Multi-factor authentication comes to New Jersey sportsbooks
New gambling regulations requiring two- or multi-factor authentication for sportsbooks take effect in New Jersey June 30.
The move is designed to make it harder for one person to bet for another (known as messenger or proxy betting), and to prevent criminals from taking control of another’s account. The state’s Game Enforcement Division made the decision in March.
A few major sportsbooks in the state, including DraftKings and FanDuel, already use two-factor authority, according to reporting by Legal Sport Reports. There is no requirement to implement biometrics-based authentication, though inherence, possession and knowledge are the only three to choose from.
Although it is expected that most if not all sportsbooks will implement at least two-factor authentication, it is not known how many smaller outfits will comply with the law. There are many small sportsbooks in the state, and some of them are illegal.
For those opting for the straight and narrow way, there are no shortage of MFA firms ready to assist. Digital ID vendor Prove is reaching out directly to New Jersey sportsbooks.
Gamblers will have to re-authenticate every two weeks.
Two- and multi-factor betting could have prevented a major embarrassment for DraftKings and Game Enforcement in 2020 when a bettor in Florida used a proxy to pass flimsy KYC and AML checks and place a $3 million bet in New Jersey. (Details of the scam are here.)
DraftKings ultimately paid a $150,000 civil fine.
At least one other proxy case is known, that of Atlanta Falcons wide receiver Calvin Ridley.
Building multi-factor authentication into gambling operations is increasing. Last year, Vix Vizion chose telco Cradlepoint’s technology to aid in enforcing self-exclusion and problem gambling bans via facial recognition devices deployed at pubs, clubs and casinos in South Australia, reports iTWire.
Facial recognition systems also are being used, again in Australia, to eliminate underage gambling.
Gambling companies are voicing support in the European Union for a standard digital ID.