The identity verification process for sports betting and online gambling

The identity verification process for sports betting and online gambling. Why does ID verification matter for sports betting and online gambling?

The identity verification process for sports betting and online gambling

Today, online betting and gambling have become one of the most profitable online businesses. Gamers are shifting their bets from physical card tables and slot machines to digital platforms. Due to this process, platforms face unique new challenges.

Gamers have access to a variety of regulated digital games: lotteries, slot machines, table games such as poker and blackjack, as well as sports betting through both government agencies and international private operators.

These digital offerings are vulnerable to an entirely new approach to criminal activity, so service providers must try to stay one step ahead to maintain the integrity of their platforms.

KYC verification is at the heart of all processes for digital game providers, from registering users to comply with regulatory requirements to verifying transactions for prizes payouts and network security from artificial accounts.

What is the basis of KYC for sports betting and the online gambling industry?

Right now, legislators and users are fighting for global regulation of sports betting and online gambling. Age verification, customer registration, risk protection, cyber security, vendor authentication, and non-compliance are just some of the pressing issues in the online gambling industry that can be addressed through identity checks.

Both players and gaming sites need to be protected from cyber threats, fraudulent payment platforms and websites. At the same time gambling sites need to be more transparent to gain trust and be effective in the registration process.

To comply with all regulations, bookmakers must know their customers and the origin of their funds, here is where implementing KYC is needed.

The first and one of the most important steps in AML & KYC compliance is identity verification. The betting office must obtain information about customers such as the ID number, age, location, and source of funds, among other things, to determine whether they are involved in any financial crimes.

ID verification must take place to ensure that the information provided is linked to the real person and who he or she claims to be.

The verification processes for sports betting and online gambling can be complex, time-consuming and may not have an integrated approach. The user may need to fill out an application form, submit documents, take a selfie, and then wait a few days for confirmation only to receive a request to repeat one or more steps.

This process can worsen the quality of customer service, and there is a chance that the client will give up and go elsewhere. Moreover, verification of online sports betting and gambling documents may involve the use of multiple vendors to verify identity documents. This can cause a delay between inspections and lead to the cancellation of online payments and loss of customers.

Therefore, it is important for betting offices to choose the right KYC provider, which will be able to provide quick and effective verification of identity, including using artificial intelligence.

Why does ID verification matter for sports betting and online gambling?

Digital gaming services face large amounts of fraud when registering an account. Synthetic Identity Fraud is used to use registration bonuses to facilitate further actions such as gnome, in which multiple accounts are used to artificially increase jackpots, and chip dumping, where multiple fake accounts deliberately lose to one specific account.

Online gaming sites also face the risk of identity fraud when an unauthorized third party accesses a legitimate user account. The increase in the number of attempts to capture an account is largely due to the lucrative registration bonuses offered by the services and the growing spread of online games.

Account hijacking can be prevented by using identity and authentication threads to prevent financial and data loss for both suppliers and customers.

ID verification solutions, especially Video-based solutions, are set to play a massive role in the online gambling industry.

What is possible to expect from the ID verification solution?

  • Reducing money laundering risks

The video-based verification method uses high-level face matching techniques to ensure that all users are who they say they are.

  • Fewer fake profiles

During automatic ID verification, special algorithms are used that are capable of detecting false identifiers, manipulated images and forged documents. The high degree of accuracy of KYC & AML decisions attempts committing a crime practically impossible for fraudsters.

  • Fast and economical adaptation

Automatic ID verification allows users to connect safely within 5-10 minutes. The simplified registration process also reduces the number of user failures the registration process by about 60%.

  • High retention rates

Identity verification is a major issue for players in the online gambling and sports betting industry because of the disorganized nature of the process. Digital verification provides a smooth and customer-friendly adaptation process that allows companies to increase retention.

Thus, ID verification plays a huge role in the online gambling and sports betting industry - in preventing crime, improving due diligence and saving costs.

Why choose KYCAID Identity Verification Solution?

Specifically for the gambling and sports betting industry, Kycaid provides all the services that the business needs.

ID check. Kycaid system verifies your identity documents efficiently in seconds with automated verification. Using AI algorithms, the system recognizes, and validates all possible fields and checksums, compares data from MRZ code versus data from the visual part of the document, and sends all extracted data you need in a callback.

Age check. Kycaid ensures age verification requirements are met. Depending on the region of operation we can apply different age limits (18+, 21+, etc) for a single client.

Liveness and video verification. We ensure that person behind the screen is really whom they claim they are. The video confirmation takes place through a call with our compliance managers, during which we use our algorithm to verify that the documents are provided by this person and not by someone else.

Transaction confirmation. The system matches the amount of the deposit with the transaction in the player’s bank statements or credit card mask used for account funding versus the player’s selfie with a credit card.

Ongoing monitoring. Reduce risks with ongoing customer AML Screening for SEP, PEP, criminal watchlists, etc. As soon as the system detects any player in the databases, you will be notified so can take the necessary measures.

Offline verification. Kycaid provides clients with a branded mobile application to verify players in brick and mortar casinos. Manager in casinos uses smartphone to take a photo of the player’s documents and receives confirmation in a matter of 15 minutes.

In case of detection of forged documents or documents of dubious quality, the system will provide you with a detailed report indicating the reason for verification failure. Thus, you can protect yourself from the risks of working with scammers or criminals and stay compliant and secure.

You can trust the verification to us and not waste time and effort!