Know Your Customer (KYC) verification procedures allow online financial services to verify the identities of their players. This procedure is not limited to banks but has also been adopted by cryptocurrency exchanges, fintech platforms, and online casinos. 

To complete the KYC procedure, you must submit proof of identity and address. The platform will then review your information to verify if you’re who you claim to be. By carrying this out, platforms can prevent fraud and money laundering. However, many people are against it. Some online gamblers argue that it puts their personal data at risk and also prevents them from staying anonymous online. In this article, we’ll explore why KYC is a must-have feature when choosing an online gambling platform. 

How long do KYC procedures take? 

Today, you don’t have to wait long for your identity to be verified. However, the length of time in which the KYC procedure takes depends entirely on the website. Some sites can take anywhere between an hour and 24 hours, while others can verify you within a few minutes. 

The fastest withdrawal online casino sites tend to offer the fastest KYC processes. These sites generally come with an automated verification process, which allows for its completion in under two minutes. Ultimately, this means that players can get to the gambling games sooner. These are often crypto casinos, which don’t always require players to submit their ID documents for verification before playing. Instead, players can connect their crypto wallets to their casino accounts for a seamless transfer of funds, anonymously.

So, if you’re looking for a casino site with a fast sign-up process, definitely look for the sites that offer the fastest withdrawals (crypto sites will give players their winnings instantly in some cases, or within an hour). Generally, these sites are speedy in other areas too. 

What’s involved in the KYC procedure? 

Upon signing up for a gambling site, you’ll be prompted to provide key pieces of information, such as proof of ID and address – this is the start of the KYC procedure. 

During this stage, which is known as “the Customer Identification Program” (CIP), You’ll have to type out your full name, date of birth, nationality, and residential address. 

You’ll then have to submit some form of accepted identification. This can include your passport, driver’s license, national identity card, or your social security card. However, not all of these are accepted by all websites. 

Next, you’ll have to submit proof of address. Items that are typically accepted include utility bills, bank statements, and rental agreements. Again, depending on the site, you may be able to submit other documentation. 

Lastly, most sophisticated gambling sites have introduced a biometric layer to their KYC procedure. For this part, the platform will take a facial or fingerprint scan. This helps the site confirm that you match the picture in your passport. Plus, it makes it easier to prove your identity should your account be compromised in the future. 

Why are gamblers against KYC? 

Besides arguing that the process takes too long to complete, many gamblers are against KYC due to privacy concerns. Some players enjoy gambling anonymously, so the thought of uploading so much personal data is off-putting for them. Not only does it prevent them from gambling anonymously, but they also feel that their personal information would be at risk should a data breach occur. 

However, the pros of KYC far outweigh the cons. Those who are against the procedure don’t realize that customer data gets encrypted, meaning that data cannot be stolen in the event of a security breach. 

Why KYC processes are essential 

KYC is an essential piece of the sign-up process due to the following reasons: 

Fraud and identity theft prevention

KYC is imposed solely to benefit the customer. Without it, you run the risk of your identity being used by a fraudster. By ensuring that each person is who they claim to be upon signing up, gambling sites can ensure that no player is using a false identity. This way, you can ensure that no one is gambling – or, in the worst cases, committing money laundering – under your name. 

In 2023, US adults lost a total of $43 billion to identity fraud. It’s safe to assume that many of these cases involved gambling accounts being hacked and used maliciously. 

Reduces fake accounts 

Not only does fraud prevention mean that your identity is safe, but it also means that there are fewer spammy and malicious accounts on the website. Sophisticated KYC procedures ensure that all players on the site are legitimate. When you start playing a table game, you won’t find yourself competing against fraudsters. 

Preventing account takeovers 

Should someone hack and take over your account, the details you submitted during the KYC procedure will be enough to prove your identity and regain access to your account. Plus, if the KYC procedure included biometrics, a hacker would find it difficult to access your account being able to provide your fingerprint or replicate your face for the scan. This reduces the risk of hackers accessing your account in the first place. 

Preventing money laundering 

One of the main reasons why KYC procedures are imposed is to prevent money laundering. Without KYC, anyone can sign up and use an online gambling site. This includes criminals who are looking for a looking for a means of disguising their proceeds of crime. 

Casinos have historically been a place for people to commit money laundering. Individuals can realistically win huge sums of money at the casino, which makes disguising illegitimate earnings easy. However, both brick-and-mortar and online casinos have since introduced measures to prevent this – KYC procedures being one of them. 

KYC allows casinos to perform background checks on each player, and immediately find individuals who have been flagged for money laundering in the past. It also helps them identify players who could potentially pose a risk. They can then monitor these players to determine if there’s anything suspicious in their gaming behavior. 

An estimated $300 billion is laundered annually in the US, which is why anti-money laundering measures must remain in place. 

Regulatory compliance 

On top of all the benefits that KYC procedures provide, they also help casinos stay regulatory compliant. In most countries where online casinos are legal, KYC is mandatory. This allows for national gaming lawmakers to keep gambling activities lawful and separate from criminal activity. 

So, if a casino wishes to receive and maintain its licensing, forcing all players to undergo KYC is a must. You can generally tell a trustworthy and regulatory-compliant gambling site from an untrustworthy one based on whether or not it features KYC.