Sumsub Releases KYC Guide for CA and the US

Sumsub, an international regtech company that offers identity verification, KYC/KYB, and AML compliance, published its first KYC guide “Identity verification for the gaming industry: US and Canada. A complete guide to balancing compliance, pass rates, and fraud protection.”

The guide is mainly focused on the issues in the gambling sector, including compliance with regulatory requirements and maintenance of a high level of fraud protection. The regtech company’s new guide aims at helping businesses understand the gaming laws in the US and Canada in order to optimize the verification flows.

We are happy to share compliance advice and verification tips with our global audience and showcase best practices for gambling clients seeking to grow outside North America.

Andrew Sever, co-founder, and chief executive officer of Sumsub

High Gross Gaming Revenue in the North American Region

The gambling industry has an enormous volume of patrons in the North American region. Gross gaming revenue in the US almost reached $53 billion. Nearly 18.9 million (64.5%) Canadians at the age of 15 or more have been involved in gambling activities in 2021.

Money laundering and fraud continue to threaten gaming platforms and the entire sector as well. By creating this guide, Sumsub helps gaming companies, based in Canada and the US, combat fraud and optimizes the verification procedures for customers in order to increase speed and conversion.

On the other hand, the gambling industry faces other issues including complex regulations. In Canada, each province regulates the gaming industry on its own. In the US, gambling is legal under federal law, but each state can regulate the sector independently.

Gaming Businesses Fined Due to Failure to Comply with Regulations

Gambling businesses that fail to comply with the established local requirements may face significant fines or even license suspension. In September 2022, the Nevada Gaming Commission imposed a $100,000 fine on William Hill for a number of violations related to the operator’s sports wagering system.

Prior to that, the Iowa Racing and Gaming Commission (IRGC) fined American Wagering Inc., a subsidiary of Caesars Entertainment,$60,000 for allowing deposits to be made with a credit card. In April 2022, IRGC imposed a total of $150,000 on three companies, namely BetMGM, Elite Hospitality, and SCE Partners, for the same issue.

In August 2022, Sumsub published a KYC guide for the gaming industry in Europe and the UK called “KYC for the gaming industry: Europe. A complete guide to balancing compliance, conversions, and fraud protection”.

Data cited by the regtech company states that the gambling sector is supposed to grow by €140.05 billion ($137.05 billion) from 2021-2026. Per Sumsub, the fast growth in the sector means great exposure to different types of fraud attacks.