What is KYC in Betting Apps?

Gambling is probably one of the oldest pastimes that have been carried out by people all over the world for millennia, and it does not appear to be dying out anytime soon. The gaming and betting sectors have gone online since the birth of the digital era.

Globally, there are 1.6 billion gamblers, with 4.2 billion saying they gamble at least once a year. This number shows both land-based and online gambling on sites like, aside from other sites. This represents almost 26% of the world’s population, demonstrating that there is a lot of money floating around.

However, the gaming industry’s relative anonymity creates serious money laundering problems. With casinos and betting firms handling millions of dollars every day, the industry’s vulnerability to money laundering must be properly evaluated. AI-powered KYC verification solutions protect businesses against money laundering and are increasingly becoming a standard in the online betting sector. But, before we get into how, let’s take a look at the online sports betting sector in India.

What exactly is Know Your Customer?

KYC is required for all financial institutions, including banks, credit unions, wealth management organizations, broker-dealers, finance technology applications and websites, lenders, and others. The goal of KYC in gaming (and other sectors) is to identify clients, verify their IDs, and detect risk indicators with those customers.

The KYC procedure is divided into three parts: CIP (Customer Identification Program), CDD (Customer Due Diligence), and CM (Continuous Monitoring).

The CIP is when the casino requests documents from you to verify your identity and the integrity of the documents you supply. The CIP is when the casino requests documents from you to verify your identity and the integrity of the documents you supply. Continuous monitoring is critical to the KYC process since it aims to reduce risk as much as possible. Any suspicious transaction or account activity is identified, resulting in the submission of a SAR (Suspicious Activities Report) to the authorities.

Why is KYC required in online casinos?

The expansion of online finance in the early 2000s corresponded with an increase in money laundering and online fraud until effective AML (Anti-Money Laundering) and KYC (Know Your Customer) verification systems were implemented to mitigate these dangers. The situation with internet betting and gambling looks to be very similar.

Money laundering operations are helped by fraudsters’ capacity to fabricate their identities and create phony accounts; hence, any technique designed to make this as difficult as possible will benefit the online gambling sector. AML and KYC verification methods were developed specifically for this purpose.

Recent technological advancements have enabled KYC verification service providers to use OCR technology to extract picture data from IDs and AI technology to validate ID details in real time against standard databases. Geo-tagging features help to prevent location spoofing, and PAN verification allows for rapid AML checks.

Consumers must be able to trust that information obtained from them is being correctly secured, just as respectable sports betting firms value trust when it comes to providing users with fair play and a secure environment.

Sports betting organizations, particularly online platforms that do not require any face-to-face interaction, become appealing targets for criminal actors. These may become honeypots for money laundering, identity theft, and other illegal activity, damaging your brand, discouraging users, and inviting regulatory action.


When an online casino’s security staff commences a KYC procedure on your account, it is restricted, and you are not permitted to withdraw funds from it. Accounts can also be entirely frozen depending on the sort of due diligence review performed, prohibiting you from logging in until the procedure is completed.

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