UKGC age and ID verification changes enter into force
Law firms warn UK operators to prepare for negative impact on FTD volumes
Changes to the UKGC’s licensing codes of practice in respect of age and ID verification came into force today, with operators now required to conduct verification before any gambling can take place.
Under the new rules, the existing timescale for age verification, which was previously set at 72 hours from deposit, is removed and replaced with a requirement to obtain proof of age at the point of first deposit.
Addressing the potential impact of changes to withdrawal timescales, Andrew Tait, partner at Ince Gordon Dadds, believes there is now “no excuse to delay withdrawals which will impact the profitability” of those operators who had previously been laxer in verification.
“It will largely depend on the efficiency of the ID verification suppliers to enable simultaneous verification on point of entry. This will push up verification costs, negatively impact first time depositor volumes and speed up withdrawal rates,” Tait added.
Richard Williams, consultant solicitor for Keystone Law, highlighted the potential for delays for smaller operators where ID and age verification processes are not “automated and efficient”. He said gambling will be delayed, and the customer journey will be poor.
Williams believes the change will result in a reduction in customers opening multiple gambling accounts because of the administration involved, leading to an increase in the value of existing signed-up customers to operators. “The focus for operators may turn away from new sign-ups, to keeping existing customers happy,” Williams adds.
The UKGC has also stated that where a licensee has not yet verified the name, address or date of birth of any existing customer, they will be expected to do so before that customer next gambles.
In addition to the age verification changes, operators are now required to conduct ID verification, additionally verifying a customer’s name and address prior to any gambling. It is a measure which Williams believes is designed to “weed out” operators who accept deposits but are not keen to payout winnings, requesting further evidence from customers prior to doing so.
He believes this will result in customers becoming “more sticky” in staying with operators whom they have already registered, being less inclined to leave or cease their accounts.
A consultation on these measures was launched last year, with the UKGC receiving responses from 27 licenced operators and over 400 players.