The gaming industry has seen incredible growth, especially throughout the pandemic with people being forced to stay indoors and resort to online gambling. Sports betting is particularly dominant in the UK, with football betting making up approximately 48.4% of the overall market.
Safeguarding is an important consideration in the world of gaming. Gambling premises and operators have a legal responsibility to ensure the correct safeguarding is in place to protect children and vulnerable people from being exploited by any form of gambling.
There are many risks, especially with vulnerable adults who may be gambling beyond their financial means or becoming addicted. There are various organisations that can assist with any gambling issues and can offer advice and confidential help.
How open banking can help with safeguarding
Gambling operators are now looking at more ways to assist with their safeguarding, and Open Banking can help support safer gambling.
Open Banking allows operators to view and access real time data in order to see player’s spending habits. It can also offer a more personalised experience, reducing risks for both the operators and the players.
To support safer gambling, Open Banking runs affordability checks during the onboarding process, payment limits and data insights.
The onboarding process requires customers to confirm their age and identity, and Open Banking can help validate this information within minutes, enabling operators to spot any fraudulent activity early on. With consent, these operators can access the new customer’s financial data beforehand to better decide whether to approve the player or not.
As the operator can link directly to the customer’s bank account, this reduces any operational costs and risks and offers a more seamless experience for the customer. They can top up and withdraw funds easily without being redirected to any external payment services.
The additional data insights that Open Banking offers can let the operator know if the customer is behaving abnormally. Observing if a player is betting large amounts whilst on a low income can be seen as a red flag, and this data can encourage the premises to step in if necessary.
Benefits of open banking within the gaming industry
Open Banking can be incredibly beneficial to your platform and the gaming industry overall. It offers a fast and safe way to pay, delivering instant payouts to any account.
The technology is based on secure transactions for both the operators and the customers and helps to fight fraud. With encrypted data transfer and reduced information sharing, security is at its forefront.
Open Banking solutions also provide an easy way to top up or load your account, paying directly from your bank account to the merchant just by simply authorizing the payment in your app.