As a regulated industry, the gambling and gaming sector is subject to more stringent KYC verification requirements compared to other industries. In short, these gaming and gambling compliance requirements are in place to ensure minors don’t have access to these types of age-restricted services.
Regulatory requirements for gaming and gambling platforms
Despite the differences across regions, age verification is a key component in the regulation of gaming and gambling platforms the world over. But with each jurisdiction responsible for establishing its own specific requirements to prevent underage participation, there’s no single age verification solution that allows online gaming and gambling platforms to maintain compliance across borders.
Let’s take a look at some of the key age verification requirements across the United Kingdom (UK), the United States (US) and the European Union (EU).
United Kingdom (UK)
In the UK, the Gambling Commission enforces stringent age verification protocols to protect minors from accessing gambling services. All online gaming and gambling businesses are required to verify a customer's age and identity before allowing them to:
Deposit funds into an account,
Gamble with their own money or a free bet or bonus, and
Access free-to-play versions of gambling games on the operator's website.
These measures ensure that age verification occurs at the account registration stage, rather than allowing a grace period during which underage individuals might gamble. Operators must collect and verify customers’ information, including their name, address and date of birth, before allowing them to gamble. This information is often cross-checked against documents like passports, driving licences and household bills to confirm identity.
In some instances, gambling businesses might also ask customers for a selfie if there’s a risk of fraudulent activity on their account.
United States (US)
Unlike the UK, US age verification regulations within the gaming and gambling industry take a more fragmented approach. Without a unified federal framework to govern the industry, each state is responsible for developing and enforcing its own gaming and gambling regulations.
States that have legalised online gambling, such as New Jersey, Nevada and Michigan, mandate that operators implement robust age verification processes to ensure all participants meet the minimum age requirement, typically 21 years. That said, some states allow customers as young as 18 to participate in certain types of gambling and gaming, but strict age verification checks still apply.
While these age verification checks tend to vary depending on the state, these processes often involve:
Collecting personal information during account registration,
Verifying this information against public records or databases, and
Utilising third-party verification services to confirm identity and age.
Gambling and gaming operators must comply with both state-specific regulations and federal laws, such as the Unlawful Internet Gambling Enforcement Act (UIGEA) of 2006, which imposes restrictions on online gambling activities. The decentralised nature of US gambling laws means that age verification standards can differ significantly between jurisdictions.
European Union (EU)
Within the EU, each member state regulates gambling independently, leading to diverse age verification requirements. That said, the General Data Protection Regulation (GDPR) and Anti-Money Laundering Directive (AMLD) ensure that online gaming and gambling platforms handle customers' personal information responsibly while implementing strict anti-money laundering procedures.
Other common practices across European countries include:
KYC verification procedures: Operators must verify the identity and age of customers before allowing them to gamble. For example, in Spain, the Directorate General for the Regulation of Gambling (DGOJ) requires operators to verify a player's identity before allowing access to online gambling.
Use of official documents: Players are often required to provide government-issued identification, such as an ID card or passport, to confirm their age. In Italy, online gaming accounts must be verified using official documents soon after registration, with accounts suspended if verification is not completed promptly. Similar document checks apply in other countries, including France, Germany and Malta.
Cross-referencing databases: Some countries utilise national databases to cross-reference and validate the information provided by users during the registration process. For instance, Spain’s DGOJ offers an Identity Verification System that allows real-time cross-checking of user details against official government databases.
It's important to note that while the EU provides guidance to harmonise key principles, such as consumer protection and age verification, each member state implements its own specific regulations and enforcement mechanisms.
Challenges in online age verification for gaming
It should come as no surprise that one of the main challenges facing online gaming and gambling platforms is navigating regionally and vertically fragmented age verification regulations. With each jurisdiction implementing its own identity and age verification requirements, it’s nearly impossible for global companies to adopt a single verification solution. But that’s not the only challenge facing online gaming and gambling platforms. They must also overcome issues surrounding underage users bypassing verification checks and generative AI-driven fraud.
Deepfake technology is becoming increasingly sophisticated, posing significant risks to age verification solutions. Similarly, criminals are creating synthetic identities by combining real and fake information, making detection more difficult.
Despite strict regulations, underage users continue to find ways to circumvent age verification systems. Whether that be through using their parents’ ID, entering false birthdates or the use of VPNs, these methods allow minors to access age-restricted services.
Best practices for implementing age verification
To combat these challenges, gaming and gambling platforms must implement a combination of robust age verification solutions. Taking a multi-layered approach to identity and age verification is key for maintaining compliance and ensuring effective age verification.
The waterfall methodology is a great example of age verification best practice. This method starts with age verification using facial analysis, followed by ID-based and database-backed verification checks. This approach offers a low-friction solution, balancing user experience with effective and compliant verification checks.
Combined with AI-powered facial recognition and liveness detection, platforms are better positioned to prevent users from using static images or deepfake technology.
Ultimately, age verification should be integrated within broader identity verification solutions. These types of solutions not only simplify compliance, but they also help to reduce operational complexity. At Data Zoo, we understand the complexities facing gaming and gambling platforms, which is why we created a tailored, globally compliant identity verification solution. Our seamless verification tool allows for accelerated and cost-effective customer onboarding, helping you to eliminate friction and convert more customers. Get in touch with the team to learn more.