How UK operators can use the new age and ID verification rules to redefine customer experience

When the UKGC announced upcoming changes to its license conditions and code of practice (LCCP) changes last month, it focused on several key areas which will have a significant impact on the sector for both players and operators.

The amendments include tightening of Age Verification (AV) requirements, a focus on consumer access to Free-to-Play (F2P) games and a general requirement for operators to understand more about their customers at an earlier stage of the digital journey.

In my view, the changes are a positive and socially responsible move for the UK gambling industry. Not only do they support the safety of children, they also offer much needed transparency to the customer.

The 72 Hour Rule

Perhaps the most substantial change of all is the removal of the ’72-hour rule’, meaning age verification must take place before the customer can:

1. Deposit funds or gamble;
2. Access any Free-to-Play (F2P) versions of games made available;
3. Receive or be allocated free bets or bonuses.

Customers deserve transparency from gambling operators in relation to the expectations set around the requirements to supply identity verification.

For the customer, there is nothing more frustrating than registering a new betting account and depositing funds, only to find that 3 days later when you come to withdraw, there is a sudden need to supply further identity information and documentation.

The removal of the “72-hour rule” to verify age means consumers may face slightly more friction upfront and potentially upon registration, however I view this as a positive move.

Understandably, customers may initially be shocked when they attempt to access their betting accounts on 7 May, and are asked to re-confirm personal details, or supply documentation to confirm their age.

Operators are concerned there will be significantly more customer churn during the registration process. That said, if implemented properly, the overall user experience can be enhanced through moving AV and identity checks to the beginning of the customer engagement process.

As an industry, we need to educate customers on why this information is required upfront and this is partly, but not solely, the responsibility of UK operators moving forward.

Acquisition Focus Vs Retention Focus

For as long as I can remember, the UK online gambling industry has focused on acquisition marketing and player onboarding volumes as one of the most critical components of measuring success.

For customers this has provided fantastic acquisition bonus offers, but from my own experience, a lack of focus on retention and customer longevity.

This is changing though, with the tightening of customer verification processes at point of registration, and a more mature regulatory framework.

In recent months, the CEO of a major gaming operator stressed the need to move away from the churn and burn mentality of years gone by.

With player acquisition costs in the UK increasing, customers may start to see the benefits of being “brand loyal” in the near future, as operators become acutely aware that customer retention strategies are now becoming just as important as acquisition rates.

Customer bonuses, free bets & Free-to-Play

The LCCP maintains that operators must verify age before funds can be deposited into an account (indicating verification at transaction), though the water is somewhat muddied by the fact that AV checks must also take place before customers can gamble with a free bet or bonus, or access Free-to-Play (F2P) games.

So, if you are an operator that allows a free bet or bonus without deposit, then we read the new LCCP as meaning that you must verify age at the point of registration.

On the other hand, if you are an operator that offers a “matched deposit bonus”, then we would read this as meaning that the verification process must take place only at point of deposit.

For the customer this dictates that the days of registering only a name and email to access a pre-deposit bonus or free spins are gone. Most operators we work with are moving all verification checks (name, address and date of birth) to point of registration as this leads to less friction from players converting from Free-to-Play to Pay-to-Play.

The caveat here is that certain F2P products convert a-lot better than others, namely sportsbook and casino as opposed to poker. This is in turn means customers registering for products such as Fantasy Football or F2P casino, may find that the verification levels to access these types of products are greater than to access F2P poker as an example.

The LCCP changes will give UK operators the chance to redefine their digital journey, which can only be a constructive move for the industry. There will be areas of customer onboarding friction that were not witnessed previously, but sometimes it takes a change in regulatory compliance to really bring about change that benefits the customer.

The operators that embrace the changes and view the LCCP amendments as an opportunity, will undoubtedly come out on top. Customer should now also have more transparency and increased communication levels around identity management.

Looking at the bigger picture, it is highly likely that the increasing costs of customer acquisition may ultimately result in a more retention focused business model from many of the major UK operators.

Author: Alex Lafferty, gaming director, GBG

Alex Lafferty is gaming director at global identity data specialists GBG. GBG helps gaming companies quickly validate and verify the identity and location of their customers.