Today's sb platforms should treat your player's only as a number...no name, address...just a number.
if you outsource your customer service, how would you take a deposit by credit/debit card over the phone?, or when receiving a moneygram for instance
"hello mr 1234, we tried to send you an email but came back undeliverable, do you have another one we can try?" end of the number /name theory
"mr 4355, we tried to send you a check , what? no we can't confirm your address, someone will get back to you later with that"
sounds good on paper but there are many many interactions between a customer and a company where a number alone won't do
same goes for storing the information in databases, you can outsource this and they MIGHT claim its encrypted and totally secure but at the end of the day someone on your service provider might end up misusing the keys and you are screwed (if they are actually doing what they say they are doing)
Any owner shop that is not concerned these days with having his databases out of his reach......should not be running a shop to start with or doesn't fully understand the risks he is exposing himself to (which is normally the case and is only analized after a breach takes place)
You can outsource your wagering department I supose if you are a book and in 95% of the cases I see very little reason to develop your own software but customer service/ IT (Running your servers etc) should be in house in my humble opinion
in one line, if the shit that goes on, goes on with the owner being in the facilities.......I don't want to guess what would go on in a (mostly) outsourced shop