Betting big: the role of IDV during the Super Bowl
The Super Bowl is one of the most anticipated events in the sports calendar, drawing in millions of viewers and betters from around the world. In 2024, an estimated 50 million Americans placed bets on the Super Bowl, wagering a staggering $16bn. This rapid growth in sports betting highlights the need for stringent measures to keep the betting environment safe and fair.
Preventing fraud and ensuring compliance
One of the primary reasons for implementing robust IDV systems in the sports betting space is to protect against fraud and underage betting. The digital nature of online betting platforms makes them vulnerable to various forms of fraud, including identity theft and bonus abuse. Bonus abuse alone can lead to significant revenue losses, reportedly costing the sector around 15% of its annual gross revenue.
Different jurisdictions have varying regulations regarding online sports betting, making compliance a complex but necessary challenge for betting platforms. Having an identity partner with a global view can help operators comply with these regulations by accurately verifying the age and identity of users. This not only helps to prevent fraud but also ensures that betting platforms operate within the legal framework.
With 52% of businesses reporting an overall increase in fraud across mobile, online, contact center and in-person channels, detecting and deterring fraud is critical ahead of larger scale events like the Super Bowl.
Customer success in sports betting
By relying on a robust and layered verification platform, a customer in the sports betting space gained a comprehensive understanding of identity through both data and document verification capabilities. The sports betting customer gained unique and immediate onboarding intelligence resulting in an 80% lift in automated approvals of hard-to-reach customer segments.
The customer unlocked extensive enhanced data sources, leveraging authoritative public and private sources to instantly verify consumer identities. For harder-to-identify populations, the client could escalate users to capture an image of their identity document, which was then cross-referenced against a library of government-issued documents.
This comprehensive approach not only maximized conversion rates by allowing legitimate customers to prove their identity but also effectively deterred fraud and bad actors. The adaptability of the verification processes ensures compliance with evolving regulations, providing the customer with confidence in their AML and KYC compliance.
Staying ahead of fraud in a digital era
As technology evolves, so do the tactics of fraudsters. Betting platforms must stay ahead of these threats by continuously maintaining their verification strategy. The excitement of the Super Bowl brings the potential for a surge in online sports betting. To ensure that this activity remains safe, fair and enjoyable for all, advanced identity verification is essential.
A strategic approach to verification empowers betting platforms to protect against fraud, ensuring regulatory compliance and enhancing user trust.
Learn more about fostering positive customer experiences while deterring fraud by downloading our Global Fraud Report: 9th Edition.