What’s the current state of play in the UK gambling market? The UK gambling industry is growing at breakneck speed. More and more people are enjoying a quick flutter and the ways and means for them to indulge their pastime are popping up all over the place. Expected to grow by a fifth over the next two years, KPMG predicts the industry to hit £10.8 billion in 2009.

The advent of new Government regulations is good news for the gambling industry, in particular for casinos. KPMG is forecasting the casino sector will rise by a massive 217 per cent over the next three years, being worth £2.5 billion by 2009. During 2004- 2005, there were 138 casinos operating in Great Britain, with players exchanging £4.16 billion for gaming chips.

Big players, such as 888.com, Partygaming.com and 32red.com are making themselves know in the market, and the National Lottery going online has also raised the stakes.

This onslaught of Internet casino sites has given rise to a number of challenges facing operators who, while wanting to make a successful commercial venture, also need to safeguard both themselves and their customers and shareholders. ISSUES FOR THE INDUSTRY The main problem with online gambling is checking the identity of customers.

Land-based casinos can check ID face-to-face, cross-referencing with photo ID; Internet gamblers however, simply enter their details online. Here lies the main challenge faced by operators – how can they be certain their customers are who they say they are? Land-based casinos are very specific in how they verify customers ID, surely these stringent methods should be reflected in the online market as well? In the gambling world there is a strong feeling of ‘social responsibility’, with the onus on the operators to prove that every reasonable effort was made to verify the age and identity of a potential gambler.

The two main issues in the online gambling arena are concerned with the financial effects fraud has on bottom-line profit for operators and the problems associated with making sure gamblers are who they say they are, checking their identity and age.

As the services available on the Internet grow and become more accessable via devices such as mobile phones and digital television, so does online gambling.

Making sure gamblers’ identities are verified is of up-most importance for the gambling industry. While customers playing in a casino will have to show their ID before they bet, those gambling online can be faceless – typing their, or more to the point anyone’s details into websites, hoping to win big.

PROTECTION FROM THE ‘FACELESS FRAUDSTER’

Fraud and ID theft is not only worrying for gamblers but also for the industry, with both sides needing equal protection. Operators need to incorporate various methods so they can offer the safest environment possible for their customers. Services that verify player’s details by cross-referencing their name, address and date of birth with government databases, commercial sources and information from various financial services companies are central to keeping gambling a fun and secure pastime. At the same time, this can also help to reduce the cost of fraud.

In this day and age there really is no excuse for casinos and gambling sites not to take the proper measures to combat this danger, with services checking up on people’s data and keeping everyone protected readily available.

GAMBLING COMMISSION

In light of the new Gambling Act, the Gambling Commission was set up to help roll out the proposals. The Act brings with it new codes of practice, narrowing down the broad terms of play and placing new restrictions on the industry.

Aiming to help addicts, the new legislation places restrictions on alcohol, ensures dealers are licensed dealers and provides help for problem gamblers.

As well as visiting casinos, bingo shops and amusement arcades, Commission staff will check online gambling sites on a regular basis. Operators failing to comply will face tough penalties, including licence suspension or revocation and potentially unlimited fines.

THE FUTURE

One thing’s for certain - casinos and gambling are big money. Researchers from Nottingham Trent University claim that by relaxing regulations around betting and gaming and abolishing tax on punters, more money could be generated by the gambling sector than any other industry, with the UK economy benefiting from the plans.

In order for these new rules to be successful however, casino operators, both on- and offline, must protect both themselves and their customers from the risk of ID fraud. It’s a two way street and both parties must understand the importance of actively participating in the verification process.

When choosing a suitable tool, operators need to understand that identity is not standardised, that it needs to be checked for every new customer. It’s not always done face to face and gamblers need to accept that it is part of the process of signing up.

The danger is, that with the relaxation and change in law, coupled with the Internet’s increasing dominance, vulnerable users may find temptation too much and not understand the implications of their behaviour. In order to take advantage of the massive growth expected for the industry, online gambling sites must have the same stringent checks as casinos in order to provide the right level of protection for all parties involved.

Operators must not just be aware of the risks, but actively seek to look after themselves, their customers and stamp out loopholes that criminals can use to their advantage. It’s time we raised the stakes in the gambling world and make online services personal, safe and enjoyable.

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