KYC is an acronym used to refer to the ‘know your customer’ technologies used...
Can you guess how many people gamble each day? Millions, if not billions! At any given minute, a punter somewhere is busy placing a bet, hoping that this will be the wager that finally comes through. Tons of people enjoy betting. Some do it for the fun of it. Others are in it to win, while some have made a career out of it. Regardless of the motivations, the increased accessibility of gambling has led to an increase in punters. This number is not set to go down. If anything, statistics estimate that by 2024, the gambling industry will be worth $100 billion!
With such growth, the need for technological advancements has only increased. Technology has shaped so many aspects of our lives- health, finance, social reach, etc. It makes sense that it would also feature in a billion-dollar industry. How? By creating a foundation for online gambling. Even though physical bookies and casinos exist, the number of people playing online outweighs those who frequent these establishments. Technology has made it possible to play from the comfort of your home and still enjoy the casino classics. But that’s only one of the ways that technology has shaped gambling. It’s also facilitated payments and streamlined customer experiences.
Curious to know how technology has played a part in gambling? Here are some excellent examples:
Think back to a few decades ago before the internet was a thing. How could punters get a kick? They had to go to their bookies, often in shops or near the tracks, waiting for their loyal customers. If you could not make it to see the bookie, you had to send someone to place a wager on your behalf. When you won, you also had to go to the bookie to get your winnings. Can you see how inconvenient this would be with a busy schedule?
Weaving your way through traffic to get your $10 in winnings and place another bet. It does not even make much fiscal sense. Then online platforms came to be, enabling people to bet from any location and cash out whenever they wanted. So, whether you are betting on a team or enjoying a casino game, you can do it straight from your phone or desktop. That’s thanks to technology!
Everyone transacting online can be a target of a cyber-crime. With the billions of dollars moving through gambling sites, these have become hotspots for criminals. Sites have had to adjust to these threats by investing heavily in data protection software. Some of these technologies can analyze punters’ behavior and gauge those likely to be problematic users. By blocking or limiting their activities, the sites can protect the other users.
Did you know that gambling sites also use know your customer technology? It helps identify and track individuals who may be using gambling for fraudulent activities. But the security measures do more than this. They also prevent unauthorized access to the systems and ensure that the money and data on the site remain safe. Of course, you can only benefit from such measures if you choose sites that uphold security measures.
Gambling laws differ from one country to the next. With technology, it was easy for punters from regions that did not allow gambling to place wagers in regions with relaxed rules. Of course, this was to the detriment of bookies because they would offer services in regions where they were not licensed. It was a murky area, and bookies had to find a way to keep it from happening as it hurt their reputations. So, what did they devise?
Geolocation tracking software! Using this technology, they can zero in on locations and determine if a punter is eligible to bet based on their region. Those whose IP addresses are within the required borders can place wagers, and those who are not get banned. We’ll not get into how easy it is for punters to bypass such restrictions. Instead, we will focus on how this enables bookies to remain compliant with their licensing laws and avoid getting to legal trouble.
Gambling sites must always be a step ahead of their clients if they want to remain competitive in their niches. So, they must understand the games the punters like and are likely to spend on and capitalize on these. But how can they do this? Through data modeling! This technology can map out punters’ behaviors and predict the games they are likely to play. For example, if you often play games A and B, the technology can look for similarities in these games.
It could be in the niche, the odds, the payouts, or some other criteria. It then uses this information to predict whether you are likely to play game C or D. You then start getting prompts to play the game it picks. Gambling sites also use this technology to determine which games need better versions. For example, if many people are now playing game A, it follows that better versions of the game would attract an even higher number of punters.
For a long time, punters had to provide their banking details when making deposits and withdrawals. Of course, this came with its disadvantages. Key among these was the need to disclose personal information. Linking bank accounts with gambling sites increased the risk of identity theft and affected punters’ financial well-being. They were at risk of hackers who could deplete the money on the card and even amass debt.
Such was the case for many people who suffered at the hands of cyber-criminals. Then there was the issue of having the bank looking over punters’ shoulders. It was challenging to seek loans or even mortgages with gambling history. So, what did bookies do to solve this problem? They started accepting digital currencies and other alternative deposit methods. These transactions are secure, private, fast, and incur minimal to no costs. It’s no wonder so many punters are now moving to this form of making and receiving payments within gambling sites and beyond.
When online gaming first started, people were limited to using their desktops as the sites were optimized to work on these. After a while, it became clear that bookies had to create sites that could also work on smart devices. The reason? If people could access the sites on their devices, they could play more, resulting in higher revenues.
It was not long after this that sites became easier to navigate on mobile phones. Soon enough, bookies introduced mobile apps where punters could place wagers, make payments, and cash out on their winnings. The mobile gaming industry has grown and now accounts for more than 40% of the total bets placed in the industry.
Live casinos and live streaming have been on the rise. People want to strike when the iron is still hot, and what better way to do so than by grabbing a front seat to the action? All punters need is a secure internet connection, and they can keep placing wagers as the games continue. A few decades ago, this was but a dream.
Other advancements include augmented reality, virtual reality, facial recognition, encryption, and cloud gaming. These are but some of the ways bookies have employed to keep punters happy and increase their revenues. As the industry grows, punters expect that their gaming experiences will only become better. What do you think the future holds?
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