Reasons for KYC Procedure in Gambling

KYC (know your customer) is a robust customer ID verification process performed by banking companies, digital wallets and gambling operators. In some jurisdictions, such as the UK, operators are obliged to perform thorough KYC and gather information about their users, which is vital in ensuring the credibility of financial clearance. Banks are also mandated to complete KYC to meet specific laws when opening user accounts or awarding loans. This review covers the top reasons for KYC procedure in the gambling sector.

What is KYC in Gambling?

As the name suggests, KYC is a robust procedure that involves gambling operators collecting player information during signup and login and when they make a deposit or withdrawal. Most sites allow players to skit the process when signing up, so you can play real money games without submitting ID details. However, players must certainly complete the verification process before withdrawing any funds from the platform. So what is KYC? It simply involves providing copies of specific documents to verify account ownership and identity. Players are often required to complete forms with personal details, contacts, addresses, email and other fields.

Is KYC mandatory?

KYC is mandatory for bankers and some betting sites, including all online gambling websites licensed by the UK Gambling Commission. Nevertheless, some UK no ID verification online sportsbooks in the UK, and others offer Pay n Play opportunities, completely bypassing the registration process. As such, KYC isn’t mandatory for UK punters. You can sign up on non-UKGC gambling sites to avoid surrendering sensitive details to the gambling site. However, if you play on UK gambling sites, you won’t make any withdrawal before providing the required ID details. Some players only join sites with ID verification, while others seek more privacy in sites with no such procedures, so the choice is a matter of preference.

What KYC Brings to Gambling

The KYC player identity verification process is vital in pushing for responsible gambling and safer gambling standards. The UKGC requires all licensed operators to complete verifications to help identify players registered on the GamStop database and block them from accessing real money products. KYC also helps to track problem players and protect minors from gambling products. Below are some of the benefits of the KYC procedure in gambling:

• Preventing Scam 

The KYC process and policies allow gambling operators to collect sufficient identity information about their customers. The players provide this information during registration, deposits, and withdrawal submissions and through automatic bots gathering information about the browser type and other activity metrics. Such player information is essential when there’s a legal issue with a specific account or a possible scam. KYC offers enough details to determine the owners of accounts with the offence.

• Anti Money Laundering 

Gambling sites attract money launderers and offer the perfect place to clean dirty money by making it seem like the proceeds were from gambling. The felons make massive deposits and withdrawals and leverage gambling strategies but effectively use drug money and other illegal finances to fund the activity without minding occasional losses. The KYC procedure and AML software for iGaming keep track of player activity and can send signals if specific movements are noticed concerning the accounts balances. This way, gambling operators can ensure their website isn’t used to launder illegal funds.

• Preventing Terrorism Financing 

Terrorists can use gambling websites to launder money and fund terrorist activities. The Financial Intelligence Unit uses data collected from various financial institutions and tracks specific activity to identify and cancel transactions with origins associated or suspected of funding terrorism activity. In addition, the KYC process can help the anti-terrorism department track account owners via contact and ID details they surrender. The department can also use gathered data to help inform other criminal cases.

• Enforcing Self-Exclusion

The GamStop scheme relies on data collected from the KYC process. GamStop is a national self-exclusion scheme that players can use to join a database of blocked individuals. Gambling operators participate by conducting thorough KYC and matching player details with the GamStop database to block access instantly. Players can take short six month breaks or quit all gambling on UK betting sites for up to five years. Without KYC, there’s no way of identifying users who have voluntarily chosen to self-exclude from online gambling. It only applies to gambling websites licensed by the UK Gambling Commission. 

• Protecting Minors and Vulnerable Players

The UKGC, GamCare and other foundations are dedicated to creating a safer gambling environment that protects minors and vulnerable players from potential gambling harm. The KYC procedure is the only way a gambling operator can determine if the account owner is above the legal gambling age. Minors can still use wallets and cards registered using their parents’ or relatives’ IDs. Therefore, some gambling blockers even participate with payment systems like Paypal to solve this issue. However, it’s easier to track account owners and specific perpetrators in case of an event. KYC also helps operators protect players with gambling problems by limiting games and bonuses or blocking them entirely from real money gambling.

Can Players Avoid KYC?

Many players aren’t comfortable surrendering personal and sensitive information to online gambling operators for fear of their data being sold or hacked by frauds and ID thieves. Other players simply want privacy when gambling and would rather skip the KYC process. There are various ways to avoid KYC, but all involve playing on non-UKGC gambling sites with additional risks. Nonetheless, players can join reputable no ID verification gambling sites licensed outside the UK.

Summary

The KYC procedure is mandatory for banking companies and gambling operators licensed by the UK Gambling Commission. Other gambling sites and sportsbooks choose to conduct KYC for various legitimate interests. Players should focus on joining trustworthy platforms with legitimate gambling licenses, fair games, secure experience, top-rated games, generous bonuses, and convenient payments and support. For instance, you can join top-rated Bitcoin gambling sites, Pay n Play gambling sites and offshore brands to enjoy real-money products without surrendering sensitive ID details.