Key factors for identity verification in online gambling

It is a fact that online betting and gaming are on the rise due to their simple accessibility for any user who has access to devices or computer equipment and desires to make some money.

The DGOJ’s annual report highlights the advantageous progress of the online gambling sector in Spain, which has experienced continuous growth and has settled itself as an expanding industry in recent years: the number of participants in online casinos is increasing, with a total of 3.291.724 active accounts in 2023 14.29% more than in 2022.

Multiple websites belong to the sector on which different players interact without any knowledge of who is on the other side of the screen. That could lead to serious problems for betting houses and companies in the online gambling sector, as they lack enough information to consolidate the protection of individuals using their products or services.

The DGOJ establishes the obligation for gambling operators to verify the identity documents of all participants to consolidate the protection of those involved in this recreational activity. This action is also mandatory in other legal systems.

How is identity verified on online gaming platforms?

Identity verification plays a critical role in ensuring the security of users who participate in online betting and gaming.

This is because ensuring the fulfilment of the appropriate regulations protects users’ privacy in order to prevent any potential fraud.

Verification methods differ depending on the platform, but they usually involve an onboarding process in which users must provide personal information such as full name and date of birth, among others. Additionally, verification of identity documents, such as an official ID or a passport, is required.

Once the verification process is completed, players can easily access the site and participate in online gaming activities securely and legally. Additionally, identity verification helps prevent access to minors and fraudulent activity, thereby protecting both players and the integrity of the online gaming system.

Some use cases in the gambling industry

Player digital onboarding 

This process mainly involves onboarding new users, ensuring that they can access all the services available on the website simply and efficiently, and properly integrating them into the database. 

With digital onboarding solutions, players’ identities can be verified during the onboarding and login process as well as at the point of exit, and user activity can be monitored to prevent potential fraud and scams. 

Identity verification in online gambling withdrawals

Identity verification in funds withdrawals on online gaming platforms involves providing identification and residency documents in order to confirm the legitimacy of the user. 

This process is crucial in terms of preventing fraud and ensuring the security of both the user and the platform. For that reason, many legal frameworks mandate the identity verification of players who have exceeded a certain volume of transactions.

Age verification

Age verification on online gaming platforms is essential to comply with regulations and protect minors by ensuring that only adults participate.

According to Article 9 of Royal Decree 176/2023, dated March 14th, as published in the BOE, accessing online gambling and betting platforms is completely forbidden for anyone below the minimum legal age established in the country.

Database verification

Database verification helps detect fraud cases by comparing the information provided by the user with authentic and verified data.  

Additionally, in certain jurisdictions, self-exclusion lists or mandatory exclusions are implemented for individuals with gambling problems. In this way, through proper user identity verifications, access to gambling and online betting platforms by individuals with gambling addiction can be prevented.

Re-verification of identity due to changes in the player’s data

This procedure is carried out when users modify important personal data, such as name or address.

The advantage of this process resides in the improvement of fraud prevention and the assurance that the account is used by the authorized person, also complying with security regulations in online gaming and betting platforms.

Identity theft in online casinos 

According to the Consumers and Users Organisation, online gaming sites are among the most targeted by hackers, as a large number of cases of identity theft occur in online casinos annually. 

A very common practice by cybercriminals involves committing fraud through false registrations in online casinos.

Legal requirements for player verification in Spain

Following the incidents mentioned above, the Directorate General for the Regulation of Gambling established a mandatory requirement involving user identity verification as of April 1, 2019. Additionally, the Phishing Alert service has been implemented, which guarantees the authenticity of registered players by providing additional security coverage.

What does this legal requirement for player verification involve?

This is carried out through a procedure mentioned earlier called identity validation, a procedure in which player’s identities will be verified by making use of official documentation, as well as the storage of information such as the user’s IP address from which they establish a connection, the device they have used for the connection, and their ID.

Identity verification in online gaming and betting across different legal frameworks

In today’s society, we find ourselves immersed in a globalised digital world where different cultures interact with each other, which is an enriching fact. However, it is crucial to implement controls and regulations to prevent possible fraud that may arise from interactions with cybercriminals.

For that reason, each country has established within its legal framework a series of actions that are translated into legal laws and promote legitimate user interactions.

Let’s break down some rules belonging to specific countries in order to have a wider legal framework.

Identity validation mechanisms in online gaming in Colombia

The excitement of online betting in Colombia is experienced with the peace of mind of knowing that there is a solid regulatory framework behind it. We will base the following lines on Law 643 of 2001 and its evolutions, as well as on the regulations of Coljuegos.

The reform introduced by Law 1753 of 2015 transformed the landscape of online gaming in the country by establishing clear criteria for the so-called ‘novel games or online games of chance.’ These are games that are exclusively enjoyed on the internet, with prior registration of the player on the authorised site or portal, and whose mechanics are supported by a virtual random number generator or the occurrence of real events whose outcomes are not controlled with digitally managed bets and prizes.

Identity verification is a fundamental pillar of this type of game, as outlined in the Technical Requirements for Games Operated over the Internet document.

The operator is responsible for this process, ensuring the authenticity and validity of each user account. The registration form collects data such as:

• Type and identification number.
• Personal details such as names, surnames, date and place of birth, and gender.
• Contact information, including email address and phone number.

With the recent modification of 2022, specific definitions for valid identification documents were added, adapting to current needs. These include citizenship cards, foreigner identification cards, permits for Venezuelan migrant citizens, Temporary Protection Permit (PPT), and Special Stay Permit (PEP) while they are valid.

Additionally, the operator will be responsible for verifying and validating players’ ages to prevent the participation of minors.

It is necessary to indicate that the user account is more than just a simple registration; it is the key that opens the door to the authorised game offerings. Through this account, all transactions are managed, reflecting deposits, withdrawals, bonuses, and prizes, all under the monetary unit and equivalence established by the regulations.

The regulations also require operators to update players’ data continuously. In this regard, annual validation procedures are established to ensure the accuracy of the information. Coljuegos is responsible for verifying compliance with registration obligations and acting with authority in case of any non-compliance.

Know Your Gamer for players in Mexico

In terms of the Mexican legal framework, consideration should be given to the provisions of the Reglamento de la Ley Federal de Juegos y Sorteos (Regulation of the Federal Gaming and Lotteries Law). These regulations dictate the rules regarding the application of the law, including licensing requirements, gaming establishment operations, security, and advertising. It is essential to regulate the gaming industry in the country.

Nevertheless, it is important to note that the current law and its regulations may be outdated, especially when it comes to Internet gaming and gambling.

Article 85 is one of the few articles in the regulation that refers to remote gambling. In this sense, it establishes that establishments may take bets via Internet, telephone or electronic means. To this end, they must establish an internal control system for the transactions carried out in these ways, drawing up a written description of the procedures and rules that ensure inviolability and prevent the manipulation of the betting systems. 

Such a system shall record at least the following:

• The account number and identity of the gambler; and
• The date, time, transaction number, and amount wagered.

It is clear from this article that identity verification in online gaming in Mexico is important to ensure a safe gaming environment. In this regard, operators should implement effective identity verification mechanisms to protect users and prevent minors from accessing gambling platforms.

Furthermore, the prohibition of minors from participating in online gambling and betting (Article 5 of the Regulation) implies the need to implement processes to ensure legitimate user access. One way to contribute to a safe and legal space is through the implementation of processes where at least an automatic ID capture is performed at the time of player registration. These processes could be made more secure for platforms by incorporating facial biometrics to ensure that the person presenting the ID is who they claims to be.

The regulation of online gaming and betting in the United Kingdom

In the regulatory framework of the United Kingdom, the British Gambling Commission presents the LCCP (Licence Conditions and Code of Practice), which constitutes a set of rules and regulations whose compliance is mandatory for all operators holding a license from the UK Gambling Commission.

This Commission is tasked with overseeing these regulations to ensure fair and responsible gambling practices within the industry. 

It issues licenses to online gaming and betting operators who meet strict standards of integrity, security, and player protection. They must undergo rigorous checks to verify their identity.

The section 17 of the LCCP primarily focuses on customer identity verification, presenting the following points:

“License holders must obtain and verify information to establish a customer’s identity before they are allowed to gamble. The information must include, among others, the customer’s name, address, and date of birth.”

“Before allowing a customer to deposit funds, license holders must inform customers of what types of identity documents or other information the license holder may need the customer to provide, the circumstances in which such information might be required, and the form and manner in which such information must be provided.”

“Licensees must take reasonable steps to ensure that the information they hold about a customer’s identity remains accurate.”

“On the other hand, British regulation also focuses on the Anti-Money Laundering (AML) process. Operators must implement robust due diligence and compliance measures to ensure that gambling is not used for illicit purposes.”

Adopted measures to verify player’s identities in Germany

According to the German legislative framework, it is worth noting the prohibition of online gaming and betting until July 2021, at the time when the regulation authorising users’ registration in online games came into effect.

The regulation of gambling in Germany has undergone a significant transformation with the entry into force of the State Treaty on Gambling (Glücksspielstaatsvertrag). Since 2021, this legal framework has opened the German market to both national and international providers, marking a milestone in the gaming industry.

Section 1 of the Treaty focuses on addiction prevention and the protection of minors, establishing guidelines that companies must follow.

Prevention and protection indirectly involve the identification of each player. Germany places special emphasis on identity verification to prevent minors from participating in online gaming and betting. The German Interstate Treaty on Youth Media Protection (Jugendmedienschutz-Staatsvertrag) mandates the use of age verification systems (AV systems) to ensure the protection of minors.

Additionally, the German Commission for the Protection of Minors in the Media (Kommission für Jugendmedienschutz—KJM) oversees compliance with legal requirements regarding the technical protection of young people on the Internet. Advanced software solutions can be used to verify players’ identities.

These identification systems compare the data from the identity document with a selfie of the person to be identified, thus ensuring the authenticity and accuracy of the provided information.

User education on the importance of identity verification in online gaming and betting platforms

User awareness about identity verification is crucial to ensuring a safe and responsible environment on online gaming and betting platforms.

It is paramount to educate users about the importance of identity verification for fraud prevention, protection of personal data, and account security.

Players should understand that identity verification ensures the protection of personal data contained in their accounts and contributes to maintaining the integrity of the platform as a whole.

Therefore, clearly explaining the verification processes, implemented security protocols, and user rights in terms of privacy can help build trust and understanding among players.

Furthermore, by providing transparent and accessible information on how to correctly complete the identity verification process, as well as practical tips for protecting their data and recognizing potential fraud attempts, users can feel empowered to make safe decisions on online gaming platforms.

Key factors to consider when choosing an identity verification solution for online gaming and betting

At Mobbeel, we understand how important it is to protect the identity and information of those who trust us. Providing our users with a secure and trustworthy relationship is key.

Therefore, we have developed a series of solutions based on the type of demand that is required.

Firstly, with our solution, MobbScan, it will be possible to verify the identity of players thanks to its technology based on biometric recognition and document verification. This innovation allows the validation of players‘ identities through the scanning of identity documents as well as real-time facial scanning.

Through MobbScan, aspects such as document verification, facial recognition, and anti-fraud technology can be controlled. Additionally, its easy integration into mobile applications and websites facilitates quick and simple implementation of identity verification for companies.

On the other hand, MobbID is our biometric facial identification solution, which uses advanced biometric technologies to enable companies to authenticate players securely and efficiently when they register to access their platform.