
The Crucial Role of Know Your Customer (KYC) in Gaming

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The gaming sector has grown exponentially since the first arcade games of the 70s. Surpassing music and TV, the industry is the most profitable sector in the media landscape. The online gambling market is witnessing unprecedented growth worldwide, projected to double from 2016 to over  $94 billion by 2024. However, constant growth and fresh opportunities also open doors for scammers, making Know Your Customer (KYC) verification solutions necessary.Â
The Bank Secrecy Act (BSA), enacted in 1970, established the US’s first Anti-Money Laundering (AML) regulations. Initially targetting traditional financial entities such as banks, lenders, insurers, and credit unions, the definition of financial firms has expanded over time. Casinos were included in this category in 1985, encompassing online gaming operators.
The BSA mandates online gaming operators to track user activity and file reports when they observe any unusual activity. This comprises filing Currency Transaction Reports (CTRs) for users making transactions of at least $10,000 in one working day and Suspicious Activity Reports (SARs) when their activities indicate financial crimes. Moreover, online gaming operators should conduct Customer Due Diligence (CDD) before allowing players to place bets.
Gaming firms can ensure their information is handled securely and appropriately by verifying users’ personal data. This builds trust between the company and its users, giving a better gaming experience. Moreover, staying compliant with regulations prevents the firms from heavy non-compliance fines.Â
Not abiding by KYC regulations may have significant consequences for companies. The risks of non-compliance include:
An efficient KYC process is critical for companies operating in different sectors, such as finance, banking, and online gaming. To implement a practical KYC approach, firms should follow the best practices such as:
Shufti Pro is a globally recognised IDV solution provider, offering innovative KYC services to 230+ countries and territories and supporting 150+ languages. We conduct KYC and CDD processes to restrict minors’ access to gaming and gambling services illegally. Our KYC services leverage AI and ML technologies to verify identities within seconds with an accuracy rate of more than 99% to mitigate the risk of fraud. Our KYC solutions offer a secure and friendly user experience, contributing to more than 98.44% end-user happiness and increasing your firm’s retention rate. Deploying KYC solutions helps the gaming sector meet the changing regulatory requirements and avoid heavy non-compliance fines. Moreover, our tech team provides a tailored Hosted Verification Page (HVP) to address your firm’s technical needs and streamline the implementation process.Â
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