Responsible gambling measures have improved significantly in recent years. Gambling operators have played a massive part in improving player protection through increased awareness and better responsible gaming tools, but could they be doing more?
The rise of gambling
Online gambling has been around almost since the inception of the internet, however, early users were made to download huge files in order to use it. As technology advanced and internet speeds increased so too has the popularity of online gambling.
As we explored recently, mobile apps have opened the doors of online gaming to anyone who owns a smartphone (5.2 billion people worldwide). The introduction and rapid increase in quality of mobile apps has led to a huge number of consumers moving away from traditional brick-and-mortar betting and towards using an online portal, thereby increasing the number of online players exponentially.
Today, gambling is a global industry worth $443.2 Billion and still growing. However, it continues to face intense scrutiny from both the media and regulators, due in some part, to a perceived failure to prevent vulnerable people from gambling.
Google Trends data shows that search interest in online casinos hit an all-time high in the UK this year whilst the country was in lockdown. Though, the Gambling Commission watchdog said there is no evidence yet of a rise in ‘problem’ gambling.
Under UKGC laws, all gambling operators must offer provisions for responsible gambling to protect the welfare of their customers. The Gambling Commission uses a rulebook for operators (the LCCP) to which they must adhere in order to comply with the law and with the terms of their licensing.
Over recent years, increasingly strict regulation has called for more stringent security measures to ensure players are properly protected. New regulations have centred around age & address verification and 2+2 checks, and they look set to multiply in the coming months, potentially requiring document and biometric verification in certain situations. For now, the current LCCP conditions are as follows:
2+2 identity verification checks must take place before:
- A player deposits funds or gambles.
- Access to any Free-to-Play (F2P) versions of games are made available.
- A player receives or is allocated free bets or bonuses to play with.
2+2 identity verification checks state that a customer must provide two forms of documentation that state either their Name & Date of Birth, or their Name & Address in order to be verified.
Businesses are also realising the incremental benefit of being seen to be responsible. Today’s consumer is far more aware of company practice and will often favour a brand that aligns to their views; your conscious gamer may be likely to choose a more principled partner with whom to spend their money.
Are operators doing enough?
Leading gambling operators have begun to take note. On top of strict KYC and AML checks, many have set up responsible-gambling teams who identify problem or vulnerable people early and make sure they are protected. The operators see a benefit from this focus on social responsibility that goes beyond compliance.
The success of customer acquisition in online gaming comes down to three things – registration, verification and ongoing monitoring. Get these right and operators will not only attract more players; but keep them as well.
The initial interactions a new customer has with your business set the tone for the entire relationship; the likelihood of a customer sticking with you (and recommending you to others) increases with the level of emphasis you put on creating an excellent onboarding process. That’s why it’s important to make sure your onboarding process is robust, efficient and compliant and your customers can begin using your products as quickly as possible, with minimal drop-offs.
Gaming and gambling is now done in real-time. However, for many operators, the identity verification KYC steps that have to take place to onboard a new customer are not done in real-time. Instead, they are stuck in the dark ages, with painfully slow and outdated methods.
Operators who have been the most innovative have made the most gains in new customer acquisition, retention, and increased revenues as a result. A robust, efficient and compliant onboarding process will ensure that you win more ‘good’ customers and have them using your services as soon as possible.
Ongoing transactional monitoring helps identify suspicious (and possibly fraudulent) activity before it becomes a threat, allowing operators to alert players or internal staff more effectively. By understanding the behaviour of players and spotting unusual activity in real-time, you can intervene immediately; promoting healthy player behaviour.
There’s also an extra benefit to regular monitoring of player behaviour. Operators have found that the technology they use to identify a problem gambler can also highlight highly engaged players. The responsibility towards vulnerable players is definitely more than a compliance exercise; it makes sound business sense too.
How we can help
Here at Hello Soda, we’ve a comprehensive family of KYC and AML solutions all working together and delivered via a single API integration. Utilising all forms of data, this integrated approach helps increase pass rates in countries all over the world, which in turn increases revenue and customer acquisition with real-time onboarding, creating a better customer experience.
Traditional checks, such as using credit history mean that many good customers are turned away. A vast number of millennials do not have CRA data so if this source is used, they are rejected. Equally in countries with thin files, where traditional data does not exist or is scarce, our product offering can be used to qualify and verify new customers.
Our global ID, KYC & AML platform, Sodium, is designed to help save you time and money, streamline your customer journey, automate your onboarding process, reduce fraud and achieve regulatory compliance. One simple integration; a flexible 360° solution which is scalable and secure.
A unique and real-time ID scoring system intelligently verifies identity through a combination of data sources, including digital footprint verification, document authentication, facial recognition matching, liveness verification, live utility data address verification and CRA identity checks.
Utilise a single element or multiple processes – it’s entirely up to you. Learn more about how we can help to automate and simplify your verification processes to help you to learn more about your customers.
Book a demo today and see for yourself how powerful our suite of solutions are.