Cloud Infrastructure: Why Some Betting Apps Go Down During Major Events

- Advertisement -

February 7, 2021, 5:05 PM Eastern Time. DraftKings showed error messages. FanDuel refused login attempts. BetMGM went dark. BetRivers crashed. Barstool Sportsbook froze during Super Bowl LV’s highest betting minutes.

- Advertisement -

When 1xBet login mobile systems process authentication, they execute one piece of infrastructure that platforms must scale across hundreds of operations: geolocation checks, odds feeds, payment processing, session management, bet validation. Kambi, the backend provider for these platforms, later revealed one bet offer with extended outcomes consumed enough processing power to crash their entire network.

Contents

What Traffic Spikes Actually Look Like

GeoComply publishes location verification data that exposes the scale problem betting platforms face during major events.

Event

Geolocation Transactions

Active Users

Traffic Pattern

Super Bowl 2024

23.5 million

3.1 million

226% increase vs. previous year

World Cup Final 2022

7.9 million

1.7 million

Second-highest single event

Maryland Launch Weekend

16.5 million (5 days)

477,365 new accounts

4x Colorado’s typical weekend

NBA Finals Game 7

5.1 million

1.0 million

Sustained for 3 hours

Regular Thursday NFL

~2 million

~600,000

Baseline load

Maryland activated seven platforms on Thanksgiving weekend 2022 when NFL, college football, NBA, and World Cup games ran simultaneously. Five days of transactions nearly matched New Jersey’s volume—a market with triple the population and years more operational maturity.

Five Points Where Everything Breaks

Betting platforms don’t fail randomly. Major outages since 2020 reveal specific vulnerabilities that collapse under peak demand:

  • Backend Bet Validation Bottlenecks: Kambi’s Super Bowl LV failure traced to one player prop. The company expanded possible outcomes for the event, creating a computation-heavy operation. That single market became the third-most popular offer and overwhelmed processing queues. Kambi CEO Kristian Nylén confirmed systems handled three times the previous year’s overall volume—the problem was concentrated demand on one expensive calculation.
  • Geolocation Service Failures: GeoComply’s October 2020 outage during Thursday Night Football prevented location verification across DraftKings, FanDuel, and BetRivers. No verification means no legal authority to accept wagers, regardless of server capacity or odds feed functionality.
  • Third-Party Data Dependencies: Stats Perform’s October 14, 2020 cyberattack crippled daily fantasy for an entire weekend. FanDuel and DraftKings manually entered statistics after every game to settle contests and process payouts.
  • Cloud Provider Regional Outages: AWS disruption in November 2024 simultaneously hit FanDuel, DraftKings, and Fanatics. Users reported vanished balances, invisible bets, blocked withdrawals during live NFL games. Over 6,000 problem reports filed within hours.
  • Owned Infrastructure Limitations: DraftKings acquired SBTech to control its technology stack after 2021 failures. October 2024 proved ownership doesn’t guarantee uptime—nationwide outage lasted six hours during MLB playoffs, NBA opener, NFL Thursday game, and NHL action.

The Auto-Scaling Paradox

Cloud infrastructure promises elastic capacity that expands and contracts with demand. Betting platforms face economics that break this promise.

Infrastructure Approach

Idle Cost (Daily)

Peak Cost (3 Hours)

Scaling Speed

Primary Risk

Fixed over-provisioned capacity

$8,000 – $12,000

Same

Instant

Wasting ~$3M annually on unused capacity

On-demand auto-scaling

$2,500 – $4,000

$15,000 – $22,000

2-3 minutes

Lag during unexpected spikes

Spot instance strategy (70% mix)

$800 – $1,500

$6,000 – $9,000

Immediate

AWS 2-minute termination during high demand

Predictive scaling

$3,000 – $5,000

$8,000 – $12,000

Pre-warmed 30 min

Can’t predict “unprecedented demand”

Hybrid (reserved + scaling)

$5,000 – $7,000

$10,000 – $14,000

60-90 seconds

Complex orchestration increases failure points

A Turkish platform documented 70% cost reduction using AWS auto-scaling for weekday-weekend patterns. Friday afternoon spin-up, Monday morning scale-down works because league matches follow schedules.

Super Bowl Sunday doesn’t. Maryland’s Thanksgiving launch generated volumes that Colorado’s mature market data wouldn’t predict. Auto-scaling policies use cooldown periods—delays between scaling events to prevent oscillation. Scale down after 1 PM games, and systems can’t scale up when 4 PM games trigger simultaneous new bets.

Spot instances offer 90% discounts by using AWS spare capacity. The catch: Amazon terminates instances with two minutes’ notice when demand spikes. During Super Bowl Sunday, when thousands of applications compete for regional infrastructure, platforms using spot strategies face termination exactly when they need capacity most.

The Compensation Question Platforms Won’t Answer

DraftKings offered $20 in bonus bets after Super Bowl LV outages. FanDuel users received $50 following November 2024’s AWS disruption, though not all affected accounts got compensation. Oregon Lottery’s contract specifically excludes DDOS compensation.

These amounts pale against the business impact. Super Bowl LV processed three times the previous year’s transactions. Every offline minute represented millions in lost handle. The calculus: spend $3 million annually maintaining peak-day infrastructure, or absorb occasional losses and reputation damage costing similar amounts in one afternoon?

When DraftKings announced its SBTech acquisition to “own the technology,” the implication was clear—controlling the stack would prevent third-party failures. October 2024’s six-hour outage proved ownership just means the failure belongs to you alone.

Caesars crashed twice during its January 2022 New York launch while offering $3,000 deposit matches. The company couldn’t process the deposits it advertised. Infrastructure that fails during the precise moments justifying its existence costs more than the servers powering it.