Learn in this article how businesses offering online gambling can use address, email and phone verification to easily comply with the new fraud prevention regulations and player protection measures.
The new state treaty now permits the operation of games in online casinos and, at the same time, establishes mechanisms and conditions that serve the protection and safety of players. One goal is to protect minors and vulnerable players. Another aim is to recognise signs of gambling addiction at an early stage. To identify vulnerable groups, clear data on players must be collected and verified by the provider.
The law requires providers to connect to a central "limit file" where players are recorded individually. The challenge is to identify players individually to prevent multiple registrations or parallel gaming. The deposit limit of 1,000 EUR per month across providers must also be checked here. The comparison with the central blocking file for all types of games ensures that blocked players and minors do not gain access to the gaming platforms. The player blocking system distinguishes between self-blocking and third-party blocking. The duration of a third-party block is at least one year; a self-block is at least three months.
The explanations on the State Treaty on Gambling 2021 of the Saxony State Administration Office of Saxony-Anhalt go into more detail on the requirements for the comparison:
„The operation of the player blocking system, which is necessary for reasons of addiction prevention across providers and gaming forms, requires the collection of personal data of each player for comparison with the blocking file. The data to be collected and transmitted for the purpose of matching are necessary to clearly identify the player and correspond to the data to be collected by numerous providers in any case according to the Money Laundering Act. This personal data also includes the player's address, since a name and birthday match cannot be ruled out.“
It is the responsibility of the providers to set up and operate a technical system that collects and keeps all necessary data that the central gaming supervisory authority requests for its control. Access and electronic control by the supervisory authority are regulated within this system. The model for these regulations is the so-called "safe server", with which Schleswig-Holstein has been controlling all licensed providers since 2012. This system provides a link between the gambling provider and the evaluation system of the supervisory authority as well as the competent financial authority.
These measures are controlled and monitored by a central gambling authority which should prevent illegal gambling more effectively, and at the same time, help monitor existing offers. By limiting offers, gambling impulses are limited and excessive gambling can be prevented. In addition, players are better protected against fraud by fraudulent providers, as only providers with a valid German licence will be admitted.
The treaty was signed by all 16 states; however, it is not limited to the legalisation of online casinos - instead, it goes hand in hand with a whole series of new regulations. These regulations intend to protect players and introduce mechanisms to ensure better control to act against gambling addiction. These do not only take effect online but also affect operators of gaming machines in arcades or bars.
„Accordingly, anyone who has not registered his or her business with the player blocking system after the 1st of July 2021 will, in principle, not be allowed to operate any gambling machines. It is assumed that the gaming machine operator must carry out the initial registration. (...) This means that if an operator has installed gaming machines, he must check each player, identify them by checking their ID and compare them with the barring file.“
-Glücksspiel: New state treaty introduces blocking system
The legislation says that operators must collect personal data and match it to identify the player. By using comprehensive identity verification methods, gambling operators can improve account setup and customer acquisition, avoid the risks of fraud and non-compliance, and grow their online gambling customer base without worry. However, not every data verification tool is qualified to do this.
The goal of identity and address verification is to improve the onboarding process by providing accurate customer data. Functions such as "type-ahead" or "fuzzy-matching" offer a smooth onboarding process and provide the best customer experience to end-users. At the same time, address verification helps providers fulfil their duty by suggesting only valid and relevant addresses.
Gaming companies that apply additional layers of identity attributes, including address validation, ensure the smooth process expected by their customers. Loqate's address, phone and email verification solutions increase enrolment rates by improving the customer experience and ensuring compliance.
Sign up for a demo to learn how Loqate's address verification solutions can help your online gambling business improve conversion rates, reduce abandonment and meet regulatory requirements - all in one step.
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