New online identification law introduced in Europe
By Ramona Depares
The top online casino landscape across Europe has just taken a leap for the better, thanks to a new EU digital identity law – players are now able to enjoy a higher level of security that confirms their digital identity without a doubt when making online payments.
As of 5 March 2024, EU citizens are now able to enjoy more secure access to digital transactions across the EU thanks to the introduction of eIDAS, a new online identification framework. Under this new structure, the EU Digital Identity will be accessible to every single person and business in the EU. This will allow you to confirm your personal information and enjoy safer online services through the creation of a personal digital wallet.
While the creation of this digital wallet is not directly related to online casinos, its benefits will also be enjoyed by anyone who uses gambling sites across the EU. The process will improve substantially on security and privacy aspects of every online banking transaction carried out at online casinos that operate within EU countries.
The new system is being referred to by the acronym eIDAS, which stands for ‘electronic identification and trust service’. The umbrella term includes the new range of services that are related to verifying electronic documents and the identity of people and businesses.
The updated law was made possible thanks to the introduction of Regulation (EU) 910/2014 on electronic identification and trust services for electronic transactions in the internal market. eIDAS was deemed necessary because the digital identification systems that were offered by individual EU countries suffered from several important shortcomings, with only about 14% of key public service providers across all Member States allowing for cross-border authentication with an e-Identity system.
For gamblers, this means that EU members playing at the top online casinos had no way to provide their identity over the Internet via a standardized, official process.
Work on the framework started back in 2021 with a proposal that evaluated the previous framework and identified the precise gaps. Following that, an open discussion was launched across Member States so as to collect feedback from all parties involved. The discussion remained open till October 2020, when the European Commission evaluated all the feedback that had been gathered via in-depth surveys and interviews.
Now, as of March 2024, the necessary updates to EU law regarding online banking and digital identities have been carried out. This means that the law has been brought into effect, with online casinos and other digital platforms implementing the improved framework.
Benefits of the new digital wallet in the EU
If you are a resident in an EU member state, you will enjoy the perks of the eIDAS regulation and the personal digital wallet not only when playing at the best online casino sites, but pretty much across every single digital interaction that involves online banking.
To understand the implications better, it’s worth taking a look at how Ursula von der Leyen, President of the European Commission, explained the reasoning behind the introduction of the digital wallet on the official EU Website: “Every time an App or website asks us to create a new digital identity or to easily log on via a big platform, we have no idea what happens to our data in reality. That is why the Commission will propose a secure European e-identity. One that we trust and that any citizen can use anywhere in Europe to do anything from paying your taxes to renting a bicycle. A technology where we can control ourselves what data is used and how.”
You can use your new personal digital wallet whenever you’re interacting online and providing your personal details for financial reasons as eIDAS provides for secure cross-border transactions. What does this mean on a practical level? Here’s a list of tangible benefits that you’ll be able to enjoy in your everyday dealings:
- You can sign anything online with an authenticated e-signature, without the need for any papers or printouts.
- You’ll have an official time stamp that authenticates digital purchases of items like concert tickets.
- You’ll be able to open a bank account in another country with the use of your national identity card.
- You’ll have access to electronic registered delivery services, ensuring that all your deliveries arrive safely to the correct destination.
- You’ll have access to a Qualified Web Authentication Certificate, which tells you that the sites you’re using are safe.
With many of us shopping online so often, possibly the biggest benefit of the new online identification law is that it offers a guarantee that our chosen site is safe – or not. All you need to do is make sure that the site has a Qualified Web Authentication Certificate as mentioned above, and this is enough assurance that the trader is legit. This is particularly valuable when clicking on links received by email as it helps avoid phishing attempts.
The initiative is also useful to businesses like online casinos as they will be able to use the e-id to verify that a newly registered player is who they say they are and that they’re old enough to gamble.
Impact on the online casino industry
The implications of the new EU digital wallet are far-reaching even within the online casino industry. In a press statement on its official website, the European Gaming and Betting Association (EGBA) welcomed the eIDs approval, calling it “a significant milestone in the journey towards a more secure and inclusive digital environment for all citizens across the European Union”, adding that it addresses several concerns in the digital sphere.
Among the benefits quoted, the EGBA mentioned that the e-ID will allow EU players to identify and authenticate themselves without having to resort to commercial providers. The latter practice at online casinos had given cause for concern in the past, raising trust, security and privacy issues related to the sharing of consumer data with third-party platforms.
Moreover, the e-ID enhances security by offering consumers and businesses a trusted and standardized tool for online identification, minimizing the risk of identity theft and fraud and enhancing responsible gambling measures.
- Greater data protection for players
- Guaranteed privacy
- Less risk of identity theft
- Less vulnerable to online fraud
The system is expected to yield benefits even for online casinos themselves, reducing administrative and tech costs for gambling operators by offering a single verification tool to use across all EU member states, instead of having to pay high fees to use commercial databases.
“We welcome the European Parliament’s approval of a unified digital identity framework and are confident that the use of the new e-ID in our sector will lead to a more seamless and trustworthy online experience for players and help to reduce costs and administration for gambling operators. This innovative tool represents an important step towards building a more secure and user-friendly digital ecosystem, aligning with EGBA’s core objectives of promoting integrity, transparency, and a safe, consumer-centric playing environment.”
Maarten Haijer, Secretary General, EGBA, stated.
A more secure future for online casino players across the EU
While the use of the new e-ID remains entirely voluntary, players are highly encouraged to make use of it. Likewise, it is expected that the top online casinos will not take long to integrate the e-iD tool within their Know Your Customer (KYC) processes, resulting in a safer gambling environment throughout the EU.
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