Regulations regarding customer identification in online casinos can benefit from AI implementation

Most online casinos follow complex Know Your Customer (KYC) systems to comply with the requirements of local and international regulatory agencies. The online gambling industry has made a great effort to integrate this process into its operations to help fight the bad image some people have that online casinos allow fraudulent activity like money laundering or credit card fraud. However, the process of getting the KYC process approved or to endorse a vendor solution is not easy, but artificial intelligence (AI) might be bringing a new solution for casinos in this area.

The use of AI and robotic process automation is used to help companies complete the internal diligence to present the KYC technology solution to regulators. Actually, this new technology often achieves higher auto-approvals, as well as a reduction in the number of false positives if compared to a legacy system. On top of that, this AI-powered software brings in additional features to compliment the service. For instance, the KYC technology can mine billions of data points that are available to the public to run a complete applicant profile. From there, it can use facial recognition to compare the submitted selfie from a mobile phone to the identification photo for extra verification. This is a great addition to online casinos that often face problems with identity theft, as it is easier to hide behind a screen to commit these kinds of acts.

Traditional financial institutions are adopting these tools to improve their ability to screen and verify loan applicants; they are actually among the first adopters of this technology. Now, casinos and other online gambling platforms are using KYC to also screen those customers who might be on sanctions or other watchlists. There are shared platforms among online gaming industries where certain fraudsters and wrongdoers are placed on blacklists, which is another data source that the AI software can review. The technology can be adapted to help casinos go through low-risk applications much faster by using KYC technology, so the human workforce can focus on smaller, high-risk accounts that are worth taking more time to review.