Onboarding for online gaming and gambling
With people spending more time online than ever, industries are finding that having a strong online component of their business is critical to maintaining a competitive edge and not losing customers. In response to the digital acceleration and transformation of the past few years, the gaming and gambling industries are continuing their rapid growth—all gambling-related revenue is expected to surpass $44 billion for 2021 in the United States alone, and the gaming industry is predicting over 3.07 billion players (which includes online players) globally by 2023. With billions of gamers and gambling revenue, the industries are shiny targets for fraudsters.
Businesses—particularly online/mobile gaming and gambling—face numerous challenges, including preventing fraud and money laundering, ensuring regulatory compliance and providing a seamless customer onboarding experience, all while protecting customer privacy and security. Mitigating the risk that comes with being online, including the prevention of underage gambling, means that gaming and gambling companies must have the proper risk mitigation strategies and technologies in place.
Challenges faced by gaming & gambling operators
Fraudsters are savvy and willing to exploit any found vulnerabilities, whether it’s through an organization’s systems to steal data or launder money, or using a gaming platform for online gaming scams to target players with social engineering, malware and phishing scams and then using the stolen PII data for synthetic identity fraud. More so, the growing use of cryptocurrency within these industries, including with online casinos, has increased the potentiality of online gambling fraud and money laundering.
Online gaming and gambling platforms onboard thousands of new and existing customers every year and must follow industry regulations. Depending on the wrong or old verification systems will likely result in fraud, dissatisfied customer, noncompliance and the (unwitting) facilitation of financial crime.
- Traditional data sources: due to lack of data, traditional data sources for identity proofing do not provide sufficient assurance of an identity being verified. With the growth of the digital-first economy, this is especially the case when it comes to the world’s underbanked or unbanked populations (or thin-file consumers) that typically do not have traditional documentation such as utility bills or a banking history. With the right identity proofing solution, companies can use a consent-based analysis of users’ digital footprints to verify identities and subsequently expand the customer base to include people that may have previously been excluded.
- Regulatory requirements: from industry-specific directives to global Anti-Money Laundering (AML) regulations such as 6AMLD, companies must be aware of different mandates to ensure compliance. However, this can be challenging as regulations are constantly changing or being expanded upon, making it difficult to stay up to date. And, compliance regulations tend to vary by jurisdiction so online gaming and gambling establishments that service a global customer base must ensure they are aware of and complying with regional guidelines.
- Customer onboarding: dissatisfied customers are never good for business and today’s digital world means that customers have high expectations for a seamless onboarding experience, no matter the service they are using. Take too long or add too much friction and customers are likely to drop-off and go elsewhere.
Using a no code solution for online gaming & gambling compliance
With the ever-growing industry and ever-demanding customers, online gaming and gambling platforms can’t afford to have inefficient or ineffective identity proofing technologies as part of their organization’s control framework. This is why a robust identity verification and Know Your Customer (KYC) solution that can be quickly integrated into current systems and rapidly deployed is crucial. By utilizing a scalable no code solution that enables rapid deployment and go-to-market, online gaming and gambling operators will be able to confidently prevent fraud, comply with fast-changing regulations and ensure smooth player onboarding.