Identity verification in the gambling industry

Pablo Nebreda

Pablo Nebreda

Do you know why identity verification is important in the online gambling industry?

The gambling sector in Spain

In our country, the gambling sector is regulated by the General Directorate of Ordination of the Game (DGOJ), it is the institution that is in charge of protecting users. The DGOJ builds the legal framework that regulates the rights and responsibilities of operators and players.

Through the dissemination of responsible policies, this entity manages to persuade vulnerable groups and minors to commit bad practices. In the same way, it also promotes healthy ways and tries to alleviate the harmful effects of toxic gambling.

Gambling regulation is important, bearing in mind that the sector does not stop growing. In addition, it is estimated that this industry will grow up to 7% in the next 4 years.

Spain is no exception, as we are in the top 5 of the European countries with the highest annual earnings in the gambling sector.

What companies are part of the gambling industry?

The gambling industry is a sector that encompasses many types of businesses, found both in physical establishments and on internet platforms.

It comprises, therefore, various modalities, from bets even contests, going through slot machines.

Based on the DGOJ definition, the common characteristic of game activity is the risk of money or objects to obtain a prize.

Some companies that are part of this industry are:

  • Betting companies: Bets not only have a physical space, but also on the internet. On the net you can find hundreds of pages dedicated to the world of betting, and although the best known are sports betting, there are more types .
  • Casino companies: casinos are one of the centers that have generated the most money thanks to the world of gambling. In them you can find modalities such as roulette, black jack, slot machines, poker and a great variety.
  • Online gambling companies: These companies have large servers on the internet that provide access to online gambling web platforms.

Why are online players verified?

Or what is the same: why is KYC necessary in the gambling sector?

User verification or KYC is a very important part of online games, not only because of the mandatory control that regulations impose on companies, but also for the safety of players and companies.

Players are verified online:

Because it is established by law

Regulators verify the identity of players through the KYC* in order to prevent underage gambling, gambling problems, money laundering and fraud, mainly.

Thus, in Spain, the Resolution of the General Directorate of Regulation of Gambling establishes that companies that are part of the gambling industry are obliged to:

  • Verify through official documentation the identity of the participants of any type of game
  • Save information such as the IP of the user from which it connects, the device that has been used for the connection and your ID

Because it protects legitimate players and the business

In addition to complying with legal regulations, KYC measures protect other players and the business.

If the identity of the people is verified, it is possible to deny gambling to minors and people with gambling problems, thereby favoring compliance with social responsibility.

On the other hand, it is common for certain players to try to open several accounts, claim games, etc. With what the identity verification allows to avoid this type of tricks.

*Know Your Customer (KYC) is the verification process that allows obtaining this information from users.

Main problems of the gambling industry without identity verification

Identity verification or KYC regulations in the game arise to confirm the identity of people and prevent illegal practices, such as money laundering or financing of illegal activities.

For the game providers, not verifying the identity of the players means establishing a “business” relationship with an unknown party, which may not have good intentions, which translates into:

  • Do not identify fraudulent users who use the game to launder money, finance terrorist activities, etc.
  • Do not identify gambling addicts or minors

How can we help you

We are KYC experts and we help you build a safe gambling environment.

Our technology ensures that only legitimate players with good intentions access your platform.

In addition, we make sure that your users meet the age or exclusion requirements that you need through automatic scanning of identification documents.

To sum up, we focus on:

✓ Comply with the regulation and update any changes

✓ Prevent fraud

✓ Verify the identity of your players

✓ Reduce new customer registration times (so that your users can start playing as soon as possible)

✓ Increase the security of your business and protect your players

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