The gaming industry has its own range of difficulties. As a result, it’s important to learn as much as possible about them in order to implement the most appropriate solutions.
Demographics of Gambling
One thing is certain: gambling has evolved significantly in recent years. But, exactly, what has changed? The way people gamble and who the players are, for example. By 2020, younger millennials and some members of Generation Z are projected to account for nearly half of all game buyers (40 percent).
Unsurprisingly, these young players (aged 18-21) tend to bet online, mostly through their smartphones. But this isn’t to suggest that the older generation has finally given up gambling. Indeed, players over the age of 60 are now investing more than twice as much as they were a decade ago.
Unfortunately, as the popularity of online gaming grows, so does cybercrime. As a result, when customers sign up for an account with an online gambling site, they run the risk of having their confidential personal information compromised.
According to the ThreatMetrix Gaming and Gambling Cybercrime Study, one out of every 20 new online gambling accounts is fake. At peak hours, bot attacks account for nearly half of all daily gambling traffic.
Surprisingly, the most dangerous aspect of online gaming is the registration and account development process, which occurs at the very beginning of a customer’s journey.
That’s why it’s important to speak with your payment processor right away and inquire about the features they have available to protect your company and your customers’ confidential data from fraud.
Dealing with scams after they happen isn’t nearly as successful as stopping them in the first place, which is why it’s critical to find a payment processor that understands your industry’s unique requirements and will introduce smart anti-fraud filters that can reliably differentiate your legitimate customers from scammers.
Anti-fraud filters, on the other hand, can become excessively sensitive, resulting in a lower payment acceptance rate, lower transaction rates, and dissatisfied consumers on the other side of the fraud prevention medal.
This is also something to bear in mind, particularly if you have an online gambling trading account, because you’re likely to see large spikes in payment volume in short periods of time, putting your merchant account at risk of being falsely flagged for fraudulent activity.
If this occurs, your merchant account will be temporarily frozen, meaning that your customers will be unable to complete transactions and you will be unable to conduct business.
To stay ahead of the game, make sure your payment processor can enforce smart, automated anti-fraud filters that are accurate enough to only flag transactions that are 100 percent fraudulent. This will help secure your sales stream by ensuring that all of your legitimate customers will smoothly complete the checkout process.
Provisions in the law, rules, and administration
The European market for online gambling is the most powerful, accounting for nearly half of total revenues. However, the EU as a whole does not have a single general policy governing online gambling, and as a result, each EU Member State is responsible for its own regulation of these activities.
This ensures that online gaming traders must keep up with changes in their respective regional markets in order to ensure that the rules they follow do not become obsolete. For example, merchants from the United Kingdom and France who operate online gambling businesses in those countries must obtain a domestic licence.
When it comes to rules for online gambling commercial accounts, however, there are some common features among EU Member States. The most stringent laws in this regional business concern Know Your Customer (KYC) and Anti-Money Laundering Rules.
As a result, any online gambling customer must be correctly detected in order for traders and acquirers to determine the risk of money laundering and other types of crime associated with their account.
Moreover, despite the fact that the United States is a sovereign nation, online gambling regulations vary from state to state. For example, in most parts of the United States, it has been illegal to bet on sports since 1992.
However, most does not mean all, and sports betting is still legal in several jurisdictions, including New Jersey, Nevada, and Delaware. Nonetheless, it is the duty of the online gambling merchant to keep up to date on any changes in the law that affect their business.