As the gaming industry prioritizes safer gambling, technology firm Star Gambling has unveiled its comprehensive report on Responsible Gaming Trends Across the Globe. In this report, Shimshon Holzman, Head of Gaming at Star Gambling, and Moshe Reuven, Partner Manager, shed light on the diverse gambling behaviors worldwide and the technology solutions assisting operators in addressing this challenge.
For gaming operators, maintaining compliance with igaming regulations is of utmost importance as they continually strive to safeguard their players and provide an engaging and enjoyable gaming experience. The financial penalties imposed on UK gaming companies have been steadily increasing, with individual firms facing hefty fines in the millions of pounds for various social responsibility and anti-money laundering (AML) violations.
In addition to the financial repercussions, the damage to reputation should not be underestimated, especially at a time when player retention is a top priority for all operators. Meanwhile, the cost of acquiring new players has been on the rise in recent years, particularly in North America. After the legalization of sports betting in many states, operators raced to attract players, with the average cost per acquisition (CPA) reaching $300 in 2022.
With a heightened focus on enhancing responsible gambling initiatives, Know Your Customer (KYC) lies at the heart of these efforts. The ability to identify, authenticate, and monitor players enables operators to ensure their safety without disrupting the gaming experience, all while maintaining compliance.
According to Star Gambling's report, one of the most persistent challenges in responsible gambling is underage gambling, particularly prevalent in Africa and the Asia Pacific region. Gambling enjoys popularity across sub-Saharan Africa, with Nigeria and Kenya taking the lead. In fact, only Brazil sees more daily visits to online casino sites than Nigeria, where approximately 30% of Nigerians are estimated to bet daily, and gambling advertising is widespread with limited protection for minors.
The problem of underage gambling is also widespread in the Asia Pacific, boasting an igaming audience of around 48 million players, many of whom are suspected to be underage.
Star Gambling's report on online gaming in the Asia Pacific region highlights the issue, especially in the Philippines, where the Philippine Amusement and Gaming Corporation (PAGCOR) has introduced a responsible gaming code of practice to combat the involvement of minors. Operators failing to comply with the code face penalties ranging from fines of PHP100,000 (£1,400) for allowing prohibited individuals onto their sites to complete site closure if an underage person is found gambling with their brand.
Given the substantial fines and penalties at stake, preventing underage players from accessing igaming sites is expected to remain a top priority for operators throughout the industry. Moshe Reuven explains that Star Gambling's KYC tools include a more rigorous identification process to address this issue.
"In many parts of Asia and Africa, age verification is still in its infancy, and operators rely more on fraud and authentication tools than age verification and KYC tools. We see growth opportunities in the Philippines, South Africa, and Nigeria, where we verify multiple documents and connect to government databases for further user authentication," he says.
"Our age verification solution ensures that the user is not underage by checking the date on the ID and estimating the age of the person in the selfie to identify minors attempting to use an older family member's ID.
"Our identity verification solution scrutinizes the user's ID for fraud and tampering to ensure it is genuine and employs liveness detection to verify the person onboarding is not a deepfake or a spoof."
In the UK, between 2021 and 2022, 25% of new signups were classified as high risk or fraudulent. Fraud is a widespread issue in igaming, manifesting in various forms, including bonus abuse, payment fraud, chargebacks, and identity fraud.
Understanding Responsible Gambling: Insights from Star Gambling
As the gaming industry places a growing emphasis on responsible gambling, Star Gambling, a technology company, has introduced its report on "Responsible Gaming Trends Around the World." Shimshon Holzman, Head of Gaming at Star Gambling, and Moshe Reuven, Partner Manager, explore the varied gambling behaviors globally and the technology aiding operators in tackling this challenge.
For gaming operators, ensuring compliance with igaming regulations is crucial as they continuously strive to safeguard players and offer an enjoyable gaming experience. The financial penalties imposed on UK gaming companies have been steadily increasing, with individual firms facing substantial fines for various social responsibility and anti-money laundering (AML) breaches.
Apart from the financial penalties, the significance of reputational damage cannot be understated, especially when player retention is a top priority for all operators. Additionally, the cost of acquiring new players has been rising in recent years, particularly in North America, where the average cost per acquisition (CPA) reached $300 in 2022 after the legalization of sports betting in many states.
With a heightened focus on enhancing responsible gambling initiatives, Know Your Customer (KYC) is at the core of these efforts. The ability to identify, authenticate, and monitor players enables operators to ensure their safety without disrupting the gaming experience, all while maintaining compliance.