Contents

• What is Age Verification, and Why Is It Important for Businesses Globally?
• Top 5 Industries Where Age Verification is Required and Why?
• Age Verification Regulations worldwide
• Benefits of Complying with Age Verification Solutions
• Choose IDMERIT for Age Verification

What is Age Verification, and Why Is It Important for Businesses Globally?

Age verification is a process that confirms an individual’s age before granting access to age-restricted products, services, or content. This practice has gained immense importance for businesses globally due to the rising concerns surrounding underage access to certain goods and services. Adequate age verification not only safeguards businesses from legal consequences but also contributes to online transactions’ overall security and integrity.

Age verification Companies have evolved into indispensable tools for various sectors, from the financial industry to online retailers and social media platforms. Companies specialising in age verification software play a crucial role in developing and deploying technologies that accurately authenticate user ages. These solutions contribute to regulatory compliance and serve as a shield against potential legal consequences, especially in industries where age restrictions are enforced.

Top 5 Industries Where Age Verification is Required and Why?

In the digital era, age verification is crucial for many industries, ensuring responsible and lawful engagement with their products and services. The top five sectors where age verification is required include:

• Online gaming and gambling
• Alcohol and tobacco sales
• Adult content platforms
• Pharmaceuticals
• Financial services industry

1. Online Gaming and Gambling: Age verification solutions ensure a legal age for online gaming and gambling, preventing minors from engaging in underage activities.
2. Alcohol and Tobacco Sales: Age verification solutions ensure legal compliance by verifying customer age before purchasing alcohol or tobacco products online, thereby preventing underage access.
3. Adult Content Platforms: Age verification solutions ensure explicit content is accessible only to adults, complying with legal requirements and industry standards and preventing minors from viewing inappropriate material.
4. Pharmaceuticals: Age verification is crucial for online pharmaceutical sales, particularly those with age restrictions or prescription requirements, to prevent unauthorised access to certain medications.
5. Financial Services Industry: Age verification is a crucial aspect of identity verification in the financial services industry, enhancing security and preventing fraudsters from using stolen or fake identities.

Age Verification Regulations worldwide

Businesses must prioritise efficient age verification for regulatory adherence and protection of vulnerable populations.

• United States
  The US Children’s Online Privacy Protection Act (COPPA) mandates digital platforms to obtain parental consent before collecting data from children under 13, ensuring their privacy.
• European Union
  The European Union’s Union’s Digital Services Act (DSA) and the UK’s Online Safety Bill impact age verification on internet platforms. The Pan-European Games Information (PEGI) scheme ensures compliance with age-related content restrictions. The DSA may require websites to implement effective age verification procedures.
• United Kingdom
  The UK has enacted the Online Safety Bill, requiring digital platforms to use age verification measures to protect children and teenagers from inappropriate online content. The legislation, approved by the House of Lords, includes mandatory checks for accessing adult websites and imposes penalties for non-compliance.
• Australia
  The Australian Communications and Media Authority (ACMA) introduced age verification guidelines in 2008 to protect minors from inappropriate content, extending to all Australian media and domestic television stations.
• Denmark
  Act No. 426 of May 18, 2016, renders it illegal to sell drugs, narcotics, cigarettes, alcohol, etc., to anyone under the age of 18.
• Germany
  The Protection of Young Persons Act restricts access to games, alcoholic beverages, and tobacco, setting age limits. It encourages platforms to implement age verification mechanisms to create a safer online environment for children. COPPA, DSA, and the Online Safety Bill aim to prioritise teenagers through appropriate age verification systems.

Benefits of Complying with Age Verification Solutions

The benefits of complying with age verification solutions are multifold.

1. It helps businesses build customer trust by demonstrating a commitment to responsible practices.
2. Compliance with age verification regulations protects businesses from legal repercussions and potential fines for providing minors with age-restricted products or services.
3. It contributes to a safer online environment by preventing underage individuals from accessing inappropriate content or engaging in activities meant for adults.

Choose IDMERIT for Age Verification

In conclusion, as businesses continue to operate in the digital realm, ensuring users and legal engagement becomes paramount. Among the various identity verification providers in the market, IDMERIT stands out as a trusted and reliable solution for age verification.

IDMERIT’s age verification services are designed to be user-friendly and seamlessly integrated into existing business processes. By choosing IDMERIT, businesses can benefit from a scalable and customizable age verification solution that aligns with their specific requirements.

Should you be keen on exploring how IDMERIT can support you in establishing their age verification solutions, feel free to contact us for a direct word with our product team. We’re available to engage in a conversation with you!

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Please note, there are spoilers for every season of Game of Thrones in the article ahead.

How Arya Stark first Encounters Death

Arya Stark started her journey in Game of Thrones as one of the ladies of Winterfell. She moved to King’s Landing with her family when her father, Ned Stark, was appointed Hand of the King. It was there she began training in swordsmanship with Syrio Forel and encountered Braavosi for the first time. Eventually, her father was murdered for crimes against the king and she narrowly escaped death as well and fled King’s Landing.

The next stage of Arya’s journey had her traveling through the 7 Kingdoms. She originally was travelling to the Night’s Watch in the North, but fate led her elsewhere. It is during these initial travels that she first encounters Jaqen H’ghar. She becomes enamored with him and helps save him from death before she is taken hostage to Harrenhal. Because Arya saved Jaqen’s life, he offers to kill 3 people for her. It is during this time that first encounters the power of the Many-Faced God or the God of Death.

The God of Death

The God of Death is a deity worshipped by the Faceless Men, a cult of assassins that resides in the Braavos. Faceless Men believe that their purpose is to do the bidding of the God of Death and bring death to those who deserve it. Faceless men are trained to let go of their former identities and become no one, and from there become entirely different people. With this ability, they can serve the God of Death and deliver death to those who deserve it.

Arya eventually goes through this training herself, and successfully becomes no one. She rejects being a Faceless Man though and decides to return to the 7 Kingdoms as Arya Stark, a woman with deadly power.

Arya Stark: The Girl who is No One

When Arya returns to the 7 Kingdoms, we really start to see the powers of the God of Death. She kills Walder Frey in cold blood, taking his life while impersonating one of his serving girls. She also kills Walder’s sons while impersonating Frey. She leaves the Frey house in ruin after they rebelled against her family and killed her brother during the Red Wedding.

Upon returning home to Winterfell, her sister Sansa rummages through her things and discovers many faces that she took from Braavos. She then explains to Sansa that with the faces she can become anyone she wants to be, like how cybercriminals can become anyone they want to be by stealing the right personal information from another individual.

Identity Verification Can Identify No One

In the real world, there are many cybercriminals who act in the same way that Faceless Men act. They steal people’s identities—the Faceless Men through faces and cybercriminals through personal information—and use it to perform crimes. The difference between cybercriminals and Faceless Men though is that they can be caught.

On Game of Thrones magic is used to fully transform Faceless Men into the people whose faces they wear. There would be no real way to identify them as who they really are on the show. In contrast, cybercriminals can be identified as false using comprehensive identity verification solutions. With digital identity verification solutions that use biometrics as a part of their service, cybercrime can be prevented before it starts in customer-not-present scenarios, like during digital onboarding at a bank.

Conclusion

Arya Stark’s story showcases how important it is to know who you are interacting with on a personal or professional basis. Game of Thrones displays in gruesome detail how deadly the consequences can be if a person is not who they say they are—like with the deaths of Walder Frey and his children. The stakes are not as deadly in real life, but they are equally important. Businesses and individuals should work diligently to verify identities and ensure that the people they interact with online are really who they say they are. Otherwise, they risk becoming involved with identity theft, money laundering, terrorist financing or other forms of cybercrime.

To learn about IDMERIT and it uses digital technology to verify identities online, please reach out to us for more information.

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What happened?

On January 14, 2019, the US Justice Department reversed its 2011 opinion about the Federal Wire Act. Their 2011 opinion stated that interstate wire transmission that do not involve sporting events or contests fall outside the reach of the Wire Act. This meant that online gambling such as poker, blackjack or lottery could set up interstate businesses and operate legally.

With the reversal, their new opinion states that the Wire Act encompasses all forms of online wagering, not just sports betting. This will have a huge effect on the online gaming industry, especially since many companies were looking to expand their online businesses after the Supreme Court reversed the Professional and Amateurs Sports Protection Act (PAPSA) by maintaining fraud and risk compliance.

What is the Wire Act?

The Federal Wire Act of 1961 is a federal law that prohibits certain types of betting businesses in the United States. It was an attempt by Congress to confront organized crime and put a stop to underground bookmaking, or illegal sports betting. The targets for the regulation were sporting events or contests.

Who is Affected by the Reversal?

According to the new opinion about the Wire Act, gaming operations cannot cross state lines. This poses a broad threat to the entire industry because many companies cannot be 100% sure that payments are not routed across state lines in an online environment. Many companies will have to work diligently to ensure their online gaming processes adhere to these new regulations and maintain fraud and risk compliance.

Furthermore, this opinion affects companies directly. Online lotteries who have set up interstate operations under the previous ruling are now affected by the Wire Act. So are interstate betting operations, like the one created between Delaware, Nevada and New Jersey where users could play poker with players from other states. Daily fantasy sports companies must worry about the reversal as well. Plus, intrastate online gaming operations that rely on out-of-state servers are also affected.

Many companies also rely on interstate payment processors to run their operations. These processors allow users to fund their accounts with credit cards and online bank accounts. They are largely affected by the opinion reversal as well.

What to Expect in the Near Future

The Wire Act reversal has created a lot more questions for the online gaming industry than it has answered. It has left many companies wondering what they should do since they began operations under the previous opinion. At best, companies will continue to run the way they currently are without enforcement from the DOJ. This would lead to a situation like marijuana where companies know they can operate under state regulations but be shut down federally at any time. At worst, they could be forced to completely change their operations or even shut down.

Curiously, there have been two circuit courts that have held that the Wire Act applies only to sports betting, while the Just Department’s Office of Legal Counsel leads otherwise. This has created a lot of confusion in the space. This confusion around the new interpretation of the Wire Act will likely lead to litigation in the near future. It would be interesting to see how the Supreme Court would interpret the Wire Act, since it just ended a ban on sports betting in 2018.

What does this mean for online gaming companies?

For anyone in the online gaming space, it is key that they review their operations. They must audit everything and ensure they are running in accordance with the new regulations. It is also imperative that they actively take precautions to ensure they are not allowing questionable characters from using their operations. This means having a robust KYC process, which includes identity verification, is essential for the industry. Learn more about how IDMERIT can help perform effortless KYC in online gaming globally with automated identity verification services.

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States where Online Sports Betting is Legal

There are a few states where sports betting is already legal in the United States. These states legalized sports betting either before PASPA was passed or shortly after it was repealed. They are taking the lead to create effective online sports betting programs that other states can learn from and follow.

Nevada: Nevada has been in the sports betting market for decades. Until this year, Nevada has been the only state where gamblers could legally place bets on sports in the US. As other states begin to legalize online sports betting, they will most likely turn to Nevada’s program for guidance on things like oversight, risk management, liquidity, and line monitoring.

Delaware: After the Supreme Court decision was made, Delaware became the first state to allow all three of its casinos to start sports betting. This operation will be expanded to the online arena soon.

New Jersey: New Jersey was the state that challenged PASPA and brought the case to the Supreme Court. The state legalized sports betting soon after the act was repealed.

West Virginia: The state passed a bill allowing sports betting in early March. Soon, sports betting could be expanded to the online arena in the state.

Mississippi: In 2017, Mississippi updated its laws to allow sports betting. It determined that betting would become legal on July 22. Casinos must apply to participate in sports betting, and then they can proceed with their operations.

States where Sports Betting will soon be Legal

Connecticut, Iowa, New York, and Pennsylvania are all states that have passed laws to allow sports betting. They are in the process of creating the processes to allow it in their states. Each state has a timeline to get it up and running within the next 6 months.

States with Upcoming Sports Betting Legislation

There are a variety of states interested in allowing sports betting. These states have introduced legislation to begin the process of legalizing sports betting:

• California
• Illinois
• Indiana
• Kansas
• Kentucky
• Maryland
• Massachusetts
• Michigan
• Minnesota
• Missouri
• Oklahoma
• South Carolina

There are also two states that could expand current sports betting legislation:

• Oregon
• Montana

Online Sports Betting Regulations

There are over 20 states that are interested in sports betting. A lot of these states want to make it as easy and convenient for consumers interested in online betting platforms. As online sports betting becomes normalized, these businesses must verify customer identities for KYC purposes.

Sports betting operations must be compliant with KYC and AML standards. KYC requirements mandate that sports betting operations verify the age of their users and ensure that they are at least 18 years or older (21+ in some states.) They also dictate that online sportsbooks must conduct a Know Your Customers verification to prevent fraud and mitigate risk. Online sports betting operations must follow KYC processes to protect users from different types of gaming fraud such as account takeover, bots, arbitrage or friendly fraud.

ID Verification Regulations for Sportsbooks

While users may perceive ID verification regulations as a cumbersome and time-consuming process, it is integral for online sports betting platforms to perform. These processes help verify customer identities are real, determines their age and prevents fraudulent account creation. It also builds trust with regulators which is essential in this emerging market.

Sportsbooks have a responsibility to create a streamlined and effective verification process. They can do this by using automated services that verify users within a matter of minutes, compared to current ID verification procedures which are much more cumbersome and time-consuming.

Currently, users are wary of consumer verification procedures, mainly because sports betting has been around for years now and did not require identity verification to receive funds. Legal sportsbooks must educate consumers and make them aware of how important the verification process is for their safety and security. They must also set clear expectations for users about how legal sports betting operations must work in today’s digital world.

Many states are interested in developing sports betting operations. They are a lucrative opportunity for states to make money and provide more revenue for their citizens. As more and more states implement online sportsbooks, lawmakers must also create the standards for running fully legalized operations, including id verification regulations. This will help them maintain KYC and AML compliance that will be required by regulators and is imperative to prevent the perpetuation of fraud and mitigating risk.

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It is estimated that there are 2.2 billion active gamers in the world and almost half of them, 47%, spend money while gaming. Game revenue from these users is expected to reach $108.9 billion, with 87% of that revenue coming from digital revenue. $56.05 billion, or 51.5%, of this revenue is predicted to come from the online gambling market.

With these staggering numbers, it is no surprise that casinos are looking to join in on this lucrative sector. In 2018 alone, 7 states have introduced bills to legalize online gambling. These states, which include Michigan, Pennsylvania, and New York, would join states like Alaska, California, Oregon, and Louisiana to allow some form of gambling for residents over the age of 18.

Know Your Customer (KYC)

Companies with a responsible moral compass who are looking to uphold their reputations should make an effort to follow regulations imposed by regulatory authorities. This includes following KYC procedures, which require identification along with age verification procedures for online gamers.

Having an effective KYC procedure in place also prevents online gambling companies from having to pay large fines to regulators. The United Gambling Commission (UKGC) forced 888, a prominent online gambling company, to pay a penalty of around $10 million for flaws in their KYC process. In their flawed system, 888 allowed 7000 customers who had barred themselves from their accounts to still be able to gamble. Furthermore, they failed to notice for 13 months that a customer was betting $1.7 million on their platform before identifying the user as problematic.

Underage Usage

Just like there are laws preventing minors from being sold alcohol, there are laws preventing minors from gambling. Online casinos have a social responsibility to uphold these laws and ensure they are enforced.

In Pennsylvania, the Sands Casino Resort has paid $341,000 in fines to the state due to instances of underage gambling. Other casinos throughout the state have also been issued $2.2 million in fines for underage gambling. Sands Casino CEO Mark Juliano states that no one wants to deal with underage gamblers. It’s not good for anybody. He also states that his casino along with others is aggressively working toward 100 percent elimination of underage gambling.

Fighting Fraud

Having a KYC process in place may seem like a nuisance to users, but it is an essential step in fighting fraud and mitigating risk. By knowing the customers they are interacting with, companies who follow a KYC process can protect users from different types of gaming fraud including account takeover, bots, arbitrage, and friendly fraud.

Various state lotteries are increasingly allowing people to buy lottery tickets online or through smartphone apps as well. This has been done in an attempt to appeal to millennials, who, unlike previous generations, do not regularly play the lottery. Online registration makes it easier for people to participate in the lottery since users do not have to wait in long retail lines or worry about losing their winning tickets.

With this type of system in place, it is important to prevent fraudsters from stealing legitimate people’s earnings. It builds credibility for the lottery system, making it more likely for people to continue using it.

Identity Verification

Online gambling companies and casinos must invest in identification technologies to mitigate the risk associated with underage users and fraudulent accounts on their systems. These technologies can help prevent users who do not have valid forms of identification from gambling online illegally.

Some of the benefits of having identity verification processes for online gambling include:

• Improved risk management
• Age verification for all users
• Potentially fraudulent user discovery
• Compliance with KYC & AML regulations
• Increased trust with regulators

Conclusion

Identity verification offers peace of mind to online gaming providers, particularly online gambling institutions. It allows them the opportunity to protect themselves by checking the validity of their customers before they join their services. Meeting regulatory compliance makes online gambling platforms more credible and builds trust between them, regulators and consumers.

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Complying with the latest governmental rules and regulations is often a major challenge for online bookmakers and gambling websites. Gaming websites need to find a narrow middle ground in order to balance their corporate interests with governmental regulations. Too much security during the sign-up phase and customers are likely to look elsewhere for their needs. Too little security, however, and businesses can fall foul of the law, or worse, be targeted by fraudsters.

New requirements for Online Gaming in the US, as a part of the Customer Identification Program (CIP) and the new Financial Crimes Enforcement Network (FinCEN) rules coming into force this year in May, use age verification as part of a triple-lock system.

A fully functional, robust age verification system can help providers establish a fast-growing user base, driving a rise in number of accounts. A scrutinized registration process can ensure that only players who are above the legal age are registered. Hence, problematic legal issues involving minors can be avoided at the root, saving time, money and rapport. Furthermore, demonstrations of proper compliance and due diligence can enormously boost a company’s reputation in the eyes of both the public and regulators.

Much as in the world of cryptocurrencies, manifesting a strong approach towards security and proper conduct enormously improves the end-user experience for companies. Furthermore, a well-managed and policed approach to security – of which proper age verification policy form an inexpensive and robust part, provide part of a protocol that allows a simple approach to change management. Identity verification platforms like IDMERIT provide a robust age verification module is perhaps the easiest security module to implement, is an additional bonus. This also removes the need to include them in regular security reviews, as they should be considered almost an automatic feature of any gaming site’s security protocols.

Coupled to the obvious benefits brought by lower incidence of fraud, age verification allows for easier identification checks – especially when bundled with other identity information. The commonplace nature of age verification checks, an almost every day encounter for online users, is also considered non-obtrusive, ultimately increasing customer loyalty.

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