Sports betting has been tabooed in India, given the unclear regulations and guidelines. Many states have banned gambling, but the Supreme Court has allowed the ‘games of skill’ in the nation. The unclear descent has allowed the operators and the sportsbooks to take advantage of it. Therefore, the sports betting space has been growing astronomically in the nation. Many sports betting platforms have already set the tone by creating a safe, secured, and trustworthy ecosystem to cater to the Indian audience. An important step to create this secured framework for online betting platforms is the KYC.
Why does KYC require in online gambling?
KYC simply means Know Your Customer. It implies the online betting platforms should check the background of their customers. It is vital for them to avoid illegal or fraudulent activities, including tax evasion, money laundering, and match-fixing.
The KYC norm is nothing new but an essential process in every monetary system. A new customer needs to go through this process while opening a new bank account, investing in the stock market and crypto-currencies, and even setting up a UPI account.
The KYC process for Betway India helps the in identifying the negative and rogue elements. It allows the sportsbooks to verify the person through the information provided. They need to identify their clients and ascertain if they are not involved in any financial crimes/unlawful activities. KYC also helps the betting platforms in verifying the source of income of their clients.
At the moment, the KYC includes three major documents –
Identity Proof – Aadhar Card, Passport, PAN Card, and Driving Licence
Address Proof – Aadhar Card, Passport, Bank Passbook, Utility Bills, and Rent Agreement
Source of Funds – Recent bank statement, credit card statement
There are many online gambling platforms that don’t allow their customers to withdraw any amount without fulfilling the KYC requirements. Simultaneously, there are still many platforms that allow their clients to operate without any KYC obligations. This trend must change to increase the trust among the punters.
The authorities must monitor the online betting bookmakers to build a healthy ecosystem. The additional security layers could be added like a selfie with a numerical code and self-attested copies.
KYC would help in curbing the fraud
Indian sports betting market has seen unprecedented growth in recent times, which has forced the major international betting platforms to set-up their businesses here. However, the market still remains unregulated, and the Indian authorities miss a lot on the monetary level. By regulating the market, they could earn a hefty amount through taxes. The KYC is just a minor step in the right direction, but a proper framework is required to safeguard the users’ and bookmakers’ interests.