Sumsub, the online identity verification services provider that offers an all-in-one know-your-customer (KYC) and anti-money laundering (AML) service, released a new report.
The Growing Online Gambling Market Creates Challenges for Regulated Operators
The whitepaper, titled “KYC for the gaming industry: Europe” offers a guideline for gambling operators describing challenges related to KYC as well as age and identity verification. Additionally, Sumsub describes methods for building high-conversion verification and compliance. Last but not least, the new whitepaper offers an identity verification checklist for gambling operators. Ultimately, the new guide seeks to help operators navigate through the complex compliance process without delaying their onboarding process.
Currently, Sumsub offers solutions to multiple regulated markets around the globe. The company operates in more than 220 countries and territories and offers a 50-second average verification time. With that in mind, the company prevents more than 50,000 fraud attempts monthly.
“With a myriad of fraud schemes out there, such as bonus hunting, multi-accounting, and illegal chargebacks, fraud became a real menace to both growing and established gaming platforms,”
explains Sumsub’s latest report
The whitepaper released by Sumsub acknowledges that the global COVID-19 pandemic pushed many players to gambling applications and online platforms. Thanks to this, the online gambling industry started to grow at a significant rate. According to the new report, the industry’s worth may hit €140.05 billion from 2021 through 2026. What’s more, the new guide unveils that the growth of the gambling industry also represents an opportunity for the black market. Online fraudsters seek to take advantage of the growing market by offering activities such as bonus hunting and other malpractices.
Balancing Compliance and Verification Speed Is Important
A key challenge described by the recent guide is finding the balance between security and conversion rates. Considering that gambling platforms look to onboard players as quickly as possible, this, according to the report leaves them open to attacks from fraudsters. Onboarding players too fast also poses a risk of breaching compliance which in turn can result in fines or even license revocation. On the other hand, the report acknowledges that if identity verification rates take too long, this may impact the operator’s revenue.
“So the biggest challenge is balancing security and conversion rates, which is what this guide is all about,”
reads Sumsub’s guide KYC for the gaming industry: Europe
The new guide points out why the gambling industry needs to be regulated. One of the prime reasons for regulating the industry is to protect the players and the operators. In turn, this helps increase the trust in the gambling operators and the industry as a whole, while at the same time it prevents fraudulent activities such as money-laundering and terrorism financing among other things.