Whichever part of the world you are from, all licensed and regulated casinos, whether online or land-based, require identity verification before you can play the games on offer. In land-based casinos, identity verification may be as simple as showing your national ID, passport, or driver’s license. However, for online casinos things are usually a little more complicated because you do not present yourself in person, and you are loading money remotely.
So, why do casinos need to do this? Shouldn’t players be allowed to do whatever they want to with their money without being forced to jump through hoops? Read on to find out the importance of identity verification in casinos.
Compliance with Know Your Customer Policies
As required by gambling regulatory bodies, identity verification is one way that casinos comply with the Know Your Customer (KYC) policies. And no, we’re not talking about getting down right to the detailed nitty-gritty of the lifestyles of casino patrons. Instead, this policy is meant to bring to light information that may be deemed necessary to the casino. We’re talking about simple details, which may include the following:
- Full name
- Age
- Email address (especially in an online casino)
- A scanned copy of your national ID or driver’s license
- Proof of address (utility bill or bank statement).
The KYC policy is not only meant to enhance your security experience when playing in a licensed casino but is also geared toward protecting the casino. Similar to how you want to play your favorite games in a licensed casino, the house also wants to ensure that it’s taking in legitimate, law-abiding patrons.
Abiding by Gambling Age Requirements
In all jurisdictions where gambling is legal, there’s a minimum age set by industry regulators and lawmakers for anyone who wants to participate in the activity. In most jurisdictions, the minimum age for gambling is 18 years, whereas regions in North America have varying minimum ages ranging from 18, 19, and 21 years old. These age limits are set to prevent underage gambling as the activity isn’t safe for children.
As you are well aware, not everyone will follow this rule if it is not enforced correctly. For example, some curious youngsters will want to bypass this restriction to try their hand at gambling games. By the same token, some casinos have been known to accept underage use of their facilities – a violation punishable by law.
Prevention of Gambling Addiction
Like any other recreational activity, gambling is an enjoyable pastime, provided it is done in moderation. However, for one reason or another, some players are pushed over the edge, and they end up having gambling habits. Therefore, gambling industry watchdogs have been keen on ensuring that all licensed operators have safer gambling programs to assist problem gamblers and assist vulnerable players before things get out of hand.
In this regard, identity verification for players may also involve requesting players to submit a copy of their paycheck, among other financial records information. That way, licensed operators can establish whether a big spender on their platform is actually gambling what they can afford to lose or is suffering from problem gambling.
In that case, the player will be encouraged to seek professional help.
Anti-Money Laundering Prevention
It is no secret that the gambling industry has been used as a backchannel for shady money laundering activities. Some individuals have been known to set up pseudo accounts with casinos, intending to pass their ill-gotten wealth through them. Later, the culprits claim that the funds are from gambling which isn’t true.
As such, there needs to be air-tight identity verification systems to prevent money launderers and traffickers from tarnishing the name of the gambling industry. An effective verification system will likely point out exactly who is trying to launder money through the casino systems.
Thus, should there be suspicion about a player’s monetary activity, the casinos will take action with the help of the relevant authorities.
Fraud Prevention
Casinos typically handle large sums of money. As such, they are prime targets for fraudsters as they seek to defraud the casino. And by the way, you should know that fraud doesn’t have to be an intricate scheme; it may come in the most mundane of casino activities. For instance, when you open so many pseudo-online casino accounts to benefit from sign-up bonuses, then you are engaging in fraud.
Gambling operators lose millions to fraudsters, which is bad for business. Therefore, stringent identity verification procedures are one of the most effective measures to ensure licensed casinos are not rendered into loss-making ventures.
Parting Shot
Casinos are bound by the law to verify player identity as part of the requirements to retain their operational licenses. Such conditions are in place for the security of both the casino and the players. It’s a win-win!
Operators who fail to do these are fined and sometimes have their licenses revoked temporarily or permanently, depending on the severity of the case, and casino officials may even face prosecution.
Also read: Top 4 Benefits of Using Mobile Casino Apps
