How EU Policy May Shape the Future of No-KYC Casinos

No-KYC casinos offer improved privacy compared to traditional online casinos. They also make it possible for players in restricted areas to place wagers on their favorite casino games. However, they straddle the line of cryptocurrency and iGaming, both of which are heavily regulated and facing additional pressure from regulatory bodies and their imposition of new or expanded policies.

While a lot of eyes have been on the US and which states will allow different forms of gambling and betting, many EU states have already made policy moves, with many others likely to follow suit. These regulations could have a considerable impact on no-KYC casinos.

No-KYC Casinos

No-KYC casinos differ from traditional online casinos because they don’t require users to submit their names, addresses, or financial details. Not only does this make them more accessible, but it also means there are certain other benefits when considering no-KYC vs traditional iGaming websites.

According to online gambling expert Viola D’Elia, the principal differences are that no-KYC casinos offer quicker and simpler registration, faster deposits and withdrawals, and they can also offer improved bonuses compared to traditional sites.

Licensing

Typically, online casinos are licensed by one or more gambling authorities. This helps ensure player protection because the license issuer places certain demands on its licensees.

For example, they require player money to be protected. They also require that games and game software be audited for fairness by third parties. To ensure a safer gambling environment for players, many authorities also require that licensees check and verify the ID of users.

This is done, in part, to ensure they are old enough to bet, but in some cases, such as in the UK following recent rule changes, to facilitate budget checks when players reach certain deposit limits. Not all gambling authorities require these checks, however.

Curacao, Panama, and Costa Rica are some of the licensing authorities that do not require ID Know Your Customer (KYC) checks, and most no-verification casinos are licensed in these jurisdictions while still being accessible to players from around the world.

The EU’s Role

The EU does not govern gambling laws in member states. Every state is free to create and manage its own gambling laws. This is important because different countries in the EU have very different opinions on gambling.

For example, Croatia, Denmark, and Greece have open and regulated markets. However, in Cyprus, Luxembourg, and even France, online casinos remain illegal. Because countries are free to make their own rules, regulations vary considerably from one member state to another.

Anti-Money Laundering Regulations

Common regulations include anti-money laundering regulations. Online casinos present an opportunity for criminal gangs to deposit money, gamble it on short odds games, or even gamble a small amount of the money, and withdraw clean money from the casino account.

Many online casinos are required to monitor player accounts and look for suspicious deposit and withdrawal activity. Online casinos have been fined for failing to meet these requirements. Greentube Alderney Limited, which operates Admiral Casino, was fined £1 million for failing to meet its AML requirements in January this year.

Regulating a country’s gambling industry enables governments and financial authorities to better identify and prevent money laundering, and this is one area where EU countries continue to improve their licensing requirements.

Know Your Customer Checks

Part of those AML checks includes the collection and verification of Know Your Customer (KYC) details. KYC details are also used by banks to meet AML requirements. They include name and address, and many licensed casinos need to gather ID verification documents to help verify a customer’s details.

This may require the player to take a photo or scanned image of a passport or other ID form and send it to the casino for them to verify the details. Some casinos enable new players to keep playing while they verify details, but many do not allow playing or withdrawing while the checks are being completed.

For the casinos, it helps ensure that they meet the KYC check requirements, but for players, it can be frustrating because they are unable to play at the site they have just registered with. KYC checks are becoming more stringent in EU markets as gambling authorities and licensing groups place additional demands on their licensees.

Age Limits

Different countries have different age restrictions on gambling. In the UK, players can gamble from the age of 18. However, the UKGC is also introducing age-dependent stake limits. UK players are currently restricted to a £5 maximum stake at slot machines, and this month, changes will enhance these restrictions so that players between 18 and 24 years old are hit with a £2 maximum stake, while players aged 25 or over face the £5 limit. In many European countries, though, the age limit for gambling is 21.

It’s unlikely that any countries will reduce the age limit for gambling. Still, we may see more tiered restrictions like those in the UK, and this will increase the administrative requirements of traditional online casinos compared to no-KYC casinos that don’t conduct age verification checks.

Other Regulations And Policies

Cryptocurrency regulations are also being introduced, which may mirror the KYC checks and AML requirements already imposed on some licensed online casino operators.

These might mean players using cryptocurrencies are subjected to verification checks when buying or trading cryptocurrency at online exchanges. Strictly speaking, bodies like the UK Gambling Commission do not prohibit the use of cryptocurrency in licensed casinos. However, they require that those casinos meet all other requirements, which means conducting verification and even affordability checks in some instances.

As countries grapple with how best to regulate cryptocurrency and how to continue or enhance the regulation of online casinos, we are likely to see changes in various EU countries. And these changes could impact no-KYC players.