How to Reduce KYC Drop-Off Rates in iGaming

Many sportsbooks and casinos lose a big slice of new players at the KYC stage. Although abandonment rates differ across jurisdictions and player segments, industry sources suggest that roughly 14–43% of new players do not complete identity verification during onboarding.

You’ve invested effort and money to bring players in only to lose them at the one step that’s supposed to keep your business safe. Slow and poorly built KYC flows cost you deposits, lifetime value, and the very players you’ve worked so hard to attract.

In this guide, we cut through the noise and show practical ways to reduce KYC abandonment in iGaming without undermining compliance or risk controls.

Why Players Drop Off During KYC Onboarding

It’s easy to assume players abandon verification because they don’t want to share personal information. That’s sometimes true, especially for players who prefer to avoid leaving any trace of their gambling activity.

But more often, drop-off happens because the verification flow feels misaligned with how players actually behave.

Asking for Too Much at Once

It’s surprising how many online casinos are still unfamiliar with the concept of putting UX first. In some markets, players have to provide residential details during registration. That’s fine.

The real issue is how casinos present it.

Instead of guiding users through a clean, structured flow, many platforms drop a long, overwhelming form on the screen, often longer than the screen itself. Like this one:

Source: Duelz site

Players are often asked to provide identification information before they’ve had a chance to explore the platform. From their perspective, the perceived “cost” outweighs the perceived benefit. They’re unsure whether they’ll even continue using the platform, so committing sensitive personal data while having to fill out a long form can make them leave.

Lack of Explanation and Low Trust

Not every gambler understands that operators must conduct identity checks for AML, fraud prevention, and regulatory compliance.

So when they’re suddenly asked to upload a full ID document, pass a liveness check, and provide an address or proof of address, it can feel excessive or intrusive.

This is amplified by an existing trust gap in the gambling industry. Players already worry about scams, data misuse, or whether a platform is legitimate. Public controversies — such as recent social media accusations about bot activity in two large online casinos — only reinforce that skepticism.

When trust is fragile, asking for identity documents becomes a breaking point.

Review Takes Too Long at Critical Moments

We’ve long been living in the era of short-form content, and our attention spans are steadily shrinking.

Benchmark data from multiple sources shows that a player won’t wait longer than 10 minutes. Meanwhile, the industry standard for a smooth verification experience is around 25 seconds. However, our client’s experience shows that verification can take as little as 10 seconds.

Not to sound like a broken record, but depending on the jurisdiction, KYC may be triggered at different stages: registration, first deposit, reaching a certain transaction threshold, or withdrawal. If verification at these moments takes too long, momentum disappears.

Seeing a vague “Verification pending” message with no timeline or feedback creates uncertainty. And uncertainty leads to abandonment. In competitive markets, players can easily switch to another platform.

Technical Friction During Document Capture

Sometimes the problem is pure technical friction. Players frequently struggle with taking good-quality document photos or proper selfies. Passport photos often require multiple attempts. If the KYC system:

• Doesn’t allow easy retries,
• Provides generic “verification failed” messages,
• Doesn’t explain what went wrong.

The user assumes rejection and leaves.

5 Practical Things You Can Do to Reduce the Friction around KYC

1. Collect User Data Progressively

Most regulators require the collection of basic personal data at the registration stage. However, that does not necessarily mean you must request full document uploads the moment a player creates an account.

If the market you operate in allows users time to explore the platform — and possibly even try demo games — you should use that window to build trust and spark interest before asking for more sensitive information.

Let’s look at several major regulators to understand what options operators actually have.

United Kingdom (UKGC)

The UK regulator is one of the strictest. The former 72-hour grace period has been removed, meaning operators must verify a player’s identity at registration. In addition to identity verification, operators are expected to conduct affordability checks. These are typically triggered by high losses or unusually large deposits.

Malta (MGA)

Malta takes a more flexible approach. At registration, operators must collect basic personal details. Some allow players to deposit and play up to a certain threshold without requiring full document uploads. However, once a player reaches €2,000 in cumulative deposits or withdrawals, full KYC must be completed (ID and Proof of Address).

A further stage may involve Enhanced Due Diligence, triggered by high-risk indicators or significant spending patterns, which requires Source of Funds verification.

Curaçao (LOK 2026 Reform)

The so-called “Wild West” era of Curaçao licensing is over. The new Landsverordening op de Kansspelen (LOK) framework has aligned the jurisdiction more closely with standards seen in Malta.

At registration, operators are now required to collect basic personal data and screen users against PEP (Politically Exposed Persons) and sanctions lists. Most Curaçao operators now require ID verification before the first withdrawal, regardless of the amount.

Additionally, the regulator requires periodic document refresh, typically every 1–2 years.

As we can see, regulatory requirements vary significantly. However, except for the UK, most jurisdictions still allow operators to collect data progressively rather than all at once.

From a technical standpoint, implementing this type of staged verification requires a flexible KYC system with strong API capabilities. Solutions like Allpass.ai can support this approach — but we’ll explore that in more detail later.

2. Introduce Gamification Mechanics

One way to reduce friction is to design the KYC process like a quest rather than a checkpoint. In the previous section, we discussed progressive data collection. A good example of this approach is Stake.

Stake structures verification into four KYC levels. Instead of overwhelming users with everything at once, the process is divided into stages. Players unlock additional functionality as they move through each level.

Source: Stake

Stake also reinforces this with loyalty mechanics. Specifically, birthday bonuses are available only to users who have completed Level 2 KYC. That creates a reason to continue the process.

Important: In highly regulated markets like the UK or Germany, you must be careful. You cannot directly induce gambling behavior through rewards. Bonus mechanics should remain clearly separated from the verification requirement.

Another seemingly small but highly impactful element is visual progress. When users go through verification, they should clearly see how many steps remain. Breaking the flow into smaller actions reduces cognitive load and makes the process feel manageable.

At Allpass.ai, we apply the same principle on the UI side: users see exactly how many steps are left, and each step is concise. That clarity significantly improves completion rates.

3. Use an Automated & AI-Driven Tool

Automation is the only way to ensure fast yet reliable verification. You need a flexible KYC system with at least the following minimum set of features:

• Broad Coverage: The system must be able to read different types of documents from different countries to give you access to the markets you operate in.
• OCR Technology: Allows pulling data directly from the ID photo, so the player doesn’t have to manually type their name or address.
• Liveness Checks: Use 3D face mapping (biometrics) for instant verification. It’s faster and more secure than a “selfie with a piece of paper.”
• Real-Time Feedback: If a photo is blurry, notify the user immediately while they still have the ID in their hand.
• Uniqueness Check: Detect duplicate accounts to identify cases of bonus abuse.
• Strong API Capabilities: You will need to integrate the product with your KYC system in order to build risk-based processes, where checks are triggered only when certain conditions are met.

4. Optimize the "Friction Points"

Just a few simple improvements can significantly enhance the player experience and increase the likelihood of a first deposit or successful withdrawal.

Create clear documentation explaining why you require identification, what documents are accepted, and how to complete verification correctly. Make sure this information is easily accessible. When players understand what is expected and why, they are far less likely to abandon the process.

At Allpass.ai, for example, we embed short, practical tips directly into the verification flow to help users avoid common document capture mistakes and complete the process on the first try.

Make sure both your desktop and mobile experiences are fully optimized. If you collect data at sign-up using your own form, break it into stages instead of presenting a form with 10 fields.

For checks that require KYC software, make sure the flow is responsive and easy to complete on a mobile device.

Finally, pay close attention to your messaging. The way you frame KYC shapes how players perceive it. If you present it purely as a regulatory obligation, it feels like bureaucracy.

If you position it as a way to protect their account and create a safer environment, it builds trust. The tone you use during verification influences how players feel about your brand — and that directly affects completion rates and conversion.

5. Integrate Open Banking

Open Banking is a core pillar of fintech regulation; however, iGaming businesses can also benefit from it. By linking their bank account for the initial deposit, you can often verify identity, age, and ownership in one click, bypassing the need for manual document uploads entirely. Open Banking covers all major markets: the UK, the EU, Australia, and Brazil.

Open Banking can be a massive leap forward for reducing friction, but it is currently a tool within a KYC strategy, not a legal replacement for a KYC system. Basically, the bank tells you: "This is John Doe, and he has $5,000." Your KYC system must check: "Is John Doe on a terrorist watch list? Is he a real person?" and so on.

On top of that, you must have a Case Management System (the core of a KYC system) that stores the "Proof of Verification", timestamps it, and keeps a log for 5–10 years depending on the jurisdiction.

Important Metrics to Track to Sustain a Healthy KYC Funnel

To reduce KYC drop-off, you need to treat your verification funnel with the same rigor as your sales or marketing funnel.

The places where you can get this information will vary depending on the tech stack. Typically, KYC systems provide dashboards and reports. You can also review heatmaps, event logs, and your internal product analytics.

The "Funnel Health" Metrics

Speed & Latency Metrics

Behavioral & Qualitative Aspects

Allpass.ai on the Duty

KYC will never be the most exciting part of the player journey. But it doesn’t have to be the point where you lose them.

Most drop-off is caused by friction, poor design, unclear messaging, and slow processes. The operators who win aren’t the ones who go “no KYC casino.” They’re the ones who implement it intelligently — with automation, progressive flows, and clear communication.

That’s exactly where a purpose-built KYC system makes the difference. At Allpass.ai, we’ve designed our solution specifically for fast-paced environments like iGaming:

• Higher verification completion rates through faster, low-friction flows.
• More successful first deposits by reducing delays at critical moments.
• Lower bonus abuse and duplicate accounts, protecting promotional budgets.
• Smoother market expansion thanks to broad international document support.
• Flexible risk-based control, so you verify smarter, not heavier.

Does your online casino struggle with slow, inefficient KYC? Try Allpass.ai. Sign up for a free trial with full access to the platform.