According to IDnow’s recently commissioned research into the biggest
compliance challenges facing betting and gaming operators, two-thirds of operators expect the planned implementation of financial risk checks to lead to a reduction in customer sign-ups. Interestingly, UK-based compliance specialists were slightly more optimistic than their
international counterparts, with 38 per cent saying they expect checks to have no effect on the market.
different in practice. Some believe the realistic number of total players would be more around 40 to 50 per cent. Of course, data checks will help here, but with an expected success rate of 70 per cent, it would still leave a lot of work for operators, as they will have to collect payslips or bank statements, for example – checks that are cumbersome and quite intrusive. Arguably, this should be the responsibility of the financial institutions to allow for better financial checks for the gaming industry. To help ease players into the concept of financial risk checks, they will initially only be triggered for players with a net deposit of more than £500, before being reduced to £150 per month from February 28, 2025 onwards.
Research reveals operators’ top concerns
According to IDnow’s recently commissioned research into the biggest compliance challenges facing betting and gaming operators, two-thirds of operators expect the planned implementation of financial risk checks to lead to a reduction in customer sign-ups. Interestingly, UK-based compliance specialists were slightly more optimistic than their international counterparts, with 38 per cent saying they expect checks to have no effect on the market. Tis was due in part to some respondents feeling that the work many UK- licensed operators have already undertaken on affordability meant they were prepared for the change.
When asked to assess the impact of UK’s financial risk checks on the wider international industry, more than half of respondents expressed concerns. Te top concern was that such affordability checks would lead to an outflow of players to the black market, which would in turn result in lower sign-ups for licensed operators and reduced gaming tax receipts for governments. Te survey also found that the most common compliance challenge was source of funds checks, which was cited as one of the most difficult issues by more than a fifth of global respondents, rising to nearly 30 per cent of European-based compliance professionals. At the other end of the
78
spectrum, respondents found age verification the least difficult to deal with, followed by identity verification, reflecting the availability of robust third-party solutions to handle that crucial part of onboarding.
Biggest fraud concerns
Te latter half of the survey was designed to identify the prevalence and trends of different types of fraud and the prevention of fraud attacks. It revealed that bonus abuse and attempts at document fraud remain most commonplace (65 per cent and 57 per cent respectively), despite improvements to identification and prevention tools. Looking to the future, there is also concern about social engineering attacks and the growing threat of facial recognition spoofing attacks. Tere was also broad consensus on whether AI-powered anti-fraud tools were the way forward. More than 70 per cent of respondents either already have such tools or plan to implement them in the next 12 months.
Preparing for the UK’s gambling future
As these regulatory changes come into play, one key way operators can prepare for the future is by incorporating robust identity verification technology that enables operators to conduct thorough Know Your Customer (KYC) checks. Operators should also focus on and further enhance responsible gambling practices. Te key here is to be agile, innovative, collaborative, and focused on offering the best possible customer experience. IDnow’s highly configurable platform for identity verification allows operators to keep abreast of constantly changing regulations, and new fraud schemes and scams, while ensuring a safe, secure and seamless gaming experience. Tis not only helps businesses avoid potential fines and reputational damage, but also allows for ongoing monitoring of changes in player circumstances and verification of reported income without the need for additional documentation.
FRAUD PREVENTION
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