To safeguard the gaming industry from increasing risk of ID fraud and other crimes, UK Gambling Commission has set out new Know Your Player (KYP) regulations.
The boom in the gaming industry is opening new realms of possibilities to players worldwide. After beholding a market worth $202.7 billion in 2022, it is further sure to reach $343.6 billion by 2028. However, due to the heightened competition in the gaming sphere, operators face several emerging challenges such as identity theft, account takeovers, bonus abuse, payment scams, etc.
Concerning the increase in illicit activities, regulatory bodies are making enormous efforts to make the gaming sector a more secure sphere. Therefore, watchdogs are also keeping a strict watch on operators to ensure they stay in line with the evolved Know Your Player (KYP) obligations.
This article covers new gaming KYC regulations by the UK Gambling Commission and how operators can stay compliant.
UK Issues New and Stringent Gaming KYC Requirements
Amid rapid digitisation, gaming operators strive to offer a seamless onboarding experience and eliminate friction in identity verification. They are further providing easy registration, swift deposit, in-app instant purchases, and easy profile access. In wake of this, gaming operators are under immense pressure to stay put with ever-changing know your player regulations.
Minor’s exposure to gambling, exploitation of financial details, and data breaches are some of the major reasons for toughening legal obligations. According to the report published by the UK Gambling Commission, around 31% of 1 to 16-year-olds are involved in severe kinds of betting.
Events that grasp the attention of huge audience bases such as Euro 2020 leave cracks for fraudsters to slip right in and leave with billions. As a result, gaming organisers face compliance risks and millions of pounds go waged. Therefore, the UK’s Gambling Commission came up with more stringent rules.
Requirements within the UK Gambling Commission’s Rules
The UK Gambling Commission after realising the increasing threat to a player identity online game has enforced a new set of rules. Enacted on 12 September 2022, these regulations are more stringent and prescriptive. The new know your player rules focus on user privacy, information security, minor protection, and marketing restrictions.
The next section provides a detailed overview of the UK Gambling Commission’s new set of rules for gaming operators:
- Implement Automated Processes to Identify the Strong Indicators of Harm
Simply put, this requirement obliges gaming operators to integrate efficiently and know your player processes that identify risk-possessed in real-time. Rapid digitisation has equally equipped fraudsters and they deploy sophisticated ID fraud techniques. Therefore, it becomes challenging to identify these attempts with the traditional brick-and-mortar IDV methods. Concerning this, the UK Gambling Commission has made the integration of automated player identification processes a liability for gaming operators.
- Evaluate Interactions with Consumers and Ensure they Take Place at the Level of Problems
Due to a lack of recognition of problems, customers often leave the gaming platform and operators face hefty losses. Therefore, UK Gambling Commission has made interaction with users a compulsion. Hence, operators require instant gaming verification solutions to ensure they address the concerns of players on time.
- Monitor Indicators, Create Minimum to Maximum Range, and Evaluate Gaming Harm
According to the revamped know your player regulations, gaming operators should identify the major indicators that represent threats associated with users. They should prepare a minimum to maximum range and deal with individuals accordingly. Furthermore, the KYP rules mandate gaming operators to ensure accurate risk profiling that helps safeguard digital onboarding processes from external fraud threats.
- Flag Indicators of Harm and Take Timely Action Along With Reporting
Gaming operators can associate several indicators with suspicious activities to ensure they stay in line with new aml gaming rules. Furthermore, they should deploy efficient IDV solutions to report fraudulent scenarios in time.
- Prevent Marketing for At-Risk Customers and Restrict Take-Up of Bonuses
UK Gambling Commission also obliges gaming operators in its new know your player set of rules to stop marketing their services when customers are at-risk. Furthermore, they should restrict bonus take up and restrain bonuses up-take.
- Ensure Self- and Third-Party Service Providers Compliance with All Legal Requirements
While digitising their services, gaming operators also face the risk of violation from third-party services’ side. May they be payment companies, SaaS providers, or investors. Where gaming operators should ensure compliance with gaming KYC rules and must also make sure their affiliates are compliant.
- Provide Evidence to Gambling Commission Regarding Interaction and Risk Evaluation
In its new set of know your player rules, the UK Gambling Commission has obliged gaming operators to submit periodic reports regarding their risk evaluation. Furthermore, it should also include the level of interaction with customers.
What’s Next?
The new gaming verification rules are as a matter of fact improvements in the existing regulations. Therefore, operators that have efficient and automated know you player solutions in place will not see them as a burden. While the regulations primarily focus on user safety and fraud prevention, AI-powered KYP services upgrade gaming operators’ processes to meet these standards. Hence, the alliance of new rules and automated IDV solutions is what can support gambling providers in ensuring compliance.
