UKGC Says More Than 25% of Complaints Are About Identity Verification Failures

The UK Gambling Commission (UKGC) has told online gambling operators to tighten identity verification at onboarding, after finding that some licensees are still not collecting enough customer data at the start. The issue matters because it can surface later at withdrawal, when the player has already passed registration but suddenly cannot cash out without producing more documents.

1. The UKGC said more than 25% of complaints made to its Contact Center relate to identity verification. Verification disputes are also among the most common issues sent to alternative dispute resolution providers, which is a useful reminder that KYC friction is not just an onboarding problem; it becomes a complaints pipeline when the payout stage arrives.
2. According to the regulator, several operators were not collecting enough information from customers when opening accounts, which is required under License Condition 17, the rule covering identity verification. The practical consequence is straightforward: a customer can complete registration and verification checks, then be asked for more information only when trying to withdraw funds.
3. The UKGC also flagged the use of “fuzzy matching” by third-party identity verification providers. Fuzzy matching accepts information that is similar rather than an exact match, which can lead to customers being incorrectly verified even when there are discrepancies in key details such as names or addresses. The Commission’s position is that operators need systems that find and fix those discrepancies, not quietly let them through.
4. In its review, the regulator found cases where customers entered incomplete or inaccurate details at registration, including using an initial instead of their full name, a nickname, a commercial address instead of a residential address, or a middle name instead of their forename. Those mismatches can break alignment with other systems and databases, including GAMSTOP, the UK’s online gambling self-exclusion scheme.
5. The UKGC said inaccurate registration data can therefore undermine the effectiveness of self-exclusion protections. Its advice to licensed operators is to collect complete and accurate customer information from the start, address identity concerns as early as possible, and avoid waiting until a withdrawal request to sort out basic verification problems. Helen Rhodes, director of major policy projects and evaluation, and Sarah Webster, senior policy officer, said stronger verification at the outset can also support a smoother customer journey while meeting wider regulatory responsibilities.