What Is KYC Verification?

KYC verification is a common term in online casino circles, but not many players understand what it means. In short terms, KYC translates to Know Your Customer, which is a regulatory process through which companies verify the identities of their customers. For players in online casinos, that means they must submit proof of identity before they are allowed to withdraw money from their accounts.

KYC is also frequently lumped together with AML regulations, implemented in the effort to protect both the players and businesses working in the industry. But how does KYC verification work?

The Meaning of KYC in Gambling

KYC, like AML and many other regulations and guidelines, may sound like a pile of boring talk, but it’s actually integral for players’ safety. Safety, a common oversight as it’s a given for most punters, is key – which is why you should do everything in your power to stay protected at all times.

So, let’s start from the beginning: what exactly is KYC in online gambling?

KYC is a regulatory procedure known as Know Your Customer, which financial institutions employ to verity the identity and other information from the customers. It’s typically a requirement before cash withdrawals, as the financial institution (in this case, the casino) needs to confirm the identity of the player to ensure the safety of the money transaction.

It’s also important to note that KYC verification exists in virtually every gambling market in the world, which means players are protected against scams as long as they play at registered and licenced casino venues.

KYC verification takes place either immediately at the registration, before the first withdrawal, or sometime in between. One thing is certain: the casino will not let you cash out your money without first confirming your identity and other information.

KYC Components

KYC verification comes in three stages. In other words, there are three types of requirements the financial institutions (or the casinos) must complete to properly conduct the KYC verification.

The three components of KYC are:

• Customer Identification Program (CIP)
• Customer Due Diligence (CDD)
• Continuous Monitoring

Players think that KYC verification entails only submitting documents to prove you’re not a fraud and that’s it. The thing is, that’s far from the truth as there’s so many other things that the casino must do to maintain the level of security at the highest level.

As far as customers (the players) are concerned, their job is to submit the necessary documentation and that’s it. That’s what CIP process does. Players deliver documents through the program designed to verify their identity.

Customer Due Diligence, or CDD, collectively encompasses a few rules or requirements the financial institution (in our case, casinos) have to meet to determine properly customer risk level.  What that means is that casinos often categorise players into groups according to their risk level. These risk groups make it easier for the casino to quickly and accurately identify fraudulent behaviour of players and in turn, put a stop to it.

The last component is the Continuous Monitoring. This is self-explanatory. Basically, it means the gambling operators continuously monitor all banking activity such as deposits and withdrawals, as well as betting activity, to further keep a close eye on players who might be risky.

The Importance of KYC Compliance

Why is KYC important for the players – and the industry – and casinos?

For starters, the jurisdictions have strict regulations in place. To be able to offer services in a market, businesses such as gambling operators and game developers must abide by all rules, laws, regulations, and guidelines set forth by the ruling authorities.  Most of these regulations are even getting stricter each year, as the UKGC (the UK gambling authority) is known for its strict practices of tightening laws and passing fines to companies who fail to meet the rules.

Another key thing about using KYC is fraud prevention, as well as the prevention of underage gambling, problem gambling, and money laundering. Therefore, we can easily say that KYC is vital for the entire industry, not just players or casinos.

Let us not forget that iGaming is expanding with each year. Year after year, the industry has grown to such extraordinary limits that it’s predicted it will reach $153.57bn  by the year 2030. This means there’s an increased need for better control and maintenance of safety and AML protocols worldwide. In other words, KYC is not tied to any specific market, jurisdiction, or region. It’s an international thing that helps the entire industry and everyone involved.

Are All Casinos KYC Compliant?

The short answer is that no, not all casinos employ the KYC practices. In fact, there are many casinos that are not part of the KYC guidelines. These casinos are the no verification casinos, and in some cases players use that name interchangeably with no account casinos.

No account casinos has been a big topic here at Casino Chick. We’ve made a few insightful articles about safety and deposits/withdrawals at no account casinos. If you want more specific info, you can also explore our guides for UK no account casinos, as well as US no verification casinos.

Even though no verification casinos sound fun and easy for players, the question about safety and reliability remains. We’ll not get into the specifics, but rather leave it up to you to decide whether you want to play at a venue like that or not. However, don’t think that no account casinos are unsafe in any way. They employ a different set of safety guidelines, and they are as safe as KYC casinos. The main difference between the two is the speed at which players gain access to the games. Moreover, KYC casinos are more traditional in the sense that they have a registration process, welcome bonuses with rollover and rules, oftentimes a bigger game selection, and more banking options fit for withdrawals. On the other hand, cashing out at no account casinos is faster, but players often face limitations to which methods they can use for withdrawals.

KYC Documents

While the required documentation might vary from casino to casino, there’s typically a list of documents you will need to submit as it’s standard procedure. Here’s an expanded list of the items you might have to provide to the casino as part of your KYC verification.

• Passport/ID
• Driving licence
• Birth certificate
• Proof of address
• SSN cards/citizen cards
• Bank payslips/statements
• Utility bills
• Financial references

That would be that. You can check out more information directly at the casino you are applying for.

Further Reading

If you have any questions or wish to inquire more about player safety in online casinos and ways to have a good experience, check out our detailed casino guide here. We often produce think pieces on various iGaming topics, including games, popular strategies, and more. You can check out our articles and more by following our blog.

If you have any questions, feel free to leave them in the comments or reach out directly to us!