Author: Ivan Mostovoy
UpdatedThis is an innovative method of verifying clients by their unique physiological characteristics, such as:
The importance of biometric data was first discussed in 1665 when the English scientist William Herschel put forward a hypothesis about the immutability of human fingerprints. Since 1963, the technology has been actively implemented in the arms industry, forensics, medicine, etc.
Today, it is used in many sectors of the economy:
The technology has proven itself in such areas as retail, production of gadgets, transport, tourism, and gambling.
At the beginning of 2024, the global biometrics market share was $24.6 billion. By 2031, experts predict that this figure will reach $184.8 billion. Niche capitalisation is expected to be driven by a CAGR of 22.5% per year.
Such information can be divided into 2 large groups:
The casino and sports betting sphere keeps up with global trends in the field of customer service and safety. Therefore, more operators come to think of this method as the most accurate, modern, and secure.
The reasons for applying the solution:
Let us consider the most common ways of using the solution.
The data of this type is unique for each customer, making unauthorised entry virtually impossible. If, for example, a scammer has gained access to a person’s phone, they will still face an insurmountable barrier in the form of fingerprints or face scanning.
Today, gambling software vendors are increasingly choosing this kind of tool. The main reasons are to reduce the risk of fraud and strengthen KYC verification.
The technology can be combined with the following traditional methods:
This approach increases online casino security and makes it impossible to take over an account or steal personal data.
The introduction of biometrics reduces the number of cases of profile duplication. Players may be asked to take a selfie or use a webcam during registration to verify that they are legitimate profile owners. This reduces the risks of multi-accounting and other types of fraud.
The main advantages of the tool:
The technology is used to check the age during account creation, ensuring compliance with the requirements for the protection of minors.
Besides, there are several security arrangements:
Such measures contribute to developing healthy gaming habits and the ethical use of online casino platforms.
Classical ways of logging into a digital entertainment portal result in frequent requests for password resets and urgent account recovery. With biometrics, the requirements for support are minimised, which reduces expense for customer service.
Simple questions during the registration procedure are usually resolved automatically, while a dedicated manager considers more complex ones (such as the accrual of VIP bonuses).
The tool can be used to authorise large operations. It provides extra security for financial transactions and helps reduce the cost of their processing. Funds deposition and withdrawal become significantly simplified.
Let us consider how gambling market participants use such a tool.
In 2023, a package of measures aimed at reforming the casino business was introduced in South Australia. Among the innovations is the installation of a facial recognition system in land-based halls.
At the moment, the rule is compulsory only to those facilities that have permission to manage more than 30 slot machines. Over time, it will also apply to mini-casinos, as well as lottery and bingo locations.
In 2022, New Jersey and Pennsylvania (USA) became the first states to introduce legal requirements for entrepreneurs to use MFA.
The New Jersey government, in particular, suggests using a multi-component combination to confirm identity:
One of the most popular approaches is the use of technology when creating program components for verifying clients. The products can be easily integrated into the structure of iGaming platforms, increasing their security and decision-making speed.
Among the providers implementing biometric-based identification, it is worth mentioning:
In 2023, the Ontario Lottery and Gaming Corporation (OLG) completed the implementation of a facial recognition system based on special encryption. The product is installed in most casino complexes in the province of Ontario (USA).
The work done resulted in making a partnership agreement with the University of Toronto and the IPC. Privacy by Design (PbD) methods were used during the installation and configuration of the software. Their purpose is to ensure confidentiality and more accurately detect previously self-excluded players.
In 2024, the Grand Casino Luzern Swiss operator implemented automatic customer authentication on its online platform. The application that is based on the Regula Document Reader SDK recognises the type of identity document, checks age or country of residence, as well as conducts a control test using biometrics.
It makes casino resources much more secure.
Key aspects that entrepreneurs need to take into account:
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