If you are in the iGaming or online casino industry, then it is highly important that you take the right steps to avoid making costly mistakes. One of the costly mistakes that business owners in this arena make is not understanding and implementing KYC (Know your customer) protocols. Implementing KYC procedures will allow iGaming companies to reap a wide range of benefits.
Failure to do so can lead to various negative consequences for the companies in this high-risk sector. But let’s not focus on the negative aspects and try to pay closer attention to the benefits of KYC for iGaming companies and online casinos. This article will give you a closer idea of the benefits that KYC compliance has to offer for iGaming businesses.
Prevent Fraud and Money Laundering
Fraud and money laundering are some of the most common issues that grapple the iGaming sector. As there is a huge amount of cash moving through the online gaming platform, it makes them a potential hub for money laundering and fraud. This can further lead to issues like terrorist funding or tax evasion. Therefore, it is highly important that you should focus on keeping your iGaming business safe and secure from any such possible issues.
And the best way to do that is by adhering to the KYC protocols. These protocols make it necessary for you to verify the identity and information of customers. As a result, companies will be able to find out that they are not unwittingly facilitating illegal activities. As mentioned before, the gaming industry is a prime target for money launderers and other criminals. So, it becomes highly important for your business to comply with it.
Ensures Customers are of Legal Age
In some jurisdictions, there can be a certain age limit before someone can start with online gaming or gambling. So, if there are no strict checks or balances on that end, then it would mean that the iGaming business might lose its license. It can be a bit challenging to know whether or not the person signing up on your iGaming platform is of legal age or not. However, that problem can also be resolved with KYC.
The biggest advantage of KYC for gaming companies is that it assists them in finding and ensuring their players are of legal age to participate in gaming activities. Since they would have to provide valid documentation, it will prevent any minors from registering on your platform. In addition to that, you can also save your business from any potential legal and financial penalties.
Helps in Spotting Problem Gamblers
Not letting minors use the platform is not the only benefit that you can get from KYC compliance. There are a few people that might develop a gambling addiction. So, it is ethically wise to ensure that no one develops this issue. That is something KYC can help you with as it allows you to track the gaming activity of the players.
You can analyze their spending patterns to identify problem gamblers. As a result, it becomes easy for businesses in the iGaming industry to spot the players who are at high risk of developing a gambling addiction. This also provides a pathway for companies to intervene at an early stage and assist the players who need help and support.
Protects Their Reputation
Finding a high risk payment processing company is quite challenging because a great majority of payment processors know the risks in this industry. But that is not limited just to the payment processors, even gamers will have a hard time trusting your businesses if you don’t incorporate the relevant safety protocols. With KYC compliance, you would be able to show that your brand values the protection of customers’ information.
As a result, it will help gaming companies to protect their reputation and avoid negative publicity. Moreover, it will also allow you to build a trusting relationship with the regulators. This can help you build a strong customer base which can lead to a higher revenue for the company. All in all, complying with KYC protocols can ensure that you build a strong and trusting relationship with customers and regulators alike.
Money laundering is a prominent issue in the online gaming and gambling industry. It is highly important that you comply with the KYC protocols to avoid any issues with your iGaming payments. Additionally, you need to have a reliable iGaming payment gateway, such as Pay.cc, that allows you to get your payments from customers without too much hassle. This is a major challenge for businesses in the high-risk industries, such as iGaming. However, a reliable high risk payment processing company will have the solution for you as they will allow you to accept payments without going through any trouble.