The Danish Gaming Authority announced its MitID national electronic identification system. Spillemyndigheden said that the system will launch on July 1, 2022. The new system will replace the existing NemID.
Out With the Old, In With the New
Denmark’s gambling watchdog announced that its new MitID electronic ID system will go live on July 1, 2022. Sports betting and online casino operators will need to migrate to the new national electronic ID system as it replaces the existing NemID.
NemID is an online verification tool used by Danish citizens launched in 2010. The system allows players to access online banking, interact with public authorities, and verify their identities to access digital services including online gambling.
MitID is the updated solution worked on as a partnership between the private and public sectors. Spillemyndigheden stated that operators will have access to both NemID and MitID to identify customers. However, there will be a phase-out period until MitID is the sole solution available.
The country’s gambling regulator had already put licensees on notice back in June 2020. But there was a delay that set back the entire launch by 12 months. This new system will be responsible for performing identity checks on players. It’s unlike the old system where private digital service providers including iGaming operators were required to collaborate with third-party brokers.
A Timely Boost as Spillemyndigheden Insists on Due Diligence
The electronic ID verification system couldn’t have come at a better time. Last week the gambling operator fired a warning toward bet365 over due diligence failings. The operator allowed a young customer to deposit over €25,000 in over a year.
The gambling regulator admonished bet365 for having insufficient knowledge of the origin of the player’s funds. Spillemyndigheden further stated that the funds could have been proceeds of crime. Of utmost concern was the player’s age and the sum deposited. These factors the regulator said warranted bet365 to initiate due diligence checks on the customer to establish the source of funds.
However, bet365 failed to do this and therefore had no information on the player. As a result, it was in breach of multiple sections of the Danish Money Laundering Act. They include Sections 10.1, 11.1, and 25. In the end, the operator escaped without a fine.
Earlier in the year, the Danish Gaming Authority issued warnings to operators regarding laws around financial transactions. The regulator urged operators to respect the laws and perform the necessary checks on their customers.
A report by the regulator indicated that it made over 4,000 slot machine inspections between 2019 and 2021. Out of these inspections, 225 ended up as police reports. The regulator monitors over 23,000 land-based slot machines in the country as it tries to weed out illegal gambling. These slot machines are spread out across 1,277 restaurants and 983 gaming halls in Denmark.