Online Gambling involves betting or playing games of chance for money using a computer, tablet, mobile phone or other electronic device connected to the internet. It includes games like slots, poker and table games but excludes video lottery terminals (VLT).
Online gambling is legal in many countries, although some have banned it entirely. However, it is not without risks: fraud is a serious problem in this industry and can lead to lost revenue, damaged relationships with payment processors and time and resource strain for gambling operators trying to manage the risk of fraudsters on their platforms.
Fraud in Online Gambling
To minimize the potential for fraud, gaming operators must have a robust KYC and AML strategy in place that is continually updated and maintained across all parts of the player journey. For example, ensuring that fraudsters cannot use phone top-up systems to fund their account or make deposits with stolen cards is essential. Keeping fraud rates low also protects brand reputation and preserves relationships with payment processing partners. High fraud rates can result in payment bans, which can limit players’ deposit options and lead to loss of revenue. They can also harm the ability to accept new players and impact the overall gaming experience. In addition, fighting fraud can consume valuable resources that could otherwise be invested in developing the platform. This is especially true for smaller online casinos, which may be unable to afford costly investigations and litigation.