Gambling compliance

Online gambling is a burgeoning global industry faced with an increasing multitude of regulatory and identity verification challenges. In 2015, it was reported that the global online gambling market was valued at $37.91 billion (£27.2 billion), and it is projected to reach $59.79 billion (£42.93 billion) by 2020.

Meeting the demands of this immense market, as well as addressing Anti-Money Laundering (AML) and Know Your Customer (KYC) compliance requirements across jurisdictions, is becoming exceedingly more complicated for online gambling operators.

One of the greatest factors in meeting these requirements is the broad and diverse range of customers who are engaged in online gambling. The internet enables people from around the world to gamble from anywhere at any time, yet rules vary from country to country, jurisdiction to jurisdiction, with legalities ranging from age restrictions to near or outright bans, such as in the United States.

Gambling operators must have systems and infrastructure in place that adhere to regional laws as well as meeting requirements to combat illicit activities, such as money laundering. The consequences of not meeting these requirements are severe, evidenced by recent fines levied on two European firms.

In February, betting firm William Hill was fined more than £6 million for breaching anti-money laundering (AML) and social responsibility regulations. This penalty is the second largest imposed by the Gambling Commission, following last year’s £7.8 million action against betting firm 888 Holdings plc.

Speaking about the issue, Stephen Ufford, CEO and founder of Trulioo said that: “Alongside the growth of the online gambling industry, we’re also bearing witness to an increase in savvy cybercriminals who are gaming the system with sophisticated attacks.

“To reduce fraud, knowing your players has become more important than ever before, but the key is to balance security with usability so that players can play without delay.”

Gambling operators are bound by a multitude of restrictions – for example, operators in the UK and Europe must meet requirements associated with the 4th Anti-Money Laundering Directive or the Gaming Act (2005) – making it their duty to prevent criminal activity and promote socially responsible gambling.

“Complying with regulations and verifying player identity is not something to be left to chance,” Ufford continued. “Across the industry, gambling operators need a robust and comprehensive identity verification solution that helps them comply with regulatory obligations without sacrificing convenience of legitimate players.

Trulioo’s Global Gateway platform enables online gambling operators to perform frictionless identity verification for 4.5 billion people, in over 80 countries – the widest coverage on the market.

Trulioo supports financial institutions, online gaming, sports betting and casino operators, and payment providers to instantly verify identities online, helping to reduce fraud and comply with age verification AML and KYC requirements. Trulioo’s Mobile ID and ID Document Verification products ensure the reliable and timely verification of individuals all over the world, even those in hard-to-reach markets.