Digital sports betting surge during March Madness emphasizes the significance of identity authentication on the court of online gambling
Approximately 68 million American adults, equating to a quarter of the U.S. population, are predicted to participate in betting on this year's NCAA Basketball Tournament, known as March Madness, according to a survey from the American Gaming Association (AGA). The estimated total bets for the tournament stand at $15.5 billion, a significant surge of five times the $3.1 billion wagered by 45 million Americans in 2022.
The growth in March Madness betting is primarily driven by the resurgence of bracket contests and the expansion of legal online wagering, with 31 million American adults planning to place traditional tournament bets online, at a physical sportsbook, or with a bookie. Intriguingly, three-quarters of online bettors claim this will be their first time betting on March Madness online.
A new eBook titled "Beating the Odds: How iGaming operators and players both can win with facial and voice authentication" is available for download.
The unprecedented growth in online and mobile gambling and betting, highlighted by major events such as the Super Bowl and March Madness, is particularly prominent in the United Kingdom. There, the number of iGaming participants has surged by 32% over the past two years, providing a model for the U.S. iGaming market's maturing into a regulated industry.
To ensure regulatory compliance and prevent fraud, money laundering, chargebacks, and other financial crimes, a robust identity verification (IDV) and age verification solution is crucial. Underage iGaming is not only illegal but also carries unique psychological risks, with between 60% and 80% of U.S. high school students reportedly gambling for money in the past year, according to the National Council on Problem Gambling. This figure has increased due to the pandemic and the ease of access to online gambling, with 4% to 6% of high schoolers deemed addicted to gambling.
In the U.S., the legal age for gambling varies by state, ranging from 18 to 21. With this in mind, iGaming operators are under immense pressure to adhere to digital identity regulations for verification and anti-money laundering purposes.
To effectively combat fraud and financial crime, best practices advocate for regular, swift, and seamless IDV. An efficient IDV platform can shield iGaming operators and players in three vital areas: onboarding, fraud detection, and anti-money laundering (AML).
The MiPass IDV solution from Mitek's IDV platform is designed to protect iGaming operators and players from identity-based fraud and financial crimes. MiPass uses sophisticated biometric measures, such as face, liveness detection, and voice, that are challenging to duplicate. This allows the replacement ofless secure passwords and bothersome one-time passcodes with facial and voice authentication more easily incorporated into iGaming platforms and player experiences.
MiPass enables iGaming operators to verify the age and identity of digital players throughout the lifespan of their gaming, beginning with a smooth onboarding experience and expedited data checks/KYC, continuing to ongoing AML compliance and fraud prevention. With iGaming growth showing no signs of slowing down, identity verification through facial and voice authentication empowers both operators and players to prioritize safety, security, and compliance. For additional insights, consult the new iGaming eBook, "Beating the Odds: How iGaming operators and players both can win with facial and voice authentication."
For further knowledge on digital identity and fraud prevention, check out the Gartner report, "Market Guide for Identity Verification."
- The surge in online sports-betting, as seen during events like the Super Bowl and March Madness, has highlighted the need for effective identity verification (IDV) solutions, particularly in the United States.
- To ensure regulatory compliance and prevent underage gaming, identity verification is crucial in the iGaming industry, where the use of biometric measures like face, liveness detection, and voice authentication canenhance security and combat fraud.
- With the growth of the iGaming market in the United States, an efficient IDV platform like MiPass from Mitek's IDV platform can provide operators and players with a secure way to authenticate identities, verify ages, and maintain compliance, enhancing safety and security in sports-betting, such as during NCAA basketball tournaments like March Madness.
