The introduction of legalized sports betting in many US states raises a number of important security issues.
In early May 2018, the United States Supreme Court approved the legalization of sports betting in the country. States can now decide for themselves whether or not to allow sports betting in their jurisdictions. Many states have already made moves to do so, with lucrative taxation revenues as one of the key drivers of this decision. However, several serious security issues still need to be considered.
Legalization going forward
As soon as the Supreme Court announced its decision, states began positioning themselves to introduce new gambling laws that would permit sports betting. Two of the first states to do so were Delaware and New Jersey – they have already been offering sports bets for more than a month now.
Gambling operators from home and abroad were also scrambling to take advantage of this chance to get their own slice of the action. Illegal sports gambling was always a very popular and lucrative industry, so there is significant money to be made by gambling operators now that legalization is here. However, in the rush to take advantage of this change, it is important that operators and state legislators do not forget about security.
Individual states are responsible for regulating and overseeing their own sports betting offerings. It is projected that 32 states will have legalized sports betting in some form by 2023, when annual betting revenues are expected to be around the $6bn (£4.5bn) mark.
States are still going through the nitty-gritty details about how sports betting will be structured in their area. One of the key issues is the process of identity proofing. This will allow them to ensure they can gain their due taxation revenue and make sure that no fraudulent activities are taking place.
Important security protocols
Technology is now at a place whereby in-person onboarding is largely becoming phased out and being replaced by digital onboarding. In certain sectors, it is crucial that operators are aware of their customer’s identity in order to ensure that certain legal requirements are met.
Banks, for example, have comprehensive digital verification solutions. This has led to decreased costs, less paperwork and an overall greater satisfaction rate among customers. This type of technology is starting to expand into other sectors, such as social media and ride sharing, with sports betting next on the list.
Users simply have to photograph a government-issued ID document, such as a driving license, and upload a selfie alongside it. The technology used is able to determine whether the driving license and the photograph are indeed a match. This is achieved thanks to facial recognition software, and it can also determine whether or not the ID has been altered in any way.
The user will also be able to accept the terms and conditions by providing an electronic signature. All of these steps only take a matter of seconds to complete.
Gaming commissions are now duty-bound to ensure that security is a top priority going forward. They have the ability to get this right the first time of asking and are greatly helped by the latest technologies that can be used in the authentication process.
When you are dealing with financial transactions, as well as storing sensitive information, security is always the number one priority, rather than frivolous things like appearance, which certain operators seem to place more emphasis on. If a mobile app is created by the states for this verification process, it needs to be like Fort Knox with its security to ensure that no flaws in the system exist that may be exploited.
States need to know who the person placing bets in their jurisdiction may be. It is important that both static passwords and overly complicated authentication methods that could affect usage are avoided.
Many of the new authentication solutions on the market can analyze a given device or user in real-time and quickly identify whether or not they are legit. These technologies provide the best for both worlds, with the customer being kept happy at the minimal level of inconvenience and the assurance that customer data and transactions are kept safe and sound.
