In the UK, it is a legal requirement for online casinos and other gambling operators to verify the identity of their customers before allowing them to gamble. This is because of regulations set by the UK Gambling Commission, which ensures gambling is conducted fairly and openly, and operators take measures to protect their customers from harm.
There are several reasons why ID verification is necessary for the UK gambling industry. First, it helps to prevent underage gambling by verifying that the person gambling is over the legal age limit (18 years old in the UK).
Second, it helps to prevent fraud and money laundering by ensuring that the person gambling is who they say they are and that they are using their own funds to gamble.
Background
Online gambling became popular at the beginning of the 2000s, along with the internet boom. However, online casinos could do as they pleased back then since there were hardly any regulations.
Things have improved significantly over the years, especially after the UK Gambling Commission was set up by the UK government in 2007 as a non-departmental public body to oversee the gambling industry and keep those who work in it in check.
Every year since the online gambling industry got stricter with an improved verification process. The UKGC found that some customers were being treated unfairly by some operators, who set very low weekly or monthly withdrawal limits or arbitrary time limits within which the customer had to verify before withdrawals were processed. In some cases, the winners would lose their winnings if they didn’t meet these deadlines. About 15% of customers’ complaints to the UKGC were about withdrawals being delayed or denied, so something needed to be done.
This led to new rules and measures, such as customers now needing to verify their accounts before making any deposits. Before, they could make a deposit but only withdraw once they were verified.
How the ID Verification Process Works
The ID verification process typically involves providing the casino or gambling operator with a valid form of identification, such as a passport or driving license, as well as proof of address, such as a recent utility bill or bank statement. The operator may also use third-party databases to verify the information provided.
Players cannot gamble in a no-ID verification withdrawal casino UK, which you can learn more about in this article: https://casinotop3.com/no-id-verification-casino/. However, many gambling websites have implemented processes to make ID verification so smooth and effective that it doesn’t take much time to complete this step.
By verifying the identity of their customers, UK casinos and gambling operators can ensure that they are operating within the law and providing a safe and secure gambling environment for their customers. It also helps to build trust and confidence in the industry by demonstrating a commitment to responsible gambling practices.
Why is ID Verification necessary?
Many gamblers find ID verification to be an excessive hoop to jump through just to deposit. However, the implementation of this was crucial for several reasons. Not only did it make gambling a safer pastime for the population, but it also made it harder for rogue casinos to operate in the UK.
To prevent underage gambling
ID verification before depositing makes it impossible for anyone under 18 to sign up because they would need to show proof of their date of birth. In 2018, underage gambling was becoming a problem, backed up by some scary numbers from a UKGC study.
14% of 11–16-year-olds had used their own money the past week to gamble online, and 6% had used a parent or guardian’s account to gamble online. It was worse in real life, where 39% of 11–16-year-olds had gambled at some point during the year by buying scratch cards, playing fruit machines, or betting with friends.
To prevent illegal activity
These changes were partly made to help operators find and stop crimes like money laundering, identity theft, and fraud. Ultimately, the site’s owners would know more about their customers as soon as they joined the site before anything illegal could happen.
It also stopped the operator from acting immorally, which might not have been illegal. Dodgy operators could no longer make up unfair rules or make their customers jump through hoops they didn’t need to get their money.
Increased safety for customers
It was also thought that these changes would make it easier to find out if someone who had self-excluded themselves tried to gamble again, which shouldn’t be possible at any online casino anymore.
If the verification process was thorough enough, it would catch any previously verified customer who self-excluded and then tried to gamble again. They could be stopped before they did any more damage to themselves.