Regulators, age assurance providers turn eyes to online gambling sector

A long-term effect of the smartphone revolution has been the normalization of gambling as a widely accepted social activity. Pornography and social media are more convenient political demons to point to when debating age assurance. But a new report from The Lancet underscores just how prevalent gambling has become in the era of online betting apps, which have driven massive growth in the global gaming industry – and present risks for susceptible youth.

“Gambling,” says the report, “in some form at least, is now legally permitted in more than 80 percent of countries worldwide. Online gambling, given its borderless accessibility, is available everywhere via the internet.”

For adults, that’s a potential financial or legal problem. For users under 18, however, it becomes a moral question – and a question of effective regulation. Online gaming, sports and social media are all popular with teens. All three are also increasingly associated with opportunities to gamble.

The Lancet estimates that 17.9 percent of adolescents had engaged in gambling of some form within the preceding year, globally. Moreover, “10.3 percent of the adolescents had gambled online, which is noteworthy given the widespread agreement that commercial gambling among adolescents should be prohibited.”

Like many smartphone-based activities, online gambling is addictive. The study estimates that gambling disorder could affect 26.4 percent of the adolescents who gamble using online casino or slot products, and 16.3 percent of the adolescents who gamble using sports betting apps.

“Exposure to industry messaging and product advertising influences young people’s propensity to gamble and normalises gambling within their peer groups,” says the Lancet article. “The effect is especially potent among sports fans.”

To stem the flow of lost money, hopes and dreams that was once confined to Las Vegas but now whispers in your teen’s pocket (and bellows at them on television ads), The Lancet suggests a mixture of policy, research and regulatory collaboration. “Regulating an increasingly global gambling industry presents substantial challenges, but they are not insurmountable.”

A key recommendation is the “protection of children and adolescents from gambling, by enforcing minimum age requirements, backed by mandatory identification.” This gestures broadly at the age assurance sector, which has been similarly involved in legal debates about age restrictions on porn and social media – and insistent that its members can provide effective, proven age assurance technology.

Global dominos begin to fall as age assurance catches up with gaming tech

Regulatory scuffles in the effort to regulate online gambling are inevitable and on the near horizon globally. New Zealand’s government has agreed to further details of a new system to regulate online casino gambling – of which none currently exists. A government blog says a new Online Gambling Bill is in the works, to “prevent and minimise online gambling harm and limit opportunities for crime and dishonesty.”

Internal Affairs Minister Brooke van Velden says “the system will deliver these objectives by prohibiting advertising that appeals to children, requiring online gambling operators to have an acceptable age verification system, and introducing fines of up to $5 million (USD) for operators that break the law.” It is set to take effect in 2026.

The Netherlands has also voted in favor of imposing age verification requirements on online gambling platforms. The motion by the House of Representatives calls on the government to impose “legally guaranteed, privacy friendly and reliable age verification procedures for online gambling and websites with pornographic content.”

SBC News reports that Italy’s media and communications regulator, GCOM, has sanctioned a measure to impose “mandatory age verification to ensure the adulthood of Italian audiences,” to be run through the Public Digital Identity System (SPID). The Italian restrictions apply to sites offering gambling, pornography and adult-specific social media categories.

In Europe more broadly, the European Union’s digital identity initiative is set to transform the landscape of online gambling, as the proposed European Digital Identity (EUDI) framework will require gambling companies to verify customer identities using the EU’s digital ID system.

Gambling remains an unknown in spicy Australian legislation

And in Australia, where age verification is suddenly the hottest political potato on the table, gambling is the mystery ingredient, in that no one is sure where it fits in the current hubbub over the government banning those under 16 from using social media. There is a push to ban gambling ads, but the industry is arguing that age verification is a better solution.

The Guardian quotes Kai Cantwell, CEO of Responsible Wagering Australia, which represents companies such as bet365, Sportsbet and Pointsbet. Cantwell says “it’s crucial to strike a balance that prevents Australians from turning to illegal offshore providers, who provide no protections to customers and don’t pay taxes and fees that licensed providers are required to pay.”

Article Topics

age verification  |  Australia  |  biometrics  |  children  |  digital identity  |  Europe  |  face biometrics  |  gambling  |  legislation  |  New Zealand  |  regulation