Online sportsbooks, especially reputable ones, have millions of registered customers who are actively betting on their platform. They experience high traffic daily with lots of customers, actively placing bets. Due to the high volume of customers, online sportsbooks have to employ measures to protect themselves and their customers. The KYC process is one of the ways the bookmaker can protect its players, making it a very crucial aspect of any sportsbook.
Why KYC Verification is Needed in Online Sportsbooks
Customer identification is very important in any enterprise that requires the exchange of currencies. Therefore, it is very important in the online gambling industry and some of the reasons are discussed below
Fraud Prevention
KYC procedures help prevent fraud in online gambling platforms by ensuring the customer is who they say they are. Certain individuals can open a betting account under false aliases for heinous purposes. KYC prevents fraud by verifying the accuracy of the information provided by the customer. The name, address, phone number, as well as payment method will be verified. Some sportsbooks take it a bit further by requesting a player’s source of funds, especially for bettors who stake heavily.
Regulatory Compliance
Different jurisdictions have their own preset laws when it comes to sports betting. These laws are put in place to protect players, and also the bookmaker. Many jurisdictions frown heavily on activities like fraud, and money laundering. To ensure that these laws are adhered to, online sportsbooks have to implement KYC procedures.
Prevention of Money Laundering
Verifying a player’s financial details through the KYC process can help assure the sportsbook that they are not unknowingly carrying out financial crimes. Sports betting involves a large flow of money daily, so caution has to be exercised by the bookmaker. Every deposit and withdrawal facilitated by the sportsbook has to be accounted for and is sent to the right user.
Responsible Gambling
KYC is very helpful in promoting responsible gambling. By knowing your customers, a sportsbook can be able to pinpoint when a player is experiencing gambling-related issues. This gives them the opportunity to offer help to the player, especially those who are unable to speak out. As long as players have their 22Bet login details, they can access any responsible gambling measures offered by the bookmaker.
Necessary Documentation and Information Required for KYC Verification
KYC requirements are very broad and are dependent on the sportsbook in question. Some bookmakers may request only the basic information, while others may go deeper.
- Provision of Basic Information
Players can sign up by providing basic information like name, date of birth, email address, and phone number.
- Government Issued I.D
To verify their identity players are required to submit an up-to-date government-issued identification. This may include IDs such as passport, voters card, or drivers license.
- Proof of Address
To verify a player’s identity and also their location, proof of address is required by the sportsbook. Most sportsbooks request for any form of utility bill, which has not exceeded 2 or 3 months.