SBC News Voice of the Sports Betting Industry
The burden on operators around identity verification and risk monitoring is only increasing. Viewing the challenge as a chance to gain a competitive advantage is the best way to respond, argues GlobalCheck CEO Alastair Graham.
The gambling industry is no stranger to rapidly evolving regulation, but the introduction of affordability checks in the UK last year did mark a significant turning point.
Much of the focus has been on the impact of these checks on betting turnover, but the move underscores a broader shift in our industry, not just around the issue of affordability in the UK, but in how regulators are now demanding that operator’s verify and identify their users to a far higher standard than what was previously considered acceptable.
Around the world, regulators now insist upon increasingly rigorous player verification protocols. As well as affordability, these checks cover age, address, anti-money laundering (AML), due diligence, responsible gambling, sanctions, politically exposed persons (PEP) and more.
The trend reflects a deeper societal and political awareness of gambling-related risks, and signals that the days of ‘light-touch’ regulation are firmly behind us.
While countries like the UK, the Netherlands and Sweden are leading the charge, others are beginning to follow, and the direction of travel is very evident.
In short, accepting a player’s deposit is not the simple, stress-free process it once was.
Robust checks, enhanced UX
Let’s not deny that this poses a significant challenge for our industry. We know that whenever a player is asked to provide documents or other information, there’s a chance they will opt to end their session rather than jump through the hoops.
Players log on to relax and enjoy; taking them out of that mindset with identity or other requests harms the experience. So we need to think carefully about how to make these requests?
Technology is making this easier. It’s now possible to leverage multiple data sources to accurately identify customers faster than ever before. Biometrics have progressed rapidly. Asking the customer to take a quick selfie can now deliver a high standard of ID verification as facial recognition technology has progressed so much over the last few years.
On the question of affordability, it’s now possible to conduct multi-bureau checks that return high match rates without the usual disruption.
‘As painless as possible’
While technology has made great strides in improving the verification process, it has also introduced some new challenges.
Deepfake fraud is one growing concern. The ability of bad actors to use advanced AI to create convincing forgeries has made fraud detection more complex than ever.
This underscores the importance of integrating state-of-the-art fraud prevention tools, such as AI-driven analysis and biometric verification, to ensure systems remain secure against these evolving threats.
But robust verification should not be treated as a standalone process.
Instead, it should be seen as an integral part of the overall user journey. Only when these checks are embedded thoughtfully into the experience will they be able to fulfil the regulatory requirements while keeping players happy.
Remember, players are telling us themselves that they are not particularly keen on additional checks; a UKGC survey of 12,000 gamblers last year found that 42 percent would refuse additional requests from an operator for information on affordability.
We need to make this as painless as possible…By taking a more holistic approach, where checks are seamlessly integrated into the experience, operators can turn what might be seen as a compliance burden into an opportunity.
Streamlined and secure verification processes reassure players that they are engaging with a trustworthy brand. And they also reduce the likelihood of friction points that could lead to churn.
The trends we’re witnessing now will only grow in importance. As regulators continue to raise the bar, operators that embrace these changes rather than reluctantly comply with them have the chance to gain a competitive edge.
Those who can master the delicate balance of compliance, security, and user experience will find themselves not just surviving but thriving in this new regulatory landscape.
