LexisNexis Risk Solutions announced last week that it has been approved by the New Jersey Division of Gaming Enforcement (DGE) to provide age and identity verification services for the state’s online gambling industry.
LexisNexis already has plenty of experience in the gaming industry, though it does not publish a list of its gaming clients on its website. The company boasts that its systems can help gambling firms remain in compliance with regulations and verify that customers are not connected to organized crime, are old enough to participate in the games, and located within the boundaries of the client’s jurisdiction.
In a press release, CEO of Business Services for LexisNexus Risk Solutions, Rick Trainor, said:
Identity management is a key component of online gaming platforms. It’s necessary to comply with state online gaming regulations and to facilitate Know Your Customer (KYC) for Title 31 compliance. By accepting our application, New Jersey is ensuring that gaming companies have access to the same data and analytics used by some of the world’s largest banks, online retailers and other businesses that depend on our data and analytics to enable them to meet anti-money laundering (AML) compliance obligations and prevent fraud.
These “Know Your Customer” (KYC) initiatives are crucial in making sure that only people who are allowed to play online are actually logging on, which aids the health of the industry and, in turn, increases the chances of online gaming expansion.
Fredric Gushin, former NJDGE assistant director and current managing director at the Spectrum Group agreed, saying, “The integrity of Internet wagering depends upon the ability of operators to verify that the person playing online is of legal age, resides within the legal jurisdiction, and actually is the person they claim to be. LexisNexis has developed reliable KYC technology that enables regulators to maintain complete confidence that operators are enrolling qualified players and guarding against the dangers of underage gambling, fraud, and money laundering on the Internet.”
At the beginning of the year, the NJDGE’s director, David Rebuck, published a report summarizing New Jersey’s first year with legalized online gambling. He wrote that while things have not been perfect, regulations have been successful:
From a regulatory standpoint, our system is working. There have been no major infractions or meltdowns or any systematic regulatory failures that would make anyone doubt the integrity of operations. The issues that have arisen have been dealt with appropriately just like in the brick-and-mortar casinos. However, we are far from out of the woods; we must continue to be vigilant and ready to take on new challenges as they come our way.
Early on in New Jersey’s regulated online gambling regime, there were noted issues with geolocation, particular for people near the state’s borders, but Rebuck said that, on the whole, geolocation has been solid, appropriately placing a player within state boundaries 98 percent of the time.
The biggest regulatory issue was with credit card transactions. Even though credit card deposits are perfectly legal in New Jersey, only 73 percent of VISA transactions were approved and a measly 44 percent of Mastercard transactions were approved. It is hoped that new credit card codes will improve things this year.
