IDnow explains what you need to know about the gaming regulations.

As technology keeps changing and growing, so do the regulations in various industries. But these changes have had positive impacts on the gaming industry over the years. In particular, the advancements in the ledger technologies, digital currency, and artificial intelligence are most significant.

When it comes to regulations and compliance, it is important to state that these vary in every country throughout Europe, but KYC (Know Your Customer) requirements are commonly shared by each country, and this year the new requirements regarding the KYC measures came into effect. In the next two years, new changes are expected to take place and Europe is preparing to amend its national AML (Anti-Money Laundering) acts accordingly with an Anti-Money Laundering Directive (AMLD5) by January 10, 2020. Licensed operators must ensure that the players are correctly identified as a part of their risk-based assessments to reduce the potential of money laundering. This is where IDnow comes into play: Operators can benefit from secure and compliant solutions such as VideoIdent and AutoIdent.

Is your business ready for the new regulations?

Let’s take a look at the regulations in some European countries like the United Kingdom, France, and Germany. In the UK, for example, the Gambling Commission has set some new regulations that aim to make online gambling safer and fairer. According to the new rules, the operators must verify the customer’s age before the customer puts any deposit funds into the account or is able gamble with the licensee using their own money. The regulators are encouraging the operators to use artificial intelligent/biometric applications like AutoIdent to identify the players. Any non-compliant actions such as failure to identify age, illegal advertising or other violations of the regulation can have severe financial consequences. The UK is expected to continue implementing new rules under the AMLD5 (Anti-Money Laundering Directive) regardless of a possible Brexit.

In France, the AML Regulation operates according to the L’Autorité de Régulation des Jeux En Ligne (ARJEL) since 2010. ARJEL is responsible for issuing the licenses for horse race betting and gambling with decks of cards, including poker, and enforcing the online gambling regulations. The regulation requires the licensees to verify the identity, bank details, address, age, and any subsequent visit at the website of their players. The technological solutions to verify the identity of the players such as video or AI/biometric applications like VideoIdent are allowed within the requirements. The adoption of PACTE since April 2019 protects minors by fining the licensees that offer free gambling.

In Germany, the legal framework governing online gambling is called the Interstate Treaty for Gambling (Glücksspielstaatsvertrag, GlüStV). However, this legal framework may be individualized for each of 16 different federal states. The implementation of the third version of the Interstate Treaty (GlüStV) this year offers a process to regulate sports betting operators entering the German market. Licenses for online sports betting will be valid between January and June 2021. A renewal thereafter will most likely take place until 2024. Sports betting operators are expected to demonstrate that they are willing to provide safe and transparent services according to the AML measures. Under Germany’s AML act, operators are required to identify all players and make sure that minors are excluded. Video identification allows online gaming operators to enter the market in compliance with online gaming regulations.

Additionally, further amendments to the Interstate Treaty / GlüStV are expected after June 2021 to address online casino licenses. In any case, in the present or for the future, KYC compliance according to German AML will always be the highest priority for any operator. IDnow’s customers benefit from having the most technologically secure and optimal solutions for identity verification because we are in constant contact with the related government ministries throughout Europe.

If you want to know more, check out our Guide: Gaming KYC to help you carry out your due diligence.