It’s no secret that online gambling is a fast-growing industry, with experts predicting it will be worth $94.4 billion by 2024. Since the first successful gambling software appearance in the 90s, online casinos have increased so fast over the years. Like other industries, online gambling has bad actors who may want to exploit unsuspecting players. Consequently, governments worldwide have passed legislation prohibiting or regulating online gambling in their jurisdictions.
In 1999, the US passed the Internet Gambling Prohibition Act, followed by the Gambling Moratorium Act in 2000. In 2005, the UK passed the Gambling Act, creating the UK Gambling Commission while regulating internet gambling rather than prohibiting it.
Some countries allow their citizens to gamble online with no or little regulations. Consequently, illegal forms of internet gambling operations have emerged over the years. Also, the online gambling sector has snowballed even in countries with strict legislation. For this reason, multiple countries have considered stiffer legislation and scrutiny of the online gambling sector.
Some events in the United States impacted the online gambling sector significantly. For instance, several complex and contentious court battles prompted the US Department of Justice to change its official stance on internet gaming in 2011. Since online gambling wasn’t automatically illegal, some companies began offering their services to US players. Also, gambling organizations began offering services to online players globally.
Consequently, some experts, lobby groups, and legislators suggested regulations rather than prohibitions to control the online gambling sector. Legislators and companies had difficulties controlling the digital world.
Although regulations in the online gambling sector are more complex and specific, the primary concern has always been underage access to online casino games. Minors shouldn’t gamble, and online casinos should have reliable and accurate age verification software.
What is KYC in Online Casinos?
KYC or Know Your Customer is an identity verification process that governments require regulated online casinos to carry out on their customers as part of the anti-money laundering process. Also known as Enhanced Due Diligence, the verification process is mandatory and aims to eliminate financial crimes. Essentially, KYC verifies that players are who they claim to be, and banks and other institutions perform it to reduce money laundering and other frauds.
KYC helps an online casino identify a customer through Personal Identifiable Information and ID proofs. That way, the process helps online casinos to stem illicit funds flow. Also, it reduces gambling by underage individuals while preventing self-excluded gambling addicts from opening multiple accounts. Additionally, this process ensures that online casinos don’t lose money to fraud users.
For instance, an online casino for real money in California can initiate the KYC process by asking players to provide certain documents. In such a case, the platform wants to confirm or prove specific details about the player, including the following:
- Real-world identity
- Age
- Address
- Income source
- Ownership of the account or payment method
Upon initiating the KYC process, a casino bars a customer from withdrawing or depositing funds from and to their account until they complete the verification fully. Failure to comply with a KYC request or not providing the documents that the platform requires leads to the closure of the player’s account. Forfeiture of the funds in the player’s casino account and any bonus funds follows.
If gamblers have accounts with several online casinos, they may have to complete many KYC verifications. A player who hasn’t gambled online or has not dealt with KYC requests before may naturally consider this process an inconvenience. Others will be skeptical about disclosing financial and personal information to a third party, especially when gambling in several online casinos.
However, online casinos that comply with relevant regulations have a knowledge or FAQ section on their websites where they explain why they may ask you to verify your identity. Also, some platforms provide support via email, live chat, and telephone. Such platforms will answer any question a player may have regarding the KYC process.
Some online casinos have representatives who can help you complete the verification process or check your status after uploading the requested documents. Thus, you can know whether the casino has declined, approved, or kept your verification pending. If you missed the instructions, the casino would inform you and explain anything that may be unclear to you. In most cases, the verification process takes one to three days. However, this depends on the security department’s workload. Nevertheless, the casino will pay any pending withdrawal after verifying your identity.
Identity Verification Documents for Casino KYC
Several factors can cause variation in the verification process. However, most casinos require players to provide copies of the following documents to complete the KYC process.
- Proof of ID: An online casino will request proof of ID to prove that you’re the person you claim to be. In most cases, the platform will ask you to provide a government-issued ID, like a passport or a driver’s license.
- Proof of Address: Online casino operators require a proof of address document to verify your location. Most online casinos require players to provide their addresses when opening accounts. Therefore, a proof of address is a document showing your address and name. And this can be a bank statement, utility bill, or credit card statement.
- Proof of Payment Method: Online casinos require players to verify their deposit or withdrawal methods. Most online gambling platforms accept bank account deposits, Skrill, Neteller, and credit cards. A debit or credit card verification entails showing the last four and first six digits, the expiry date, and your name. For Skrill or Neteller, you screenshot your account number, ID, email, and your name. Verifying a bank account requires an online bank account screenshot showing the account details and your name or a bank statement.
KYC procedure can be an inconvenience for gamblers who want to play their favorite games. It’s also a nuisance when a player is waiting for money after requesting a withdrawal. So, why is it important?
Why Is KYC So Important?
Most governments legally bind online casino operators to verify their users’ details, such as age, identity, fund sources, and address, to protect players and their platforms from fraudulence. Legal and reputable online casinos prioritize trust without documents verification to ensure fair play and security of the punters. However, some companies seek to advance onboarding by verifying players’ identities, boosting competitiveness, and ensuring compliance with relevant laws.
Frankie Wilde – is a content writer at various gambling sites. Also, he is a passionate traveler and a great cook. Frankie shares informative articles with the world.