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Whether you want to play roulette or bet on races, the internet makes everything available at the touch of a button. Online casinos have been around since the late 1990s and have been steadily growing in popularity since then. By 2029, the number of online gamblers is expected to surpass the figure291 million evaluation.
This is great news for online gambling operators. But this also makes them an attractive target for fraudsters. Hence the challenge – how do you give legitimate gamblers a smooth onboarding experience while ensuring regulatory compliance and weeding out bad players?
Online gambling platforms are susceptible to fraud in various ways. Fraudsters can use the platform to launder money or steal data. Or, they can target innocent players with phishing to steal their identity. Fraudsters can use multiple accounts to coordinate actions and manipulate games to their advantage or take advantage of promotional offers.
To protect the platform and legitimate players from such fraud, gaming operators must be able to protect their database from unauthorized access. The main challenges here are:
Gambling regulations vary from country to country. Countries like North Korea, the United Arab Emirates, Japan and Singapore have banned gambling entirely. Allowing access to players from those countries could result in platforms having to pay stiff penalties.
Countries like the US allow gambling, but the rules vary from state to state and according to the type of game. At the other end of the spectrum are countries like Venezuela and Bolivia where the market is largely unregulated.
The lack of a global standard means that gambling platforms must follow regulations in each country and region separately to ensure compliance.
Know Your Customer (KYC) processing is the basis for compliance with most regulations. Gambling platforms must be able to verify that their players are real and who they say they are before allowing them access to the platform. This usually involves analyzing the information shared by the player to verify their name, age and place of residence.
Legitimate gamblers are willing to share the necessary information, but expect quick processing. As with other online experiences, gamblers expect a fast onboarding experience. If the verification process is too long, they will probably turn to other gaming platforms. After all, they have countless options to choose from.
Like gambling regulations, the type and format of documents used for identification also vary from country to country. Online gamblers from unbanked populations often do not have access to the digital credit history or utility bills needed for verification.
Even when available, identification documents can be misused as a tool for impersonation. For example, underage gamblers often submit their parents’ information to gain unauthorized access to gaming platforms.
Therefore, reliance on documentation verification alone may be insufficient protection against fraud.
Despite the many challenges, there is a solution. A risk-based approach supported by automated identity verification tools can help gambling platforms provide secure customer-centric experiences. There are 3 key features to keep in mind when choosing an identity verification tool.
76% surveyed gamblers who bet online during UEFA European Football Championship 2020. Millions of sports fans turn to online gambling platforms during such events. To securely engage players on such a scale, gambling platforms must be able to verify identities in real time. This shortens the integration process and keeps unverified users away.
2. Check against global databases
Non-compliance can put gambling platforms at risk of losing their license. Identity verification tools support this compliance by comparing data submitted by players against trusted third-party databases. Therefore, these tools must have access to databases in every country where the platform operates.
3. Vitality and biometric checks
In addition to basic document verification, online gambling platforms can also include liveness checks and leverage biometrics for enhanced KYC checks. This limits the platform’s exposure to impersonation scams and also protects the identity of their players.
Players can bring the phone up to their face for a life check. The ID tool then scans eye movements and other micro-expressions to ensure that the person behind the image is not a static image. Similarly, it compares facial features from a user’s selfie with the features of their ID card image for biometric verification.
The convenience of online gambling makes it attractive to a global audience. But with a growing player base comes a greater risk of fraud. Online gambling platforms must take steps to ensure player inclusion to protect themselves and their players.
Implementation digital identity verification which uses documents and biometric verification is the need of the hour. With the ability to verify the identity of players against global databases and deliver results in real time; this is key to providing secure, player-friendly onboarding processes.
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