AML Protocols and Gamification: Protect Your Casino Platform

The entertainment industry is one of the most dynamic and profitable commercial markets. According to Statista, an independent analytical agency, the total turnover of the iGaming vertical is expected to exceed $188 billion by the end of 2027.

This scale attracts not only potential investors but also individuals seeking to use casino portals for illicit financial transactions. According to a report by the EBA, in 2022, about 10% of all money laundering cases in the EU were related to the online betting niche.

To cope with the challenges, representatives of the sector are actively following AML and KYC protocols. For this, a wide variety of approaches are applied, including gameful thinking during operational processes. The popular marketing tool also demonstrates high efficiency in matters of security.

Smart Money experts have prepared a detailed review of relevant solutions for combating financial risks in the digital entertainment segment. From the studio’s managers, you can get additional consultation and order the development of a turnkey project.

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The Role of AML and KYC in International Gambling Regulation

AML protocols and KYC services are the security framework of any digital platform related to transactions. Their main task is to prevent the use of the website for illegal money transfers and schemes.

AML is a set of technical solutions, legal norms, and internal policies aimed at identifying and preventing money laundering.

KYC (Know-Your-Customer) is one of the basic elements of the AML system. It helps to ensure that the player is really who he claims to be.

This is a complex algorithm that includes:

• verification of client documents;
• confirmation of compliance between the address specified during registration and the provided financial data;
• long-term monitoring of the customer’s behavioural reactions.

Legislative Regulation of AML and KYC in Different Countries

Ignoring the requirements can lead to penalties, licence revocation, criminal prosecution, and a complete loss of trust from the audience.

In 2020, the UK Gambling Commission fined the Betway brand a total of £11.6 million (approximately $15.8 million) for failure to comply with AML and KYC standards stipulated by national norms.

In most countries, requirements for AML programs are regulated at the legislative level.

Here are some examples:

1. Spain. Law 13/2011 obliges operators to comply with KYC procedures and ensure transparency of all transfers.
2. USA. The Bank Secrecy Act was revised in 2020 with an expanded list of requirements for registration and verification of user data.
3. EU. The 6th Anti-Money Laundering Directive (6AMLD) is valid throughout the territory, tightening penalties for various financial violations.
4. Great Britain. There are 2 key legal norms: the Proceeds of Crime Act of 2002 and the MLR 2017.

Key AML Tools Applied in the iGaming Segment

According to the report of the intergovernmental organisation, FATF (Financial Action Task Force), by the end of 2022, 80% of casino owners in Europe used at least 3 specialised instruments in their practices.

Smart Money experts have prepared a selection of the most effective solutions for combating financial violations that are successfully used in the online entertainment segment:

1. KYC (Know-Your-Customer). It helps to establish the player’s identity based on different data, from personal documents and bank details to the analysis of information from open sources.
2. CDD (Customer Due Diligence). This is manual verification provided for high-risk clients. The tool includes analysis of the origin of funds, transaction history, and possible connections with offshore jurisdictions.
3. Control of cash flows. The system tracks the frequency, volume, and geography of payments. Any deviation from the usual behaviour pattern acts as a trigger and initiates a check.
4. Block lists and sanctions databases. The platform automatically compares gamblers’ data with international registries such as OFAC, Interpol, and the UN. If matches are found, the client’s account is quickly blocked.
5. Analytics and ML. AI tools allow for the prompt detection of anomalies and hidden patterns in the actions of casino visitors. Until all the details are clarified, they will not be able to enter their profiles.
6. SARs. Operators are required to report unusual transactions to regulatory authorities.
7. Employee training. Regular workshops help staff recognise risky behaviour of users in a timely manner and respond to it correctly.

Why It Is Essential to Follow AML and KYC Standards

Adherence to such rules is a legal obligation and an important step to sustainable business development. For project owners, this means not just protection from penalties and sanctions but also real benefits in the long term.

Key factors in favour of introducing AML protocols:

• legal security and reduced risk of the platform’s blocking or licence revocation;
• increased trust and loyalty from the audience;
• reputational stability;
• investment attractiveness;
• quick adaptation to local requirements when entering new markets.

Gamification as a Means of Engaging and Retaining Casino Visitors

The term refers to a set of operations for introducing entertainment elements into non-gaming processes.

In the betting segment, this approach is used to:

• increase the time a person spends on the digital portal;
• improve the frequency of repeat visits;
• collect data on the client’s behavioural reactions;
• increase the average check per session;
• reduce the traffic churn rate.

One of the most successful examples of implementing gamification tools in the online casino niche is the strategy of PokerStars. The supplier developed a whole system of ratings, multi-level challenges, as well as single and joint missions. This gave an instant response and increased audience engagement by 22%.

A similar service was implemented on the 888casino platform. The company implemented several missions with bonuses for their successful completion (for example, an additional spin for the placement of 5 bets in a row). This strategy increased the lifetime value (LTV) of players by 17%.

Proper implementation of game elements into standard processes and interfaces gives entrepreneurs the following tangible benefits:

• sustainable growth of the audience’s engagement;
• increased user loyalty and their attachment to the brand;
• convenient segmentation of players for a better understanding of their requests and preferences;
• simplified training with an increased memorisation rate;
• stable growth of organic traffic through special referral programs.

The Most Effective Gamification Options

Almost any action can be turned into a game element, but not all of them provide the necessary conversion or stable retention.

The most common ways to engage casino visitors include:

1. Components that give clients a sense of progress. These can be various icons, rating levels, leaderboards, personal achievements, etc. The main task is to create a competitive environment and encourage players to continue betting and regularly return to the platform.
2. Patterns borrowed from computer games. For example, a specific goal of the quest, strict rules for its implementation, or the need for teamwork. Any of the options form a stable cycle of involvement.
3. Gamification outside the wagering process. Even such routine actions as learning the rules, filling out a profile, or joining a referral program can be turned into interactive tasks. Hints, small bonuses, and the event format make staying on entertainment sites easier and more enjoyable.

The introduction of casino elements also contributes to the increased effectiveness of AML programs.

This approach allows you to:

• make training easier and more visual;
• increase awareness among employees and clients;
• motivate customers to comply with the platform rules without pressure and formalities.

Operators can adopt the experience of the Binance portal, which introduced a program of quizzes and educational events, upon completion of which people received various tokens. The scheme is still working and, since its launch in 2021, has contributed to awareness-raising and an increased understanding of AML protocols by 35%.

On the Unibet digital resource, gamification is tied to the KYC procedure. Players need to complete a special mission to confirm their identity. For successfully performing the task, various non-monetary rewards are given, such as additional spins, personal avatars, and a higher percentage of cashback.

How to Use Gamification Elements to Distribute AML Programs

Smart Money experts have selected several of the simplest and most effective options for using the tool to increase awareness among casino staff and clients.

These include the following components:

1. Game-based training. Interactive modules with progress points and the elements of competition make the betting process faster and more exciting. It is possible to add a timer for answers or a rating system.
2. Motivational schemes. Completing the KYC procedure or participating in training seminars can be encouraged in the form of various bonuses — an additional bet, increased cashback, a new avatar, or premium access to new products in the catalogue.
3. Security badge. A simple visual mark (for example, a coloured flag or a tick) works as a sign of trust. It motivates users to follow the rules and creates a sense of safety.
4. Progress bars and checklists. They are especially effective during verification. Such solutions visualise the path of players and encourage them to complete the process. The result is a noticeable increase in completed identifications.
5. Security competitions. Thematic events can be organised for both employees and their customers. This not only raises the overall level of awareness but also helps to assess how effectively participants follow the internal rules of the digital platform.

The Main Things about Gamification as a Way to Prevent Risks

Integration of AML and KYC protocols is essential for ensuring the legal, stable, and safe operation of entertainment portals. These tools allow project owners to keep a licence and increase loyalty rates.

The effect of anti-money laundering programs can be enhanced by gamification.

The most effective industry practices include:

• Training programs for staff and clients. This approach has been proven to significantly raise awareness and promote better assimilation of legal protocols and company policies.
• Security icons in the form of coloured flags or ticks create a sense of safety and trust in the brand, motivating gamblers to adhere to the established rules.
• Events with elements of competitions and ratings help speed up KYC procedures and have a positive impact on long-term retention and the LTV metric.

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