How technology can make compliance easier for your sportsbook business

Garrett Freehling

The iGaming industry is heavily regulated and subject to strict compliance requirements, including the need to verify the identity of players and report any suspicious activity. Know Your Customer (KYC) and Anti-Money Laundering (AML) compliance is essential for maintaining the integrity of the industry and ensuring that it does not shelter those engaged in illegal activities. Furthermore, failure to comply with these laws can result in significant financial penalties and damage to a company’s reputation. 

Fraud hurts everyone

Fake accounts are also often used as a vector for fraudsters to carry out a number of illicit activities, including promotion abuse and identity theft. One well-known recent example of how fraudulent accounts can harm a business is BetMGM. In November 2022, the company acknowledged that dozens of fake accounts had been set up on its sports betting app—many using the personal information of professional poker players—resulting in thousands of dollars worth of unauthorized bank withdrawals.

Think to yourself how many fake accounts might exist in your system at this very moment. 

To comply with KYC/AML laws and avoid the troubles associated with fraudulent accounts, iGaming companies must collect and verify certain information about their players, including their name, address, and date of birth. In addition, sportsbook businesses are required to report any suspicious activity to financial regulators—such as large, frequent deposits and withdrawals that may be indicative of money laundering.

Here comes automated IDV

Automated identity verification (IDV) allows companies to quickly and accurately verify the identity of their players, ensuring that they are, in fact, who they claim to be. Liveness and face-matching authentication add an additional layer of security, and these verifications are becoming more and more prevalent in the industry.

Additionally, automated IDV can help sportsbook businesses comply with AML laws by allowing them to identify and report any suspicious activity faster and with greater accuracy. The speed and precision with which identity verification checks can be performed with a high-quality solution—under 30 seconds and with over 99.99% accuracy—means that companies can quickly flag illicit activity and report it to the appropriate authorities. And with liveness and face-matching capabilities, iGaming businesses can prompt players to reauthenticate themselves without flagging accounts erroneously.

Easy compliance, unlimited potential

There’s no doubt that compliance with KYC and AML laws is critical for the iGaming industry, both to maintain its integrity and protect consumers from fraud. By automating the process of collecting and verifying player information, companies can reduce the risk of errors and more easily identify and report suspicious activity. Online gaming, already popular, is positioned to experience massive growth as automated IDV solutions become more common among platforms.

About the post:
Image is generative AI-created. Prompt: Renaissance painting of a hamster king. Program: DALL-E.

About the author:
Garrett Freehling has 8 years of experience working in technology. He is passionate about solutions for everyday problems and is constantly looking for the latest and greatest in the industry. Garrett’s background is in payments, customer experience, automation, and data management.

x  Powerful Protection for WordPress, from Shield Security
This Site Is Protected By
Shield Security