The digital world is getting more and more immersive with the introduction of new technologies. Especially in gaming and esports, firms experience a whole lot of new developments. People are finding new ways of gambling online and with other audiences from all over the world. According to Statista, the online gambling revenue is
estimated to rise at the 8.54% CAGR, resulting in a projected market volume of $132 billion by the end of 2027. As the market is growing rapidly, businesses that are participating in online gaming and gambling experience a high rate of fraud and money laundering. This blog will cover all the crucial aspects of KYB verification and gaming compliance across the evolving esports industry.
How KYB Protects the Gaming Industry
The Know Your Business (KYB) process is necessary in many industries. Speaking of the gaming sector, companies must meet the gaming compliance requirements. Here are some of the ways KYB can help businesses maintain their involvement in the gaming and gambling industry.
Verification of Gaming and Gambling Businesses
The largest segment in the Esports market is sports betting with over $2.1 billion market volume recorded in 2023. This enormous figure indicates that businesses also participate in e-sports to invest their shares in betting and playmaking. Speaking of businesses participating in gaming and gambling, it is crucial for gaming platforms to verify the identity of an organisation before onboarding them for future trading. Gaming operators should employ a complete KYB verification solution to identify real entities before business onboarding or engaging with them through partnerships, trading operations, gambling, and other types of sports betting. KYB can help firms to conveniently onboard new clients, gaming studios, players, and new investors without compromising security and compliance.
Identifying Real Partners
With a proper KYB verification solution, gaming operations can identify real partners behind any new game developers who want to register for public operations. The gaming industry experiences new players with modern gaming platforms almost every day. Before registering them with their player base it is necessary to identify the genuineness of the company. KYB verification works by layering data from a wide range of sources to check for the authenticity of business partners before onboarding them, particularly for online casinos, betting firms, and other gambling sites. Most AI-powered KYB verification solutions automatically gather the required data such as business addresses, stakeholders’ backgrounds, and previous track records to verify a business’s authenticity.
Securing Online Gaming and Gambling Platforms
Fraudsters can exploit online gambling platforms for money laundering and the transfer of illicit funds for terrorist financing. They use online casinos to deposit illicit cash into offshore accounts using their prepaid cards, cheques, or even cryptocurrencies, showcasing sports betting and gambling. For gaming, players can exchange in-game merchandise, skins, and weapons which they buy for real cash. Illegal businesses and shell gaming platforms provide players with a heavy discount on all these in-game accessories making them pay. While they don’t scam the end-user in the first place, they use that revenue for illicit transfers and operations. This is the reason many game development firms recommend avoiding third-party markets for in-game accessories as there are high chances of fraud. For businesses, the KYB Verification solution is a lifesaver in this regard as it verifies all the third-party players helping firms verify every crucial aspect.
Enhancing Gaming Data Compliance
Every new game, especially the ones with multiplayer options, needs to follow a certain set of guidelines for fair use of players’ in-game interactions, such as personal, gender, location, and age information. The implementation of voice chat also needs complete regulation to protect player privacy and the exchange of sensitive information in-game. 32% of gaming executives working in top firms agree that making use of the data their companies collect is a significant challenge. While it is a difficult task for giants to regulate player compliance, businesses that enter the gaming and gambling market for investment and exposure can experience a significant challenge as well. Registering with an unverified company and sharing all the sensitive information with them is not a great option for firms.
A KYB verification solution can help in this regard by implementing gaming regulations. KYB checks ensure online gaming safety by verifying all important aspects, such as partner legitimacy, payment processing gateways, and AML screening of core officials behind the organisation.
Preventing Money Laundering and Crimes
Speaking of AML screening, businesses need to verify platforms before exchanging finance or simply gambling. Many shell companies and agencies are operating across casino networks, looking to lure potential targets. And what’s a better target than a full-fledged business? In most cases, they ask businesses to provide all the necessary information for the sake of registration to those fake casinos before they can start playing and betting. Businesses that skip KYB verification fall into these traps giving away all the necessary information which ultimately leads to data leakage and can cause financial loss. KYB verification plays a crucial role in regulating global compliance across the gaming industry, protecting player and business privacy, and preventing data leakage.
Businesses that are participating in the gaming sector can face several challenges when it comes to data protection and privacy. Not only in terms of data, putting stakes in online gambling and casinos can cause financial loss as well if not properly assessed beforehand. KYB Verification solution comes into play in mitigating these risks. It provides a multitude of advantages in terms of new business partnerships, casino games, online betting and even investing in a gaming firm. Ensuring AML in gaming, KYB verification can help businesses evaluate every crucial aspect such as payment processing channels, partner credibility, and platform authenticity. Looking for a KYB verification before stepping into gaming? Contact us for complete coverage of business risk assessments and compliance.
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