The online gambling industry is thriving worldwide. Today, it is a significant recreational activity in many countries. However, because of the major technological advancements, the way of gaming has evolved a lot over the last couple of decades. The online gaming industry is growing a lot faster than land-based gambling.
If we look at the European market, the online gambling industry is rising 10% every year. This market is expected to reach approximately 29.3 billion euros in Gross Gambling Revenue by 2022.
Despite these statistics, this industry is still facing a number of challenges. Every year, gambling businesses fail to combat online gambling frauds and ID verification issues. Most online casinos are at high risk of online fraud.
Today we will talk about the biggest challenges that the online gambling industry is facing currently, and how online identity verification can help companies solve this problem.
To put it in a simple way, online identity verification helps you validate a person's identifying traits and confirms if they are who they claim to be. This process happens with the help of computer technology.
These kinds of identity verification solutions can help various gaming operators smoothly verify players' identities. The way it works is simple - the whole procedure operates by layering data from different sources to check that individuals are really who they say they are.
More specifically, for businesses like online casinos, betting companies, and others, it is extremely important to make sure that the person trying to register on their website is not underaged and can legally be part of the platform.
In most cases, players need to upload their ID documents such as ID card, driver's licence, passport, or residence permit. This information is checked and confirmed by third-party sources. Additionally, sometimes companies verify IP addresses or phone numbers to ensure maximum security.
There are several reasons why companies need to pay attention to their identity verification systems. The number of data breaches has been rising over the last couple of years - it exposed more than 5 billion records in 2020 alone, which has led to an uptick in account takeovers and identity theft.
Identity verification helps companies effectively solve these kinds of problems. Let’s take a look at the benefits that having proper verification software can bring:
Improve customer experience.
Creating a digital workflow that eliminates the need for manual entry and paperwork make the customer experience more enjoyable. Reducing friction is one of the biggest challenges businesses face when onboarding customers. Online identity verification can help you solve this problem.
Improve and maintain the reputation.
Customers are actively looking for brands they can rely on. Building trust is more important than ever before in this field. Therefore, reputation is important for businesses because there are many alternative choices on the market.
With continuous data breaches, customers want to be sure that their information is safe. Running identity verification checks helps users understand you are serious about building trust in an online world.
Avoid money laundering and financial crimes.
This can be one of the biggest concerns that businesses generally face. It is important for companies to be compliant with AML & KYC regulations. Online Identity Verification services can help achieve that and become more compatible with these regulations.
The online gaming industry has been growing rapidly over the years, and it is estimated that over one billion people use online gambling sites worldwide. Statistics show that online gamers have spent more than $21.1 billion in the last year only, and this number will continue to grow.
On the other hand, we see why it has been brought to the attention of online fraudsters and money launderers. Fraudsters are attempting to do their illegal job by using stolen identities or fake ID documents to create new accounts. Their goal is to use these accounts to take out money from their victim's accounts before withdrawing it anywhere else.
But online identity verification solutions are here to help. With services such as ID verification and biometric authentication, these companies help gambling businesses eliminate fraud. It can help you determine if the person is the one who they claim to be. Besides, you get to know about your customers' age, physical address, and other important information.
At Kvalifika, we develop products that can help gambling companies comply with KYC and AML requirements. Ignoring these frameworks might cause enormous fines for companies worldwide. Identity verification can play a significant role in preventing fraud and scams in the gambling industry.
Take a look at the tools we are building to help you fight fraud and build trust with your customers.
We understand the needs of the companies in the gaming industry. Our team has extensive experience working in this field, and we know how to ensure your security.
That’s why our products guarantee you a very high accuracy level when verifying customers. Our fast and automatic tools support every MRZ type, making it easier for companies to verify customers from different parts of the world.