Push for biometrics to restrict underage gambling access in LATAM | Biometric Update

The rising concern regarding underage individuals accessing online gambling has prompted governments worldwide to implement regulatory frameworks and propose new laws. In Latin American markets, the Legislature of Buenos Aires in Argentina has been presented with a bill to amend an existing law to tackle this issue by integrating biometric systems for user and age authentication.

Furthermore, in Brazil, the iGaming platform provider Atlaslive has partnered with Legitimuz to harness biometric controls, such as 3D facial recognition, to facilitate onboarding and know your customer (KYC) processes. Meanwhile, in the United States, the Massachusetts Gaming Commission is considering requiring online sports betting operators to adopt multi-factor authentication measures.

Buenos Aires addresses underage online gambling

Diego Garciarena, the deputy legislative secretary of the Buenos Aires Chamber of Deputies, has proposed a bill to amend Law No. 15,079, which addresses minors’ access to online gambling and betting platforms. The bill recommends adding biometric systems to authenticate users’ identities and ages, SBC Noticias reports.

In addition to introducing biometric controls, the bill also proposes new restrictions on advertising. Taking inspiration from the advertising guidelines in Spain, the bill aims to prohibit the use of well-known personalities from fields such as entertainment, arts, sports, and academia to promote online gambling. It has been anticipated that this will minimize the exposure of gambling to minors.

Garciarena believes that the current framework is ineffective in preventing minors from engaging in gambling activities. He states, “It is not a lack of policies or legal-regulatory frameworks that is the issue; rather, the existing policies are failing, creating a bureaucratic and declarative Russian roulette, thus compromising the protection of our children and adolescents.”

Following an investigation by the Specialized Fiscal Unit for Cybercrime Investigations (Ufeic), Buenos Aires courts have ruled to block more than 100 illegal online gambling and sports betting sites. Implementing biometric validation for online gambling will require technological and operational adjustments from service providers.

At the provincial level, Verónica Valverde, a Member of the Provincial Parliament in Mendoza, recently introduced a bill to regulate online gaming for minors by implementing biometric authentication.

Legitimuz chosen for online betting platforms in Brazil

Atlaslive, an online betting solutions provider, has partnered with domestic developer Legitimuz to integrate the biometric system into its platform. The integration will enhance player registration rates, ensure compliance with local regulations, and increase the number of successful player registrations by 30 percent, Gambling Insider reports.

The biometric systems will feature 3D facial recognition, which is expected to facilitate the onboarding and KYC processes for new customers registering on online betting platforms in the Latin American region.

According to the announcement, the other capabilities include automated document analysis and instant approvals, which allow the system to complete registration within 30 seconds. These efforts will address the growing problem around minors accessing iGaming platforms.

“Our technology is designed to increase conversions while maintaining the highest level of security and compliance. By integrating with Atlaslive’s powerful platform, we’re enabling operators to scale their businesses efficiently and confidently in Brazil,” says Kayky Janiszewski, chief executive officer at Legitimuz.

Earlier this year, the Ministry of Finance in Brazil issued an ordinance to enforce new regulations on sports betting to monitor the gambling industry. The initiative has created opportunities for biometrics and digital identity providers to enter the regional market.

Massachusetts proposes MFA mandate

The Massachusetts Gaming Commission (MGC) is proposing the integration of multi-factor authentication (MFA) as a mandatory requirement within the online sports betting industry.

The proposed regulation aims to require operators to employ MFA at various instances of platform usage, including but not limited to login procedures, specific intervals, and significant actions such as deposits and withdrawals.

Under the current framework established in Massachusetts, the policy states that online sportsbooks should offer MFA as an option for their customers. Bally Bet is the sole sportsbook in the state that presently enforces MFA, PlayMA reports.

“I recognize the importance of protecting the player account but I also want to acknowledge that there could be an inconvenience to patrons. The protection will outweigh any inconvenience, there’s no doubt about that,” says Nakisha Skinner, commissioner to the Massachusetts Gaming Commission.

Ohio is claimed to be the first state in the country to make MFA mandatory for all sportsbook logins, with the implementation expected in October. Other states such as New Jersey, Iowa, and Pennsylvania are also considering requiring MFA for logins from new devices at regular intervals, typically every 14 days per device.

Article Topics

age verification  |  Argentina  |  biometric authentication  |  biometrics  |  Brazil  |  facial recognition  |  gambling  |  Massachusetts