Online gambling is a massive business these days. However, the sphere does not feel as free as it once did. Many thought the emergence of cryptocurrencies would usher in an era of gaming anonymity. Yet, that only lasted for a while, as Internet gambling operators in the late 2010s started to get forced, or at least compelled, into following Know Your Customer/Anti-Money Laundering regulations that seek customers to reveal their identity to game/betting service providers on the Web. Once that became the norm in the interactive gaming and sports betting sector, gambling disappeared.
In the US, where online casinos are not very widely established and are only legal in seven states, operators licensed in these regions must comply with their regulators’ practices by collecting users’ SSNs (Social Security Numbers) or the last four digits. That also gets done for tax reporting purposes and because some casino sites may use SSNs for credit checks or just to enhance security, looking to protect players from identity theft and fraud.
Naturally, only some people are comfortable revealing such sensitive info. Hence, this is why no-verification online gambling platforms have gained industry-wide establishment and why more and more gamblers are gravitating toward them. Below, we elaborate more deeply on how these hubs operate and can circumvent the identity verification procedures that US-based Internet gaming companies must adhere to.
What Is KYC Precisely?
As noted above, KYC is the acronym for Know Your Customer, a process businesses and financial institutions implement to verify the identity of their clients. The chief purpose of this practice is to prevent financial crimes, namely, money laundering, terrorist financing, fraud, and identity theft. This occurs through these procedures because they ensure that businesses have up-to-date and accurate info concerning all the customers they have transacted with. The KYC process typically involves collecting and verifying various forms of identification. These customarily entail a copy of a government-issued ID, like a passport or ID card. Then, a proof of address, traditionally a utility bill not older than three months, and sometimes a bank statement or a proof of funds. The latter usually gets reserved for high-rollers to assess that customer’s risk profile based on their occupation, source of funds, and transaction history.
![Image1](https://solana-summer.com/wp-content/uploads/2024/07/image1.jpg)
Gambling sites that get regulated by bodies within their borders. For example, the DGE, which oversees and licenses New Jersey-based online casinos, must implement strict identity verification procedures. Nonetheless, internationally-regulated platforms are only sometimes mandated to do so. That gets left to their discretion. Still, many select to follow these rules so they do not do any reputational damage and operate legally in a wide range of jurisdictions.
How Do Some Sites Avoid Identity Verification?
It is crucial to note that platforms without a KYC process still responsibly handle gambler information and feature high-end security certificates and SSL encryption. Hence, those who use these hubs should be fine with whether they can safely exchange information with these websites.
That is out of the way – how no verification casinos actually work? They operate from a territory that has no gaming regulator or has one that has lax licensing criteria, allowing them to accept crypto payments, but do not ask those who transfer digital coins to their wallets to reveal their true self.
In the past, some fiat money no-KYC casinos existed. But that is no longer the case, as such hubs have become the unicorns of the online gambling realm. In 99% of the cases, a no-verification site will only allow anonymous play for crypto users.
The Benefits of No Identity Verification Sites
Since these casinos facilitate crypto transactions, they also deliver fast transaction speeds besides the secrecy they provide. Most credit/debit card gamblers must wait three to five days to get their winnings from a stringently regulated gambling platform. At a no-KYC cryptocurrency one, that should occur in less than an hour.
![Image2](https://solana-summer.com/wp-content/uploads/2024/07/image2.jpg)
Of course, they are depending on the coin used. For example, Bitcoin has an average transaction speed of forty to sixty minutes, while Ripple and Solana blockchain transfers go through in seconds. Furthermore, the lack of identity verification means anyone can request a withdrawal as soon as they win. At platforms that have identity verification, the confirmation process traditionally takes two days but has a two-week deadline.
Main Concerns With KYC at Online Casinos
Wait times and payment slowness aside, the chief concern that many gamblers have with divulging sensitive information like bank account balances, SSNs, and physical addresses is that they can be prone to identity theft in the case of a data breach. So, for many, it is better to be safe than sorry, as data breaches happen in the gaming industry’s land-based and remote sections. For instance, in 2016, Casino Rama, an Ontario gambling establishment, got hacked, and sensitive data was stolen. BetVictor accidentally leaked a list to its internal systems in the online domain, allowing third parties to view confidential info. Therefore, these things do happen.
To Wrap Up
Without argument, no-verification gaming websites are gaining ever-growing traction because more people are becoming wiser about the dangers of sharing personal info online, and they are looking to prioritize privacy when gambling by using internationally licensed brands.