Identity verification requirements in online gambling

Online gambling businesses must comply with anti-fraud laws, such as Know Your Customer (KYC) and Anti-Money Laundering (AML).

That means apps and online gambling sites must follow strict measures. Otherwise, they’re risking huge fines for non-compliance.

There are 3 main reasons why online gambling companies ask for identity verification:

  • To confirm the client’s identity
  • To check the gambler’s age
  • To look into self-excluded individuals

To meet safety requirements, online gambling companies must ask their clients to prove their identity and age before they start gambling.

If the customer were asked to complete identity verification earlier, they typically wouldn’t need to re-verify themselves. Despite that, there are some exceptions for additional AML checks.

Know Your Customer in online gambling

Due to Customer Due Diligence (CDD), online gambling institutions must gather and assess customers’ or potential customers’ data.

The rules are here for a reason. Taking steps to ensure CDD helps online gambling institutions prevent criminals from using their apps as a channel for money laundering activities.

There are 3 focal CDD rule points that online gambling businesses need to follow:

  • To verify the customers’ identities
  • To explore customers’ relationships and develop risk profiles
  • To screen and monitor suspicious behavioral patterns and customers’ transactions

For example, what happens when an online casino fails to ensure compliance? In this case, the company receives requests to take action immediately. Without positive results, state authorities can fine or ban online casinos from operating at all.

Fraud in online gambling

Online gambling attracts many fraudsters and organized crime gangs. There’s no surprise here. As more consumers shift their gambling habits to the digital sphere, the fraud problem intensifies.

Stolen identities and fake identity documents aren’t the only fraudulent tools that criminals use to spin off money.

The impact of fraud in online gambling

There are multiple risk factors for fraud. Online gambling scams can grow into serious AML compliance issues.

With non-compliance consequences comes a lousy reputation. Business partners and investors are more likely to be skeptical when putting their money into unreliable organizations.

Online gambling businesses that are known for high fraud levels are also more likely to lose customers.

The future of identity verification in online gambling

It’s not arguable that security measures, including identity verification, are important for the online gambling industry. Traditional casino operators are losing customers due to complex, time-consuming authentication processes.

In the meantime, digital identity verification solutions improve the players’ confidence in gambling services without them having to wait for their identity approval for hours or even weeks. It’s now an industry standard to automate this process.

All it takes is 2 steps for the player:

  • To upload a photo of their identity document
  • To add a selfie during the onboarding to confirm whether they’re legitimate

Considering the risks in gambling, digital identity verification measures solve two main issues. That means online gambling platforms can now offer great customer service along with complete security and easier compliance insurance.

VeriFace as a solution in online gambling

Looking for AI-powered identity verification, compliance, and fraud prevention solutions? You’ve come to the right place!

VeriFace’s platform has all the mentioned tools in one place.

Check what our gambling partners and other businesses have to say about our solutions, and book a free demo today.

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Roland Kraslan

Since 2001, an experienced expert in the field of AML & CFT with the demostrated history of working at the Financial Intelligence Unit and the Counter Terrorist Unit. He has obtained a lot of knowledge, experience and skills in this area and continues to provide a comprehensive AML solutions for all obliged entities.