Blog 20 Jun 2023

How Gambling Industry Is Leveraging Face Recognition Technology

Author: teresa_myers | 20 Jun 2023

The digital revolution has transformed nearly every facet of our lives, and the world of gambling is no exception. With the advent of online platforms, the gambling industry has undergone a profound evolution, offering a diverse range of betting options and experiences right at our fingertips. but it has also paved the way for various forms of synthetic fraud and cyber threats. 

As the online gambling industry continues to expand, the need for robust security measures has become more evident than ever. One powerful tool that has emerged to address this concern is remote identity verification, a technological solution designed to counter fraud and establish trust in the online gambling ecosystem.

Face recognition has made it possible to perform remote identity verification, with just a selfie. Selfie Identity Verification is a simple and convenient way for gaming vendors to perform quick gambling verification, it simplifies processes, and boosts the overall quality of the client experience.

In this article, we will discuss the problems of the gambling industry, appropriate solutions to these problems, and precautions to stay safe.

Understanding Online Gambling Fraud

Online gambling fraud is a serious and growing problem. Fraudsters are constantly developing new and sophisticated methods to exploit vulnerabilities in online gambling platforms. Some of the most common types of online gambling fraud include:

  • Identity theft: Fraudsters steal personal information, such as names, addresses, and credit card numbers, from individuals and use it to create fake accounts on online gambling sites.
  • Payment fraud: Fraudsters use stolen credit card numbers or other payment methods to make deposits on online gambling sites.
  • Collusion: Fraudsters work together to rig games or manipulate outcomes in their favour.
  • Bonus abuse: Fraudsters exploit loopholes in bonus offers to generate winnings without meeting the required wagering requirements.
  • Account takeover: Fraudsters gain access to existing player accounts and use them to make deposits, place bets, and withdraw winnings.
  • Money laundering: This involves using gambling accounts to launder illegally obtained funds.
  • Self-excluded players gambling: This occurs when players who have self-excluded from gambling attempt to create new accounts and gamble anyway.
  • Underage gambling: This occurs when minors attempt to create gambling accounts and gamble illegally.

The Impact of Online Gambling Fraud

Online gambling fraud has a significant impact on both players and gambling operators. For players, fraud can result in financial losses, identity theft, and other negative consequences. For gambling operators, fraud can lead to revenue losses, reputational damage, and regulatory sanctions.

Global Online Gambling Industry Statistics

The global online gambling market has witnessed exponential growth in recent years, with estimations reaching a staggering $60 billion annually. 

The US retained its top position as the world’s largest gaming market, raking in a revenue of $54.9 billion in 2022, with China closely following at $44 billion. By 2027, the market for gambling is expected to grow to $260.44 billion, with a Compound Annual Growth Rate (CAGR) of 7.1%. 

Europe has been a focal point of this evolution, with the European Gaming and Betting Association (EGBA) projecting gross gaming revenue (GGR) to surpass €29.3 billion in 2022. The UK, with its modernized regulations, has emerged as a major player, accounting for a significant portion of the EU online gambling market.

Problems Of the Gambling Industry

Both brick-and-mortar and virtual casinos are vulnerable to criminals who aim to steal money or personal information.

The UK Gambling Commission received over 10,000 reports of identity fraud in 2022. This is a 20% rise from last year. Account takeover, in which thieves use stolen personal information to create or take control of a player’s gambling account, was the most frequently reported kind of identity fraud.

A study out of Chapman University found that online gaming portals are significant money-laundering channels. According to the study results, criminals use internet gambling as money laundering by unlawfully placing monies gained into gambling accounts and later withdrawing them as winnings.

Several reports have highlighted the prevalence of identity theft in the gaming business. Players should be alert to the dangers and take preventative measures, such as implementing two-factor authentication and choosing complex passwords.

Remote Identity Verification as a Tool to Combat Fraud

Remote identity verification can play a vital role in combating online gambling fraud. By verifying the identity of players before they are allowed to deposit funds or place bets, gambling operators can help prevent fraudsters from opening accounts or taking over existing accounts.

There are a variety of remote identity verification solutions available, including>

  • Document verification: This involves verifying the authenticity of players’ identity documents, such as their driver’s license or passport.
  • Facial recognition: This involves comparing a player’s selfie to their identity document to verify that they are the same person.
  • Knowledge-based authentication: This involves asking players questions about their personal information, such as their address or date of birth.

For remote identity verification, high-tech tools like biometric recognition and face recognition technology are used, among others, to check the identities of players. This technology works like a virtual doorman to make sure that only real people who have been verified can use online gambling sites. Remote identity verification provides a strong barrier against fraud by combining the power of biometric data and AI-driven algorithms.

Benefits of RIDV for Online Gambling Operators

There are a number of benefits for online gambling operators that implement RIDV solutions. These benefits include:

  • Reduced fraud losses: RIDV can help to reduce fraud losses by preventing fraudsters from opening accounts and making deposits.
  • Improved player protection: RIDV can help to protect players from fraud and identity theft.
  • Enhanced compliance: RIDV can help online gambling operators comply with regulations that require them to verify the identity of their players.
  • Increased trust and reputation: By implementing RIDV, online gambling operators can demonstrate to players that they are committed to security and responsible gambling.

The astonishing capabilities of face recognition technology have made it a practical solution for the gaming business. Face recognition technology can quickly and effectively identify individuals by evaluating their facial features using artificial intelligence and machine learning algorithms.

How To Prevent Online Gambling Fraud and Identity Theft?

Preventing online gambling fraud and identity theft is paramount for gaming vendors, as it will help maintain a secure and trustworthy environment for users. advanced remote identity verification methods, such as facial recognition with liveness detection capabilities, can effectively counter spoofing attempts and enhance security. To achieve this, follow these actionable steps:

Robust Identity Verification

Through a comprehensive remote identity verification process,  that requires users to submit a valid government-issued ID, age verification checks, along with a live facial scan. This ensures that the individual presenting the ID is indeed the legitimate owner and not a spoof.

Liveness Detection

A facial recognition system with 3D liveness checks verifies the user’s presence and prevents spoofing attempts. it implements checks like blinking or head movement, during the scan.

Biometric Matching

The gaming vendors can Utilize biometric matching algorithms to compare the live facial scan with the image on the submitted ID (Photo ID, or doc id). This ensures a high degree of accuracy in verifying the user’s identity.

Multi-Factor Authentication (MFA)

For more security, Implement MFA with facial recognition checks, such as SMS codes or fingerprint scans. This layered approach adds an extra level of security, making it harder for fraudsters to gain unauthorized access. other simple steps to save accounts and prevent identity theft include

  • Password-protect your accounts, and don’t give them out to anyone.
  • Whenever possible, switch on two-factor authentication.
  • Avoid giving out too much personal information online, especially on social media.
  • Monitor your account activity carefully for any signs of suspicious activity.
  • Don’t wait to let the casino know about any questionable behaviour.

To learn More Information visit How to prevent identity theft 

Remote Identity Verification with Live Facial Scans

Remote identity verification through live facial scans enhances security and integrity within casinos and online gambling platforms. 

For example, face recognition technology is used in casinos and betting houses to improve security and monitor activity. Those barred from gaming establishments or blocked can be identified in real-time. In addition, face recognition technology aids in spotting odd behaviour and cheating, leading to more honest competition.

Some online gambling sites are also using facial recognition technology as a means of preventing and detecting fraud. Facial recognition technology may be implemented as part of the player registration procedure to avoid fraud and ensure a secure gambling environment.

Check How Face Recognition Impacts the Payment Industry

Face Recognition Casino

Face Recognition Technology in Casinos

Do Casinos Use Facial Recognition?

In casinos, where stakes are high and security is crucial, many often wonder: do casinos have facial recognition? The answer is a resounding yes. Modern casinos actively employ face recognition technology across their premises.

It serves a dual purpose: enhancing the guest experience by identifying known players and offering tailored services, and bolstering security by spotting banned or suspicious individuals. The integration of this technology showcases how casinos are adapting to the digital age, ensuring an environment that balances both excitement and safety.

Do slot machines have facial recognition?

The short answer is no, slot machines do not generally have facial recognition technology integrated. However, some casinos are experimenting with it for various purposes, such as:

  • Identifying VIP players: Facial recognition can be used to identify VIP players as they approach a slot machine and automatically offer them tailored services, such as personalized comps or drinks.
  • Preventing self-excluded players from gambling: Casinos can use facial recognition to identify self-excluded players and prevent them from playing slot machines. This can help to protect these individuals from further gambling losses and promote responsible gambling.
  • Detecting and preventing fraud: Facial recognition can be used to detect and prevent fraudulent activities, such as underage gambling, money laundering, and identity theft. For example, casinos can use facial recognition to compare the faces of players to a database of known criminals or banned individuals.

Facial Recognition Benefits In Casinos

Facial recognition technology has a number of potential benefits for casinos, including:

Casino Entry and Access Control

Face recognition can be employed at casino entrances to ensure authorized entry and restrict access to individuals who may be excluded. This will make verification quick and allow smooth entry for approved patrons.

The technology safeguards the casino’s assets and reputation. it captures and analyses the facial data of those entering the casino, thereby identifying known fraudsters and preventing their admission.

VIP services and customer experience

Facial recognition can be used to enhance the customer experience by identifying and rewarding VIP players, and by offering them personalized services. For example, facial recognition can be used to expedite the check-in process for VIP players and to ensure that they are given priority access to tables and other amenities. Facial recognition can also be used to personalize the customer experience by remembering the preferences of individual players, such as their favourite games and drinks.

Responsible gambling

Facial recognition can be used to promote responsible gambling by helping casinos identify and monitor players who may be at risk of developing gambling problems. For example, facial recognition can be used to track how much time and money a player is spending at the casino and to identify any changes in their behaviour that may indicate a problem. Facial recognition can also be used to prevent self-excluded players from entering the casino.

Self-Exclusion Management 

It prevents access to people who have voluntarily excluded themselves from gambling activities, the platform checks the identity of registered users against self-exclusion databases. This preventative method encourages safe gaming and aids people battling dependency on the hobby.

Age verification 

Facial recognition plays a key role in age verification, preventing minors from accessing gambling sites. Robust age checks ensure only eligible individuals gain access, maintaining ethical standards and compliance.

Concerns And Challenges in Online Gambling

Money Laundering and Player Perception

The virtual nature of online gambling introduces unique challenges, including the potential for money laundering. 

In 2011, founders of major online poker companies faced charges of violating laws like the Unlawful Internet Gambling Enforcement Act, and allegations of bank fraud and money laundering

2019 BBC report, explains how the use of cryptocurrencies, like bitcoin, in underage gambling, is widely used for money laundering.

The emergence of stream betting has presented streaming platforms with significant obstacles to counter steam betting such as Twitch. However, emerging platforms such as DLive, Trovo, and Mixer are gaining traction as viable alternatives for betting streams.

Facial recognition technology also has serious ethical issues. To keep customers’ trust, casinos must be upfront about using facial recognition software and gain permission. Explore More: Ethical Implications of Biometrics Facial Recognition.

Facia’s Impact on the Gambling Industry

Facia is revolutionizing the gambling sector with its cutting-edge face recognition technology, introducing unprecedented levels of safety, satisfaction, and operational efficiency. By integrating facial recognition, casinos and gambling venues can immediately enhance security and streamline processes, all while delivering an enhanced customer experience.

How Can Facia Help?

Strengthened Security

Facia’s advanced facial recognition algorithms empower casinos to swiftly identify and authenticate customers, significantly reducing security risks and ensuring a safe environment.

Personalized Experiences

Businesses can leverage Facia’s technology to offer personalized incentives and rewards, establishing deeper connections with customers and enhancing their overall satisfaction.

Optimized Efficiency

The adoption of Facia’s facial recognition translates to more efficient operations, ensuring smoother processes and ultimately elevating customer satisfaction levels.

Final Thoughts

Facial recognition technology has several uses in the gaming industry, offline and online. Improved security, identifying fraudulent activities, and promoting responsible gaming are all possible thanks to using AI and machine learning algorithms in gambling.

Casinos and other gambling venues can improve security by identifying and authenticating customers using Facia’s cutting-edge facial recognition algorithms.

Facia’s facial recognition technology doesn’t just bring innovation to the gambling industry; it brings tangible benefits that enhance security, engagement, and efficiency across the board.

Frequently Asked Questions

What is facial recognition in gaming?

Facial recognition in gaming

Facial recognition in gaming is the use of facial recognition technology to identify and authenticate players. This technology can be used for a variety of purposes, such as:

  • Age verification: Facial recognition can be used to verify the age of players before they are allowed to play games with mature content.
  • Account login: Facial recognition can be used as a more secure and convenient way for players to log into their gaming accounts.
  • In-game authentication: Facial recognition can be used to authenticate players within games, for example, to allow them to access certain features or content.
  • Player tracking and analytics: Facial recognition can be used to track player movements and behaviour in games, which can be used to improve the gaming experience and develop new games.

Do pokie machines have facial recognition?

Some pokie machines do have facial recognition technology integrated, but it is not yet common. Casinos are experimenting with facial recognition for various purposes, such as identifying VIP players, preventing self-excluded players from gambling, and detecting and preventing fraud.

How does facial recognition on slot machines work?

Facial recognition systems on slot machines typically work by using a camera to capture an image of the player’s face. This image is then compared to a database of known faces, such as a database of VIP players or self-excluded players. If the system finds a match, it can take appropriate action, such as offering the player personalized services or preventing them from playing.

What is self-exclusion in gambling?

Self-exclusion is a responsible gambling measure. Players voluntarily ban themselves from a casino or gambling platform for a specified period. Facial recognition and other verification methods may be used to enforce self-exclusion by preventing these individuals from accessing gambling services.

Do slot machines have facial recognition?

No, slot machines generally do not have facial recognition technology integrated. Facial recognition systems are more commonly employed at entry points and specific areas of casinos. They serve to enhance security, enforce responsible gambling measures, and can be used to identify problem gamblers when necessary.