The absence of law or any form of government always leads to chaos, and this also applies in the betting industry. To checkmate the actions of bookmakers and players alike, proper regulation is needed. The regulations are there to provide safety, especially for players. There are a lot of shady characters in the betting scene.
and their actions can cause considerable harm to you. Therefore, it is important that these bodies are functional and operating at peak conditions.
Most of the duty performed by a regulatory body in charge of monitoring online platforms is to safeguard players. Therefore a legally backed bookmaker is 100% safe to bet on. Apart from protecting players, they also ensure that a bookmaker is able to offer its services to consumers in a particular region. Without proper documentation and go-ahead from the right authorities, they would be breaking the law.
Online Casino Licensing Jurisdiction
For an online casino to operate in a particular region they must have a permit. The licensing jurisdiction is the region where the permit you have collected will allow you to operate. So, you can’t have a license from one region, and be offering your services in another. Online casino licensing jurisdictions are not only formed by countries. The state in which the bookmaker operates also has its set laws. Therefore, you can find certain bookmakers operating more than one license. One for the geographical region and one that is local. 20Bet platform operations comply with the laws of Curacao.
Licensing and Compliance Requirements for Operating an Online Bookmaker
Licensing Compliance
A gambling license has to be the biggest requirement every online betting platform must meet to be considered legitimate. By now, you would have already figured out that its presence in an online platform is extremely important. Through the presence of these licenses, the bookmaker is given the authority to offer its gambling services to players. The licenses are issued by regulatory bodies within specific jurisdictions. Some of the well-known regulatory bodies that issue licenses include
- United Kingdom Gambling Commission
- Malta Gambling Authority
- Curacao eGaming License
Anti-Money Laundering Procedures
If you bet online a lot, you will see a set of laws displayed by the bookmaker against any form of money laundering. Engaging in any acts that could be regarded as money laundering is a serious crime that could lead to unpleasant outcomes. Therefore, in a bid to snip the nip in the bud, online bookmakers have implemented anti-money laundering measures. These measures involve identity verification and monitoring of transactions. If your account is flagged for engaging in fraudulent transactions, it will be blocked immediately and all your assets lost.
Know Your Customer Procedure
Underage gambling is an issue that is severely plaguing the online gambling community. To gamble online in specific regions, players must be 18 years and above. Other regions go lower, by dropping it down to 16 years. So, for a bookmaker to verify the age of their customer, KYC procedures have been implemented. To satisfy a bookmaker’s KYC requirement, players would have to provide personal information like
- Government-issued identity card
- Proof of address, and
- Passport photograph.
Regular Audits
To ensure fair gameplay and transparency, online bookmakers undergo regular audits. These audits are carried out by independent agencies to verify the fairness of bookmakers’ games, and their RTP percentage. It is also used to verify a bookmaker’s payout process.