Biometrics in Gambling: Safe Future or Costly Bet?

The online gambling industry is going through massive changes in security and compliance technologies. And the tech that’s influencing iGambling safety the most is biometric identity verification.

The industry, which is projected to reach $744.8 billion by 2028, faces several security challenges, including fraud and identity theft. These security incidents result in approximately $1 billion in annual fraud losses.

Biometric authentication, which includes fingerprint scans and voice and facial recognition, is seen as a way to improve security and create a better user experience. It helps reduce fraud while making logins and transactions easier. But biometric authentication comes with its own set of challenges.

In this article, we explore the benefits and challenges of biometric authentication in online gambling platforms.

Table of Contents Table of Contents

1. Key Takeaways
2. Top Biometric Authentication Types
3. Benefits of Biometric Authentication
4. Challenges of Biometric Authentication
5. The Bottom Line
6. FAQs
7. References

Show Full Guide

Table of Contents

1. Key Takeaways
2. Top Biometric Authentication Types
3. Benefits of Biometric Authentication
Show Full Guide
4. Challenges of Biometric Authentication
5. The Bottom Line
6. FAQs
7. References

Top Biometric Authentication Types

Before we discuss the benefits and challenges, let’s understand the top biometric authentication types used in online gambling platforms.

You’d notice fingerprint recognition being implemented more widely since it is available on most Android devices.

Facial recognition is available on both Android and iPhones. It can be used for both login and age verification, but this method is still not completely reliable. On Android devices, it might be easy to bypass verification, even using a picture of someone.

Voice recognition is rarely implemented because it’s more complex than the other two, but it is an option.

Other types, such as iris scans and behavioral biometrics (e.g., typing speed), are less frequently adopted due to technical and cost barriers.

Benefits of Biometric Authentication

Goodbye, Passwords

Biometric authentication is quickly replacing passwords, which are already on their way out, according to some experts.

Stephan Jou, Senior Director of Security Analytics at OpenText, considers biometric authentication a game-changer. He said:

“It’s not just about replacing passwords; it’s about creating a system that’s inherently more secure and far less burdensome for users…Biometrics won’t kill passwords entirely. But they’ll make them increasingly irrelevant. Passwords will become a fallback, not the primary means of authentication.”

Biometrics might remove the hassle of remembering complex passwords for good. For example, fingerprint or facial recognition takes just seconds, while recalling and typing a password takes a bit more effort. Of course, you can save yourself some time by using a password manager.

Increased Engagement & Retention

Biometric authentication isn’t just good for cybersecurity; it can also increase user engagement and retention rates.

Leslie K. Harris, the Marketing Director of Double Eagle Hotel & Casino, told Techopedia:

“Biometrics in online gambling is more of a new take on old security and convenience issues. When it comes to fingerprint scanning or facial recognition, it’s not so much the fact that the technology is being used that matters, but its ability to free the user from having to enter passwords or go through lengthy checks. This eliminates unnecessary steps and creates the feeling that you are playing in a safe and ‘smart’ environment.”

AML, KYC & Age Verification Made Easy

Biometric authentication also helps with meeting regulatory requirements, especially when it comes to age verification. With more and more regulations around Know Your Customer (KYC) and Anti-Money Laundering (AML), methods like facial recognition make it easier for operators to stay compliant.

JD Garner, CEO and Founder of GambleID, a company dedicated to providing a secure and compliant environment for the gaming industry, told Techopedia:

“Regulators are already paying close attention to biometrics, and I wouldn’t be surprised if we see mandates requiring real-time identity verification tied to government databases for KYC and AML compliance. It’s an exciting space that’s evolving fast.”

Since biometric authentication can also be used for transaction authentication, it adds an extra layer of security. Unlike passwords and ID cards, biometric data can’t be easily stolen or replicated, which makes it great for verifying player identities and preventing account takeovers.

Challenges of Biometric Authentication

Biometric authentication has its challenges. Some users worry about their biometrics getting misused or leaked in breaches, and they are not wrong. There’s this misconception that biometric data is unique and tamper-proof. But while this is true in the physical world, where it is actually difficult to falsify a fingerprint or a face, it does not apply to the digital world.

Risks of Storing Biometric Data

In the digital world, biometric data is digitized, which means it is stored as 1s and 0s on a server. Once saved, it can be copied into backup files and stored on servers anywhere in the world. So if one of the servers is compromised, the biometric data they contain can be stolen and copied too.

Biometrics Might Push Players to the Black Market

Experts also point out that implementing biometric authentication could impact adoption rates and pose a major risk to licensed operators.

Richard Dennys, CEO of iGaming affiliate company Game Lounge, told Techopedia:

“Biometrics is a massive threat to licensed operators and those that play by the rules. It will further push users into the black market as they simply won’t go through the biometric process; they will go straight to unlicensed crypto casinos instead.

“Unfortunately, the more friction put in front of the process by licensed, above-board casinos, the faster consumers will race to the black market. We see it in every jurisdiction Game Lounge operates in, and Germany is a clear example of this – it has the strictest rules and regulations and, as a result, the largest black market in the world. Our industry should be prioritizing player safety above all else, but regulation simply isn’t achieving that.”

Biometric data is handled differently in various regions like GDPR in Europe and CCPA in California, which have strict rules about how data must be managed and consent obtained. For most operators, complying with these varying regulations can get complicated and expensive.

False Positives & False Negatives

Biometric systems can also face issues like false positives (where unauthorized users get access) or false negatives (where legitimate users are denied), especially in conditions like poor lighting.

High Cost

On top of that, setting up and maintaining biometric systems can be pricey. There are costs for hardware, software, and integration with existing platforms, which can be a tough hurdle for smaller operators.

The Bottom Line

Biometric authentication is set to become the norm in iGambling over the next decade. However, gambling operators and players need time to adjust.

While biometrics offer significant security and compliance benefits, operators can’t just ignore challenges such as privacy concerns, regulatory complexities, and high costs. To maximize adoption, the industry must prioritize security and user convenience while ensuring that robust data protection measures are in place.

FAQs