As we know, regulations are specific rules that are created and maintained by authorities. They apply to nearly every aspect of life, but within the gambling sector, they play a key role. Due to the nature of the industry where lives can be impacted through bad decisions and abuse, certain rules and limitations need to be made to ensure a safe playing field for users and operators alike.
However, one key issue that affects everyone in this sector is the speed at which technology advances, making it impossible for regulations to keep up with these developments. One of the most recent examples of this is the growing popularity of online gambling, which faces issues with cybercrime and fraud. In some cases, there are even gaps between old regulation and modern technologies – something that we at IDnow are collaborating with regulators to solve.
A look at Germany’s new Gambling regime
A great example to look at concerning regulations is Germany. The country has recently opened up online gambling with the introduction of a new treaty – Glücksspielneuregulierungstaatsvertrag (GlüNeuRStV), alongside a new authority, Saxony Anhalt.
One key thing that surrounds these new regulations is the focus on player safety, as well as AML and KYC compliance requirements. It’s vital for operators to know who their users are, ensure proper verification is put in place, prevent at-risk users from participating, and combat fraud where possible.
Meeting KYC and AML requirements around Europe
To meet these strict requirements, both in Germany and across Europe, operators will need to invest in setting up proper, robust systems. The key focus of these systems are player protection and operator security – it’s vital to both keep players safe and secure, while also combatting things like fraud.
It’s impossible to list every requirement for compliance all around Europe, as every country and its regulators will have differences in opinions and what’s needed. However, one way for any operator to meet requirements on a wide scale is through remote eKYC solutions, which are flexible in meeting a wide range of requirements.
The best way of doing this is by working with a partner that specializes in KYC and AML compliance and is able to bring a wide range of tools to the table. Some of the most important requirements that must be met include controlling player activity through exclusions, meeting security and risk-management standards, preventing fraud, and meeting customer needs by mitigating risks and providing seamless onboarding.
Stay ahead of the game
Are Operator and Regulator Aims Meeting Consumer Requirements?
With so many different requirements needing to be met by operators to be compliant with regulator rules there comes a key question: What about the consumer? When it all comes down to it, for both the operator and the regulator the consumers are the most important party.
That’s why it’s vital to discuss how current operator and regulator aims impact the consumer and if they’re meeting ever-changing requirements. The most important thing to consider is that there are many different types of consumers – there are young, old, experienced, and new players that all need to be considered.
With a step forward into online gaming, you need to not only consider ease of access for players who may not be accustomed to online content, but also keep in mind the younger tech-savvy audience. For example, regulators and operators alike need to consider a whole new avenue of online-based fraud like chip dumping, and unethical playing methods such as arbing and ensure players are protected from it as best as possible.
Customers will also have specific requirements which may not be a key priority for both operators and regulators. Considering current trends globally, there is a key focus on things being quick and easy. Consumers (especially younger customers) require a seamless experience, many users want to be able to play a game or place a quick bet while on the train or bus, as well as being able to register in an instant.
There is also a key focus on security, especially surrounding data. It’s a vital point for the consumer to know that their data is being safely stored and meeting things like GDPR requirements.
The biggest problem in all this is that while operators and regulators would like to meet all of their consumers’ needs and more, it’s incredibly difficult to keep up with the pace of technology. Operators struggle to keep up with requirements as staying compliant has to be a key focus, while it’s impossible for regulators to know what will come next.
There is a definite overlap in some consumer requirements and current operator and regulator aims, such as a growing focus on security, however, it’s also easy to see consumer requirements, like lightning-fast onboarding, being pushed aside.
Automated ID Verification’s role in gaming
One key way to aid both operators and regulators in meeting consumer requirements is through automated ID Verification. This is a way to provide a seamless onboarding process for new players by providing fast, AI-Powered identity verification, such as our very own AutoIdent.
Our automated identity verification solutions for the gaming industry cover both current operator and regulator aims, as well as customer requirements. It has a key focus on speed, usability, and security, while being a fully compliant verification tool. With IDnow, players can be verified within minutes, with a very simple process, solving both usability and speed requirements for consumers, while remaining compliant, reducing stress on operators and regulators, while meeting their aims for online services.
Overall, automated verification looks to be the way forward and is already becoming commonplace for operators and regulators alike. The UK’s gambling commission already recommends looking into AI-Powered services for onboarding processes and many operators have moved to such a system. Read on: Online Gambling regulations in the UK – an overview
This benefits every party involved in the process, from making consumers’ lives easier, to reducing waiting times and increasing conversion rates, while keeping a high level of security.
Head of Regulatory Affairs at IDnow
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