The UK Gambling Commission (UKGC) has warned online gambling operators that some licensees do not meet existing identity verification requirements, leading to potentially serious issues for customers when trying to cash out their funds.
A Quarter of All Complaints
The regulator explained that more than 25% of complaints formulated to its Contact Center relate to identity verification. At the same time, disputes over verification are also among the most common complaints referred to alternative dispute resolution providers.
The fresh warning comes after the Commission identified several operators who were not collecting enough information from customers when opening their accounts, as required by License Condition 17, which covers identity verification.
As a result, customers who have already completed registration and verification checks can later be asked for additional information when trying to withdraw their money.
Concerns Over Fuzzy Matching
The regulator also highlighted concerns surrounding the use of “fuzzy matching” by third-party identity verification providers.
Fuzzy matching can accept information that is similar rather than an exact match. The UKGC warned that this could result in customers being incorrectly verified despite discrepancies in important details such as names or addresses.
The Commission emphasized that operators must ensure their verification systems are able to find and fix discrepancies and not allow potentially inaccurate information to pass through the process.
Nicknames and Incomplete Information
The UKGC also found examples of customers providing incomplete or inaccurate information when registering gambling accounts.
The list included customers using an initial instead of their full name, registering with a nickname, providing a commercial address instead of their residential address, or using a middle name instead of their forename.
Such inconsistencies can create mismatches with information held by other systems and databases, including GAMSTOPs, the UK’s online gambling self-exclusion scheme.
The Commission warned that inaccurate registration information could therefore undermine the effectiveness of self-exclusion protections.
The UKGC is urging licensed operators to collect complete and accurate customer information from the very start of the registration and address outstanding identity concerns as early as possible.
The regulator said operators should not wait until customers attempt to withdraw funds before resolving basic identity verification issues.
Helen Rhodes, director of major policy projects and evaluation, and Sarah Webster, senior policy officer, said strengthening verification at the outset can help create a smoother customer journey while supporting operators’ wider regulatory responsibilities.
The UK Gambling Commission (UKGC) has warned online gambling operators that some licensees do not meet existing identity verification requirements, leading to potentially serious issues for customers when trying to cash out their funds. A Quarter of All Complaints The regulator explained that more than 25% of complaints formulated to its Contact Center relate to