The online casino industry is high-risk. With the lines between what is legal and what is not as blurry as can be and regulations varying by location, it can be difficult to maintain compliance and operate your business legally. Online gambling is also a relatively new market, and the policies are constantly changing. Some countries have not legalized online sports betting, while others have allowed online casino gambling for years. How do you stay ahead of all the policy changes and avoid the severe penalties of noncompliance? The following four tech solutions can help you:
KYC protocols
KYC (Know Your Customer) protocols are processes and systems that verify customers’ identities and prevent illegal activities like fraud and money laundering. In the online gambling industry, reputable online casino providers like Betway use KYC to confirm that players are who they say they are and avoid underage gambling, which is illegal in all jurisdictions.
An automated KYC solution can help you:
- Verify account holders’ identification documents, including driver’s licenses and passports
- Conduct background checks by running account holders through different systems like watch lists and criminal records
- Perform biometric checks through fingerprint scanning and facial recognition software
By confirming that account holders are who they say they are, KYC solutions limit your risk of fraud and help you comply with policies like counter-terrorism financing (CTF) and anti-money laundering (AML).
Data encryption software
Casinos collect a lot of user data. If this data is not handled, stored, or destroyed correctly, it could fall into the hands of hackers and identity thieves, endangering players. This is why data protection is one of the most regulated aspects of online gambling. If a licensing body finds you in breach of data protection policies, they could fine or shut you down.
Data encryption solutions help you protect the private user data players share with you. They include encryption software, firewalls, anti-malware, multi-factor authentication, and AI systems designed to identify and prevent fraud and data breaches.
Source of funds (SoF) verifier
Because casinos handle money, they are often categorized alongside financial institutions in anti-money laundering classifications. This means that the same AML laws that apply to banks may apply to you. Source of funds (SoF) verifiers help you avoid AML breaches by verifying where a player’s money is from. They allow you to compare their reported income and spending and ensure their money is not tied to illegal accounts or that they are not problem gambling. When your SoF verifier is automated, it can automatically terminate accounts with questionable financial links.
Automated self-exclusion and self-exclusion scanners
Next to data protection, problem gambling is one of the biggest compliance concerns for gambling regulatory bodies. Many jurisdictions require online casinos to allow players access to self-exclusion lists, where they can address problems and addiction gambling.
A subscription to a recognized self-exclusion list helps you meet half this requirement. However, many players know how to skirt these exclusionary measures and access casino services. To further protect yourself, install a self-exclusion scanner that tells when a player is on a self-exclusion list you’re not subscribed to and terminates their connection.
The key to compliance is adaptability
While these five tech solutions can help you maintain regulatory compliance and protect your players, they are not foolproof. The online gambling regulatory landscape and the risks of non-compliance are constantly changing. In data security, for example, every breakthrough in cloud gaming creates a loophole through which hackers can access your systems.
Top providers like Betway stay above the fray by constantly updating and adapting their compliance solutions. Stay updated on technological and regulatory changes in the online gambling industry and adjust as necessary.
