Casino KYC Process – Why Do Online Casinos Ask for Documents?

The KYC Process Means Customer Identification

First, it is essential to understand what KYC means. The abbreviation refers to the English term Know Your Customer process, which means knowing your customer. KYC directly translated is “Know Your Customer,” but especially at online casinos, the abbreviation from English is commonly used.

The purpose of the process is to verify the player’s identity and personal information. The personal information to be verified includes the player’s first and last name, address, and date of birth. Usually, it is also confirmed that the payment method used is in the player’s name. There is no need to fear KYC, as especially new and upcoming online casinos handle this process quite efficiently and quickly.

Knowing the customer is an obligation for online casinos by licensing authorities, and anti-money laundering laws also require it. Since a lot of money circulates in casinos, identification has been found to be an effective measure that simultaneously increases safety and prevents crime.

Online casinos create a risk classification for their players, which determines, for example, which documents the KYC process requires. Players are classified into low, medium, or high-risk categories. For example, Malta casinos assess the risk level based on the total deposit amounts. If deposits exceed 2,000 euros within 180 days, approximately six months, the casino must perform KYC on the player at the latest.

The faster this limit is exceeded, the higher the risk for the player. Additionally, the risk classification is influenced by the following factors:

• Individual deposit amounts
• Types of games played
• Payment methods used
• Other factors

All players are continuously monitored, and suspicions of criminal activity are reported with a low threshold. Medium and high-risk players are monitored more actively, and they may be asked for proof of the origin of funds as part of the identification process.

Different countries’ licensing authorities have their KYC requirements for casinos, but every casino must adhere to at least international KYC and anti-money laundering regulations.

Why Can’t I Provide My Personal Identity Number?

Everyone has a personal identity number, so why isn’t it enough to provide this to an online casino? Unfortunately, personal identity numbers are national, meaning they are country-specific. If you were to move abroad, say to Sweden, you would need to apply for a Swedish personal identity number.

Currently, there is no common registry or uniform rule for personal identity numbers within Europe or beyond. This is why online casinos always ask you to provide a copy of either your passport or official ID card.

Even if providing your personal identity number was sufficient, you would still need to verify your payment method and address separately.

How the Casino KYC Process Proceeds

The casino KYC process generally follows a straightforward path. Initially, the casino sends the player an identification request detailing all the necessary documents.

The general steps for verifying a customer’s identity are as follows:

1. The casino sends a document request to the player.
2. The player provides the requested documents to the casino.
3. The casino checks the documents and compares them with the account information.
4. If everything is in order, the player is successfully identified.

Many casinos use a KYC form or a separate document upload tool through which files can be uploaded securely. Few casinos still request documents via email, though this does occasionally happen.

Online casinos usually conduct customer identification themselves, but some use third-party service providers for either the entire identification process or just document collection.

An exception to the above is quick casinos, which typically do not require separate document submissions from players, at least in the early stages of their gaming career. Quick casinos obtain players’ personal and address information from the payment service providers when they make a deposit using online banking credentials.

However, quick casinos must still follow licensing authorities’ guidelines and may request photographic ID and address proof, as well as information on the source of funds when necessary.

Why Does the Casino Ask for Documents?

When you receive an identification request from a casino, it is important to read the instructions carefully to ensure you provide the correct documents immediately. Typically, the casino KYC process requires the following documents:

• Proof of identity
• Proof of address (residency verification)
• Proof of ownership of the used payment method

If you provide incomplete, outdated, or otherwise incorrect documents, the identification process will be slower, and the processing of any withdrawal requests may be delayed. If deficiencies are found in the submitted documents, you will be sent a new document request.

The Safest Way to Provide Requested Documents

The safest way to provide the requested documents is to use the casino’s dedicated upload program or form for documents. These programs and the KYC form typically automatically censor any information not required for identification. Additionally, the connection is secured, ensuring that your uploaded documents do not fall into the wrong hands.

Identity verification documents and other necessary documents are sensitive enough that they should never be sent via unsecured email or live chat. Always use secure connections for this purpose.

How the Process Proceeds

Once the documents you provided are checked and approved, your identity can be verified. You will typically receive a notification either via email or through your gaming account. Occasionally, no separate confirmation is sent, and you will need to check yourself if everything is in order.

If you have a pending withdrawal request, it will proceed automatically once the KYC process is completed.

Below, you can find more details about the documents required for strong identification.

Proof of Identity

According to law, identity verification is done using either a passport or an official ID card. Many casinos also accept a driver’s license as a valid proof of identity. The purpose of presenting the document is to ensure that you have created the gaming account with accurate information and that you are of legal age.

You can take a photo of your identity document and submit it to the casino. When taking the photo, ensure that the entire document is visible in the picture, including all four corners of the document. Make sure the picture quality is clear, as blurry or shaky images will not be accepted.

Additionally, check that your identity document is valid. Expired documents are not accepted. If your identity document expires later, you may be asked to provide a new document to replace the expired one.

Proof of Address

Proof of address is a document that verifies your official residential address. Its purpose is to confirm that you have provided your correct address to the casino and that you live in an area where gambling is legal.

You can request official proof of address from the Digital and Population Data Services Agency, but there are easier options. Most online casinos accept utility bills, bank statements, or official mail from an authority as proof of address.

Proof of address must be dated within the last three months. An older document will not be accepted. If you photograph the document, ensure that it is entirely visible in the photo and that the picture is clear.

Other options for submission include scanning the document into a PDF file or using electronic PDF invoices. Electronic PDF invoices have sometimes been met with reservations by some casinos, but as digitization progresses, acceptance has become more favourable.

Proof of Payment Method

Proof of payment method is a document that verifies the ownership of the payment method you used. The proof varies depending on the payment method. It ensures that you have used a payment method in your name at the casino.

For example, if you made a bank transfer deposit, the casino will need a picture of your bank statement. If you used an e-wallet, you can take a screenshot of the personal information page of your e-wallet and submit it as proof of payment method. If you deposited using a payment card, you need to provide pictures of both sides of the card to the casino.

Tip: If you wish, you can cover the parts of the bank statement that do not relate to the specific casino.

Not all casino deposit methods allow for proof of ownership. For instance, proof of payment method is not requested for a Paysafecard bought at a kiosk, but you still need to verify the ownership of the withdrawal method.

Proof of Source of Wealth

Not all casino deposit methods allow for proof of ownership. For Proof of source of wealth (SoW) is not always part of the customer identification process at every casino. This proof shows where the funds you deposited come from and is often required for players making unusually large deposits and withdrawals, typically thousands of dollars.

If you receive a request to verify the source of your funds, you need to provide the casino with documents showing the origin of the funds you deposited. Below are examples of the options provided by some casinos for uploading documents.

You can prove the origin of your funds with the following documents:

• If your funds come from salary, provide a payslip.
• If you sold the property, provide a sales receipt or a bank statement showing the transfer.
• If you made capital gains from stock sales, provide a statement of those gains.
• If your funds come from casino winnings, provide a document showing the payout.

Sometimes, the casino may request to see your employment contract. In such cases, you can censor information that is not relevant to proving the source of funds.

Customer Identification at Quick Casinos

As mentioned earlier, quick casinos do not necessarily require immediate identity verification in the same way as traditional online casinos. This is because the payment service providers used by quick casinos receive the KYC information of players during online banking login, which they then pass on to the casinos.

However, exceptions exist. If the identification information does not match for some reason or the quick casino requires additional information, it has the right and legal obligation to perform strong customer identification with a document request.

And, of course, if the limits defined by licensing authorities are reached, the casino must also request documents from quick casinos. Required additional documents may include proof of source of wealth.

Third-Party KYC Service Providers

In addition to casinos, banks and other financial institutions have an obligation to know their customers. Some other companies, such as online retailers, may use third-party service providers to verify identity.

Online casinos sometimes use these third-party providers as well. Some of these providers include:

• Jumio: Has long offered KYC services to the gaming industry and was one of the first to allow players to submit documents easily using their phone camera.
• iDenfy: Offers services to many industries, and brands under the Betsson Group have used their services in the gaming sector.

The names above may not be familiar to the average consumer, but providers such as Netvisor offer services similar to those of non-gaming companies.

Although external service providers are rare in the casino world, this does not mean that strong identification at the casino is unsafe. On the contrary, if the process were in any way deficient, casino operations would come to a halt.

Licensing authorities continuously monitor customer identification to ensure that it is handled safely and according to the law. If deficiencies are found in the operations, the casino could lose its license at worst.

Common Issues in the KYC Process

A new casino player might find the KYC process challenging. You have sent all the required documents to the online casino, but the casino team refuses to approve and verify your account.

It is not uncommon for issues to arise during the identification phase. Here are some common issues and their solutions:

• My identity document is not accepted: Only passports or official ID cards are allowed for identification documents. Driver’s licenses or ID cards with photos issued by other authorities are not suitable.
• My proof of address was not accepted: Many online casinos require a utility bill, such as a water or electricity bill. Telecommunication bills often do not qualify. An official proof of residence is sufficient.
• My payment method could not be verified: You need to take a screenshot where all the necessary details are visible or a clear photo of both sides of your payment card.
• Processing of my documents is taking too long: KYC documents can be checked manually, so please be patient!

If you want to avoid such issues, it is advisable to choose a registration-free online casino. Although they also have an obligation to identify their customers, most of these steps are usually automated – sometimes all of them.

What If I Refuse to Verify My Account?

Online casinos always have the option to refuse you as a customer. This is usually due to incomplete identification, but the casino can also suspend your account if it considers you a risk player.

The online casino will reject your withdrawal request, may withhold your winnings, and will certainly close your gaming account.

Summary

Strong customer identification and identity verification are the goals of the KYC process. Customer identification is a legal obligation for legitimate casinos and enhances the casino’s security. Its aim is not only to verify players’ identities but also to comply with international laws, regulations, and directives.

Since customer identification is part of the casino’s security measures, its implementation is continuously monitored. Licensing authorities actively monitor that the gaming companies they license fulfil their customer identification obligations according to licensing terms.

Monitoring also extends to payment methods used at casinos. Depending on the payment service, its operations are monitored by either the Financial Supervisory Authority, a bank, or another financial institution, which in turn is monitored by higher authorities.

Additionally, other authorities may be interested in money transfers at casinos and the individuals making them. For example, the police may occasionally contact an online casino regarding certain money transfers, and this task is made easier if strong identification has been properly carried out.