Online gambling market held back by lack of proper identification methods
Regulatory requirements for legalized gambling present major problems for online vendors, who find it difficult to verify the identities of their customers for tax and other legal purposes.
Gambling operators are required to identify their customers for a variety of reasons, including preventing money laundering, and protecting customers from gambling addiction or illegal operations. But those restrictions are an obstacle for the growing online gambling industry, which has a tougher time verifying the identity of their customers according to Computer Weekly.
The requirements force online operators to identify their customers in personal, potentially intrusive ways, connecting them to specific bank accounts, mailing addresses and more.
Further complicating matters is the fact that regulations on gambling vary across the world. Without standardized expectations, companies have to comply with different sets of demands depending on the countries where they operate.
As such, market watchers see a major opportunity in the online gambling space to create a uniform system that would allow online gambling sites to comply with local laws. Current players in the identity industry, however, have been reluctant because of stigmas and reputations with gambling.
Online gambling is projected to become a $45.86 billion industry by the end of this year, growing to $56.05 billion by 2018. The market has nearly doubled since 2009, when it was said to be a $24.73 billion business.