Why KYC Is Required in Gaming and Betting Sites?

Written by Dean McHugh
Dean McHugh
Dean McHugh is a full-time writer with more than 20 years of experience in the iGaming industry. Specialising in casino reviews, slot analyses, and sportsbook evaluations, he delivers clear, engaging, and insightful content for both industry professionals and casual players. Over the past four years, he has contributed extensively to leading iGaming comparison websites.
, | Updated: Wed 27 August 2025

KYCWith the global gambling industry undergoing significant growth, it is no surprise that it must comply with the same rules that apply to major financial institutions and banks. One specific requirement that has been introduced for many online casinos and sportsbooks is the mandatory KYC (Know Your Customer) procedure that players and bettors must complete.

While not all gambling markets have implemented obligatory KYC, the UKGC (UK Gambling Commission) has included compulsory KYC procedures in its licence conditions. Any gambling operator that applies for a casino or sportsbook licence from the UK regulators must comply with these conditions and ask all of their customers to complete a KYC process.

The KYC process is one of the tools that ensure participants in the gambling sector comply with local regulations and take all necessary steps to prevent money-laundering and identity-fraud incidents.

If you want to know what KYC is and why UK players are required to undergo this process when gambling online, you should continue reading. We will cover the basics of this procedure and how it is used to ensure a safer gambling industry not only in the UK but across numerous markets around the globe.

How KYC Procedures Work to Ensure Your Safety

How KYC Procedures WorkKYC stands for Know Your Customer and, as the name suggests, the financial institution or gaming website that is required to follow this procedure will collect certain types of information about its customers.

Certain virtual casinos or sportsbooks may allow you to register and start playing without completing the KYC process, as it may take some time. However, since the UKGC implemented KYC as one of its licence conditions, gaming and betting operators in the UK will not allow their customers to play for real money until they have finished their KYC verification.

Usually, the information collected during the KYC process includes personal details such as address, email, telephone number, and more. Providing the information requested by the casino or bookie during KYC will not only allow you to play for real money but will also enable you to request a withdrawal once you have accumulated sufficient winnings.

Mandatory KYC was implemented by the gambling industry in the UK as a way to prevent underage gambling and protect vulnerable individuals. Upon opening an account, new casino and sportsbook members must complete the KYC process to verify their age and identity. Before compulsory identity verification, players could sign up with a gaming or betting brand and place wagers before they had confirmed they were of legal age to take part in such activities.

Because it usually takes about 72 hours for a casino or sportsbook to verify a customer’s identity, before KYC became mandatory at registration players and bettors were allowed to place wagers while the operator carried out the checks. This meant that underage persons or high-risk individuals could wager real money until the website took the necessary measures to restrict their access.

However, under the latest identity-verification conditions imposed by the UKGC, gambling websites operating in the UK are not allowed to let new customers place wagers or enjoy games in fun mode until the casino or sportsbook verifies their age and identity.

KYC Requirements Licensed UK Gaming and Betting Operators Must Meet

KYC RequirementsIn 2019, the UKGC introduced a new set of KYC regulations that apply to all operators licensed by the UK regulator. Following the stricter requirements, instead of asking customers to provide proof of ID only when requesting withdrawals, operators were required to have their members complete a KYC process before they could place any wager on the respective websites.

According to the updated licence conditions of the UKGC, operators have to comply with the following KYC requirements:

  • The required customer information must be collected and verified by operators before members of the website are allowed to gamble. The information that players/bettors have to provide must include, but is not limited to, the customers’ names, date of birth, and address.
  • Upon requesting a withdrawal, customers should not be asked to provide additional information to confirm their identity. This restriction does not apply when the operator is obliged to collect other information because of separate legal requirements.
  • Before customers are allowed to deposit funds into their accounts, operators must inform them about the type of information required during the KYC process and the circumstances that require such details to be provided.
  • Licensed operators must also ensure that the information provided by customers and stored by the company remains accurate.

There may be other legal circumstances that allow operators to require additional information from their customers when a withdrawal is requested. However, this exception does not apply to information that could have been obtained at an earlier point, prior to a withdrawal request.

Operators are also not allowed to confiscate players/bettors’ funds under the pretext that customers have not provided ID to verify their identities.

Why There Is a Need for KYC in the Gambling Industry

Why There Is Need for KYCStatistics show that the number of active Internet users reached 5 billion people as of April 2022. That figure represents 63% of the global population, meaning that sectors like online gambling are continuously growing at a rapid pace. With such an increase in online gambling activity, it comes as no surprise that KYC and Anti-Money Laundering practices have been heavily implemented in regulated gambling markets across the world.

While major gambling businesses are required to abide by the restrictions imposed by local authorities, they still need to make the experience for their patrons as enjoyable as possible. However, some players and bettors find the KYC process too burdensome, avoiding websites that require identity verification from the get-go.

Undergoing the KYC procedure even before you are allowed to play for fun might seem annoying and inconvenient, but you should understand that this is a requirement that many licensed operators must follow, especially those licensed by the UKGC.

The main reason gaming and betting sites are required to implement a mandatory KYC procedure is to prevent money-laundering and terrorist-funding practices. This is also common practice in major banks and other financial institutions, which likewise need to employ various measures to prevent money-laundering and other fraudulent activities.

Without the KYC procedure, gaming and betting sites may be used by criminal organisations to launder the proceeds of illegal activities through massive deposits and withdrawals. The issues that KYC tackles include:

Scams

ScamsThe use of KYC allows gaming and betting operators to collect enough information about their customers. Details that players and bettors provide during registration, payments, and their overall gaming and betting experience are safely stored by operators. Such details are vital in cases of legal disputes or concerns about a possible scam. Thanks to the information collected through KYC, gambling operators can detect accounts that may be involved in illegal activities.

AML

AMLJust like financial institutions and banks, gaming and betting sites have become very attractive for criminal organisations that are looking for ways to launder money. There are numerous cases of funds from illegal activities being laundered through massive deposits and withdrawals at gambling websites. The KYC procedure, along with other AML tools, can detect suspicious transactions and alert gambling operators to potentially illegal activity on their websites.

Avoiding Terrorism Financing

Avoiding Terrorism FinancingTerrorist organisations can also use gambling websites to launder money and finance extremist activities. Data collected by various financial institutions and gambling websites can be used by the Financial Intelligence Unit to stop transactions that may be linked to the money-laundering activities of terrorist organisations.

How KYC Helps the Gaming Industry

How KYC Helps the Gaming IndustrySince virtual casinos and sportsbooks often handle large sums of money, they are required to follow the same strict procedures that major financial institutions implement. Gambling websites may process millions of pounds in a single day, which is why they are often targeted as platforms for laundering dirty money. As playing online removes the aspect of in-person interaction, individuals involved in criminal activities can easily join gambling websites and launder funds.

Thanks to the KYC procedure, gambling operators can identify customers and confirm whether their identity is genuine. With this security tool, operators can detect suspicious activities and prevent money-laundering transactions. The data collected through KYC procedures allow individuals suspected of illegal activities to be flagged and even banned from making transactions on gaming and betting sites.

Banks, financial institutions, and gambling sites must assess risk levels correctly to determine the actions they need to take to implement the right AML tools. AML controls are required for gambling operators to properly assess risk levels and take precautions against high-risk activities. New customers are exposed to these AML controls when they join a betting or gaming site. When new players or bettors open accounts with gambling companies, they must go through KYC and due-diligence procedures.

Recent research revealed that the UK comes in second place for money laundering on a global scale. According to the study, about £88 billion is laundered every year in the UK, comprising 4.3% of the country’s GDP. With criminal organisations often using the gambling sector to launder money, there is a huge need for vigorous AML controls.

Criminal entities known as dot-cons have become very common in the online gambling sector, with such organisations washing money by losing on games on purpose and then redeeming “clean” winnings. Such criminal groups, as well as other illegal activities, force regulators around the world to be very strict with licensees about following AML requirements.

In the past year alone, the UKGC took action against several operators that failed to comply with licence conditions and did not properly assess high-risk situations that might indicate money-laundering activities.

With the implementation of virtual cards, e-wallets, and cryptocurrencies, micro money-laundering is becoming easier. That is why gambling regulators are working on imposing even tighter regulations, including mandatory KYC procedures that will help prevent money-laundering cases.

Can Players Avoid KYC Checks While Playing Online?

Can Players Avoid KYC ChecksMany casino fans and bettors do not appreciate mandatory KYC checks as they can be very burdensome. What is more, in many cases, players do not feel comfortable sharing so many details with gambling operators because they are concerned about the safety of their sensitive information.

While some virtual casinos and sportsbooks will allow their users to play and place bets before they verify their profiles, after the latest changes in the UK gambling regulations, it is not possible to place any wagers online before you complete a KYC check. Unfortunately, some players and bettors may choose to make their bets at unlicensed gambling sites, as these would not require identity verification. However, you should keep in mind that such operators offer gambling without a licence from the local regulatory body, which means that your personal details and money could be at risk and you could end up a victim of scams.

You do not need to worry about going through a KYC check, as this means that you are placing your bets at a licensed casino or sportsbook. Operators authorised by the UKGC must verify the profiles of all their patrons to comply with the regulator’s AML policies. While it can be burdensome to provide so much personal information to verify your casino or sportsbook account, such measures are required to ensure that no illegal activities take place on the website where you gamble your real money.

As licensed operators must implement KYC checks for their patrons, the KYC verification system is becoming more advanced, offering solutions such as VideoKYC. Such tools allow easier account verification, making the process more convenient and faster.

In conclusion, there is no need to worry about virtual casinos and sportsbooks requiring KYC checks. This is a step that all companies operating legally are obliged to implement. With the gambling industry continuing to grow and often being targeted by money-laundering organisations, it is natural for gambling firms to undergo the same checks as major financial companies and banks.

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