New report highlights need for stronger ID verification through biometrics

As the global gambling industry grows, the need for stronger identity verification through biometrics becomes increasingly clear.

Statistics on online gambling show a definite rise, both in the US and around the world. When it comes to gaming, a new report from Onfido highlights the need for better ID verification, suggesting biometrics as a potential solution.

With growth in gaming expected to reach $158.20 billion in value by 2028 according to Onfido, the report finds that companies are relaxing regulations in order to reach new markets. However, gaming operators cannot expand without taking safety and necessary compliance measures into account.

“A clunky user experience will have a direct impact on customer conversions,” writes Onfido.”It’s important to go beyond simply ticking that regulatory checkbox by meeting digital-savvy customer expectations.”

Noncompliance can be an experience mistake for companies, with Onfido citing data from the UK Gambling Commission (UKGC) that, between 15 gaming businesses, a total of £32.1 million (US$43.1 million) was paid via fines or regulatory settlements in 2021 alone.

What’s more, regulatory requirements differ between different markets. With many gaming companies working across global markets, the different laws in the US, the UK, Europe, and beyond pose a potential minefield to fast-growing firms.

Even within the US, online sports betting is only legal in 20 states, leaving some, like Texas and California, unable to make online sports bets legally. The EU also has vastly different laws from country to country, with the same rules not applying to those in France versus Germany, despite sharing a border.

The report concludes that biometrics can be a straightforward way to validate user identity, age, and fulfil various regulatory needs in one go. An article in Sigma highlights how the technology is already in use in Africa.

“Biometrics alone cannot solve all underage gambling issues,” writes Mercy Mutiria. “They must sit alongside self-exclusion programmes, financial limits, and customer-education initiatives. However, by confirming age at sign-up and authenticating transactions, selfie biometrics and facial recognition offer a powerful deterrent against underage play.”

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