Gambling Compliance: Countering Digital Fraud in  Gambling Platforms


The advancement in gambling compliance can increase challenges for the gambling industry in the upcoming years. It is because they have become more stringent than before. If the industry has not updated its customer identity verification procedure for a long time, compliance will be extremely hectic and costly for them. European countries of the Netherlands and Germany have followed the footsteps of countries like Spain and France to make digital gambling legal for their citizens. The rigidity in KYC/AML compliance has raised two major issues for the gambling sector: customer data protection and ethical marketing. 

Gambling Compliance – Why Does the Gambling Industry Need it?

Cybercriminals attack the gambling industry because they deal with huge amounts of money. This is one of the reasons behind the rise in money laundering, terrorism funding, and other financial crimes across the world. It is the duty of global watchdogs to minimize financial crimes across the globe. In light of this, FATF has recommended making the application of KYC/AML compliances compulsory in every sector, especially the gambling industry. Thus, there are severe repercussions in case of carelessness. 

Gambling Compliance: The Checklist for Tackling Online Gambling Fraud

In order to show compliance with the latest regulations, it is very helpful to make a checklist. They are in the following.

AML Compliance Program (ACP)

A customize AML gambling compliance system is critical for the gambling industry these days. The system should have advanced services that can authenticate the identities of every player across the globe. If there is no proper AML screening procedure, the fraudsters will exploit the loopholes for achieving their malicious goals. 

Due Diligence Protocols (CDD/EDD)

It is mandatory for gambling service providers to perform due diligence procedures on their clients’ profiles. It will facilitate them in ensuring the legitimacy of their players’ profiles. In the case of clients with highly risky profiles, the staff members must perform Enhanced due diligence (EDD). 

Illicit Gambling Among Minors: How Gambling Compliance Can Solve the Issue?

Minors entering the gambling platforms and getting access to age-restricted content is a huge issue for the global regulatory bodies. Underage users can develop an unhealthy habit of gambling that can damage their mental and emotional health in the longer run. According to the latest gambling compliance, only the clients with the age of maturity (set by every country) have permission for gambling. In most countries, the age of maturity is 18 years. 

Another issue is that even if gambling service providers follow the regulations, minors can fake their date of birth just to enter the digital gaming platform. This is where the application of age verification is a must to tackle the issue. Moreover, the use of video verification service will use liveness detection features to authenticate the identity of the consumers. 

A progressive approach that can help in this regard is the use of ethical marketing strategies. It means that gambling industries x resolver must not target the between the age range of 15 and 20 years. It will send a message of corporate social responsibility and active adherence to the latest regulations. Document verification service is also used for this purpose.

Gambling Compliance and Player Identity Verification: Are these Comprehensive Solutions for the Modern Times?

The use of online identity verification services has helped businesses in discouraging the gaming fraud attempts of cybercriminals. The latest approach has even facilitated them in complying with AML/KYC compliances. The system is highly accurate as well as up-to-date to accommodate the needs of modern businesses. The player identity verification procedure is as follows:

  • The system checks the government-generated ID card or debit card for any signs of manipulation by the end user
  • The use of face verification technology deters any attempts of identity theft and deepfakes by cybercriminals
  • The authentication service prompts the user to submit a secondary document that can validate the information of previously submitted records (i.e. proof of address)
  • There are some cases where consent verification is a must. The system can ask the user to provide their handwritten consent for verification
  • In the last step, the system checks the clients’ profiles against global watchlists to highlight highly risky clients

The use of artificial neural networks and the latest machine learning algorithms ensures quality results with high accuracy rates within a few seconds.

Summing up

In a nutshell, stringent gambling compliance and data privacy policies confuse the clients but the use of correct tools can solve the issue quickly. It is highly suggested to make a list of all compliances and data privacy protection policies. It will facilitate ethical marketing. Nonetheless, there should be a plan to restrict the access of minors to age-restricted content. In case of carelessness and non-compliance, the organization can face financial penalties and damage to its market reputation. Consequently, it will result in a loss of customers’ trust and a decline in revenue. 

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