The UK Gambling Commission has issued a formal warning to remote operators after finding that some licensees continue to fail existing identity-verification requirements.
The regulator revealed that more than a quarter of all complaints received by its Contact Centre relate directly to identity verification issues experienced by customers.
Disputes over the verification process are also among the most common complaints referred to alternative dispute resolution providers, underlining the scale of the problem.
The Commission identified a number of instances where licensees were failing to collect sufficient customer information at registration to satisfy Licence Condition 17, which governs identity verification.
As a consequence, customers are being asked to supply additional documentation when attempting to withdraw funds, even after completing an operator’s standard registration process.
The regulator raised separate concerns about operators relying on so-called fuzzy matching when using third-party identity verification services during the customer onboarding process.
This approach can allow information that is similar, but not an exact match, to be accepted, potentially resulting in customers being incorrectly verified despite clear discrepancies in their details.
Further issues highlighted by the Commission included customers registering using an initial rather than their full name, a nickname, or a commercial rather than residential address.
There were also cases of customers signing up using a middle name instead of their forename, creating mismatches with records held by services including GAMSTOP and potentially undermining self-exclusion schemes.
The Commission warned that these inconsistencies could seriously weaken the effectiveness of self-exclusion tools designed to protect vulnerable players across the industry.
Helen Rhodes, director of major policy projects and evaluation, and Sarah Webster, senior policy officer, addressed the issue in a joint blog published by the regulator.
“By reinforcing existing identity verification requirements and setting out where improvements can be made, we aim to support operators in strengthening their processes to ensure the customer journey is as frictionless as possible,” they wrote.
“Ensuring that robust identity verification checks are carried out at the outset is one of the most effective ways to reduce friction for customers,” the pair continued in their statement.
“Taking these steps will not only support better and more transparent customer outcomes, but will also strengthen operators’ ability to meet their wider regulatory obligations,” they added.
The regulator urged all licensed operators to collect complete and accurate customer information at registration and to resolve any outstanding identity concerns at the earliest possible stage rather than at the point of withdrawal.
