you are operating an onshore or offshore operations, the associated data privacy protections, the regulatory oversight in place as well as the targeted markets. This plays a major role in your choice of data centre.

With a global player base, the location of your server may not be as crucial as the jurisdiction in which it falls. One country’s rules differ markedly from the next, and you need to ensure your data applies to local laws. The US’ governance of data security is markedly different from that of the EU, for instance. So, choosing a data centre with rules that match your jurisdiction is equally important.

Compliance and certification

Security and reliability are key components of operating data centres in the iGaming sphere. It is a tightly regulated sector with large numbers of payments, and meticulous records of game history are kept for every roll of the dice.

Certification is vital to the setup to ensure all operational aspects are controlled. It spans three areas: operational, technical, and compliance.

For instance, at Ilkari, we operate to the highest standards to ensure we are at a level that is equal to or above our competitors. Our Bogota facility in Columbia is design certified at TIA-942-C Rated 3. For security protocols, we comply with ISO27001. For environmental standards, we conform with SS564 (Sustainable Data Centre Standard). And, for operations, we hold the DCOS (Data Centre Operations Standard) ML3.

Together, these are the formidable protections and certifications to ensure we are fit to join the table in an iGaming environment.

Banking on colocation

The other great factor that iGaming operators need to be aware of is data sovereignty. Hyperscale data centres, for all their computing power, do not guarantee data sovereignty. They cannot point to which server or which rack is holding individual sets of data.

Data is also backed up across continents, making it very difficult to determine where data may reside. This matters when you need to know where your data is located and where it is flowing. In many cases, hyperscalers are unable to offer the required guarantees to determine this information, you have to take their word for it

Data sovereignty is just one area where colocation data centres excel. Colocation is perfect for guaranteeing data security and locking your information securely to an individual server.

Facilities can also be mixed in a hybrid environment between on-premise and cloud storage. They can be ramped up or down depending on demand. So, if you run your version of WSOP and expect the high rollers to roll into your part of the online town, you can be ready and willing to accommodate all comers.

Why colocation matters for iGaming

Equipment is housed within a secure data centre under data sovereign rules – guaranteeing the safety of that site and data.

It enables you to run a mix of on-premise and cloud services in a hybrid environment, adhering to local jurisdiction protocols.

Services can be scaled up or down according to need.

Provides custom rooms or dedicated racks in secure locations.

Certified and accredited locations.

At Ilkari, we are the first data centre to have the approach of protective data sovereignty right out of the box. Make a safe bet and contact us on sales [at] ilkari [dot] tech.