As Online Gaming Continues to Grow…What You Should Know

Online Gaming has been around for some time and it’s been known by many names including, igaming, egaming, remote gaming, interactive wagering, and many others. According to the Gaming Standards Association, online gaming can be defined as: Playing a game of chance on an electronic device that is connected remotely to a gaming system via a digital communication network. All events concerning player management, financial transactions and game management happen without any physical interaction between the player and the operator.

In April 2013, Nevada launched the first legal online gaming website in the United States. Next week, Delaware will follow suit by beginning its own online gaming rollout and New Jersey is set to launch towards the end of November. These three states are the first in the country to pass legislation that allows real-money online gaming. Other states including California, Massachusetts, and Illinois are also considering laws of their own.

Given the environment in which this industry operates, meeting requirements to remain compliant with the law as well as protecting children from these services intended for adults comes with its own unique set of challenges.

For gaming activity to qualify under online gaming regulations, certain fundamental requirements must be fulfilled:

  • Players must be physically located within the state of the operator
  • Only non-cash transactions may be involved
  • Players must first register with the online gaming operator to open a player account
    • Player must be a minimum of 21 years of Age
    • Every account must have a unique username to identify the player
    • Every time a player returns to play, his/her account must be logged into using a robust authentication method and username
    • The operator must identify the player and carry out know your customer (KYC) checks before providing an account
  • A player must make a real-money deposit into his player account to begin wagering
  • When a player requests to withdraw money from his player account, the operator must carry out a manual verification to ensure that the funds are being transferred into a legitimate bank account belonging to the player

The above regulations are by no means all-inclusive as rules vary from jurisdiction to jurisdiction, but the aforementioned are common to all regulations. With that being said, two very important aspects that must be addressed are; the ability to thoroughly authenticate an individual and the ability to verify age in a customer not present environment – both of which are paramount in regards to meeting gaming regulations.

IDology’s ExpectID suite of solutions was developed to give operators the ability to meet regulation requirements and protect children from age-restricted commerce by validating identity and age in real-time with a friendly non-intrusive approach that guards player privacy. Our on-demand solutions help minimize operating costs and maximize revenue while also providing the ability for higher levels of authentication in the case of high-risk payments or administrative transactions.  As the online gaming industry presses forward, utilizing the strength of a robust identity solutions platform is essential in not only meeting regulatory requirements, but also providing the best player on-boarding process and experience.

 

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