Legal framework conditions: Requirements of the Interstate Treaty on Gambling

Gambling is subject to strict regulations in Germany. The framework conditions are largely set out in the Interstate Treaty on Gambling, which first came into force in 2008 and was renewed in 2021.

Companies in the industry such as NOVO INTERACTIVE, whose services are available online, must implement correspondingly strict requirements. For example, they must ensure that all users of virtual slot machines are over the age of 18 and have a valid bank account. In addition, providers of virtual slot machines must check whether the players really are who they claim to be.

The current version of the Interstate Treaty on Gambling came into force on July 1, 2021. Since then, gambling providers have been obliged to check whether a person is barred from gambling before they start playing.

The OASIS barring system is used for this purpose, in which people with problematic gambling behavior are recorded. Blocked players may not have access to games of chance - the entry applies to numerous gaming formats in the stationary area as well as online.

In addition, providers must carry out a limit check: Players may deposit a maximum of 1,000 euros per month across all providers in order to gamble or place bets. Deposits must be checked via the so-called LUGAS system. It also checks whether the limit has already been reached or not.

The solution

NOVO INTERACTIVE must therefore ensure that the players are over 18 years of age and are not registered in the OASIS player ban file. To do this, it is necessary to identify the players and verify their identity. The company relies on solutions from Swiss market leader PXL Vision to implement this in an uncomplicated, quick and efficient manner.

The process works as follows for the players: Using a smartphone, they take a photo of the front of their ID document. The AI then first checks whether it is actually a valid ID document and scans machine-readable data such as the date of birth. This is then compared with the data previously entered manually in the player account. If these differ, the identification fails and the process is aborted. If the comparison is successful, however, the player in question is asked to take a short selfie video of themselves. The AI then checks whether the photo on the ID document matches the face from the selfie video and whether it is really a real and living person.

Advantages of PXL Vision compared to other providers

PXL Vision has managed to reduce the steps involved in the identification process to a minimum. The result: verification can be completed in less than 30 seconds. In this way, PXL Vision ensures that the process is as simple and straightforward as possible - which has a positive impact on conversions. In addition, the AI ensures that the algorithm is constantly optimised and also recognises images with poor lighting conditions, for example. Another advantage of PXL Vision is that the company offers a web-based white label solution for its customers. In the case of NOVO INTERACTIVE, this means that players are not redirected to another site or have to download an additional app to scan their ID document and verify their identity. NOVO INTERACTIVE was able to integrate PXL Vision's identity verification into the platform so easily. This avoids onboarding abandonment because players sometimes do not trust a separate website. As a result, NOVO INTERACTIVE benefits from higher conversions and fewer drop-outs.