Regulation has evolved in the gambling sector from being a back-office task to a key focus during the sign-up process for potential users. Now, the journey for new customers is where compliance, product design, and user experience intersect. Successful navigation leads to smooth player acquisition; a misstep can mean losing a potential long-term user outright.
With increased attention on KYC (know your customer) processes, affordability checks, and stricter regulations surrounding welcome bonuses, the gambling industry has seen a rapid evolution in compliance standards, especially in the UK. The UK government’s white paper in 2023 significantly fueled these changes.
“Today's regulations are based on yesterday's failings,” stated Alex Henderson, VP of compliance at Midnite. He acknowledged that while regulators may struggle to foresee future regulatory requirements, operators are expected to adapt promptly, particularly in the player onboarding experience.
In an earlier piece for the ContentOS Trends series, the focus was on how operators attract new players amid regulatory changes. However, the crucial challenge lies in retaining these users to ensure they turn into regular customers.
In the UK gambling landscape, a shift towards proactive risk prevention by the Gambling Commission has aimed to mitigate binge gambling. This has resulted in increased compliance costs and enforcement scrutiny, coupled with the incorporation of public health principles into gambling regulations. A statutory levy for harm prevention was introduced last year, and enforcement actions, alongside fines, have more than doubled from 2023 to 2025.
Ian Perrygrove, chief risk officer at kwiff, recognized the industry’s link to severe social issues, noting, “We need to be pretty strong when any part of that looks like it could be happening to somebody.”
A cap on wagering requirements for bonuses has been set at 10x, and a pilot for required financial vulnerability checks was initiated last year. The Licensing Conditions and Codes of Practice (LCCP) stipulate that operators must safeguard against crime in gambling, ensure fairness, and protect vulnerable players.
While these regulations aim to protect consumers and increase accountability, many legitimate operators face challenges in creating attractive sign-up processes. Meanwhile, offshore bookmakers can still attract players without adhering to these stringent conditions.
Affordability checks present particular difficulties. Perrygrove argues that the reliance on outdated data, such as bankruptcies and County Court Judgments (CCJs), undermines the framework's effectiveness. “We’re looking at data that is incredibly out of date from the moment we find ourselves transacting with a player,” he said, emphasizing that real affordability assessments should focus on current transactional data rather than historical files.
As regulations evolve, KYC verification has shifted from a post-registration process to a core component of the onboarding experience, posing challenges for user experience design. A traditional KYC process entails electronic checks against user-provided information, sometimes requiring manual documentation in case of discrepancies.
Tristan Dexter, chief experience officer at Jurnii, noted the importance of rethinking KYC integration within the registration flow. “KYC can’t just be added onto the end of a registration; it has to be holistically reviewed from scratch,” he stated, advocating for clear expectations and real-time feedback during sign-up.
Effective collaboration between compliance and product teams is vital for a smooth KYC process. Henderson explained, “In some businesses, compliance gets involved quite late.” At Midnite, compliance is integrated from the beginning, ensuring user-friendly processes without compromising regulatory requirements.
Perrygrove highlighted the necessity of engaging prospective players in the onboarding journey, emphasizing trust in the player and the systems in place. This collaborative approach recognizes the potential for mistakes, allowing operators to support players effectively.
Henderson stresses transparency as key to reducing friction in the onboarding process. “If a customer knows what they’re being asked for and why, they’re more likely to comply,” he explained, pointing out that users should view the process as a journey instead of merely jumping through compliance hoops.
There is ongoing debate over whether KYC should be presented upfront or integrated progressively. Dexter advocates for progressive KYC, encouraging prospective players to explore the product before diving into compliance. Conversely, Henderson believes that the best process depends on the product and monitoring data actively to optimize user experience.
The concept of ‘positive friction’ emerged among operators as a means to protect players, although Henderson expressed skepticism about the term. “I just don’t like the word friction,” he remarked, arguing that customers should feel safe rather than encumbered by compliance. In contrast, Perrygrove sees the value of positive friction in implementing tools that allow players to take breaks and manage their engagement more effectively.
Both Henderson and Perrygrove are concerned about the potential rise of black market gambling as legitimate operators face increased regulation. Both recognize the importance of maintaining a balance between protecting consumers and providing a seamless user experience.
Henderson pointed out that excessive regulation could drive players to illegal alternatives, citing the industry's ongoing anxiety over black market growth. Perrygrove echoed this sentiment, lamenting that ambitious regulations might lead players away from legitimate channels. Dexter warned that if friction is perceived without context, users will seek alternatives.
Looking outside the industry, Dexter finds inspiration from fintech, where companies like Revolut and eToro manage verification smoothly. These applications enable users to explore and trust the service before undergoing KYC. Henderson reinforced this idea, stating that consumer expectations are high, and major platforms are setting benchmarks that make rapid on-boarding essential.
As the gambling industry grapples with these challenges, the outlook on enhancing onboarding experiences remains uncertain. Operators must navigate a regulatory landscape while striving to protect players without detracting from their gambling experience. Henderson suggested that learning from both failures and successes will be crucial as the industry continues to evolve.
