Trust is good, control is better – verification and onboarding procedures for online casinos and lotteries
Gambling is a highly-sensitive industry – and ultimately, the prime goal is about making money, for both parties. As online gambling has increased in popularity, the customer onboarding process has now shifted to being fully digital.
The onboarding process does not only consist of the customer completing a straightforward online registration form but one that also entails verification checks that take place behind the scene. These can include ID checks, age verification, verifying payment methods as well as identifying at-risk customers - these are consumers that need to be identified in terms of assessment of affordability and identifying vulnerability. This protects both the consumer and online provider from unaffordable gambling.
Whilst online operators have a requirement to make online gambling fairer and safer for the end consumer, they also need to consider high-value customers, and therefore, these enhanced checks are required and a ‘Know Your Customer’ outcome is imperative. This is also carried out for the purpose of preventing identity theft moving forwards.
Online casinos and lottery organizations must also adhere to legal regulations, which have a significant impact on the digital onboarding process in addition to their own requirements. These include Anti-Money Laundering (AML) regulations and Know Your Customer (KYC) which includes customer interaction moving forward- customer spend, time spent gambling, behavior and patterns, and use of gambling management tools.
Example regulations that need to be fulfilled are:
- Bank Secrecy Act (USA)
- EU 4th Money Laundering Directive
- Prevention of Money Laundering Act (Malta).
Utimaco provides solutions that support verification processes such as Public Key Infrastructure and the issuance of qualified electronic signatures, as well as cybersecurity solutions that ensure the protection of sensitive data which must be collected by the providers.