Online casinos without identity checks threaten the entire industry

Mail & Guardian

17-06-2025

Unlike licensed casinos, deposits and withdrawals can be cleared in seconds.
'No-KYC' gambling platforms let players wager without proving their identity — there are no ID or address checks. In practice, these are typically offshore or crypto-based casinos where sign-up takes minutes and players deposit and withdraw funds anonymously. By skipping traditional 'know your customer' (KYC) checks, the mandatory identity verifications used by licensed casinos, these sites promise privacy, speed and simplicity.
One cryptocasino review notes players find 'no-KYC casinos easier to use and faster to get started', because the normal onboarding delays are skipped. Such platforms hype instant payouts, large bonuses and 'provably fair' games — with some cryptocasinos (for example Shuffle.com) already handling over $1 billion in monthly bets. This explosive growth mirrors the wider cryptogambling surge — worldwide, cryptowagers topped $8 billion a month in 2025, nearly double the previous year.
Many players are drawn by the allure of anonymity and convenience. No-KYC casinos do not require personal documents, so gamblers retain their privacy and avoid repeated identity checks (often valued by those wary of data breaches or surveillance). Without KYC red tape, deposits and withdrawals can clear in seconds, whereas licensed casinos might hold funds, pending verification.
In short, ease of use, rapid transactions and generous bonuses are the key appeals. These features explain why nearly 80% of cryptocasinos tout blockchain-based 'provably fair' games — part of a no-KYC gambling experience.
But experts warn that this convenience comes with severe risks. Without KYC, there is no barrier to fraud, other crime and exploitation. Criminals can easily use fake identities or anonymous crypto to launder money or fund terrorism on these sites.
Gamblers, especially underage or vulnerable players, slip through the cracks. No age checks means underage betting surges and problem gamblers lack enforced limits. Unregulated sites can also rig games or refuse payouts with impunity and they typically omit the safeguards — deposit limits, self-exclusion tools, verified licensing — that protect players. In short, no-KYC casinos become hotbeds for scams and financial crime. Industry analysts note that such platforms offer 'a perfect environment to commit financial crime'.
Regulators around the world echo these concerns. In the UK, the Gambling Commission reports that the number of Britons using unlicensed (often no-KYC) sites has skyrocketed — about 460 000 gambled illegally in 2020, more than double the 2019 figure. These unlicensed operators typically flout AML/KYC rules.
UK authorities have responded by targeting them aggressively — in one year, they shut down 264 illegal gambling websites and issued hundreds of cease-and-desist notices. The gambling commission stresses that licensed casinos must perform robust identity and affordability checks, especially for high-stakes gamblers, precisely to prevent money laundering and protect consumers. The commission notes that licensed operators failing to verify customers endanger the entire market's integrity.
Beyond Britain, KYC is fast becoming universal for legal gambling. The EU's new digital ID law (eIDAS 2.0) mandates KYC for all iGaming operators via secure identity wallets by 2026. In the US, New Jersey's gaming regulators, for example, require online casinos to verify the date of birth, social security number, address and more of gamblers before they can make any bets.
Many African regulators follow suit under anti-money laundering laws, for example, South Africa's Financial Intelligence Centre Act requires casinos to identify customers and report suspicious activity.
In short, almost every regulated market now links legal gambling to KYC checks, aiming to detect underage play, prevent crime and ensure fair competition.
In practice, no-KYC platforms threaten the broader gambling ecosystem. By diverting players into unregulated channels, they undermine consumer trust and reduce resources for player protection.
Legal operators — already burdened by strict anti-money laundering and age-verification procedures — see no-KYC sites undercutting them with big bonuses and zero oversight. This 'black market' gambling often offers rigged odds, no recourse for players and no responsible gaming support. Gaming industry analysts warn that an unchecked no-KYC sector eats away at the legitimacy of online gambling. For instance, licensed operator groups and regulators emphasise that KYC is 'a fundamental protective measure' that preserves a safe and responsible gaming environment.
When large numbers of players gamble anonymously offshore, the regulated sector's ability to channel betting into safe, monitored avenues suffers, and with it, government revenue for addiction programmes, legitimate operators' revenue and the overall reputation of gambling as a trustworthy pastime.
The consequences are tangible. In 2024, regulators slapped record anti-money laundering fines on gambling companies — more than $184 million globally in just one year — indicating how seriously authorities view compliance breaches.
In Lithuania, for example, a chain was fined €8.4 million for failing to stop a money-laundering scheme. These enforcement actions underscore that unauthorised, anonymous platforms draw heightened scrutiny. The higher the profile of gambling in the media as an unregulated Wild West, the greater the risk that governments will impose blanket bans or draconian rules (for example, outright cryptogambling bans or forced shutdowns) — decisions that could affect all gamblers.
While no-KYC casinos tempt players with short-term convenience and secrecy, they erode the long-term health of the gambling industry. The global trend is clear — regulators and responsible operators are moving toward more verification, not less. KYC and anti-money laundering checks are now standard in the UK, EU, US and beyond as key defences against fraud, money laundering, underage gambling and other harms.
Continuing to champion no-KYC platforms risks fuelling crackdowns that could shut down even legitimate gaming services. Protecting players and preserving the industry's integrity means accepting KYC as a necessary step. In the end, stricter KYC safeguards ensure that gambling can be fun and fair for everyone — a goal that no-KYC anonymity ultimately undermines.
Industry reports and regulator publications document the rise of anonymous cryptocasinos and their risks. Regulatory bodies (for example, the UK Gambling Commission and EU digital-identity rules) require KYC to prevent money laundering, underage gambling and fraud. Responsible gambling studies and news analyses highlight how unregulated, no-KYC gambling sites exploit players and threaten market trust.
Mduduzi Mbiza is the founder and director of Izmu, an online platform promoting responsible gambling education in South Africa.