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The online gambling market has been growing at a quicker pace and is anticipated to double in size from 2016 to 2024. There are several factors contributing to its growth ranging from digitalisation and globalisation to convenience and lost cost options. Smartphones and other devices provide punters with a plethora of options and varieties to enhance their gambling experience. 

As per 2019 survey reports, approximately 4.4 billion people are active internet users globally which is about 60% of the human population. These factors have fueled the online gambling industry gravely and expanded the market base for the industry. This rapid growth has held up the importance of Know Your Customer or KYC and Anti Money Laundering or AML. With multiple options readily available, online gamblers look for trustworthy and authentic sites. Companies try to strike a balance between user experience and compliance. 

Responsibility Of Online Gambling Companies Regarding KYC

Companies in the online gambling industries are legally bound to verify user details such as identity, age, address, source of funds in order to protect their users and platform from fraudulence. Reputable and legal casino companies without verification of documents prioritise with trust when it comes to providing security and fair play to the punters. Companies that aim towards compliance and competitiveness are seeking advanced onboarding with identity solutions in order to: 

  • Comply with the updated global regulations. 
  • Provide a trustworthy, user-friendly platform 
  • Maintaining customer records 

What Is KYC And AML In Regards To Gambling?

KYC or Know Your Customer is deployed to verify the identity of the customers. The processes of KYC are an essential part of the AML or Anti Money Laundering process. It is also referred to as Enhanced Due Diligence and when it is in relation to Online Gambling companies, it is a mandatory process to wipe out financial crimes. KYC is basically done to verify that a customer is who he claims to be. It is done in banks, institutions and helps in the reduction of fraud and money laundering. 

Identifying the customers via Personal Identifiable Information or PII and ID proofs, KYC helps in stemming the flow of illicit funds being kept aside through these companies. It also helps in the reduction of gambling among the underage group, users having multiple accounts, self-excluded gambling addicts. This process not only helps in protecting against crime but also ensures that these online casinos are not losing any funds by fraud users. 

Importance Of KYC 

Casinos often deal with large sums of money and financial transactions. Online casinos turn over millions of dollars per day making them one of the prime targets for financial crimes and laundering. The lack of face interactions on these platforms also makes it easier for fraudulent users to play on these platforms without proper detection. 

KYC and identity verification are designed to reduce these risks by identifying customers of that kind and the suspicious users can be monitored and flagged and at times banned. Without effective policies, online casinos are at a higher risk which leads to financial loss. 

Laws regarding KYC

The most difficult part of compliance with regulations for online casinos is when the customers sign up from offshore international jurisdictions. If a casino is registered under the US, the punters may hail from The EU or the UK where the regulatory compliance is much more rigid than the United States. 

Online casinos fail to realise that even if an online gambling platform is registered under some jurisdiction that is lenient, they are subjected to the regulations laid down by each other’s nation. Thus, these platforms need to be aligned with the KYC and AML restrictions imposed by the jurisdictions that are stricter in nature. 


KYC procedures are very important for online gambling platforms to avoid multiple issues like terrorist fundings, money laundering. Online casinos allow punters to access gambling from international jurisdictions. Thus, strict safeguards are essential in order to prevent illegal activities like leakage of essential information to other countries. KYC checks have become a mandatory procedure for all legitimate casino platforms and help in building up player trust. 

While some casinos offer a quick KYC check or Pay N Play solution, some casinos take time to verify the customer identity. With the advancement in technology, all KYC checks are going to be hassle-free and quick soon. And the individual national governments are putting in the effort to track fraudulent online payments across nations, especially those evading taxes and other FOREX policies. KYC serves as a check when punters attempt to invest this money into foreign casinos.