Top Challenges Online Casino Risk Management

The gaming and gambling industry is growing exponentially year by year and has been forecast to reach close to $900 billion by 2029. However, despite the positive expansion and the fact that the industry is dynamic and innovative, it still faces challenges when it comes to risk and compliance. This is where our company, DSTGAMING,step in to manage these issues. 

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More than 80% of people worldwide gamble in some form, thanks to new products, technologies, and market entrants. This is largely due to the emergence of online sports betting and casino sites. However, the unprecedented potential and opportunity for online casinos and sports markets also mean that with the good comes the bad. Data privacy violations, financial crime, underage gambling, and bribery and corruption are all issues online casino platforms face on a daily basis. 

This article will talk about the main challenges that the gambling and gaming industry faces as it continues to dominate the online world and how DSTGAMING provides the appropriate risk management tools and ensures regulatory compliance for any online casino operator. 

How Risk Management Tools Can Help iGaming Platforms

Here are some of the risks online casinos and sports betting sites face. DSTGAMING can assist through the software they have at their disposal:

Fraud 

The biggest threat to any iGaming platform is fraud, so it is a given that as many fraud prevention tools as possible should be used when developing an online gambling site. These tools will assist in identifying potential fraud before it can damage the company. Anti-fraud tools can also detect if players use multiple accounts or devices to cheat other players out of their financial and sensitive information. 

Money Laundering

To this day, money laundering presents a challenge for authorities when it happens online, as there are many methods that can be used to hide where transactions are travelling. An example would be pulling funds from accounts across the globe before placing them in other accounts that are owned by shell companies. 

A risk management tool such as KYC software allows casino and sports betting operators to carefully look into customer details, including physical and IP addresses and account numbers. This helps them figure out whether customers are making deposits into accounts owned by shell companies or if they have created numerous accounts on the site. 

 Anti-Money laundering (AML) is a vital risk management tool for any iGaming platform, as it prevents any kind of money laundering activity. It does this through constant monitoring of transactions (to look for any suspicious patterns) and making sure players are who they say they are. Detecting money laundering means no illegal activities can be funded, the gambling industry is protected, the operator’s reputation is protected and legal compliance is ensured. 

These are some of the areas all online betting sites must make sure they meet if they are to operate in a compliant and legal way. DSTGAMING can assist with this as well. 

Protection of customers

Employing risk management tools is one of the ways players can feel safe when using their chosen online casino or sportsbook. These tools keep the risks associated with online gambling within a controlled environment. They do this by ensuring players’ sensitive information is kept safe and secure, protecting players from theft and fraud and making sure they are not subjected to any other type of abuse online. 

Obviously, customers are the heart and soul of any business. Without them, no online betting site could be successful. That is why it is so important that operators do everything they can to protect them from exploitation or harm. 

Legal Compliance

Any company that offers risk management tools that are worth their salt (like DSTGAMING) will be knowledgeable about the legal frameworks within an operator’s jurisdiction and help them make sure they are compliant. For instance, being licensed by an online gambling regulatory body (such as the UK’s Gambling Commission) means that the site must comply with all its policies and regulations. Certain areas may require an iGaming platform to keep proof of all transactions and interactions with players, and operators may need to supply these to the regulatory body during an audit. They may also insist that specific software is used to keep such records. 

Any non-compliance with the rules and regulations within a jurisdiction could lead to warnings, fines, and, worst-case scenario, even closure. This would affect a platform’s business and reputation and have devastating consequences going forward. Proper records and a verifiable trail should always be available should a regulatory body decide to investigate an online casino or sportsbook. 

What Must iGaming Platforms Do?

Before launching an online betting platform, operators must conduct some research so that they can make informed decisions as to what  DSTGAMING  can provide them with.

Know their threats and weaknesses

No online gambling site can launch until a full assessment of its vulnerabilities and what threats it faces has been conducted. This is regarding its system and its company, so it could range from cyber attacks or even physical altercations on its data centres and employees. The deeper the assessment, the more equipped the operator will be and they will be able to react swiftly in an emergency or even plan the best defence should they need to recover swiftly. 

An analysis of their audit trail

There are numerous benefits to doing an audit trail analysis. Illicit activities like money laundering and other fraudulent activity can be identified and tracked down, not to mention chargebacks can be reduced. This saves online casinos time, effort, and, most importantly, money. An audit trial analysis will: 

• Reduce chargebacks: fraudulent transactions will be flagged and stopped, lowering overhead costs and customer complaints.
• Identify fraud: with an audit trail, companies can trace exactly where their fraud is coming from and can take actionable steps. This includes tracing the IP address and blocking the user until further investigation can occur. 

DSTGAMING For The Win

Choosing an award-winning company like DSTGAMING means that not only will iGaming Operators have access to products like Casino Game Aggregators and Gamification Solutions for player retention, but they will also have peace of mind by using the company’s comprehensive risk assessment tools. Online casinos will also safeguard their reputation, as DSTGAMING will ensure they are compliant within their jurisdiction.