Know Your Player: What You Need To Know About KYC & Online Gaming

Money-Laundering Criminals are targeting the online gaming industry. Criminals frequently attempt to launder money obtained via illicit activity. Digital gaming companies have a distinct obligation to stop money laundering on their platform, which includes deploying KYC tools and strategies. 

Furthermore, an online gaming company should have a compliance structure in place to prevent any potential illegal activity. They have protected from possible criminal activities thanks to the compatibility software.

How is KYC Related to Gaming?

Know Your Customer” or “Know Your Consumer” is the acronym for “KYC.” The procedure falls under the umbrella of AML regulations and policies. Simply described, it is the process of confirming a player’s identification before releasing funds. A player’s identification is frequently verified by providing specific papers.

When compared to physical sports or gaming, where a player may simply present a passport, identity card, or driving license and walk away with wins, digital gaming companies lack personal connection. It leads to novel gaming verification methods. Fortunately, it’s a one-time procedure for the player.

Each year, a lot of digital gaming companies fail to combat cybercrimes and ID verification concerns, resulting in their closure. As a result, most digital casinos, wagering, and other gambling sites contain these risk exposures, which can lead to player dissatisfaction. 

In principle, KYC measures are required for all European digital gaming businesses of any size to ensure that users are who they say they are. 

Online Gaming Verification with KYC

KYC is beneficial in more than just preventing money laundering. It Prevents a company from losing millions in currency to fraudsters. The use of numerous accounts, or trolls, is among the very popular methods of committing gaming scams. 

As per the TransUnion, in the European online gaming industry, 29 per cent of exclusions requested by the clients flag as fraudulent activities. Furthermore, in the United Kingdom, new rules prohibiting the utilization of credit card crimes resulted in a 16 per cent reduction in credit card scams but a 169 per cent rise in ACH/debit scams. 

It is critical to ensure the user’s experience with the company is safe. Biometrics, according to most industry analysts, will be the dominating method of verification for online gaming safety in the coming years. This will assist players as well as the gaming companies in having a safe online gaming experience. 

Eradicating Money Mules with KYC’s Automated Solution

According to the recent findings, bad actors engage money mules, in their laundering business, who are:

  • Younger males usually select from a variety of backgrounds, ages, and gender categories
  • Those that make a minimal deposit while an account
  • Individuals who lost their jobs because of calamities or other reasons such as the Covid-19 pandemic
  • To deceive the regulators, men with no prior convictions or criminal history prefer

Due to the hazards, performing user identification (KYC) and comprehensive funding management when a player registers, or even after the registration phase but before enabling a player to conduct any money transfers is critical.

Cryptocurrency in Online Gaming

Unlike normal cash, cryptocurrencies are not subject to the provisions of fiat currencies. Because cryptocurrencies are decentralized, there is no requirement for authentication prior to withdrawal validation on online gaming sites. 

Although digital currency connects to a ciphertext on the blockchain networks. It is difficult to detect and connect it to a player’s identity. The person who has this code gets permission to access the money. As a result, digital poker rooms and casinos are unable to complete automated authentication. 

Payer’s anonymity preserves on crypto exchanges. Regardless of the mechanisms in place to combat fraud and theft, it may be considerably convenient for bad actors to move funds back and forth in this circumstance. 

The subject of regulating cryptocurrencies is highly contentious these days, prompting regulatory bodies to take action. The Malta Gaming Authority is currently working on workable alternatives to this conundrum.

What can the Gaming Industry Do for a Safe User Experience?

What can a reputable online service provider and supplier provide in its products to assist online gaming businesses in resolving some of their KYC issues?

Player authentication should be as simple and straightforward for the player as feasible. Online Gaming Verification with KYC is the best solution for it. The automated gaming verification software has a verification mechanism that allows for the proper validation of uploaded papers. There are API-integrated automated verification services available. All inspection techniques need to be identified in the back office.

Adjustable regularity and quantity of withdrawals. They should be reported as being used for financial fraud, which would enhance the KYC authentication process. Simultaneously, withdrawals less than €2000 designate as not needing KYC. This is very common in the digital casino business.


It goes without saying how difficult it is these days to establish and maintain an online gaming company, like digital casinos, lotteries, online poker rooms, or any other. Moreover, In Europe, regulatory standards are expanding, and cyber security concerns are emerging.

So, there is one solution that can alleviate the agony of the problem. Select a gaming software provider and vendor who supplies all of the relevant KYC parameters.

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