Why Do Betting Sites Require Verification?
Online gambling is gaining popularity more and more in the UK and around the globe. Account verification is an important component as well.
There exist NonStopCasino bookmakers that do not require verification and allow gambling without complicated processes. However, other bookies do need account verification as per government regulations.
In the UK for instance, UKGC has mandated verification of betting accounts. The main reason behind it is to protect the gambler and the sportsbook platform despite the fact that it does not look obvious. Various studies have found that a quarter of the total number of adult gamblers have placed their first bets illegally when under 18. Around 15% of the 16-17-year-olds have privately wagered with friends or family.
Main Reasons Behind Verification At Bookies
In 2020, there were 24 million adult gamblers in the UK and 3% of them earned a living from gambling. There were around 1.4 million gambling addicts in the UK in 2020. There are certain reasons behind bookies requiring online verification for customers as well as the sports betting platform’s viewpoint :
Put A Stop To Money Laundering
The main reason why account verification is ideal is to prevent money laundering by any means. The verification process ensures that each person must confirm his/her identity and also transparency of his funds. It is possible for gamblers to use illegal black money for gambling.
Account verification of mobile numbers, Emails accounts and Banking tools put a credibility trail thereby ensuring legitimacy. Additionally, banks such as Lloyds Banking Group, HSBC, Monzo, Cashplus and Barclays have special checkpoints to restrict banking transactions if any suspicious activity is noticed. The e-wallet industry is estimated to be around $92.9 billion by the year 2023. And such e-wallets promise to add further layers of security.
Verification Of Age
Another reason why account verification is mandatory at certain betting sites is due to verification of age. Across the globe, punters aged between 18 and 21 are allowed to gamble. In the UK, the age limit for gambling is 18 years of age. Punters below this age group are not allowed to gamble and are punishable by law. Underage gambling is a major problem and leads to addictive gambling in no time due to the absence of parental monitoring.
A data report by Statista in 2020 found that 35-64-year-olds engaged the most in gambling with 48.4% placing bets in the year. However, gamblers between 16 and 24 years old were prone to addiction and among them, 31.2% gambled in 2021 as well. If an underage person gambles, he is fined and the online gambling operators allowing them will be fined as well. For the punter, it might end up being a lumpsum amount and for a bookmaker, it can even cost their license or closing down of site along with extremely high fines.
It can have a catastrophic effect on the gambling platforms and thus, to avoid such a thing, account verification is mandated. All websites working around gambling, betting and trading need to offer account verification, KYC and registration which involves complex processes.
This is another reason why account verification is so popular in the UK. The UK government and the UKGC work hand in hand and mandate that all sportsbooks must undergo a verification process. Most sites work in collaboration with GamCare, GamBan, forums facilitating Responsible Gambling, etc, which offer localized or tailored restrictions to prevent unlawful gambling.
Illegal gambling accounted for over 27 million hits from British IP addresses in the UK in 2020. Approximately 200,000 UK punters had used black market betting platforms placing over £1.4 billion worth of bets in the year.
Avoiding Bonus Abuse
One more important factor behind verification at online betting operators is to reduce and eventually put an end to bonus abuse. All bookmakers offer welcome bonuses which is a match deposit bonus working on a basic principle. A punter has to create an account, deposit funds, and get a promo. The match deposit bonus can at times reach 500% or even higher amounts. Without account verification, a punter can create countless accounts and avail of these bonuses.
A report by Statista predicts that the iGaming industry will have a worth of 92.9 billion USD by 2023. Since most Tier 1 operators spend up to 18% of their gross revenue on offering bonuses, it is important to eliminate bonus abuse in order to make the business profitable.
Account verification surely sounds annoying for the British lifestyle, but it is definitely something that would actually make online gambling fairer and better in terms of customer base and authentication. Federal laws often need players to register themselves at these bookies before they could transact with real money. This is merely to protect the player from unlawful gambling and save the betting site from fraudulence.