Why Online Gambling Sites Must Verify Users Are of Legal Age

Online gambling sites face major risks if they fail to verify the age of users. Underage access threatens licensing and revenues. Rigorous age checks protect companies.

Online gambling sites face major risks if they fail to verify the age of users. Underage access threatens licensing and revenues. Rigorous age checks protect companies while making the internet safer.

The global market for online gambling reached nearly $67 billion in 2021. This rapid growth brings increased scrutiny from regulators who demand protections against underage access. Companies that ignore age verification place their business models in jeopardy.

This article explains why age checks matter and how technology is making them more reliable. We’ll also look at the legal context around youth access and self-exclusion. Far from being an obstacle to customer acquisition, age verification represents an opportunity for operators, like OneCasino, to demonstrate their trustworthiness.

The Legal Backdrop for Online Gambling Age Checks

Gambling legislation almost always stipulates minimum age requirements for participation. In the United States, the minimum age is either 18 or 21 depending on the state. In the European Union, most countries set the threshold at 18.

These laws exist primarily for child protection reasons. Research indicates that earlier exposure to gambling increases the likelihood of developing problematic behaviors later in life. Age restrictions aim to deter participation until individuals reach emotional and cognitive maturity.

Regulators are increasingly concerned with enforcement around age limits for online gambling. A 2019 study found that 14% of boys aged 14-17 had gambled in the past week using a smartphone or computer. Over 20% of this group gambled online.

Such statistics alarm policymakers. Allowing underage consumers to gamble – even inadvertently – damages a site’s standing. At best, operators face fines or enhanced supervision. At worst, they risk losing their license altogether.

That’s why age verification occupies such importance today. Let’s look at some of the main compliance challenges.

The Difficulty of Online Age Checks

Physical casinos and bookmakers conduct age checks by examining photo ID at the point of entry. Online platforms lack this in-person capability. Instead, they rely on cross-referencing details entered during registration with public and commercial databases.

These knowledge-based age checks suffer from inaccuracies. Minors can falsify information or use their parents’ credentials. One UK study suggested that 57% of boys under 18 had set up accounts with gambling companies.

False positives also occur when bona fide adults get mistakenly flagged. This frustrates customers and decreases conversion rates.

Age verification technology has advanced considerably in recent years. Today’s systems apply artificial intelligence and document authentication to validate identities remotely.

Despite these innovations, no single method delivers 100% precision. That’s why responsible operators layer different checks for defense in depth.

Let’s explore the main techniques available today.

Types of Online Age Verification Methods

Knowledge-Based Verification (KBV)

KBV remains the most common approach across online gambling sites. Users enter their name, address and date of birth during signup. Software checks this data against credit reference and voter registration databases to corroborate the details.

KBV suffers from inaccuracies when minors borrow credentials from older relatives or friends. However, it provides a baseline layer of protection at low cost.

Document Verification

Scanning an official ID document like a driver’s license or passport improves accuracy. Users upload images of their credential which software extracts data from. Optical character recognition confirms the name, birth date and document numbers match across data sources.

Sophisticated liveness tests check for spoofing attempts. Document verification also reassures customers their data remains secure. However, manual reviews slow down the process.

Biometric Age Checks

Facial analysis and machine learning algorithms can estimate age with a high degree of precision. Users upload a selfie which software analyzes for skin texture, bone structure and other signs of maturity.

Biometric checks avoid spoofing and sharing accounts. But inaccuracies still occur, while the need for manual review hampers scalability. Privacy concerns also deter some customers.

Multi-Layered Age Verification

No single method provides flawless performance on its own. That’s why the most secure age checks combine different techniques for defense in depth.

For example, a platform might use KBV for speed, document verification for proofing and facial analysis to cross-check identity. While more burdensome for users, multi-layered age checks keep out underage consumers.

Ongoing Age Verification

Initial signup represents the bare minimum for age checks. Responsible platforms also authenticate users on an ongoing basis through renewed KYC and random screenings. These recurring checks confirm identities haven’t been compromised.

Allowing self-excluded players to regain access similarly demands robust age re-verification. Overall, age should be checked periodically, not just during onboarding.

Overcoming User Resistance to Age Checks

Customers understand the need for online age verification in principle. But cumbersome KYC makes for poor UX. According to research, over half of UK adults feel existing methods take too much effort.

Consumers want age checks that balance security with convenience. Long surveys, unclear steps and repetitive checks all undermine conversion rates.

That’s why operators need to make their age verification as streamlined as possible. Deploying smartphone-centric flows with machine learning assists speeds up checks while reassuring customers.

Promoting Age Verification Wins Trust

Far from being an obstacle, robust age verification represents an opportunity. Promoting your compliance rigor shows customers and regulators your commitment to social responsibility.

Sites should educate users on their age verification policies across signup, marketing pages and terms and conditions. Displaying logos from accreditation schemes like GamCare inspires further confidence.

Age Checks Protect Profits

Allowing underage access threatens business viability. Fines or revoked licenses endanger profitability. Rigorous age verification offers a competitive edge while making the internet safer.

That’s why age checks occupy such importance. As online gambling grows, youth protection will remain paramount. But by investing now in identity proofing technology, operators can demonstrate leadership while future-proofing their business model.