The iGaming industry is flourishing like never before, in parallel with the amazing improvements in the digital technology area. Therefore, the way of gambling has advanced, with a plethora of innovations that are embracing this sphere to make it more convenient and appealing. However, due to the emergence of digital technologies, the online gaming sphere is subject to various types of criminal activities.
Apart from maintaining the monopoly system, ID verification is an important measure to combat these serious issues. In the Identity verification procedure, the establishments verify their players’ identities by asking them to upload copies of ID documents before they are allowed to bet. These include an ID card, passport, driving licence, and more. This process of verification is immediately required by gambling operators after registration. But why is ID verification important for the online gaming industry?
Online gaming spheres that need ID verification the most
As iGaming is a high-risk industry, strict identity verification is a crucial step for both newcomers and existing players. In addition, the lucky players who win are also required to prove their identities before being permitted to cash out their payouts. Here are the online gaming sectors that must implement the ID verification system to prevent possible financial crimes.
Generally, experts highlight three main spheres that require additional ID verification precautions:
- Massively multiplayer online games (MMO)
- eSports industry
- Online casinos and gambling
Let’s take a closer look at each of these spheres.
Massively multiplayer online (MMO) games let a great number of players join and have fun at the best time at the same time. As this thrilling type of video game is designed with multiplayer gameplay, introducing an ID verification procedure is imperative to prevent fraud, data theft, and financial crime.
Without any surprise, e-Sports is a thriving business gathering aficionados across the world to participate in competitive video gaming. Electronic sports primarily imply teams competing against each other in tournaments for a cash reward. Hence, a crucial solution to avoid identity theft, credit card fraud, and account takeover attempts is the identity verification programme.
Online Casinos and Gambling
The most popular iGaming sphere that has seduced millions of players across the globe is online casinos. For many of them, KYC (Know Your Customer) and AML (Anti-Money Laundering) security measures are obligatory for obtaining a licence. Although experienced players know that there are plenty of safe no verification casinos like those listed on NonStopCasino, newcomers are recommended to choose KYC-compliant websites.
Reasons why ID verification procedures are needed
As stated above, identity verification plays an important role in the operators’ reputation because it prevents possible issues within the gaming industry. Many countries have special regulatory bodies for monitoring this industry, such as UKGC in Great Britain, for example. With more than one billion people who both register at gambling websites and use apps, protecting them from various crimes is a critical practice. Here are the reasons why verification processes are important.
Among the reasons why ID verification should be widely used and enforced are the following:
- Fraud prevention
- Minors protection
- Fighting money laundering
- Preventing unfair play (bonus abuse, gnoming, etc.)
- Self-exclusion status check
Below, we are going to get into more detail on each of these points.
Before signing up for an online gaming site, the players’ common concern is the fraudsters that victimize them through information or credit card details theft. For instance, criminals may use the players’ data to open a new casino account. To tackle this issue, the identity verification process helps them to minimise the risk of identity fraud and other illegal activities carried out by criminals.
Under the online gaming law, it is illegal for anyone under the age of 18 to register at a sports betting site or any other gaming website. Minor players usually try to sign up on a gaming site by using one of their parents’ identities or a fake ID. Thus, the KYC process allows the operators to gather sufficient identity information about their customers to curb underage gambling.
Fighting Money Laundering
The AML regulation is a mandatory practice to combat money laundering and other illegal financial activities. This ID verification process is introduced on reputed gaming sites to identify and prevent illegal transactions happen within their platforms. By verifying regularly the players’ profiles and identifying their financial activities, AML is a standard requirement globally to combat money laundering in the iGaming industry.
Preventing Unfair Play
The bonus is probably the most attractive feature but organised criminals, unfortunately, abuse the offers by reselling their accounts to maximise their rewards. In addition, they also practice the so-called gnoming: opening multiple accounts with one gaming platform and using these accounts to escape the regulations. Chip dumping is also another dishonest activity used by criminals when playing casino games to launder dirty money.
Self-Exclusion Status Check
The self-exclusion schemes have become compulsory in the iGaming industry as a part of safer gambling practises for dealing with possible issues. When they choose to be self-banned from their chosen casinos, they are unable to access their accounts for a while. Nevertheless, some of them attempt to register before their prohibition expiration. ID identification is a helpful tool to help the operators identify these players.
Summing It Up
The iGaming industry is particularly vulnerable as it is prone to a range of criminal activities. From online casinos to sports betting, fraudsters are running the risk to steal identities or use fake documents to meet their goal. These cybercriminals seize the opportunity to siphon money from unaware gamblers. Thankfully, ID verification is a process implemented in the online gaming field to combat these deceitful actions that affect both the players and the operators. The gaming operators will benefit from this identity verification procedure with a significant goal to maintain their customers’ safety and security.