The UK Gambling Commission has issued a formal warning to remote operators after finding that some licensees are still failing to meet existing identity-verification requirements.
The regulator revealed that more than a quarter of complaints received by its Contact Centre relate directly to identity verification issues across the industry.
Disputes over the verification process are also among the most commonly referred complaints sent to alternative dispute resolution providers, highlighting the scale of the problem.
The Commission identified a number of instances where licensees were not collecting sufficient information from customers at the point of registration to satisfy Licence Condition 17, which governs identity verification.
As a result, players are being asked to supply additional documents or information when attempting to withdraw funds, despite already completing the operator’s registration process.
The regulator also raised serious concerns about the reliance on so-called “fuzzy matching” when operators use third-party identity verification services during the sign-up process.
Fuzzy matching allows information that is similar but not an exact match to be accepted, meaning customers could be incorrectly verified despite discrepancies in details such as their name or address.
Further issues identified included customers registering with an initial rather than their full name, using a nickname, or providing a commercial rather than a residential address when signing up.
There were also instances of customers using a middle name instead of their forename, which created mismatches with records held by other services including GAMSTOP, potentially undermining the effectiveness of self-exclusion schemes.
The Commission urged operators to collect complete and accurate information at registration and to address any unresolved identity concerns at the earliest possible stage rather than at the point of withdrawal.
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,” the pair 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,” they continued, stressing the broader regulatory benefits of getting this right from the start.
Rhodes and Webster added that taking these steps would “not only support better and more transparent customer outcomes, but will also strengthen operators’ ability to meet their wider regulatory obligations.”
The warning serves as a clear signal that the UKGC expects meaningful improvements to identity verification practices across the remote gambling sector without delay.
