LexisNexis Has the World’s Largest Database for Legal and Personal Background Information
The New Jersey Division of Gaming Enforcement announced last week it would approve LexisNexis Risk Solutions as a provider of identity and age verification services to the state’s online gaming industry. Though LexisNexis does not publish its list of clients, it is common knowledge that the company has a lot of experience in the gambling industry.
The Dallas-based company has said that it helps online and offline gambling firms to remain in compliance with laws and regulations. They do this by helping to verify customers are old enough to engage in the activities, are located inside their client’s legally-bound jurisdictions, and are not involved with organized crime.
Identity Management Is Key
Rick Trainor, the CEO of Business Services at LexisNexis Risk Solutions, said in a written statement, “‘Identity management’ is a key component of online gaming platforms. It’s necessary to comply with state online gaming regulations and to facilitate ‘Know Your Customer’ (KYC) for Title 31 compliance. By accepting our application, New Jersey is ensuring that gaming companies have access to the same data and analytics used by some of the world’s largest banks, online retailers, and other businesses that depend on our data and analytics to enable them to meet anti-money laundering (AML) compliance obligations and prevent fraud.”
“Know Your Customer” technology processes help businesses assure they remain in compliance with the law. They verify that a customer is who they say they are. Age verification is a key issue in the online gambling market, because many complaints by lawmakers and land-based gaming officials who want to ban online gambling claim that children can hack computer systems to gamble online.
The Integrity of the Internet
To combat those kinds of charges, the legal online gambling industry needs to have an airtight system which no child can hacked. While critics who claims children are savvy enough to hack advanced websites but naive enough to be gulled by online casinos might sound like old men who’ve watched one too many Hollywood movie, their charges sound plausible to many American citizens (who also watch films). Many people assume a tech-savvy child can hit a few buttons on the keyboard and be into any system, so they assume Jason Chaffetz, Lindsey Graham, and Sheldon Adelson are right when they say American youths are vulnerable to legal online gambling.
Fredric Gushin was the deputy director of the New Jersey Division of Gaming Enforcement and is now managing director at the Spectrum Gaming Group, which provides independent research and anti-money laundering consulting services. Mr. Gushin agrees with Rick Trainor, saying the verification process is a huge component of business.
Gushin added, “The integrity of Internet wagering depends upon the ability of operators to verify that the person playing online is of legal age, resides within the legal jurisdiction, and actually is the person they claim to be. LexisNexis has developed reliable KYC technology that enables regulators to maintain complete confidence that operators are enrolling qualified players and guarding against the dangers of underage gambling, fraud, and money laundering on the Internet.”
About LexisNexis
LexisNexis was founded in 1973 as a computer-assisted legal research, business research, and risk solutions service. The company has the world’s largest database for legal information and public records-related information. Since 1994, the Anglo-Dutch multinational publishing and information processing firm, Reed Elsevier, has owned LexisNexis.
When LexisNexis launched in 1973, it offered full-text research of legal cases in New York and Ohio. Since that time, it has become one of the chief resources for legal research of people in the population. By matching their database against potential New Jersey gamblers, LexisNexis is able to verify that person’s identity. In the 21st century, LexisNexis has developed advanced processes for verifying the identity of a person registering for membership at a website.
Youth Gambling Concerns
When he gave his most definitive statements on his campaign against online gambling at the 2014 Global Gaming Conference, Sheldon Adelson spoke passionately about the vulnerability of children to online casino play. One of the main distinctions Adelson makes between land-based gaming venues and online casinos is the fact youth players can pretend to be adults easier.
Mr. Adelson brushed aside doubts about the identity verification technology, saying his teenage children can “do wheelies” and “burn rubber” on their iPhones.
Adelson added, “To me, it’s a matter of principle. I don’t want it because I was raised in a family that suffered from the scourges of uncontrolled gaming. And I am absolutely certain raising at my age two teenage kids, and I see how they easily get addicted…somebody cannot tell me that kids are not going to find their way around whatever user identification is.”
Adelson spoke passionately about his own childhood and his father’s gambling habits. He said, “I saw the cost of a family immersion into losing money on gaming. When I look at people like that, I see the faces of my parents.”
Reaction to Adelson’s Comments
For those who laugh at the supposed hypocrisy of the world’s richest casino owner talking about his concerns over gambling’s effects on the family unit, they might remember that the debate is not about the messenger, but the message. Yes, the gaming executive was stoking fears, but the question is whether he is tapping a reserve of angst in the parents of America.
Parents often feel their honest attempts to protect their children are going to be undermined by the pervasive influence of technology, pop culture, peer pressure, and advertisement. It is a real concern which proponents of online gambling should not underestimate in the debate. Whether they agree with Sheldon Adelson’s vision or not, they should recognize that many parents are going to have buttons pushed when they hear such a question.
Parents also note that their children are far more adept on gadgets than they are. These parents might not have the savvy to realize who inept they are, so their children’s seeming skill with the basics of computing devices is both impressive and disconcerting to them. When they see Hollywood movies where someone taps on a keyboard a few times and hacks the Pentagon, they might get the mistaken notion it could happen in their home.
While it is a ludicrous idea to the truly tech-savvy, one has to remember most parents are not that savvy.
Watching Adelson’s Q&A, I got the idea this was an 80-year old man who honestly thought his children were advanced in the ways of computer programming. One has to be reminded this was a man who grew up in the 1930s and 1940s. What seems to him to be advanced tech skills is really basic tech knowledge. I’ve seen the same reaction in my older family members, who think I’m some kind of hacker, because I do my work on the Internet. And yet, when my computer has a glitch, I call the Geek Squad like everyone else.
Identity management software is an important part of winning the public relations battle over online gambling.
Identity Verification Technology
Identity verification technology is therefore a key part of the political fight to legalize online gambling. Politicians and their political contributors would seize upon any cases of children using their parent’s account to gamble online. To this point, no such stories have surfaced, but making a deal with LexisNexis is one way to redouble efforts and maintain the highest standards.
The partnership continues to legitimize the industry from the perspective of financial institutions, too. The New Jersey online gambling industry has been hampered by hesitations from banks and other financial institutions to approve money transactions on gaming-related sites. While VISA and MasterCard payment services worldwide support gaming transactions, that’s in countries with fully-articulated, fully-defined gaming laws. The United States still has an ambivalent attitude towards online gambling. When one considers that the credit card associations are not one company, but true associations including tens of thousands of financial institutions, the payment process with credit still remains spotty. Only 45% of MasterCard payments and 75% of Visa payments were approved in 2014.
While legality is not in question in New Jersey, legitimacy still is. Any steps which further the process of legitimacy continue to help the New Jersey gaming industry, which is why the LexisNexis deal is important.
