A recent discussion between Socure Senior Account Executive, Michael Goonan and SBC Americas has revealed that the betting operator will be working very closely with DraftKings to streamline the sportsbook’s onboarding processes. Goonan touched on the details of how DraftKings is going to be gaining from the arrangement which will see it accessing Socure’s customer monitoring systems.
The Know Your Customer (Intelligent KYC) and Global Watchlist will facilitate user verification of new customers before they are signed up to the database. This feature which will be available for sportsbook, iGaming and DFS will assist in faster registration of new accounts.
How do organizations that use Socure perform in contrast to those that do not?
When asked to break down Socure to the general public, Goonan started by mentioning how efficient the system is in providing an accurate player identity based on an online assessment. This feature allows gaming operators to make maximum use of KYC auto-approvals and at the same time cutting down on the risk of fraud. Being an industry leader for verifying personal player identity, Socure assists providers in ensuring that all accounts made of their platforms are of real people who provide true data about themselves.
For Socure, DraftKings is just one among many customers who are in the business of online gaming that have been immensely assisted by the Intelligent KYC system. Real time data reveals that using Socure allows partners to achieve up to 90% auto acceptance and this reduces manual review by a cool 14%.
Socure has already obtained licenses to operate in the provision of identity verification services market space of Colorado, Tennessee, Nevada, Illinois, Iowa, New Hampshire, Michigan, Indiana, and West Virginia. Since all these states are licensed to offer gambling services in the US, operators in business are most likely looking to partner with such a provider. The operator is however yet to get confirmation for vendor status in Virginia, Pennsylvania and New Jersey.
Socure does not only offer its services to the iGaming industry; many players in the financial services, teleco, commerce and gaming require and use their products to enhance efficiency. With a client base of over 400 customers drawn from various sectors in the economy, the company recently achieved unicorn status for raising close to $200 million from top investors.
What makes the services of Socure unique?
There is no match to accuracy for a business that deals with bulk data which contains personal and financial information. Having a system that is as robust as Socure enables digital based businesses to effortlessly verify all the accounts being created in real time and accurately.
This in turn leads to a high rate of conversion to aid organic growth and at the same time reducing the manual effort required to verify accounts. When DraftKings had their proof-of-concept exercise, the provider was able to achieve 4.5% more player accounts.
Streamlining the process of onboarding is definitely the largest focus for Socure but its offering does not end there. The system can also be used to reduce chargeback rate, increase the limits of players within safety confines and prolong the value of a player over their validity period.
The methodology used by Socure is quite unique in that it incorporates diverse data sources and clustering at an advanced level with light yet actionable code. The methodology makes it easy for online gaming service providers to enhance the rates for auto enrollment on their platforms, cut down the volume and intensity of manual account data reviews and maintain industry compliance especially on the sensitive issue of age verification.
How did the management of Socure end up partnering with DraftKings as a compliance partner?
Being one of the major players in the casino business in New Jersey and US as a whole, it appears that DraftKings was on the lookout for a partner with a portfolio as rich as that of Socure. The process of evaluation obviously began with a long list of possible partners which gradually narrowed down to one provider. The process was lengthy but there was no way around it since it was important that DraftKings conduct a robust test on proof-of-concept.
By virtue of the fact that the Socure team was able to illustrate to DraftKings that their system would significantly impact the rate of success for auto registration, they were considered a favorite. More so because the increased acceptance rate was directly proportional to reduced running costs.
By integrating Socure into its systems, DraftKings is assured of a streamlined online identification procedure. This is quite important because most systems will collect information without on the spot verification only to realize that the data is useless. The Socure ID+ registration platform makes the most out of conversions through the Intelligent KYC offering and Global Watchlist product.
For the program to execute on its purpose, it draws data from multiple records posted in the telecom, utility, and other authority sources to effect high quality data matching. It is estimated that the system has access to more than 290 million profiles against which user information posed on account registration is matched.
There is a wave of gambling regulation in the US that has seen states where betting was previously banned now being used as a major source of state revenue from taxes. This wave is not going to stop yet as there are many customers to serve and governments to fund. One of the most notable changes that the market will likely experience is improved compliance. In a market that is as heavily regulated as gambling, compliance takes the form of many things; data collected, age of the account holder, and payment method selected.
The overall gambling market in the US is bound to succeed if gambling service providers demonstrate to state regulatory bodies that they are taking compliance issues seriously. It would mean that the process of licensing takes less time because the market has already been streamlined. Socure is conveniently positioned to help operators act with confidence and this translates to business growth.