The iGaming industry is a market with a lot of money at stake. A high number of transactions happen each day, which builds an attractive environment for those who plan on fraudulent activities. To ensure that casinos avoid the anonymous transactions that facilitate these practices, operators put in place systems that verify the identity of a user.
Whether they claim a welcome offer, opt for 20 free spins on registration bonuses or start with no incentive, gamblers must complete this verification at some point in order to start playing or withdraw any future wins. The precaution serves to confirm that the bettor is eligible to wager at a casino and to prevent fraud (such as bonus hunting by creating multiple accounts with fake data).
This article will touch upon the issue of identity verification, how it works and why it is necessary, but most importantly, how it has evolved in recent years. Progress in AI technology has had a positive impact on casino operations, paving the way for more efficient identification.
What is identity verification
To start with the basics, gamblers should become familiar with the concept of Know Your Customer, in short, KYC. Through this process, casinos confirm a player’s identity and check whether they qualify to place bets and play.
To complete this process, a gambler has to fill in a form with their accurate information (name, home address, date of birth and government-issued ID number, among others). After this, it is necessary to upload proof of these facts by uploading a picture of the documents (ID card, proof of address). A common practice is the request of a selfie with the bettor’s ID next to their face.
Once the player completes this process, it is up to the casino’s team to verify their identity or flag them as ineligible (which would result in account closure). There are certain groups of people who are not allowed to gamble, including minors and individuals on self-exclusion lists, while politically exposed persons (PEPs) are subject to enhanced due diligence..
Since verification requires a human compliance reviewer to check the documents’ accuracy and compliance with eligibility standards, the process can take a few days to complete. This could slow the gambling experience, since players look to use bonuses while they’re still available and withdraw their winnings as soon as they can.
How AI changed the process
Gamblers could start favoring untrustworthy betting platforms that don’t impose the same waiting time as a reliable casino. However, since the rise of Artificial Intelligence, the situation began to shift. Automation has become a necessity for businesses that wish to keep up with public demands and remain competitive in a fast-moving market, especially in a fast-evolving industry like gambling.
With the help of AI, operators reshaped the registration process, tightening the fraud controls while streamlining identity verification from a few days to minutes. The automated technology easily checks documents and biometric features, reducing waiting time for the player.
Besides time efficiency, the AI can search databases more accurately to identify ineligible bettors. This provides better user filtering, which is advantageous for operators, as they reduce regulatory exposure by keeping fraud rates in check.
New process, new problems
Since evolution works both ways, casinos are not the only ones updating their strategy. New problems emerge, as fake registrations and bonus abuse are no longer the main fraud strategies.
Operators are increasingly facing more complex issues, such as stolen or synthetic identities (which players create by buying data on the dark web) and the use of AI-modified documents and deepfakes to bypass KYC verifications.
To ensure that such problems don’t become recurrent, operators invest more and more in KYC verification technologies. This is a positive aspect that will benefit the casino in the long term, as a platform deemed unsafe is at risk of losing its customers and associates (affiliates and providers alike who would not want any association with such a site).
Conclusion
The gambling industry is an ever-evolving environment that has adapted its activities to current challenges. An essential part of this market is maintaining player safety, which is why precautionary measures are in place.
Identity verification is one of these methods that serves both the operator and the gambler’s interests. The casino prevents fraud, while the bettor can wager safely under regulations that protect them.
The automation of this process benefits both parties and contributes to a more secure gambling experience for anyone. Whether they use casino bonuses or simply wish to explore sports betting, table games and slot machines.
