What is KYC?
In the digital age, there’s a strong chance you’ve encountered the term ‘KYC’ before. It stands for Know Your Customer and it’s a process companies and services must undergo when somebody opens an account with them.
Essentially, it’s a process that allows the company to verify the identity of the customer, along with their suitability for the service and any risks involved. For online gambling, this includes assessing things like affordability, whether the customer is on any self-exclusion registers, and also making sure they’re old enough to gamble.
KYC can take place at a number of points during your time at an online casino or betting site. Typically, you’ll first have to jump through a few of these hoops when you sign up for a new account. Most customers will simply have to provide their name, address, and date of birth at this stage. Many online betting sites now employ automated systems to verify this information, but you might need to upload evidence such as proof of identity and address. Once that’s done, you’ll be able to make deposits and withdrawals to and from your betting wallet.
This isn’t the only time you might have to complete KYC checks, however. Verification of affordability and source of funds may happen later down the line — if not at the point of signing up — and is usually triggered when you meet a certain threshold of spending.
While these measures may seem like an inconvenience or invasion of privacy, they’re there to keep you safe. Affordability checks are done to ensure you’re not betting more than you can afford to, while identity verification is necessary to prevent underage people from accessing online gambling. Ongoing monitoring of customers is another requirement of the UKGC licensing rules and allows the bookmaker or casino to step in if it identifies a user may be at risk of gambling addiction, or if it notices suspicious activity on your account.
These KYC checks are usually pretty quick — many are completed automatically, and online betting sites have teams behind the scenes to promptly carry out any manual verification where it’s required. The ultimate result? A safer gambling environment for everyone involved, with minimum impact on the customer experience.
KYC Documentation
If you’re required to complete a KYC check, you’ll likely be given a list of documents that are suitable. This is shown during the KYC process itself, but it’s worth watching out for an email notification too. You can also find this information in the site’s full terms and conditions.
When you sign up, typically you’ll need to provide proof of your identity, date of birth, and address. Documentation might include:
- A copy of your driver’s licence or passport;
- A government-issued ID card;
- A recent utility bill or bank statement with your name and address on it;
- A recent letter from a reputable source such as the government.
If enhanced due diligence is required, such as ensuring you can afford to gamble, other documents will be necessary. You may be asked to provide:
- Recent payslips;
- Proof of savings or pension;
- Recent bank statements.
KYC Legislation
For online betting sites and casinos to operate legally in the United Kingdom, they must be granted a licence by the UK Gambling Commission. KYC is a part of the Licence Conditions and Codes of Practice (LCCP) so it can’t be avoided — you’ll encounter it any time you sign up at a legitimate site.
Condition 17.1.1 is the specific section of the LCCP that deals with customer identity verification. The first point is the most important:
- Licensees must obtain and verify information in order to establish the identity of a customer before that customer is permitted to gamble. Information must include, but is not restricted to, the customer’s name, address and date of birth.
You can read the full legislation on the UKGC website.
