The gaming industry is faced with a series of issues that are specific to it. In order to apply the most effective solutions, it is critical to understand as much as possible about the subject matter.
Demographics of those who gamble
One thing is certain: the game of gambling has evolved significantly in recent years. But, more specifically, what has changed? Particularly noteworthy is the manner in which people gamble and the identities of the participants. By 2020, it is projected that younger millennials and certain members of Generation Z would account for nearly half (40 percent) of all video game consumers.
This group of young players (aged 18-21) is not surprising given that they prefer to place their wagers digitally, primarily using their mobile phones. The older generation, on the other hand, does not appear to have totally given up on their gambling addiction. As a result, players over the age of 60 are today spending more than twice the amount that they were ten years ago.
Fraud detection and prevention
Unfortunately, a surge in interest in online gambling has coincided with an increase in cybercrime, which is a negative development. In this case, consumers who participate in online gambling run the danger of having their sensitive personal information stolen when they register for an account.
According to the ThreatMetrix Gaming and Gambling Cybercrime Report, one out of every twenty new online gambling accounts is a fraudulent account, which is a significant number. Bot attacks during peak periods account for nearly half of all daily gambling traffic, while bot assaults during off-peak periods account for nearly half of all daily gambling traffic.
Although it may come as a surprise, the most dangerous aspect of online gambling comes right at the beginning of the customer’s journey, during the registration and account creation processes.
That’s why it’s critical to speak with your payment processor and inquire about the types of security measures they can provide to secure your business and your customers’ sensitive data against fraud from the beginning.
When it comes to fraud, responding to it after it occurs is not nearly as effective as preventing it. That is why it is critical to partner with a payment provider who understands the unique requirements of your industry and who will implement smart anti-scam filters that will accurately distinguish your legitimate customers from scammers.
As an alternative, anti-fraud filters can become too sensitive as a result of increased usage, which results in lower payment acceptance rates as well as lower conversion rates. This results in disappointed customers.
Another consideration is that, given the fact that you have an online casino trading account, you will likely experience a big increase in payment volume in a short period of time, increasing the likelihood that your trading account may be wrongly detected for fraudulent behaviour. If this occurs, your trading account may be temporarily locked, which means that your clients will be unable to complete deals and you will be unable to conduct business as usual.
This problem can be avoided by ensuring that your payment processor has the ability to build intelligent, automated anti-fraud filters that are accurate enough to only detect transactions that are 100 percent fraudulent. This guarantees that all of your legitimate customers are able to proceed through the checkout process without interruption, and it also helps to protect your revenue stream from potential losses.
Laws and Administrative Regulations are two types of legislation.
The European market is the most important market for online gaming, accounting for about half of all revenue generated in the industry. Although the EU as a whole does not have a single standard policy for online gambling, the regulation of these activities is the responsibility of each individual EU member state, as is the case in the United States.
The consequence of this is that online gambling traders must keep aware of all advancements within their respective regional marketplaces in order to ensure that the rules they adhere to do not become obsolete. For example, traders from the United Kingdom and France who wish to conduct their online gambling businesses in those countries must obtain a local licence to do so.
When it comes to the legislation governing online gambling trading accounts, there are certain commonalities across the member nations of the European Union. Most notably, the Know Your Customer (KYC) and anti-money laundering regulations that apply in this region are the most stringent in the region.
As a result, each online gambling customer must be correctly identified in order for merchants and acquirers to be able to assess the risk of money laundering and other criminal activity related with their online gambling account. The restrictions for internet gambling also vary from state to state, in spite of the fact that the United States is an independent country. For example, beginning in 1992, it became unlawful to wager on sports in the majority of states in the United States.
However, most do not include everyone, and sports betting is still permitted in some jurisdictions, notably New Jersey, Nevada, and Delaware, according to the National Sports Betting Association. Nonetheless, it is the obligation of online gambling distributors to keep abreast of any changes in regulation that may have an impact on their industry.