Streamlined and Secure Onboarding in Online Gaming
In recent years, online gaming and gambling have seen major growth, with millions of players logging in daily to enjoy their favorite games. In 2023, the global online gaming market generated around 26.14 billion US dollars in revenues, indicating a 9.8 percent increase over the previous year. As the industry continues to expand, the onboarding process has become a crucial factor, not only in ensuring player satisfaction but also in maintaining security and regulatory compliance. A seamless, user-friendly onboarding experience can make the difference between a one-time visitor and a lifelong player. However, this process isn’t just about ease of use; it’s also about protecting the platform and its users through security measures and adherence to Know Your Customer (KYC) regulations.
This blog explores the various threats and challenges for online gaming providers, including the importance and benefits of secure and efficient identity verification for onboarding, and the different solutions catered to different needs.
What is Online Gaming
Online gaming is using the internet to access gambling games whether via mobile apps or websites. The term can also be used interchangeably with “online gambling” or iGaming. Online gaming can take different forms, such as casino gaming, online poker, sports betting, and video game (eSports) betting.
What is Digital Onboarding in Gaming
Digital onboarding is the process of verifying someone’s identity online. This usually involves collecting identity documents, such as a passport or driver’s license, and matching them against other data sources. This process helps businesses in the gaming industry verify the identity of their customers. By preventing fraud, digital onboarding ensures that only legitimate gamers can access and play the game.
With digital onboarding, businesses can verify someone’s identity quickly, this is because the verification steps are done electronically rather than through a paper-based process.
The Threats & Challenges of Online Gaming Providers
Underage users trying to access underage content
In the U.S., for example, players under 21 are generally not allowed to access these platforms, although some states permit access for players above 18. In the UK, the Gambling Commission, under the Gambling Act of 2005, restricts players under 18 years of age. By complying with these regulations, platforms not only adhere to legal requirements but also protect minors from the potential harms of gambling, such as addiction and financial loss.
Read about how identity verification prevents underage users here.
Fraudsters
Many cheaters, hackers, and trolls are linked to unverified identities. Fraudsters utilize stolen identities to take over existing accounts and withdraw money, leaving the original account holder with a loss. Furthermore, they frequently set up several accounts under one person to take advantage of new account rewards, affecting the game’s financial system. The use of fake IDs to troll or cheat creates unsatisfactory user experiences; if a game feels unfair due to excessive cheating, players are more likely to leave before the game provider earns revenue. Furthermore, hackers that use fraudulent or stolen IDs to conceal their genuine identities can cause system disruptions, financial loss, and jeopardize the gaming platform’s integrity.
Money laundering
Online gaming sites may act as facilitators for money laundering activities. Fraudsters may transfer illicit funds into a gaming account, gamble a small amount, and then withdraw the remaining as “clean” money. This procedure can be performed on several accounts and platforms to launder large amounts of money. Effective identity verification is critical for detecting and preventing such operations and ensuring AML compliance.
Inefficient onboarding
Demanding verification and regulatory compliance can result in lengthy onboarding processes for new users. While important for security and regulatory reasons, these lengthy procedures can deter potential players, affecting user acquisition.
The Importance of Effective (Digital) Onboarding in Online Gaming
Digital onboarding is an important part of the player’s experience in online gaming. The process ensures compliance with regulatory standards and prevents identity fraud. Effective digital onboarding helps gaming companies comply with legal requirements, such as Know Your Customer (KYC) and anti-money laundering (AML) regulations. Reliable identity verification can provide you with legitimate information on the document, including the document holder’s age. By meeting these standards, businesses can avoid hefty fines and maintain their reputation in the industry.
By ensuring that each player is who they claim to be, gaming companies can protect their platforms from fraudulent activities and ensure a fair gaming environment. This not only safeguards the company’s assets but also improves the trust and satisfaction of legitimate players, thereby fostering loyalty in return. When players join a gaming platform, their first experience could shape their perception of the game and the likelihood of them becoming long-term users.
Lastly, effective onboarding can significantly boost conversions. A seamless onboarding process can reduce the friction new players face. This reduction in friction leads to higher conversion rates as potential players quickly become active participants. The overall customer experience in online gaming is greatly impacted, not only by the quality of the onboarding process but also by minimizing trollers and cheaters.
Meeting the Distinct Needs of Various Businesses
Different types of providers require different needs. For example, startups and SMBs have a manageable number of customers. In scaleups, there is organisational growth and a surge in the number of customers. They likely need cost-efficient processes and an improved UX. An automated and quick digital KYC/ID verification could be a good fit.
Established businesses have already acquired many customers and a steady flow of new business. Integrated processes, real-time, and friction-free customer onboarding are often the preferred approaches.
Whatever the company’s needs and resources, we can cater to delivering reliable ID verification solutions. If the preferred approach is a manual KYC screening, Keesing DocumentChecker, the most accurate and comprehensive reference database, is a good fit for doing manual checks.
If you have a preference for an automated process, Keesing AuthentiScan can provide end-to-end verification. Within seconds, you can verify your players and receive an audit trail. Moreover, users have the option to check individuals against Politically Exposed Persons (PEP) and sanction lists to reduce risk and comply with AML regulations. Furthermore, face recognition technology enables you to fight impostors.
Keesing’s wide coverage of documents enables online gaming companies to onboard more people from all over the world, maximizing the growth of your online gaming business.
If you would like to consult, learn how we can streamline and secure your online gaming business, and see the product in action, please contact us via email or call us at +31(0)207157825.
