Advantages of Gamification in AML Systems for Virtual Casinos

The use of such a tool on iGaming platforms is an interesting and relatively new trend. It is aimed at improving the detection and prevention of the use of illegally acquired money, as well as reduction of financial or reputational risks.

Rosloto specialists talk about how and why it is worth implementing game mechanics in the AML system of a betting project.

About the Term

In this context, it means the use of special elements to improve AML processes on casino sites.

Instead of boring regulatory procedures and well-established methods of control, the concept makes interaction with such services more interactive, motivational, and effective for both operators and players.

The use of these procedures is mandatory in the niche. A set of measures is aimed at detecting, preventing, and reporting cases of using digital platforms to conceal the source of illegally obtained funds.

Licensed entrepreneurs are required to:

• implement KYC tools to verify the identity of customers, their age, country, and where the money they deposited comes from;
• monitor transfers and track dubious actions;
• generate reports on atypical transactions and send them to regulatory authorities;
• conduct employee training.

AML regulation occurs at the jurisdictional level.

In most European countries (Romania, France, Denmark, and Germany), it is mandatory to conduct additional AML scanning for transfers over €2,500. In the UK, providers always check the sources of funds that players use in casinos.

Companies are also guided by FATF rules. These are global standards that are legally binding in most regions.

Examples of Game Mechanics in AML Programs

The approach makes payment verification more efficient and understandable for employees and clients of entertainment portals.

Training and Involvement of Staff

Let us consider the most popular methods applied in the industry:

1. Interactive learning. This is a replacement of standard instructions for quests, investigation simulations, and mini-games in which specialists are to identify suspicious transactions. Thanks to this, training does not seem boring, and staff learns new information much faster.
2. Scores and ratings. People who work in a casino receive points for revealed cases of fraud, go through various levels of difficulty, and compete with each other.
3. Scenario simulators. This is a modelling of situations involving money laundering and effective strategies for combating such a crime.

For example, the compliance department receives various missions: to study the profiles of gamblers with unexpectedly high activity or to identify connections between several accounts. Quick and accurate completion of tasks increases specialists’ ratings, giving them additional privileges or a pay rise.

User Motivation

There are several ways to interact with the audience:

• Badges for fair play. Entrepreneurs can grant such rewards for passing KYC/AML checks, send unique skins and avatars, etc.
• Transparent history. Interfaces where online casino visitors can see their points increase the level of trust in the entertainment platform.
• Game missions. These are incentives for confirming an identity or providing additional documents.

For example, a person who has passed verification moves to the “honest beginner” level. As their transparency increases (KYC, regular transactions, and participation in the loyalty program), they get the title of “trusted user”.

To successfully complete missions and quests, such a client will receive points and access to premium content.

The Effect of Gamification on Financial Risk Prevention

The use of special mechanics in the context of AML is becoming more noticeable as project owners implement modern approaches to risk management, staff training, and communication with the audience.

Increased Efficiency of Compliance Department Staff

Using simulators helps analysts to perform the following tasks:

• understand fraudulent schemes faster and better;
• promptly identify suspicious operations;
• reduce the number of false positives;
• improve the quality of investigations.

Missions and levels increase interest in training, making it interactive and practice-focused.

A striking example is the participation of risk department employees in a simulation where they “play” for analysts. They have limited time to recognise the criminal scheme through a series of bets. Success brings points, ratings, and access to more complex cases.

Increased Efficiency of Clients Monitoring

The system rewards consumers for transparent behaviour and assigns them trust badges, levels of responsibility, or other exclusive benefits.

The introduction of gamification tools has several advantages:

• reduction in the number of bypassing AML checks;
• raise of the players’ awareness;
• simplification and acceleration of voluntary verification on the website.

Formation of a Compliance Culture within the Company

This means the involvement of all personnel (from the CEO to technical support representatives) in gamified educational programs. Thanks to this, employees better understand the risks and responsibilities. As for AML, it has become not just an obligation but also a part of corporate culture.

Reduction of Financial and Reputational Risks

Application of gamification in AML systems can:

• ensure quick detection of dubious schemes;
• lower the number of fines from regulators;
• increase customer loyalty;
• reduce the likelihood of licence blocking;
• strengthen the confidence of investors and B2B partners.

Implementation of Automated Services

Analysts trained through gamification are better at setting up AML solutions and are happy to share their knowledge with colleagues and protégés.

The format can also be used for:

• “field testing” of new algorithms;
• improving the quality of data and predictive models;
• adapting to new types of fraud as quickly as possible.

How Brands Use Gamification in the Context of AML

Today, many companies are introducing this tool into educational and regulatory compliance processes.

Attensi and Erling Grimstad

Erling Grimstad, a Norwegian law firm, together with Attensi, has developed an interactive app for educating employees on the AML subject and countering the financing of terrorism.

The proprietary software contains multi-level simulations. Users go through various scenarios and identify dubious actions. This approach increases the involvement and effectiveness of staff training.

Jade Software — Jade ThirdEye

The Jade Software enterprise offers the Jade ThirdEye product, which helps gambling firms reveal suspicious customers and transactions. The use of such a solution allows for more effective onboarding and improved compliance processes on digital platforms.

EveryMatrix — LoyatyEngine

A well-known provider of online casino entertainment has developed LoyatyEngine. This is a set of gamification tools aimed at raising customer attraction and retention indicators.

In this case, the main emphasis is on keeping people interested in placing bets. However, special elements can also be adapted to encourage the audience to follow the rules and take action transparently.

SEON and Partners

LeoVegas, Betflag, and other iGaming brands cooperate with the SEON IT enterprise. The goal of the collaboration is to improve AML processes and prevent fraud.

The company’s solutions can be integrated into training portals, thus enhancing efficiency and employee awareness about scams that exist in the casino niche.

Risks and Challenges in the Entertainment Business

Operators may face several difficulties:

1. Overplaying. If gamification is too bright and noticeable, then the seriousness of the AML approach may decrease. It is important to understand it is a serious legal obligation.
2. Resistance from personnel. If the staff is accustomed to classical control methods, it will be difficult for them to adapt to innovations.
3. Manipulations with ratings. Abuse is possible both from users and employees of the iGaming firm. This violates the integrity of the assessment system and makes it easier to bypass real checks.
4. Problems with client data. It is important for entrepreneurs not to violate confidentiality or collect unnecessary information for the sake of the betting process. Otherwise, the risks of information leakage and violation of GDPR policies increase.
5. High implementation costs. The development of a high-quality AML solution requires time, resources, UX design, and technical support. There may also be difficulties with scaling, so it is better to entrust the service’s creation to skilled professionals.

The Main Things about the Introduction of Game Mechanics

Such components within the AML scheme are a great tool for enhancing the effectiveness of the fight against using illegally acquired money.

Key aspects that operators should take into account:

• The solution makes the AML process more flexible, motivational, and productive. This is especially important in the casino niche, which is characterised by a huge number of transactions and a high level of risk.
• The introduction of gamification is aimed at effective training of personnel and increasing the audience's awareness of fair play. It is possible to use missions, quests, scores, ratings, scenario simulators, badges, icons, and other interactive elements.

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