UKGC requires operators to verify age before depositing
Industry execs say checks could see more players drop off in sign-up stage, increasing acquisition costs
The UK Gambling Commission (UKGC) today unveiled new rules requiring operators to verify player ages before any deposits can be made.
The new codes of practice (LCCP), which come into force on 7 May, also require operators to conduct age verification if an individual uses a free bet or bonus.
Previously operators were allowed a 72-hour period in which to conduct age verification checks, during which time individuals can gamble on licensed sites.
Under the perceived new rules, operators must also verify the age of any individual accessing free-to-play games on licensee websites.
Despite the lack of gambling involved in free-to-play, the UKGC confirmed the decision to include these games in the new LCCP rules was because “there is no legitimate reason why they should be available to children.”
The UKGC said the changes will increase the likelihood that someone will be identified if they attempt to gamble while self-excluded. In addition, the regulator aims to eliminate the use of ID submission as a condition of cashing out winnings.
One marketing exec, speaking on condition of anonymity, said the changes could lead to a 25% drop in conversions, with the biggest effect in VIP acquisitions thanks to friction in the brand-switching process.
He added: “That people have to be verified if even using a free bet or bonus is the snake in the long grass. It’s going to kill the affiliates even more.”
Joe Saumarez Smith, Bede Gaming CEO, said the changes would see more customers drop off in the registration process, thereby driving up acquisition costs and driving drive down customer lifetime values.
However, he said many operators were already using the processes.
Ian Perrygrove, head of compliance at Genesis Global, echoed Saumarez Smith’s comments saying that Genesis Global already undertakes these processes and it would not be difficult to conform to the new rules.
“Players have come to expect such checks happening instantly in the background to allow a better and safer customer experience” Perrygrove added.
In addition to the LCCP changes, the UKGC confirmed it will launch a consultation on its “expectations” of how licensed operators should interact with problem gamblers and has issued a call for evidence on the use of gambling blocking software.