{"id":386467,"date":"2025-03-05T08:22:42","date_gmt":"2025-03-05T08:22:42","guid":{"rendered":"https:\/\/www.techopedia.com\/?p=386467"},"modified":"2025-03-05T08:22:42","modified_gmt":"2025-03-05T08:22:42","slug":"biometric-authentication-in-gambling-pros-and-cons","status":"publish","type":"post","link":"https:\/\/www.techopedia.com\/biometric-authentication-in-gambling-pros-and-cons","title":{"rendered":"Biometrics in Gambling: Safe Future or Costly Bet?"},"content":{"rendered":"<p>The <a href=\"https:\/\/www.techopedia.com\/online-gambling-statistics\">online gambling industry<\/a> is going through massive changes in security and compliance technologies. And the tech that\u2019s influencing iGambling safety the most is biometric identity verification.<\/p>\n<p>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 <a href=\"https:\/\/www.biometricupdate.com\/202501\/surge-of-online-gambling-fraud-pushing-industry-towards-identity-verification-report\" target=\"_blank\">$1 billion in annual fraud losses<\/a>.<\/p>\n<p>Biometric authentication, which includes fingerprint scans and voice and <a href=\"https:\/\/www.techopedia.com\/casino-facial-recognition-technology\">facial recognition<\/a>, 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.<\/p>\n<p>In this article, we explore the benefits and challenges of biometric authentication in online gambling platforms.<\/p>\n<div class=\"su-note\"  style=\"border-color:#e5e54c;border-radius:3px;-moz-border-radius:3px;-webkit-border-radius:3px;\"><div class=\"su-note-inner su-u-clearfix su-u-trim\" style=\"background-color:#FFFF66;border-color:#ffffff;color:#333333;border-radius:3px;-moz-border-radius:3px;-webkit-border-radius:3px;\">\n<h2><span id=\"key_takeaways\">Key Takeaways<\/span><\/h2>\n<ul>\n<li>Biometric authentication offers improved security by replacing passwords with fingerprint, facial, and voice recognition.<\/li>\n<li>Biometric tech also helps meet regulatory requirements like KYC and AML.<\/li>\n<li>Despite its benefits, biometric authentication has its own issues such as privacy concerns, high costs, and potential misuse of data.<\/li>\n<li>Biometric authentication could become the standard in iGambling, but users need time to adapt.<\/li>\n<\/ul>\n<\/div><\/div>\n<div>\n    <section class=\"toc-sticky w-100 bg-white \">\n        <div class=\"toc-sticky__container container\">\n            <div class=\"toc-sticky__open d-flex align-items-end\" data-bs-toggle=\"collapse\"\n                 aria-controls=\"multiCollapse1\"\n                 data-bs-target=\"#multiCollapse1\">\n                <button\n                        class=\"btn btn-primary collapse-action-btn p-1 rounded-circle\"\n                        type=\"button\"\n                >\n                    <i class=\"icon-chevron-up\"><\/i>\n                <\/button>\n                <span id=\"toc-current-title\" class=\"d-flex align-items-center\">\n                    Table of Contents\n                <\/span>\n                <span class=\"toc-main-title-permanent\">Table of Contents<\/span>\n            <\/div>\n            <div\n                    class=\"collapse my-3\"\n                    id=\"multiCollapse1\"\n            >\n                <ol class=\"StepProgress\">\n                                                                        <li class=\"StepProgress-item current\">\n                                                <div class=\"StepProgress-item__group\">\n                            <a data-id=\"key_takeaways\"\n                               onclick=handleScrollToTitle(\"key_takeaways\")\n                               class=\"StepProgress-item__link\" data-level=\"2\">Key Takeaways<\/a>\n                                                    <\/div>\n                                                <\/li>\n                                                                        <li class=\"StepProgress-item\">\n                                                <div class=\"StepProgress-item__group\">\n                            <a data-id=\"top_biometric_authentication_types\"\n                               onclick=handleScrollToTitle(\"top_biometric_authentication_types\")\n                               class=\"StepProgress-item__link\" data-level=\"2\">Top Biometric Authentication Types<\/a>\n                                                    <\/div>\n                                                <\/li>\n                                                                        <li class=\"StepProgress-item\">\n                                                <div class=\"StepProgress-item__group\">\n                            <a data-id=\"benefits_of_biometric_authentication\"\n                               onclick=handleScrollToTitle(\"benefits_of_biometric_authentication\")\n                               class=\"StepProgress-item__link\" data-level=\"2\">Benefits of Biometric Authentication<\/a>\n                                                    <\/div>\n                                                <\/li>\n                                                                        <li class=\"StepProgress-item\">\n                                                <div class=\"StepProgress-item__group\">\n                            <a data-id=\"challenges_of_biometric_authentication\"\n                               onclick=handleScrollToTitle(\"challenges_of_biometric_authentication\")\n                               class=\"StepProgress-item__link\" data-level=\"2\">Challenges of Biometric Authentication<\/a>\n                                                    <\/div>\n                                                <\/li>\n                                                                        <li class=\"StepProgress-item\">\n                                                <div class=\"StepProgress-item__group\">\n                            <a data-id=\"the_bottom_line\"\n                               onclick=handleScrollToTitle(\"the_bottom_line\")\n                               class=\"StepProgress-item__link\" data-level=\"2\">The Bottom Line<\/a>\n                                                    <\/div>\n                                                <\/li>\n                                                                        <li class=\"StepProgress-item\">\n                                                <div class=\"StepProgress-item__group\">\n                            <a data-id=\"faqs\"\n                               onclick=handleScrollToTitle(\"faqs\")\n                               class=\"StepProgress-item__link\" data-level=\"2\">FAQs<\/a>\n                                                    <\/div>\n                                                <\/li>\n                                                                        <li class=\"StepProgress-item\">\n                                                <div class=\"StepProgress-item__group\">\n                            <a data-id=\"references\"\n                               onclick=handleScrollToTitle(\"references\")\n                               class=\"StepProgress-item__link\" data-level=\"2\">References<\/a>\n                                                    <\/div>\n                                                <\/li>\n                                    <\/ol>\n                <div class=\"toc-sticky__container__disperse\"><\/div>\n                <div class=\"toc-sticky__btn-top justify-content-center\">\n                    <button class=\"btn btn-link d-flex align-items-center\" onclick={btnTop()}><p>Show Full Guide<\/p><img decoding=\"async\"\n                                src=\"\/wp-content\/plugins\/table-of-contents\/assets\/images\/arrow-up-circle.svg\"\n                                alt=\"arrow-up-circle\">\n                    <\/button>\n                <\/div>\n            <\/div>\n        <\/div>\n    <\/section>\n    <div class=\"toc-sticky-list\">\n        <div class=\"toc-sticky__container container\">\n            <div class=\"toc-sticky__open d-flex align-items-end\" data-bs-toggle=\"collapse\" aria-controls=\"multiCollapse2\" data-bs-target=\"#multiCollapse2\">\n                <button class=\"btn btn-primary collapse-action-btn p-1 rounded-circle\"\n                        type=\"button\">\n                    <i class=\"icon-chevron-up up\"><\/i>\n                <\/button>\n                <span id=\"toc-current-title\" class=\"d-flex align-items-center\">\n                    Table of Contents\n                <\/span>\n            <\/div>\n            <div  class=\"collapse my-3\" id=\"multiCollapse2\">\n                <ol class=\"StepProgress\">\n                    \t\t\t\t\t \t\t\t\t\t                                                     <li class=\"StepProgress-item current \">\n                                                    <div class=\"StepProgress-item__group\">\n                                <a data-id=\"key_takeaways\"\n                                   onclick=handleScrollToTitle(\"key_takeaways\")\n                                   class=\"StepProgress-item__link\"\n                                   data-level=\"2\">Key Takeaways<\/a>\n                                                            <\/div>\n                                                    <\/li>\n                    \t\t\t\t\t \t\t\t\t\t                                                     <li class=\"StepProgress-item \">\n                                                    <div class=\"StepProgress-item__group\">\n                                <a data-id=\"top_biometric_authentication_types\"\n                                   onclick=handleScrollToTitle(\"top_biometric_authentication_types\")\n                                   class=\"StepProgress-item__link\"\n                                   data-level=\"2\">Top Biometric Authentication Types<\/a>\n                                                            <\/div>\n                                                    <\/li>\n                    \t\t\t\t\t \t\t\t\t\t                                                     <li class=\"StepProgress-item \">\n                                                    <div class=\"StepProgress-item__group\">\n                                <a data-id=\"benefits_of_biometric_authentication\"\n                                   onclick=handleScrollToTitle(\"benefits_of_biometric_authentication\")\n                                   class=\"StepProgress-item__link\"\n                                   data-level=\"2\">Benefits of Biometric Authentication<\/a>\n                                                            <\/div>\n                                                    <\/li>\n                    \t\t\t\t\t \t\t\t\t\t\n\t\t\t\t\t\t <span class=\"show_moretoc\">Show Full Guide<\/span>\n\t\t\t\t\t\t \t\t\t\t\t \t\t\t\t\t\t  \t\t\t\t\t                                                      <li class=\"StepProgress-item ms_hidetoc\">\n                                                    <div class=\"StepProgress-item__group\">\n                                <a data-id=\"challenges_of_biometric_authentication\"\n                                   onclick=handleScrollToTitle(\"challenges_of_biometric_authentication\")\n                                   class=\"StepProgress-item__link\"\n                                   data-level=\"2\">Challenges of Biometric Authentication<\/a>\n                                                            <\/div>\n                                                    <\/li>\n                    \t\t\t\t\t \t\t\t\t\t \t\t\t\t\t\t  \t\t\t\t\t                                                      <li class=\"StepProgress-item ms_hidetoc\">\n                                                    <div class=\"StepProgress-item__group\">\n                                <a data-id=\"the_bottom_line\"\n                                   onclick=handleScrollToTitle(\"the_bottom_line\")\n                                   class=\"StepProgress-item__link\"\n                                   data-level=\"2\">The Bottom Line<\/a>\n                                                            <\/div>\n                                                    <\/li>\n                    \t\t\t\t\t \t\t\t\t\t \t\t\t\t\t\t  \t\t\t\t\t                                                      <li class=\"StepProgress-item ms_hidetoc\">\n                                                    <div class=\"StepProgress-item__group\">\n                                <a data-id=\"faqs\"\n                                   onclick=handleScrollToTitle(\"faqs\")\n                                   class=\"StepProgress-item__link\"\n                                   data-level=\"2\">FAQs<\/a>\n                                                            <\/div>\n                                                    <\/li>\n                    \t\t\t\t\t \t\t\t\t\t \t\t\t\t\t\t  \t\t\t\t\t                                                      <li class=\"StepProgress-item ms_hidetoc\">\n                    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pageLegend.classList.remove('overflow-auto');\n        pageLegend.style.height = 'auto';\n        window.scrollTo({\n            top: 0,\n            behavior: 'smooth'\n        });\n    }\n\n    const handleScrollToTitle = (id) => {\n        const el = document.getElementById(id);\n        const headerHeightDifference = window.innerWidth < 992 ? -30 : -15;\n        window.scrollTo({\n            top: el.offsetTop - 60 - headerHeightDifference - 10,\n        });\n    }\n<\/script>\n\n<h2><span id=\"top_biometric_authentication_types\">Top Biometric Authentication Types<\/span><\/h2>\n<p>Before we discuss the benefits and challenges, let\u2019s understand the top biometric authentication types used in online gambling platforms.<\/p>\n<div class=\"su-note\"  style=\"border-color:#e5e54c;border-radius:3px;-moz-border-radius:3px;-webkit-border-radius:3px;\"><div class=\"su-note-inner su-u-clearfix su-u-trim\" style=\"background-color:#FFFF66;border-color:#ffffff;color:#333333;border-radius:3px;-moz-border-radius:3px;-webkit-border-radius:3px;\"><strong>Fingerprint, facial, and voice recognition<\/strong> are some of the most commonly used options out there.<\/div><\/div>\n<p>You\u2019d notice fingerprint recognition being implemented more widely since it is available on most Android devices.<\/p>\n<p>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, <a href=\"https:\/\/www.forbes.com\/sites\/emmawoollacott\/2023\/05\/19\/many-android-phones-can-be-unlocked-with-a-photo\/\" target=\"_blank\">even using a picture of someone<\/a>.<\/p>\n<p>Voice recognition is rarely implemented because it\u2019s more complex than the other two, but it is an option.<\/p>\n<p>Other types, such as iris scans and behavioral biometrics (e.g., typing speed), are less frequently adopted due to technical and cost barriers.<\/p>\n<h2><span id=\"benefits_of_biometric_authentication\">Benefits of Biometric Authentication<\/span><\/h2>\n<h3>Goodbye, Passwords<\/h3>\n<p>Biometric authentication is quickly replacing passwords, which are already on their way out, according to some experts.<\/p>\n<p><strong>Stephan Jou, Senior Director of Security Analytics at OpenText<\/strong>, <a href=\"https:\/\/thereadable.co\/the-password-is-almost-dead-long-live-biometrics\/\" target=\"_blank\">considers biometric authentication a game-changer<\/a>. He said:<\/p>\n<blockquote><p>\u201cIt\u2019s not just about replacing passwords; it\u2019s about creating a system that\u2019s inherently more secure and far less burdensome for users\u2026Biometrics won\u2019t kill passwords entirely. But they\u2019ll make them increasingly irrelevant. Passwords will become a fallback, not the primary means of authentication.\u201d<\/p><\/blockquote>\n<p>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.<\/p>\n<h3>Increased Engagement &amp; Retention<\/h3>\n<p>Biometric authentication isn\u2019t just good for cybersecurity; it can also increase user engagement and retention rates.<\/p>\n<p><strong>Leslie K. Harris, the Marketing Director of Double Eagle Hotel &amp; Casino<\/strong>, told Techopedia:<\/p>\n<blockquote><p>\u201cBiometrics 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\u2019s 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 &#8216;smart&#8217; environment.\u201d<\/p><\/blockquote>\n<h3>AML, KYC &amp; Age Verification Made Easy<\/h3>\n<p>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.<\/p>\n<p><strong>JD Garner, CEO and Founder of GambleID<\/strong>, a company dedicated to providing a secure and compliant environment for the gaming industry, told Techopedia:<\/p>\n<blockquote><p>\u201cRegulators are already paying close attention to biometrics, and I wouldn\u2019t be surprised if we see mandates requiring real-time identity verification tied to government databases for KYC and AML compliance. It\u2019s an exciting space that\u2019s evolving fast.\u201d<\/p><\/blockquote>\n<p>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&#8217;t be easily stolen or replicated, which makes it great for verifying player identities and preventing account takeovers.<\/p>\n<h2><span id=\"challenges_of_biometric_authentication\">Challenges of Biometric Authentication<\/span><\/h2>\n<p>Biometric authentication has its challenges. Some users worry about their biometrics getting misused or leaked in breaches, and they are not wrong. There\u2019s 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.<\/p>\n<h3>Risks of Storing Biometric Data<\/h3>\n<p>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.<\/p>\n<h3>Biometrics Might Push Players to the Black Market<\/h3>\n<p>Experts also point out that implementing biometric authentication could impact adoption rates and pose a major risk to licensed operators.<\/p>\n<p><strong>Richard Dennys, CEO of iGaming affiliate company Game Lounge<\/strong>, told Techopedia:<\/p>\n<blockquote><p>\u201cBiometrics 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&#8217;t go through the biometric process; they will go straight to unlicensed crypto casinos instead.<\/p>\n<p>\u201cUnfortunately, 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 \u2013 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&#8217;t achieving that.\u201d<\/p><\/blockquote>\n<p>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.<\/p>\n<h3>False Positives &amp; False Negatives<\/h3>\n<p>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.<\/p>\n<h3>High Cost<\/h3>\n<p>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.<\/p>\n<h2><span id=\"the_bottom_line\">The Bottom Line<\/span><\/h2>\n<p>Biometric authentication is set to become the norm in iGambling over the next decade. However, gambling operators and players need time to adjust.<\/p>\n<p>While biometrics offer significant security and compliance benefits, operators can\u2019t 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.<\/p>\n<h2><span id=\"faqs\">FAQs<\/span><\/h2>\n<div class=\"man_faq_sec\" itemscope itemtype=\"https:\/\/schema.org\/FAQPage\"><\/time><section class=\"ms_faq ms_card \" ><div itemscope itemprop=\"mainEntity\" itemtype=\"https:\/\/schema.org\/Question\"><div class=\"accordionButton\"><h3 itemprop=\"name\">What are the ethical issues with biometrics?<\/h3> <\/div>\n<div class=\"accordionContent\" itemscope itemprop=\"acceptedAnswer\" itemtype=\"https:\/\/schema.org\/Answer\" style=\"display:none;\"><p itemprop=\"text\">Ethical issues with biometrics include the concerns over privacy, data misuse, and consent, especially regarding the storage and sharing of sensitive biometric data.<\/p>\r\n                <\/div><\/div><\/section>\n<section class=\"ms_faq ms_card \" ><div itemscope itemprop=\"mainEntity\" itemtype=\"https:\/\/schema.org\/Question\"><div class=\"accordionButton\"><h3 itemprop=\"name\">Why is biometric security so difficult to defeat?<\/h3> <\/div>\n<div class=\"accordionContent\" itemscope itemprop=\"acceptedAnswer\" itemtype=\"https:\/\/schema.org\/Answer\" style=\"display:none;\"><p itemprop=\"text\">Biometric security is difficult to defeat because biometric traits are unique to individuals and hard to replicate or steal.<\/p>\r\n                <\/div><\/div><\/section>\n<section class=\"ms_faq ms_card \" ><div itemscope itemprop=\"mainEntity\" itemtype=\"https:\/\/schema.org\/Question\"><div class=\"accordionButton\"><h3 itemprop=\"name\">What are the disadvantages of fingerprinting?<\/h3> <\/div>\n<div class=\"accordionContent\" itemscope itemprop=\"acceptedAnswer\" itemtype=\"https:\/\/schema.org\/Answer\" style=\"display:none;\"><p itemprop=\"text\">The disadvantages of fingerprinting include potential issues with false positives or negatives and the vulnerability of fingerprints to being copied or lifted from surfaces.<\/p>\r\n                <\/div><\/div><\/section>\n<section class=\"ms_faq ms_card \" ><div itemscope itemprop=\"mainEntity\" itemtype=\"https:\/\/schema.org\/Question\"><div class=\"accordionButton\"><h3 itemprop=\"name\">Can biometrics be spoofed?<\/h3> <\/div>\n<div class=\"accordionContent\" itemscope itemprop=\"acceptedAnswer\" itemtype=\"https:\/\/schema.org\/Answer\" style=\"display:none;\"><p itemprop=\"text\">Yes, biometrics can be spoofed through techniques like using high-quality photos for facial recognition or 3D models for fingerprint scanning.<\/p>\r\n                <\/div><\/div><\/section>\n<div class=\"reference-content\">\n<div class=\"reference-heading reference-content-collapsible-heading\">\n<h2><span id=\"references\">References<\/span><\/h2>\n<\/div>\n<div class=\"reference-content-body\">\n<ol>\n<li><a href=\"https:\/\/www.biometricupdate.com\/202501\/surge-of-online-gambling-fraud-pushing-industry-towards-identity-verification-report\" target=\"_blank\">Surge of online gambling fraud pushing industry towards identity verification: Report<\/a>\u00a0(Biometric Update)<\/li>\n<li><a href=\"https:\/\/www.forbes.com\/sites\/emmawoollacott\/2023\/05\/19\/many-android-phones-can-be-unlocked-with-a-photo\/\" target=\"_blank\">Many Android Phones Can Be Unlocked With A Photo<\/a> (Forbes)<\/li>\n<li><a href=\"https:\/\/thereadable.co\/the-password-is-almost-dead-long-live-biometrics\/\" target=\"_blank\">The password is almost dead; long live biometrics<\/a>\u00a0(The Readable)<\/li>\n<\/ol>\n<\/div>\n<\/div>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>The online gambling industry is going through massive changes in security and compliance technologies. And the tech that\u2019s 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 [&hellip;]<\/p>\n","protected":false},"author":287271,"featured_media":386469,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_lmt_disableupdate":"no","_lmt_disable":"","om_disable_all_campaigns":false,"footnotes":""},"categories":[2306],"tags":[],"category_partsoff":[],"class_list":["post-386467","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-software"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v24.2 (Yoast SEO v24.5) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Biometrics in Gambling: Safe Future or Costly Bet?- Techopedia<\/title>\n<meta name=\"description\" content=\"Explore the pros and cons of biometric authentication in gambling, as it offers better security and compliance, but privacy risks and high costs remain.\" \/>\n<meta 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