The gaming industry faces its own unique challenges. It is therefore important to learn as much as possible from them in order to use the most effective solutions.
One thing is for sure – games have changed in recent years. But what has really changed? Especially how people play and who the players are. By 2020, younger mille and some Z generation representatives are expected to be close to half (40%) by gambling consumers.
Perhaps unsurprisingly, these young players (18-21 years old) will place their bets digitally; mostly on their mobile phones. But that doesn’t mean the older generation has completely given up on the way they play. In fact, players over the age of 60 are now spending more than twice as much as just a decade ago.
Anti- fraud office
Unfortunately, the increased interest in online gambling is increasing online crime. As a result, consumers of online gambling risk stealing sensitive personal information when registering an account.
This problem is so widespread that according to the Threat Matrix Gaming and Gambling Cybercrime Report every 20 years, the problem is so widespread. While bot attacks are responsible for almost half of daily game traffic during rush hour. Perhaps somewhat surprisingly, the riskiest element of online gambling actually happens at the beginning of a consumer’s journey because it is related to registration and account creation process. Therefore, it’s very important to talk to a payment processor and ask what features they can offer to protect your business and customers’ sensitive information from fraud – right from the start.
Dealing with scams when they happen isn’t as effective as preventing them from happening – that’s why it’s so important to find a payment service provider that knows your industry’s specific needs and implements smart anti-fraud filters that can accurately distinguish your legitimate customers from scammers. On the other side of the fraud medal, however, fraud filters can become too sensitive, which can lead to acceptance of payments, lower conversion rates, and frustrated customers. You also need to keep this in mind, especially when you have an online gambling account, your payment amount is likely to increase significantly in the short term – which can lead to your merchant account risking being portrayed as fake.
If this happens, your merchant account may be temporarily suspended, meaning your customers will not be able to complete transactions and you will be prevented from running your business. To resolve this issue, ensure that the payment processor can implement smart, automated fraud filters that are accurate enough to report only 100% fraudulent transactions. This ensures that all your legitimate customers survive the cash flow process seamlessly, helping to protect your revenue stream from losses.
Laws, regulations and administrative regulations
The European market is the largest market for online gambling, with revenues accounting for almost half of total revenues. However, the EU as a whole does not have a unique common online gambling policy, and therefore it is the individual responsibility of all EU countries to regulate these activities. This means that online players need to stay up to date on all developments in their geographic market to ensure that the rules they follow don’t become obsolete. For example, British and French merchants who run their online gambling businesses in some areas need a domestic license.
However, EU countries have some common features when it comes to rules for commercial online gambling accounts. In particular, the strictest rules in this regional market are related to Know Your Customer (KYC) and anti-money laundering rules. Therefore, all consumers of online gambling must be correctly identified so that sellers and acquirers can assess money laundering and other criminal risks associated with their online account. And although the United States is a sovereign country, the rules of online gambling also vary from state to state. Since 1992, for example, it has been illegal to bet on sports in most places in America.
But most don’t mean all, and sports betting is still legal in some states – namely in New Jersey, Nevada and Delaware. However, it is the online player’s responsibility to stay properly informed about legislative changes related to their industry.