What Is KYC

KYC, or Know Your Customer checks, are a series of checks that a company will conduct to make sure that they keep their operations safe. They are designed to verify who a customer is, the source of the money they are playing with, and also any other relevant information about them which relates to the operation of the casino. They’re a mandatory part of operating a casino in many legislative regions, and aim to prevent underage gambling, financial crimes, and money laundering.

Why Do Casinos Conduct KYC Checks?

When a casino takes on a new customer, or when they are required to by law, they have to conduct checks on this person. This is to ensure that the money being played with comes from a legitimate source, that the person that is playing has no criminal history, and to ensure that the person is who they say they are. Usually these checks are required by law, buy any legitimate casino will ensure that they carry out these checks themselves anyway, to be aware of their risks.

Pros and Cons of KYC Checks

  • Safer gameplay
  • Prevents illegal activity
  • Only needs to be done once
  • May slow down withdrawals
  • May take some time to verify your documents

What Are the Benefits of KYC Checks?

The benefits of KYC checks are twofold – the first is that the casino ensures that all of their activity on their website is safe, legal, and following local jurisdictions. By checking this, they prevent criminal activity and suspicious activity which could endanger not only the casino but also other players.

The other major benefit is that players are protected if their account is ever misused. If a casino detects that a player usually has a lower budget, but then they begin playing with triple that amount, this activity would be flagged. Either the player’s account might have been compromised, or perhaps they are extending themselves beyond their budget. As a casino is duty-bound to maintain good responsible gambling practises, it’s necessary to check in with the player and ensure that they are able to play.

How Do I Complete My KYC Check?

The process may vary slightly between different operators. However usually you will need to send the casino a number of documents, which can include:

  • Copy of your ID card, Passport, or driver’s license
  • A recent utility bill with your name on it
  • A photo of yourself holding documentation
  • A document proving where your money is from, such as a payslip
  • Proof of payment, such as your credit card

This is not an exhaustive list of documentation, and a casino may require more information from you if they have any further questions.

Which Documents Are Accepted by Casinos for a KYC Check?

Documents which identify you and which are from a governmental institution or from an accepted company, such as your energy or internet provider. They have to be recent and official. For example, you cannot simply send your document number, but you would instead need to send a copy showing your entire document, without obscuring any important information.

How Should I Send My Documents for a KYC Check?

You should ensure that you send a clean scan or photograph of your document in its entirety. It should have the corners visible on all sides, and include the front and back of the document when this is relevant. This is important, as if your document photograph is in poor condition and isn’t legible, they will have to ask you to re-send it, lengthening your verification process.

You may also be able to censor information when it is not needed. For example, if you are required to give them your credit card number, casinos will only ever usually ask for the first 3 and last 4 digits. This allows them to verify that the card is valid without needing more information.

What Is the Difference Between Source of Wealth and Source of Funds?

The Source of Wealth and Source of Funds checks are to check that your money is verified, and although they are similar, each one requires different documentation. In short, a Source of Funds check is to verify that your money is coming from somewhere legitimate (eg your bank account in your name), and your source of wealth is to verify that you are playing with what you can afford. The documents you would normally use for this are related to your employment income.

What Is a PEP?

A PEP is a Politically Exposed Person – this is a person who would represent a risk to the casino if they were to let them play. For example, if somebody worked in government, it could be argued that if they were to be at risk of bribery, they might use the casino to launder this money. As a result, casinos will often deny an account to people who wish to register who either are PEPs or who are related to them in some capacity.

International KYC Requirements

Different countries have difference licences, and as a result, each licensing body will require something different when it comes to a KYC check. For example, in Malta under the MGA, you will be required to send documentation for further verification if you deposit or withdraw €2000 on your account. To be fully informed of the different requirements from each jurisdictions be sure to check the local gambling laws in your area – some jurisdictions require immediate KYC

Is It Safe to Complete a KYC Check?

Completing a KYC check is perfectly safe – the casino is required by law to handle all of your sensitive data, including your personal documents and financial information, with the utmost discretion. Your information will be kept on a safely-encrypted system to be checked, and then either deleted after verification or safely stored with your account information in a way that nobody can access it. Your information will not be misused by the casino, and is only sent to them to conduct the necessary checks.

VIP Program KYC

If you are aiming to take part in a casino’s VIP program, you will likely be obliged to proceed with a KYC check. This is because you will definitely hit a casino’s minimum check requirements, but also because checking the source of funds and source of wealth are very important to ensure no suspicious play. It also ensures that your VIP level gaming is safely carried out, for you and the casino.

What Happens If I Don’t Pass My KYC Check?

If you didn’t meet the requirements of the KYC check, don’t panic. It could be a small error that is easily fixable. Be sure to check these parameters before you contact the casino to check on your application:

  • Be sure that your documents are clearly legible
  • Check to make sure that you included all of the required documentation
  • Make sure that you meet all of the legal requirements requested by the casino

Further Information

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