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100 Percent of Respondents in the UK Want ID Verification
Recent research carried out by 1account, an age verification and digital ID company, revealed a ”universal welcome” for ID verification checks in the gambling industry in the UK. According to 100 percent of respondents, digital ID used to link together the separate accounts held by gamers across different sites would be beneficial to users, especially to those prone to gambling addictions, and to the industry as a whole.
The 1account company, which is also a provider of KYC (know-your-customer) and AML (anti-money laundering) services, conducted the research by means of face-to-face or written consultations with various stakeholders active on the British gambling market, including online and offline operators, retailers, suppliers, and regulators, as well as the Department for Digital, Culture, Media and Sport (DCMS).
“The gambling industry in the UK takes its responsibilities to customers extremely seriously, however, they can only act on the information they themselves hold about a person’s activities,” said Ralph Topping, member of the 1account Advisory Board and former CEO of William Hill.
Certain operators provide players with information on their net deposit and withdrawal status allowing them to view at a glance their financial position for that site, including gains and losses. According to data from the UK Gambling Commission (UKGC), however, the average British online gambler holds three separate accounts on different platforms.
“However, digital ID has the capability to tackle the challenge of players that use multiple accounts which can hide the true extent of a gambler’s financial position. Having access to a consolidated view of their balances, transaction history and ultimately their net gains or losses means such players can make more informed choices,” Topping explained
According to him, the gambling industry displays a great inclination towards the adoption of digital ID verification. “It can protect regular, vulnerable or problem gamblers who hold player accounts across different operators both on and offline and also support operators in making responsible decisions on behalf of their customers.”
Such a digital ID verification system would “deliver invaluable insights into players’ behaviour”, provide greater insight into affordability checks, strengthen KYC protocols and allow for more streamlined withdrawals.
India has the Technology in Place but Lags at the Bottom of International Ranking of Gambling Jurisdictions
With its Aadhaar digital identification system in place, India is perfectly well equipped to implement a national-wide ID verification for gambling and betting platforms within the framework of a comprehensive regulation over the sector aimed at consumer protection and whitening of money flows. At the same time, however, India appears at the bottom of an international ranking of gambling jurisdictions, gaining just 9 out of a 100 possible points.
A national-wide regulation over the instant withdrawal betting sites India has, including an Aadhaar-based age and identity verification mechanism, will significantly reduce money laundering black market activities over shady gambling sites, encrypted messaging groups, back-alley bookie and matka schemes, and would send substantial illegal money flows to legitimate and taxable channels in the country’s increasingly digital economy.
Such a regulatory framework would also allow for a more controlled level of betting and gambling across the subcontinent bringing enhanced customer protection against the various risks associated with gaming. These include problem and addictive gambling, excessive financial losses and sinking into debt, unfair play and fraud by ill-faith operators, odds tampering and match fixing.
The current situation with gambling and betting in India is well illustrated by a study carried out by the European Gaming and Betting Association (EGBA) which placed Bharat in the last 20th place among the world’s most important betting markets in terms of development, policy and integrity.
Along the ranking criteria, India received 3 out of 30 possible points for the strengths, user protection and enforcement of its betting ‘Regulation and Licensing’ regime. Another 2 points out of 20 were received for ‘Taxation’, and 2 out of 20 for ‘Product’ quality and diversity. For the categories of ‘Integrity’ and ‘Advertising’, Bharat received 1 point out of 15 in each case.
India’s total “achievement” of 9 points is in sharp contrast with Great Britain’s 91 points, which placed the UK in first place in EGBA’s ranking, and clearly shows that India needs to take urgent action.
