Automated AI-Based KYC Procedures: Experience of EU Casinos

In the iGaming industry, the speed and security of client authentication are becoming important factors for successful business development. Player verification systems based on artificial intelligence are increasingly coming to the fore.

Online Casino Market experts talk about the features and advantages of such solutions. You will learn about the legal aspects of implementing AI-based KYC instruments and the experience of leading European providers.

About the System and the Way It Works

In the context of increasingly strict regulation of the iGaming industry, compliance with Know-Your-Customer principles is becoming not just a legal necessity but a competitive advantage.

KYC is a mandatory procedure for checking the user's identity to:

• follow anti money laundering rules (AML);
• combat fraud;
• comply with responsible gaming rules (RG).

With the introduction of AI and ML, this procedure has become faster, more accurate, and quite cost-effective.

Automated technology-based KYC system can:

• recognise and verify documents (passports, driver's licences, etc.);
• compare a photo in the ID with a selfie in real-time (biometrics);
• identify signs of document falsification;
• check clients against sanctions lists and PEP (politically exposed persons) databases;
• analyse the behaviour of players at an early stage to assess risks.

The solution’s integration ensures instant customer authentication, often in less than 60 seconds. This improves the safety of an entertainment site, reduces customer churn at the registration stage, and increases conversion.

Features of AI-Based KYC Programs

Key characteristics of such products:

1. Instant authentication. Technology can process data in real time. Thanks to this, identification, which previously took hours, now takes only 30–90 seconds. This is especially important for the iGaming segment, where the onboarding speed affects conversion and profits.
2. Multi-channel verification. AI-based KYC solutions are easily integrated into mobile applications, desktop interfaces, Telegram bots, and Web3 casinos with crypto payments.
3. Multi-language support. Modern AI systems are capable of recognising more than 10 thousand types of documents from about 190 countries, adapting to the global client base. Entrepreneurs can easily enter the international market without worrying about verification standards in each jurisdiction.
4. Biometric identification. AI uses facial recognition, liveness check, and 3D scanning to ensure that casino visitors are real and do not use fake photos or deepfake files.
5. Constant self-learning. ML allows the system to become smarter with each case. Algorithms are always improving, identifying new fraud patterns.

Benefits for the Owners of Gambling Platforms

Key advantages of implementing AI-based KYC programs:

1. Increased conversion. Fast registration and verification reduce the number of barriers to making the first deposit. Players do not just browse the website or click on an advertising banner. They create accounts and replenish them.
2. Reduction of costs and time. The addition of the AI-KYC block reduces the workload on the technical support and customer relations department.
3. Legal interoperability. This is conformity with international standards, as well as the rules of local jurisdictions.
4. Safety and the reduction of fraud risks. The combination of KYC and AI ensures instant detection of fake profiles, bots, and multi-accounting, thus increasing the effectiveness of the fight against hackers and bonus hunters.
5. Scalability. The system works equally well both in one region and on a global scale.
6. Analytics and reporting. Entrepreneurs have access to the automatic generation of reports for regulators and internal compliance, as well as real-time customer behaviour tracking and other functions.

European Practice: Cases of Operators

Leading gambling providers are actively implementing KYC procedures based on AI.

Betsson Group

The company works in dozens of European jurisdictions and has chosen Onfido as a partner for automatic identity proof.

Thanks to the use of algorithms based on AI, the system:

• processes up to 10,000 applications per day with 98% accuracy;
• reduces the KYC department’s costs by 40%;
• speeds up the receipt of first deposits by 30%.

The brand also uses technology to analyse customer behaviour, improve interaction with clients, and personalise services.

Cooperation with the Ada provider made it possible to launch a universal AI bot that performs the following tasks:

• request processing in 8 languages;
• automation of 45% of interactions with players;
• increase in the agent’s availability for more complex requests by 90%.

Playtech

The casino software vendor provides integration with advanced AI-KYC solutions.

The system, developed in collaboration with IDVerse, verifies documents and biometrics in seconds without manual intervention and the operator’s participation.

Besides, the firm collaborates with Jumio, guaranteeing its clients access to remote identification solutions and eKYC. Thanks to the support of advanced features, entrepreneurs can easily comply with the growing requirements in various jurisdictions.

Kindred Group

For end-to-end KYC verification, the gambling holding uses the Jumio platform, which combines AI and machine learning. The product allows for the automatic detection of suspicious activity and the generation of reports for the compliance department in real time.

The company noted a 34% decrease in the number of fraudulent accounts, as well as a rise in the regulators’ trust in the platform.

LeoVegas

One of the leaders in the European mobile gambling sector has implemented biometric verification using the iProov program. Thanks to this, users pass authentication in literally a minute without having to upload dozens of documents.

Automation of KYC procedures performed the following tasks:

• conversion increase by 19%;
• reduction of the average identification time from 2 hours to less than 3 minutes.

Nuances of Regulation and Compliance

AI-based Know-Your-Customer automation is becoming increasingly popular in the entertainment niche. However, the implementation of such a system is closely related to legal regulations — both at the national level and in the international market.

European Union

The EU's Sixth Anti-Money Laundering Directive (6AMLD) tightens the requirements for KYC procedures, especially in high-risk online casino and crypto gambling sectors.

Operators should:

• identify clients and beneficial owners;
• conduct a risk assessment taking into account behavioural factors;
• regularly update player data.

AI systems help project owners automate these processes, including behavioural analysis (transaction monitoring) and automatic document verification. They must also comply with the EU General Data Protection Regulation.

The main requirements of the GDPR are:

• transparency of algorithms;
• the user's right to an explanation of decisions;
• minimisation of information storage and protection of biometric details.

Providers that apply the AI-KYC tool should implement Privacy by Design and regularly conduct DPIAs (data protection impact assessments).

The adoption of the AI Act by the European Union in 2024 introduced new obligations for companies using the technology. Betting is classified as a high-risk activity, as a result of which businessmen must ensure transparency and compliance with new standards.

United Kingdom

The UK financial market regulator FCA recognises the capacity of AI in KYC but requires provable accuracy and compliance.

The use of automated identification is allowed if:

• the system is tested and audited;
• there is a record of AI solutions and logins;
• clients are informed that they are being verified by an algorithm.

Entrepreneurs should be prepared to provide auditors and regulators with full reports on the decision-making logic of the ​​system based on artificial intelligence.

Malta

MGA encourages innovation, including KYC automation. The main condition is that the technologies used must not contradict AML and data protection standards.

The authority requires:

• identity and age verification at the time of registration;
• independent certification of KYC technology providers;
• compliance with EU AML and e-IDAS standards.

Other Jurisdictions

Let us consider the experience of countries where the iGaming sector is actively developing:

1. The USA. The industry’s regulation in the region is decentralised. Some states (for example, New Jersey and Pennsylvania) allow the use of automated KYC systems if they comply with FinCEN requirements and AML laws. The main focus is on data protection and prevention of betting among minors.
2. Canada. The PCMLTFA requires strict identification. AI-KYC allows the use of biometrics if it is securely encrypted and there is a possibility of automated decisions’ manual review.
3. Australia. The AUSTRAC local agency approves of digital authentication, including systems based on artificial intelligence. The commission requires mandatory manual inspection in case of service failure or a client’s request.

Global Legal Challenges

Let us consider the difficulties that operators may face:

1. Ethical transparency. Many identification algorithms are based on neural networks, making it impossible to explain why a player was denied access to the digital portal or verification.
2. High sensitivity of biometric data. Facial, voice, and fingerprint recognition is the most sensitive type of information. Many countries require the consent of each gambler for the processing of such details, as well as confirmation of proper storage of information (for example, using end-to-end encryption).
3. Data transfer to other jurisdictions. The migration of info between regions (to the US or offshore centres) may be contrary to GDPR rules.
4. Algorithmic discrimination. AI may unconsciously be biased in favour of certain groups of users. The program may reject documents from people with rare names, non-standard appearance, or poor lighting. It is also possible to block accounts based on “suspicious” behaviour but without taking into account cultural and regional characteristics.

The Future of AI-Based KYC Systems in Gambling

By 2030, 80% of licensed casinos in the EU are expected to switch to such programs. Today, there is a steady trend toward the creation of a single user profile, which is verified once and available on different platforms. This not only saves operators' resources but also makes the client experience more comfortable and safe.

Key trends in AI-KYC:

1. The shift from authentication to forecasting. Artificial intelligence will predict the risks associated with a player even before he launches the session. For example, the system will be able to assess the likelihood of fraud, the tendency to problematic betting, and LTV. Entrepreneurs will be able to adapt limits, bonuses, and verification thresholds to each consumer even before the first deposit.
2. Decentralised digital identities (DID). With the development of Web3 and blockchain, more attention is paid to electronic passports. These are structures in which gamblers store verification data and provide it upon request. People will be able to undergo a full AI-KYC check with a trusted provider and then register on other portals.
3. Global regulatory unification. In the future, we expect standardisation of Know-Your-Customer and AML protocols within the FATF and EU AI Act, as well as comprehensive support for certified vendors. Platforms will have to register as critical infrastructure suppliers.

The Main Things about Automated AI-KYC Systems

Such products based on artificial intelligence are not just an innovation but an important tool for modern casino owners.

Key aspects that should be taken into account:

• The advantages of such an approach include increased conversion, improved security, as well as reduced costs for compliance and technical support. The solution scales and generates detailed analytics or accurate reports for regulators.
• Among the leaders in implementing AI-KYC are Betsson Group, Playtech, Kindred Group, LeoVegas, and other companies. For them, artificial intelligence is a useful technology for detecting fraud and creating personalised content.
• The system’s future is associated with the transition from identification to the prediction of behaviour. The trends toward global governing verification and the creation of decentralised digital passports (DID) are obvious.

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