Why Verification Is Required for Online Gambling

Online gambling is a fun and easy way to enjoy your favorite pastime without having to leave your home or put on pants. But why do all the websites require verification before you can play?

There are many reasons online casinos require verification, such as adhering to local regulations, AML policies, and to ensure you aren’t someone who is trying to scam the casino. Read on to learn more about why verification is required for online gambling.

1. Local Regulations

As far as we know, most countries on earth require some sort of identity verification as part of their online gambling regulations. In most countries, these laws are known as KYC and AML laws, though some countries have additional regulations in play.

For example, Australia keeps a list of banned players on a national level, and while the US doesn’t keep this, many casinos do. So those banned from playing at the MGM in person are also banned from playing online with the MGM.

In the UK, there is additionally a self-submission list that you can submit to if you are struggling with a gambling addiction, and casinos are required to verify against this list before you are allowed to play.

Because adherence to local regulations is something almost all online casinos must adhere to, if you aren’t asked for at least some sort of verification before playing and withdrawing, it may be a red flag that the casino you are playing at may not be legally registered.

Learn more in our article Anonymous Gambling: Is It Possible?

2. AML Policies

We know we mentioned this above, but casinos have long been used to launder money. From the early days of the mob in Las Vegas to the modern-day Middle East, many terrorist groups have used casinos not only to transfer money illegally across borders but also to turn illegally earned funds into legal ones.

Of course, identity verification alone does little to stop this, since most money laundering is still done using cash, but it is something casinos have to verify to protect themselves. Most online casinos have thin margins, and the last thing they want to do is become wrapped up in a money laundering investigation, which is why we mention it again here.

Many governments will even seize money that has been acquired illegally, even if it is currently legally held by a third party, so casinos abide by AML laws not just because they have to, but also to protect their own interest.

3. To Stop Scammers

Even if a scammer isn’t laundering money or gambling illegally, there are many people out there who will do outrageous things just to make a little cash. A prime example is casino welcome bonuses.

Casino welcome bonuses often come with the small print that they can only be claimed once per person, but this doesn’t stop scammers from making a new account to claim the bonus again and again. This abuse is called multi-accounting. With how easy it is to create a new email address these days, identity verification is one of the only ways casinos can protect themselves from these scammers.

While it might sound insignificant to you, an uninvolved party, these people are the reason many casinos have done away with welcome bonuses entirely. So if you enjoy claiming one when you abide by the rules and try a new casino, know that these low-level scammers are the reason you (someone who follows the rules) are seeing fewer and fewer casino bonuses.

4. To Protect Other Players

While many online casinos are player vs computer via slot machines, Plinko, and more, there are some casinos that are player vs player. Player vs player casinos include ones that offer live poker, like Poker Stars, and in these cases, identity verification is performed to protect the other players.

Not only does multi-accounting hurt other players in terms of collusion (this is when of 5 players at a table, 4 are controlled by one person for the purpose of stealing the 1 non-associated player's money), but it can also make game play unfair. If one player knows almost all of the cards present on the table, it makes it easier to guess what may be flipped next.

Sadly, identity verification doesn’t prevent all forms of this type of play, since players in the same house can still participate, known as kingmaking, but it does lower the chances of it happening (how often can multiple players play in the same house?). Identity verification at least stops one player from having multiple accounts.

5. To Protect You

One of the last (and least common) reasons online casinos request verification is to protect you. Unfortunately, identity theft is becoming more common, and most of these thieves turn to online means of spending the money they’ve gained access to. This is a form of money laundering, and it hurts individual people.

While the casino won’t contact you if someone tries to use your identity on their site, when you file a report that you’ve been a victim of identity theft, the bank will call/contact the casino, and when they see that your identity doesn’t match the person using it online, it makes it easier for you to reclaim your stolen funds.

Not only that, but in some countries, this can also lead to the arrest of the individual who is stealing identities and slow their ability to get new victims for their scam. Sadly, this isn’t a quick outcome, but it does help.

Overall, identity verification in online casinos can be annoying, but it is for a good reason. Not only is it often required by law, but casinos do it to protect themselves and their players from the actions of those who are trying to do harm to others in their casinos. So next time you see the pop-up to verify your identity before playing, know that while it sucks, it is a necessary evil of online casinos.