During the King’s Speech on Wednesday, to the surprise of many it was revealed that the government was planning to introduce the Digital Information and Smart Data Bill, focusing on legislation for digital identification.

Roger Redfearn-Tyrzyk, Vice President Global Gaming at IDnow told CasinoBeats that their introduction could “change the way users onboard to gambling operators in the UK”. 

He continued: “In general, prospective players can be verified with the help of database checks (i.e. credit reference agency data), document checks and/or biometric checks to safeguard players and operators against suspicious or fraudulent activity. IDnow offers all these methods within its portfolio.

“In the UK gambling sector, player onboarding via database checks is still the most common verification method today. If digital ID cards were introduced, this could become a new, possibly even preferred, verification method, depending on how the regulator would choose to deal with this new verification option.”

“Additionally, it will give the player an overview of exactly what data is being checked, so that they are in full control of it. At this moment in time, it may not be clear to the player what data is being checked or verified, unless they consult the small print of the terms and conditions. With a digital identity, the player would truly own their data on their device.”

Digital ID is not a new proposal in the British market, having previously been touted under the last Labour government by Tony Blair in 2005. 

The former Labour leader also lobbied for them again following the party’s return to power after 14 years in the shadows, with Blair citing its potential to tackle illegal immigration in the country.

Introduction of digital ID could have widespread consequences on a plethora of industries, though including the gambling space where KYC is nothing short of crucial. They will mean the implementation of Smart Data Schemes, which will facilitate the secure sharing of customer data with authorised third-party providers.

Redfearn-Tyrzyk pinpointed Singapore as a market that has had success in terms of digital ID, as he emphasised that they can perform multiple functions. 

He said “In Singapore, the digital ID replaces 33 other IDs and is used to prove identity for public and private transactions, including applying for social services, entering government clinics and banking.

“There are hundreds of public and private sector use cases where digital identities could optimise the user experience in a KYC process. For example, account opening in banking, compliance checks in crypto, age verification in mobility, streamlined check-in processes in travel or contract signing in telecommunications.”

Mapping out potential challenges to their implementation, he revealed: “In 2021, around one in four people in the UK did not have a traditional form of ID. While technology offers a fast, low-cost way for countries to provide identification to adults, any new system or product takes time to build a new user base. 

“In the past, many digital ID programmes around the world have struggled with adoption rates due to a lack of public-private partnerships and the associated difficulties in integrating with different government agency identification systems.

“In the UK specifically, because ID cards – and digital ID cards in particular – are a relatively new concept, there is a general lack of awareness of their benefits and therefore a lack of confidence in how they work. This would likely hinder the initial uptake. 

“Additionally, consumers, both in the onboarding process and in daily use, have become accustomed to a certain customer experience when using digital solutions. Unless a UK digital identity solution provides a similarly seamless and smooth experience, users may not migrate to the new solution.”

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Through the launch, the provider of customised ID verification solutions is seeking to provide “a bridge of AI technology merged with human interaction to achieve optimal assurance on KYC demands.”

Supporting clients with built-in AI modules to gauge biometric features, VideoIdent Flex aims to “reduce rising fraud attempts, increase inclusivity, and tackle an array of complex online verification scenarios while offering a high-end service experience to end customers.”

IDnow backs the use of live video identity verification for high-risk sectors as a critical measure to protect businesses against new real-time AI threats used by online fraudsters and money mules such as social engineering fraud, document tampering, projection, and deepfakes.

Bringing VideoIdent Flex to market, Bertrand Bouteloup, CCO of IDnow, commented: “It’s a ground-breaking advancement in identity verification, merging AI-based technology with human intuition.”

In a landscape of evolving fraud tactics and steady UK bank branch closures, our solution draws on a decade’s worth of video verification experience and fraud insights, empowering UK businesses to maintain a competitive edge by offering a white glove service for VIP onboarding.

IDnow cites that its live identity verification services have been used for over a decade by key customers in Europe, “serving the strictest requirements in highly regulated industries.”

In the UK market, IDnow has re-engineered the VideoIdent Flex solution to meet the day-to-day challenges and changing regulatory demands of customer compliance and KYC measures imposed on specific UK online sectors.

Related to online gambling, IDnow highlighted the updated verification measures for “high-risk individuals; reviewing applications from high-risk persons, such as Politically Exposed Persons (PEPs), from high-risk countries; or assessing where fraud might be expected with real-time decisions, without raising suspicion.”

Bouteloup concluded: “Identity verification is incredibly nuanced; it’s as intricate as we are as human beings. This really compounds the importance of adopting a hybrid approach to identity – capitalising on the dual benefits of advanced technology when combined with human knowledge and awareness of social cues.

“VideoIdent Flex is designed from the ground up for organisations that cannot depend on a one-size-fits-all approach to ensuring their customers are who they say they are. In a world where fraud is consistently increasing, our video capability paired with our experts adds a powerful layer of security, especially for those businesses and customers that require a face-to-face interaction.”

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The challenges faced by betting and gaming operators’ compliance teams are many and varied. As the industry continues its move towards regulation in new territories and tighter regulation in established markets, and the technological revolution keeps speeding ahead, those issues are in a state of constant change.

With this study, IDnow and SBC Media set out to investigate what the biggest compliance challenges were at the start of 2024, and how they were likely to evolve during the year.

The study looked at four areas: compliance, fraud, onboarding and financial risk checks.

It asked operators working in markets across Europe, the US and Latin America about their experiences and expectations in order to obtain an international perspective on the industry’s biggest pain points.

The key findings included:

• Source of funds checks are the compliance challenge that operators find most difficult
• Bonus abuse was the most-common form of fraud attack identified by operators in 2023
• Operators expect to see a growth in social engineering attacks and document fraud in 2024
• Few operators in the Americas identified money laundering attacks in 2023, but many expect to see this type of fraud become more prevalent
• Security and data privacy, and accuracy are the most important factors for operators when implementing an onboarding procedure
• Submission of personal financial information documentation is the stage that sees the biggest drop-off rates in the onboarding process
• Two-thirds of operators expect the UK Gambling Commission’s planned implementation of financial risk checks to lead to a reduction in customer sign-ups

One other thing that became clear is that technology is ever more important for compliance professionals. The results showed that robust systems have already seen tasks such as identity and age verification become operators’ least difficult jobs, while AI-driven tools are playing an increasingly important role in fighting fraud.

With regulation in many markets becoming more detailed, the imminent introduction of financial risk checks in the UK, and the growing sophistication of fraud attacks, it is certain that having the right compliance and onboarding technology in place will become ever more crucial.
Download the full Challenges in Compliance report here.

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The finding emerged as part of the SBC Media Challenges in Compliance Survey, which saw senior compliance representatives from operators in Europe, North America and Latin America share their thoughts on the major issues they face. The full report will be published in February 2024.

One of the survey’s questions was, ‘at what stage do you currently see the biggest drop-off rates in the onboarding process?’ Just over 50% of respondents identified ‘Document Submission – Personal Financial Information’ as their most significant problem area.

The scale of the reluctance of players to share financial documentation was emphasised by the other answers to the question. The second and third most common drop-off points were at the ‘Registration’ and ‘Document Submission – ID Documents’ stages, but they were identified by just 15% and 13% of respondents respectively.

Another part of the survey examined attitudes towards the likely introduction of mandatory financial risk checks – more commonly known as affordability checks – in the UK.

The measure was included in the Government’s Gambling Act Review and the UK Gambling Commission (UKGC) is now running a consultation on what it describes as “frictionless financial risk assessments”. The checks would be requested when a player experiences losses greater than £1,000 within a rolling 24 hours or £2,000 within 90 days, and would affect an estimated 3% of accounts.

It has suggested that these checks would largely be completed via a credit reference agency, although some industry experts have privately questioned whether this is a workable solution. Where no credit reference file is available, a customer would be asked to share data via a third-party open banking provider or to provide documents such as payslips and bank statements. 

The UKGC also plans to implement “light-touch financial vulnerability checks” for players who experience a £125 net loss within a rolling 30-day period or £500 within a rolling 365-day period. It estimated that would be necessary for around 20% of accounts. 

Respondents to the Challenges in Compliance Survey displayed what could be interpreted as a significant degree of worry about the plan.

Asked what impact the introduction of the financial risk checks would have on the market, 67% of people predicted it would lead to a reduction in customer sign-ups at licensed operators, while 26% said it would have no effect.

Commenting on the results, SBC’s Content Director Ted Menmuir, said: “The findings emphasise the fact that people are uncomfortable sharing personal financial information, whether that be with gambling operators directly or government-approved entities.

“In theory, affordability checks are a potentially effective safer gambling tool, but they require a level of engagement from players. For those bettors unwilling to provide documents or wary of allowing a credit reference check, the chance to sign up with black market operators will become an attractive option.

“We can expect to see a long-running debate about affordability checks, both in the UK and other markets, but it is clear that they are not going away and that technology suppliers will have a crucial role to play in finding a workable solution.”

Roger Redfearn-Tyrzyk, Vice President Global Gaming for leading identity verification platform provider IDnow, added: “The results of the survey are quite insightful and are sure to act as as a wake-up call for gambling operators in the UK and elsewhere to prepare themselves for the emerging fraud and compliance challenges, especially around financial risk checks. 

“To address these challenges, operators will need technology providers with powerful, holistic affordability checks paired with multi-dimensional identity verification and fraud prevention, that enable seamless gambling experiences anytime, anywhere.”

The SBC Media Challenges in Compliance Survey addresses some of the key issues around compliance, player onboarding, fraud and technology. To sign up to receive a copy of the full report, please complete the form below. 

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The webinar comes ahead of the highly-anticipated, rescheduled Euro 2020 games which will see teams compete in 12 different cities across Europe.

With the group stages due to kick off on June 11, the appetite for a major international football event has never been greater. 

So as many sports fans long to return to full stadiums, this year’s tournament is expected to see a large spike in betting activity as bettors seek to emulate that match-day experience. 

But on July 1, right in the middle of Euro 2020, the new German gambling regulation will come into force – bringing with it significant legal innovations for online sports betting and online casinos.

In this exclusive webinar, Martin Lycka (SVP compliance, Entain), Razia Ali (senior account manager gambling, IDnow), Rayissa Armata (head of regulatory affairs, IDnow) and Roger Tyrzyk (director global gambling & aales UK, IDnow) will discuss the new regulations from the perspectives of operators, regulators, customers, and new businesses.

To view the session, register for Online Gambling in an Ever-Changing Regulatory World – Thursday 22 April at 2PM BST.

Rayissa Armata, head of regulatory affairs at IDnow, said: “As Germany prepares to open its doors to a legal betting market, it’s key that stakeholders deliver the best possible player experience from the start. 

“There are likely to be many questions about onboarding, regulations and the development of the market. We hope to offer some valuable insights into the intricacies of the legislation ahead of July 1.”

Join the panel of experts, who will give valuable insights into preparing for the surge in onboarding and providing your players with the best possible experience.

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This follows news that the country’s 16 states have agreed to a transition period to ensure that operators are fully compliant with the draft for the new legal framework, Glücksspielstaatsvertrag, by October 15, before the official start date of July 1, 2021. 

“This is a big step for Germany’s online gambling industry, and again, it shows the importance of eKYC methods and their need to evolve. In a world that becomes more and more digital by the day, we need to stay vigilant and constantly adapt our security requirements,” explained Rayissa Armata, head of regulatory affairs at IDnow. 

“IDnow strives to contribute to responsible corporate citizenship, ensuring that the social responsibility for this industry can be achieved effectively through innovative methods. This is the strong desire of the federal and state governments within Germany, and IDnow has been and – will continue to be – an active supporter of those efforts.”

Agreeing to the transition period last week, the move will allow operators to offer casino style gaming and poker as long as such activities are fully-compliant with the draft for the new Glücksspielstaatsvertrag. 

Online gambling operators must meet all licensing requirements by the aforementioned October 15 deadline, including a range of player protection guidelines and safer gambling measures.

Among the further changes to be implemented by the new regime are a wagering limit of €1 per spin for slot games, and a €1,000 deposit limit across all online gambling verticals.

“We have developed our products together with our clients, the biggest players in the market, to perfectly meet their needs. IDnow offers AML compliant video verification, but also an approved automated verification solution,” added Oliver Obitayo, CSO at IDnow.

“Gambling operators can choose, depending on their security needs, which of those multiple solutions they want to use. All of them fulfil mandatory age verification requirements. 

“To us its more than important that our clients can offer safe service platforms to customers so underage use can be prevented.”

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For an insight into some of the key issues facing the gaming sector in 2020, CasinoBeats spoke to Roger Tyrzyk, Head of Sales for UK and Ireland at IDNow. 

Compliance is lauded as “undoubtedly the single biggest issue driving the gambling sector at present,” why is this so?

RT: “Compliance should be seen as an enabler for growth. If you build a sustainable, risk-based approach, you invest in the future of your company and your brand. 

“But also the fact that political (regulatory) authorities put a lot of pressure on the operators is a big issue in the industry.”

Do you believe the many branches that fall under the compliance banner are taken seriously enough industry wide? 

“Absolutely – 98 per cent of the companies are doing the right things, and their compliance teams are constantly making sure to fulfill all requirements across all areas of the business. 

“They can’t afford to fall behind, because otherwise, the costs of fines will be so much higher than the actual costs of implementing specific measures.”

The industry witnessed a variety of related fines across a number of jurisdictions in 2019, what more needs to be done?

“If we look at those fines, you will see that those are historical and date back a few years, which means that in the meantime, a lot of work had been done to correct failures in certain areas. 

“However, there are always some dark horses that try to get away with certain things and only see the quick dollar in their eyes. This will – 99 per cent – of the time come back to haunt you, though!”

How are impending changing regulations set to impact compliance measures?

“We are already seeing huge changes coming across Europe (and they come very fast), which impacts businesses even more because they don’t have much time to be prepared. 

“Many operators will start to ‘get out of’ specific markets because the operational costs are high and instead will focus on Asia, Africa and South America as compliance is leaner and, therefore, easier to operate in.”

How do solutions offered by organisations such as IDnow aid the issues as discussed above?

“Technology is now at the forefront of being compliant. Of course, some of the things will have to be manual, but it’s not sustainable at all anymore to manually check customers or even monitor them. 

“This is where the fines are coming from – because company ‘x’ didn’t have a process in place that helped them to cope with huge volumes. However, I also have to add that some of the technology companies are misleading operators and taking them on a route that they shouldn’t have even started in the first place. 

“Regulatory technology, transaction monitoring – and enhanced-due-diligence tech have to be the way forward for any operator anywhere in the world, and they have to be used properly.”

The post IDNow: Compliance should be viewed as an ‘enabler’ appeared first on CasinoBeats.

Lauded as a “landmark partnership” and “ground breaking launch,” it sees the firm strive to heighten the global reach of its games portfolio.

Stuart Banks, managing director of Playzido, said of the new deal: “This is a ground-breaking launch for Playzido. Going live in Gibraltar has been an important strategic goal for Playzido and it’s fantastic to be able to kick this off with an operator of Lottoland’s pedigree. 

“Lottoland are well-established as one of the industry’s most eminent lottery brands, and we feel that our portfolio of outstanding original and branded content will make a valuable addition to their rapidly growing slots offering.” 

Marking Playzido’s first operator launch in Gibraltar, the agreement will see the firm deliver a number of games from their extensive library across Lottoland’s websites, with titles such as Endemol Shine Gaming’s Deal or No Deal portfolio and 3 Lucky Pots made available.

Nigel Birrell, chief executive officer of Lottoland, commented: “We are really pleased to have partnered with Playzido. Our rapidly growing games portfolio is extremely popular with our players due to our ability to offer high jackpots. This partnership brings more choice to our customers.”

The move comes as Lottoland unveils a link-up with identity verification provider IDnow, which is to support the firm with digital transformation of its identification processes.

The gaming provider will use IDnow’s AutoIdent to directly verify the legal age of its customers during initial registration, with it said that users can identify themselves via an app in a very short time and without media discontinuity.

“In our business, flexible customer service, security and legal compliance are crucial. With its online identification solution, IDnow offers us the very best in all areas,” Birrell adds.

“Many customers use our services via smartphone and fill out their tickets using our app while on the move. With IDnow AutoIdent, we can now accept orders independently from our service centre around the clock – worldwide.

“This will enable us to meet increasing global demand and provide our users with a perfect customer experience from the moment they sign up, without making any compromises regarding legal compliance”.

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