KYC Gambling: A 2025 iGaming Playbook

Key takeaways (TL;DR)
 

Operating without KYC in regulated markets isn’t viable: age and identity must be verified before play or deposits.

Fraud concentrates post‑KYC; continuous monitoring, event‑driven EDD, and daily AML checks are critical.

A risk‑based flow (age‑first, document + biometrics, device/network signals) cuts friction without lowering the bar.

Didit shows 25‑second onboarding, −60% manual review, and >70% cost savings in production.

Winning in iGaming isn’t only about odds anymore—it’s about identity verification and fraud detection. In 2025, attacks have leveled up with generative AI and deepfakes, while regulatory pressure accelerates on both sides of the Atlantic. The data is clear: iGaming fraud has doubled in two years, with activity peaking between 4:00 and 8:00 a.m., when oversight is lowest; and Brazil has become the deepfake hotspot, with five times the incidence of the U.S. and ten times Germany. A scale shift you can’t ignore.

The rise of deepfakes is no small matter. In 2025, they account for 1 in 20 identity‑verification failures globally, forcing operators to harden biometric controls and liveness during onboarding. But gambling platforms must treat security as a continuous process, not a one‑time gate. In fact, most fraud attempts happen after KYC is completed, which demands continuous monitoring and ongoing due diligence across deposits, wagers, and withdrawals.

Regulators are moving fast to fight fraud. Brazil activated its new betting framework on January 1, 2025, with strict requirements and reinforced identity controls. Meanwhile, the UK Gambling Commission requires age and identity verification before users can play, deposit, or even access free‑to‑play titles. The top priority is clear: protect minors.

What does this mean for compliance teams and startups? Reducing friction is possible, but only if KYC is designed with staged, risk‑based flows, reliable age verification, and post‑onboarding controls that anticipate real attack patterns. This article shows how to shape your strategy to protect revenue, reputation, and compliance in 2025.

What KYC Means in iGaming—and Why It’s Critical Now

KYC (Know Your Customer) is the set of controls that verify identity, assess risk, and prevent financial crime (AML). In gambling and online betting, it acts as a gate at key stages of the customer journey: signup, deposits, and withdrawals.

Its importance has grown for three main reasons:

1. Exposure to fraud and direct losses. Operators report higher fraud and associated costs (manual reviews, bonus abuse, account trading/theft).
2. Compliance and reputation. Regulations mandate player identity controls, sanctions/PEP screening, evidence retention, and reporting. Non‑compliance leads to fines, license loss, and reputational damage.
3. Player experience. KYC can’t be a bottleneck: winning setups blend document analysis, biometrics, device/network signals (IP, etc.), and real‑time decisions.

“No‑KYC Casinos” Under the Microscope: Convenience vs. Legal & Fraud Risk

Interest in no‑KYC casinos has surged in recent years. Since March 2022, many users look for ways to skip verification controls before playing, as the chart below shows.

From a player’s perspective, four motivations typically drive searches for no‑KYC casinos:

• Too much friction. People who want to jump in and play without paperwork.
• Privacy fears. Perceived risk of data/document misuse or social stigma.
• Illegal access. Minors or people in blocked locations who can’t join legitimate platforms.
• Malicious intent. Evading AML controls or abusing welcome bonuses.

From an operator’s perspective, is it legal to offer a no‑KYC alternative? In regulated markets (EU/UK/US) operating without KYC is not legal: age and identity must be verified before playing or depositing, and AML obligations must be met (e.g., AMLR in the EU, UKGC in the UK, and the BSA in the U.S.).

Common Fraud Patterns on Gambling Platforms

Multi‑accounting

What it is: the same person creates several accounts to exploit bonuses or bypass limits.

How it’s detected: “twins” show up with the same device, IP, or payment method.

What to do: set device/household limits, request extra verification when signals don’t match, and apply cool‑off or shadow bans when detected.

Bonus abuse

What it is: exploiting promos and free bets with multiple accounts or in coordination.

How it’s detected: signup spikes during campaigns, many users sharing a device or payment method, and fast withdrawals after clearing the bonus.

What to do: restrict bonuses to verified identity and payment method.

Money mule accounts

What it is: people lending/buying/selling their account to move third‑party funds.

How it’s detected: deposits from sources that don’t fit the profile; withdrawals to new accounts.

What to do: daily AML checks, hold withdrawals until source of funds is verified, and link accounts by device and payments.

Account Takeover (ATO)

What it is: someone enters a legitimate account to bet or cash out.

How it’s detected: logins from far‑flung countries (impossible travel), sudden device changes, or unusual IP history.

What to do: trigger biometric auth when conditions change, enable 2FA, alert the owner, and re‑check payment methods before withdrawals.

Regulatory Frameworks by Region: Operating Globally

In a global setting, operators must support multi‑jurisdiction options to work safely across countries and meet diverse rules. How?

• Parameterize country thresholds.
• Keep a traceable decision log (approvals/declines with reasons).
• Use biometric authentications when risk changes (deposits, large withdrawals, transaction alerts, etc.).

Key Regulatory Frameworks for Gambling Operators

• European Union
  • AMLR 2024 (Regulation 2024/1624): Harmonizes KYC/CDD rules, beneficial ownership, and limits on anonymous instruments.
  • AMLA 2024 (Regulation 2024/1620): Creates the EU Anti‑Money Laundering Authority (HQ in Frankfurt) for coordinated supervision.
  • AMLD6 and AMLD5: Reference frameworks until full application of the 2024 package.
• United Kingdom (UK)
  • UKGC – Age & ID verification: Requires age and identity verification before playing or depositing.
  • Financial Risk Checks (SR 3.4.4): Vulnerability checks with a “frictionless” approach.
  • AML Guidance for casinos: AML guide for remote and land‑based casinos.
• United States (U.S.)
  • BSA / FinCEN (31 CFR Part 1021): Casinos are “financial institutions” under the BSA; requires an AML program, CTR (≥ $10,000), SAR, recordkeeping, and training.
  • State frameworks (e.g., New Jersey, Nevada): Strict identity and geolocation rules; additional requirements by state and vertical.

Retention & traceability: It’s advisable to retain CDD/EDD evidence and decision rationales for ≈5 years (aligned with common AML frameworks) for audits and supervision.

How to Design a Low‑Friction iGaming KYC Flow (Step by Step)

If your goal is to maximize onboarding speed and conversion while minimizing false positives and manual work, this skeleton works:

1. Smart age control. Fast age estimation to clearly filter minors, with document fallback if the signal is uncertain.
2. ID Verification (document). Validate document authenticity and extract data via OCR.
3. Biometrics & liveness. Ensure the document belongs to the user (1:1 face match) and they’re present, preventing deepfakes, videos, or masks (liveness detection).
4. Real‑time AML screening. Initial and daily checks against watchlists, sanctions, and PEPs.
5. Network & device signals. IP/GPS geolocation, VPN/proxy detection, and event‑velocity analysis.
6. Decision & fallbacks. Instant approval when signals align; step‑up to EDD or manual review when risk signs appear.
7. Authentication for risky actions. For large withdrawals or other signals, request biometrics to ensure security.

KPIs iGaming platforms should monitor

• Pass rate (by country and method)
• Total verification time
• Step abandonment
• Manual‑review rate
• PEP/sanctions hit rate
• Liveness accuracy

Post‑onboarding Monitoring & Triggers: From Deposit to Withdrawal

Most fraud no longer stops at signup: a large portion happens after initial verification. Therefore:

• Event controls. High single/accumulated deposits, large withdrawals, abnormal speed, device/location changes, chargeback spikes.
• Selective re‑verification. Control selfie, source‑of‑funds checks, or deeper document review.
• Automated daily checks. Daily screening against watchlists and sanctions to detect changes without friction.

Didit for iGaming: A KYC Platform That Cuts Fraud and Speeds Onboarding

Compliance teams and founders face the same storm: fraud spikes, shifting country rules, and friction that hurts conversion. Didit addresses these pain points with a KYC platform for iGaming that lets you build tailored verification flows: age verification to filter minors in seconds, document + liveness, network/device signals, and AML screening with daily checks to keep risk in check.

The result is fast, production‑grade onboarding. In production, a leading operator cut average signup time to 25 s, reduced manual reviews by 60%, and, with daily checks, raised the quality of continuous monitoring. Overall, that meant >70% savings versus their previous provider.

To speed go‑live, Didit offers API and no‑code integration (verification links). No‑code flows are configured in minutes; API integrations are often done within hours. Plus, Didit is the only provider with an unlimited free KYC plan. Recognition as a G2 High Performer reinforces market trust, with 3,000+ companies already integrated.

Bottom line: less fraud, less friction, more conversion—with solid compliance across key online gambling jurisdictions.