Verification in Casinos: Stages, Advantages, and Innovations

Identification of visitors is a mandatory procedure for all legal websites. It is used to prevent the development of ludomania, protect platforms against fraud, and comply with regulatory requirements.

Experts of the CASEXE studio will tell you about the features of customer authentication, the benefits of this procedure, innovations, and international experience.

Key Verification Tasks on iGaming Portals

To use online casino services, every player must register on the digital resource or mobile betting application.

In 2024, entrepreneurs do not want to interact with anonymous clients since this contradicts the requirements of regulators. Business owners are obliged to check the age/solvency of gamblers and make sure that they are not dealing with fraudsters. All this is impossible without prompt identification.

The task of any virtual entertainment site is to create conditions for comfortable login and customer authentication. The procedure should be convenient and safe, take a minimum of time, as well as give a complete picture of players.

The authentication process is discussed at the stage of obtaining a permit. The applicants must provide a step-by-step plan for checking and filtering out potential scammers. Only after this, the commission issues a positive verdict on granting a licence.

What Is the Value of Identification

This procedure solves a wide range of problems:

1. Age verification. To comply with certification requirements, operators must do everything to prevent minors (people under 18 who are most susceptible to ludomania) from accessing the amusement platform.
2. Prevention of gambling addiction. Authentication allows entrepreneurs to filter out problematic clients. The risk group is formed thanks to the use of self-restriction and self-exclusion registers, industry statistics, as well as behavioural patterns. After entering data into the registration form, operators can see whether clients have played on third-party resources and whether they have been diagnosed with problems related to ludomania in the past.
3. Avoidance of fraud. Among the popular offences, there are multi-accounting, bonus hunting, theft of confidential information, money laundering, etc. Timely identification significantly reduces the existing risks.
4. Compliance with legislative requirements. An effective authentication system is one of the key factors for the success and prosperity of a casino business. Otherwise, administrative and even criminal liability may be applied to project owners. For example, in 2024, the UK Gambling Commission fined the William Hill bookmaker for the sum of $23.7 million. The reason was the lack of a reliable service for the identification of players.

Difficulties in User Verification

Let us consider the problems that operators have to face.

Fragmentation of Legislation

Each state has different approaches to client authentication. General rules remain the same in all jurisdictions where games for money are allowed but the details vary depending on the region.

Thus, in most Asian countries, the minimum age for gamblers is 18 years old. In many European territories (the United Kingdom or Ukraine), bets can be placed by people over 21.

In Georgia, the entry threshold is even higher. Local entrepreneurs can only accept bids from people older than 25. Such a high limit is explained by the outbreak of ludomania in the state.

The operator’s task is to quickly adapt to legal requirements, monitor the regulatory framework, and instantly respond to changes.

Imperfect Software

Among basic requirements, we can name:

• simple and reliable identification in a few clicks;
• flexibility, scalability, and readiness for any innovations in the legislation;
• high performance and 24/7 trouble-free work.

Casino owners should only buy software from certified vendors because it will save them from any difficulties and technical problems associated with the registration of the website.

Inconvenience for Customers

The identification process takes time, which is not always pleasant for users. Some of them leave the iGaming portal without regret, tired of filling out the necessary fields.

The introduction of automated services simplifies and speeds up the verification, making people stay on the platform longer.

The Role of KYC in Online Casinos

According to the Know Your Customer procedure, operators must check personal details before making settlements with the player.

KYC is mandatory in many areas of business, such as gambling, banking, insurance, Forex trading, and cryptocurrency exchanges. Authentication is needed in 99% of cases if the company works officially.

The tool is used based on the following international standards:

• The Fifth Anti-Money Laundering Directive of the EU (5AMLD);
• Guidelines on the Prevention of Terrorism Financing (CFT);
• General Data Protection Regulation (GDPR).

Nuances of Using KYC Methods

The procedure is based on 2 principles:

1. Customer Due Diligence (CDD). This is a basic check of clients. It is important for operators to make sure that there is a real adult player on the other side of the monitor and not a scammer. Confirmation of registration, accrual of welcome bonuses, and provision of access to premium content will depend on whether the person has passed this stage.
2. Enhanced Due Diligence (EDD). It is a more thorough study of gamblers with a higher level of risk. Entrepreneurs use it to identify suspicious transactions and behavioural patterns that may indicate signs of ludomania. The application of the principle is useful for the development of risk profiles. Business owners see which customers should be connected to the loyalty program (incentives and cashback), and those that should be sent for further testing.

KYC Steps

Verification consists of several phases:

1. Analysis of the player’s identity. People need to enter such personal data as full name, date of birth, and the number/series of the supporting document. Then they must provide scanned copies of a passport, ID card, or driver's licence. To reduce temporary expenses, many operators offer to take a selfie with one of them in hand.
2. Confirmation of the place of residence. It allows entrepreneurs to make sure that players place bets from a country where such entertainment is legalised. If a smartphone is used for identification, the program will automatically request the device’s geoposition.
3. Verification of a bank card or account. They must be personalised, and all the data must match the information specified during registration. A successful passage of this step will activate the 1-Tap feature. This is a one-touch payment with the instant transfer of funds.

The first 2 stages are mandatory in many casinos, and the third one is optional.

International Experience

Experts predict that soon all gambling providers will use the analysis of customer banking data.

Many European regulators (for example, in the UK or Germany) have already introduced a ban on accepting money from credit accounts. It is impossible to fulfil this requirement without accessing the financial information.

Therefore, project owners often add a third stage of KYC verification but without haste, so as not to scare clients away.

The United Kingdom is the leader in the number of legislative changes in the industry.

In the latest edition of the White Paper, the authorities offer to introduce mandatory scanning of financial risks. According to the Commission’s plan, it will only affect problem players and users with high monetary losses during the reporting period (a week or a month).

According to the UKGC:

• initial economic vulnerability scanning will be carried out for 20% of gamblers;
• 3% of registered online casino profiles will be subject to an in-depth assessment of monetary risks;
• the accounts of players will be checked every 12 months.

If the UK government votes in favour of the White Paper laws, other European regulators will soon follow. Experts predict that within 7 years, financial fragility scanning will become mandatory in all Western countries.

Identity Verification Optimisation

In 2024, entrepreneurs use efficient technologies. Let us consider the key tools.

Biometric Authentication

Confirmation of a person’s identity is carried out based on such unique biometric characteristics as:

• fingerprints;
• vein pattern on the palm;
• structure of the retina;
• facial features;
• voice;
• keyboard handwriting.

The use of the technology began in 2013 when Apple introduced its first smartphone with this function. Since then, the international business (including the gambling sector) has been actively switching to biometric verification.

Artificial Intelligence

It significantly speeds up the identification process. In just 1 hour, an online casino can scan thousands of accounts, check behavioural patterns, and find accounts that seem unrelated at first glance.

AI programs work quickly and efficiently, which is perfect for project scaling.

The capabilities of the tool include:

• studying the key attributes of the device from which the user accessed the website;
• detection of manipulations with incoming data and images;
• consideration of the missing data as a risk factor;
• search for patterns in multiple sessions and among several clients.

Machine Learning

It is used to create a unique player profile and collects more than 300 unique characteristics of customers. Using these parameters, ML programs determine whether the gambler is a real person or a fraudster already at the verification stage.

The Future of KYC in the Casino Niche

Strong Authentication is gaining popularity in the industry. This approach has already become a trend in the financial services and e-commerce sectors.

SCA scanning is intended for online card payments where both the merchant and the buyer's banks are located in the European Economic Area (EEA) or the UK. The system verifies the authenticity of transactions and protects them from fraud.

Support for the tool is one of the requirements of the Payment Services Directive II. In practice, all providers that have received a PSD2 certificate are required to implement SCA standards. These are Visa, MasterCard, Neteller, and other popular companies.

The identification process is based on the 3DS method. This is a three-factor verification of clients (personal data, login device, and bank account).

In June 2021, the European Commission announced the creation of a common continental eID. The solution will allow EU citizens to quickly and securely exchange electronic documents. It is also designed to simplify the authentication process and all types of money transfers, including transactions on iGaming platforms.

A revolutionary approach to verifying players is being offered in Sweden. Thanks to the Pay-N-Play program, people can make a minimum deposit and start placing bets while the bank confirms their identities. The product is developed by the Trustly local vendor.

RFID microchip technology provides one-touch user testing. The abbreviation stands for Radio Frequency Identification. The solution is widely used by leading Swedish brands.

The Main Things about Authentication in the iGaming Sector

The procedure’s conduct is a mandatory requirement of casino regulators.

Key features of such a process:

• Thorough verification performs a wide range of tasks. These are the protection of online platforms from fraud, prevention of ludomania, compliance with industry rules, and much more.
• The identification is based on the KYC procedure. It involves analysing the gambler’s personality, location, and financial condition. The entertainment niche is moving along the course of tightening KYC requirements and introducing multi-factor user testing.
• Authentication optimisation is achieved thanks to the implementation of artificial intelligence, machine learning, and biometrics. IT solutions simplify and speed up verification, making people’s stay on a casino site safer and more comfortable.
• The future of KYC in gambling is associated with SCA scanning, RFID microchip technology, eID digital passport, and other innovations.

You can buy modern and secure software from the CASEXE studio. We offer turnkey projects, White Label platforms, Bitcoin portals, etc.

From us, it is also possible to order the following useful services:

• payment system installation;
• assistance in obtaining a licence;
• integration of slots from top providers;
• promotion of already launched casinos, and much more.