{"id":80443,"date":"2020-10-06T14:37:00","date_gmt":"2020-10-06T14:37:00","guid":{"rendered":"https:\/\/interac1.wpengine.com\/?post_type=content&#038;p=80443"},"modified":"2025-09-18T10:34:35","modified_gmt":"2025-09-18T14:34:35","slug":"digital-identity-in-lottery-gaming","status":"publish","type":"content","link":"https:\/\/www.interac.ca\/en\/content\/business\/digital-identity-in-lottery-gaming\/","title":{"rendered":"Digital Identity in Lottery &#038; Gaming"},"content":{"rendered":"\n<p><strong>Improving convenience and reducing fraud for Canadian gaming customers<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-pullquote\"><blockquote><p>According to a recent global survey, more than one in four prospective customers have abandoned a registration process with an online gaming site.<\/p><\/blockquote><\/figure>\n\n\n\n<section id=\"inline-link-block_aea6c0bf709fd075cfd72723185aae8d\" class=\"button-link\">\n    <div class=\"grid-container\">\n        \n                        <div class=\"grid-x grid-padding-x align-center\">\n                        \n            <a href=\"https:\/\/www.interac.ca\/wp-content\/uploads\/2021\/06\/Digital_Id_Lottery_Gaming_Eng.pdf\" class=\"inline-link\" aria-label=\"Download White Paper\">Download White Paper<\/a>\n            \n                            <\/div>\n                    \n    <\/div>\n<\/section>\n\n\n<h2 class=\"wp-block-heading\">Introduction<\/h2>\n\n\n\n<p>In Canada, lotteries and gaming have evolved over the past few decades from a relatively minor \u2014 if enjoyable \u2014 source of weekly televised entertainment, to a major industry employing thousands of people and providing more than $9 billion per year in revenues to provincial governments. In 2017, Canadians spent $17.1 billion<sup>1<\/sup>&nbsp;on government sponsored games of chance and related services (e.g. food and accommodation), this volume being but a subset of the worldwide gambling market, which is predicted to reach annual revenues of USD$565 billion by the end of 2022<sup>2<\/sup>.<\/p>\n\n\n\n<p>Given the scale and scope of this industry, it is no surprise that fraudsters have been attracted to it, and that the question of how to secure the identity of customers has become an urgent one \u2014 indeed, online gaming in particular suffers from the risk of account takeovers and a range of frauds enabled by registrations created on behalf of \u201csynthetic\u201d identities. Yet efforts to prevent fraud have brought their own costs, as requirements to show or transmit physical pieces of identification add significant delays and inconvenience to the registration process. According to a recent global survey, more than one in four prospective customers have abandoned a registration process with an online gaming site<sup>3<\/sup>. Fortunately, digital ID has the potential to significantly alleviate both of these problems. In this white paper, we\u2019ll explain how.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">How much are we spending?<\/h2>\n\n\n\n<p>Canadians spend a great deal of money on the gaming industry in both its \u201cbrick and mortar\u201d and online forms, and many of these transactions require a form of identification to be presented. As Ontario\u2019s own statistics indicate, it is clear that digital ID\u2019s impact in making all of these transactions more secure and convenient will be a significant one.<\/p>\n\n\n\n<figure class=\"wp-block-image aligncenter size-large\"><img decoding=\"async\" width=\"612\" height=\"623\" data-src=\"https:\/\/www.interac.ca\/wp-content\/smush-webp\/2021\/06\/Digital-Identity-in-Lottery-and-Gaming-How-Much-Are-We-Spending.png.webp\" alt=\"\" class=\"wp-image-80448 lazyload\" data-srcset=\"https:\/\/www.interac.ca\/wp-content\/smush-webp\/2021\/06\/Digital-Identity-in-Lottery-and-Gaming-How-Much-Are-We-Spending.png.webp 612w, https:\/\/www.interac.ca\/wp-content\/smush-webp\/2021\/06\/Digital-Identity-in-Lottery-and-Gaming-How-Much-Are-We-Spending-295x300.png.webp 295w\" data-sizes=\"auto\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 612px; --smush-placeholder-aspect-ratio: 612\/623;\" data-original-sizes=\"(max-width: 612px) 100vw, 612px\" \/><figcaption class=\"wp-element-caption\"><sup>Sources for data shown in graphic:&nbsp;<a target=\"_blank\" href=\"https:\/\/about.olg.ca\/wp-content\/uploads\/2019\/10\/OLG-Annual-Report-2018-19_EN.pdf\" rel=\"noreferrer noopener\">OLG Annual Report, 2018-2019<\/a>, Ontario Lottery and Gaming Corporation<\/sup><\/figcaption><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">How digital ID helps<\/h2>\n\n\n\n<p><strong>Lottery corporations &amp; gaming companies<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Digital ID&nbsp;<strong>reduces identity fraud<\/strong>&nbsp;by eliminating error-prone manual authentication processes, reducing chargebacks and other expenses and losses stemming from such activity.<\/li>\n\n\n\n<li>Digital ID&nbsp;<strong>improves customer satisfaction<\/strong>. Gaming companies can provide a faster onboarding process while reassuring customers their identities (and accounts) are safe.<\/li>\n\n\n\n<li>Digital ID&nbsp;<strong>reduces risk<\/strong>, making sure that applicable user age and residency regulations are adhered to. It also gives governments that own or sponsor gaming activities an improved ability to encourage responsible gambling behaviours \u2014 for example by providing robust \u201cself-exclusion\u201d options.<\/li>\n<\/ul>\n\n\n\n<p><strong>Users<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Digital ID&nbsp;<strong>improves privacy and security<\/strong>, ensuring that a customer\u2019s personal identification information cannot be copied in transit or seen by unauthorized parties.<\/li>\n\n\n\n<li>Digital ID&nbsp;<strong>offers greater convenience<\/strong>. Customers have to fill in significantly fewer registration fields during onboarding, and no longer have to scan or otherwise send copies of their identification documents.<\/li>\n\n\n\n<li>Digital ID&nbsp;<strong>enhances the experience of winning<\/strong>&nbsp;by allowing gaming companies to offer fast deposit of payouts through services like&nbsp;<em>Interac<\/em>&nbsp;e-Transfer.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">Using digital ID: a walkthrough<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\">Step 1: Account initiation<\/h3>\n\n\n\n<p>A customer arrives at a lottery website and decides to create an account. The registration form offers an option to fill it in manually or via his digital wallet. He chooses the latter.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Step 2: Authentication<\/h3>\n\n\n\n<p>The site presents him with a QR code, which he scans with his digital wallet. The wallet then prompts him to perform a facial verification check to confirm his identity.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Step 3: Share digital identity<\/h3>\n\n\n\n<p>This done, the wallet asks him to consent to the sharing of his personal information with the lottery corporation. He agrees, and his digital identity (e.g. driver\u2019s license) is used to populate the site\u2019s registration fields.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Step 4: Account creation<\/h3>\n\n\n\n<p>Since the customer\u2019s information is now verified, he reviews and confirms his registration and his account is immediately created.<\/p>\n\n\n\n<div class=\"wp-block-media-text alignwide is-stacked-on-mobile\" style=\"grid-template-columns:29% auto\"><figure class=\"wp-block-media-text__media\"><img decoding=\"async\" width=\"279\" height=\"264\" data-src=\"https:\/\/www.interac.ca\/wp-content\/smush-webp\/2021\/06\/facial_verification.png.webp\" alt=\"\" class=\"wp-image-80450 size-full lazyload\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 279px; --smush-placeholder-aspect-ratio: 279\/264;\" \/><\/figure><div class=\"wp-block-media-text__content\">\n<p class=\"has-large-font-size\">How does facial verification work?<\/p>\n\n\n\n<p>Facial verification seeks to confirm a customer\u2019s identity visually, whereby a person\u2019s facial details are captured and compared against another image of the same person\u2019s face to provide a high level of certainty. A \u201cliveness check\u201d (the user may be asked to turn their head back and forth) may also be required to ensure that it\u2019s a real person.<\/p>\n<\/div><\/div>\n\n\n\n<h2 class=\"wp-block-heading\">Our principles<\/h2>\n\n\n\n<p>Digital identity is easy to theorize about, but architecting and implementing a comprehensive, secure, and sustainable system is another matter entirely \u2013 and an important part of getting it right is having a clearly articulated set of principles to guide the effort. We believe that there are five:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">User control &amp; convenience<\/h3>\n\n\n\n<p>No one wants to entrust a system with their personal details if those details are going to be transferred to and stored by numerous parties \u2013 especially if this happens without the user\u2019s knowledge and express consent. While ensuring user control, an identity system must also be convenient and easy; if it isn\u2019t, it won\u2019t be adopted by users, many of whom are already used to intuitive apps on mobile devices.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Standards &amp; openness<\/h3>\n\n\n\n<p>In any dynamic system, it\u2019s difficult to predict what the future will look like \u2013 so it\u2019s important to build today\u2019s solutions on universally-agreed standards. Not only does this reduce costs by eliminating the expense of building and then later having to adapt custom, one-off solutions, but it enables solutions built by others in the future to \u201cplug into\u201d the initial solution. Openness encourages adoption, innovation, and flexibility.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Ubiquity<\/h3>\n\n\n\n<p>Security risks abound when people create different identities and passwords for each public and private service they access. They\u2019ll often default to a single, easy-to-remember (and easy to crack) password, for example. At the same time, a digital identity that only applies to a handful of services will probably not be well-adopted. A ubiquitous system is a more convenient and a more secure system.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Trusted brand<\/h3>\n\n\n\n<p>No user is likely to adopt an identity solution built or maintained by an organization they don\u2019t trust. The question of identity is simply too important, and the impact of identity theft too great, to leave this to chance. Further, building a large-scale (and ubiquitous) solution will require the cooperation and coordination of many players, and these players need to trust each other and the organization leading the effort.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Security via abstraction<\/h3>\n\n\n\n<p>Even with the best user controls, a certain amount of identity data must be part of transactions in any given ecosystem. A highly effective way of securing that data is to \u201cabstract\u201d it, by replacing a private identifier with a publicly-available one (like a person\u2019s email address) or by replacing it with a randomized number that serves as an authorized \u201ctoken\u201d for the purposes of the transaction \u2013 and is not useful for any other purpose.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1007\" height=\"1024\" data-src=\"https:\/\/www.interac.ca\/wp-content\/smush-webp\/2021\/06\/Digital-Identity-in-Lottery-and-Gaming-Our-Principles-1007x1024.png.webp\" alt=\"\" class=\"wp-image-80458 lazyload\" data-srcset=\"https:\/\/www.interac.ca\/wp-content\/smush-webp\/2021\/06\/Digital-Identity-in-Lottery-and-Gaming-Our-Principles-1007x1024.png.webp 1007w, https:\/\/www.interac.ca\/wp-content\/smush-webp\/2021\/06\/Digital-Identity-in-Lottery-and-Gaming-Our-Principles-295x300.png.webp 295w, https:\/\/www.interac.ca\/wp-content\/smush-webp\/2021\/06\/Digital-Identity-in-Lottery-and-Gaming-Our-Principles-768x781.png.webp 768w, https:\/\/www.interac.ca\/wp-content\/smush-webp\/2021\/06\/Digital-Identity-in-Lottery-and-Gaming-Our-Principles.png.webp 1224w\" data-sizes=\"auto\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1007px; --smush-placeholder-aspect-ratio: 1007\/1024;\" data-original-sizes=\"(max-width: 1007px) 100vw, 1007px\" \/><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">Conclusion<\/h2>\n\n\n\n<p>Digital ID has the potential to make registrations and transactions in a wide range of industries more efficient and more secure, as well as to improve both customer experiences and customer retention. These benefits are readily available to a range of sectors, including lottery and gaming as well as alcohol and cannabis. Canadians are frequent users of lottery and gaming services, and deserve the highest levels of security and convenience that the industry can provide them. Their governments \u2014 who depend on this sector for the essential revenues it generates \u2014 will benefit too, as digital ID enables faster onboarding, reduced fraud, and happier (and more frequent) customers.<\/p>\n\n\n\n<h4 class=\"wp-block-heading has-text-align-center\">If you\u2019re interested in collaborating with Interac on the future of Digital ID, drop us a line at&nbsp;<a href=\"mailto:digitalid@interac.ca\">digitalid@interac.ca<\/a><\/h4>\n\n\n\n<figure class=\"wp-block-pullquote\"><blockquote><p>Canadians are frequent users of lottery and gaming services, and deserve the highest levels of security and convenience that the industry can provide.<\/p><\/blockquote><\/figure>\n\n\n\n<p><sup>1<\/sup>&nbsp;<a target=\"_blank\" href=\"http:\/\/canadiangaming.ca\/wp-content\/uploads\/CGA_KeyFindings_document_D.pdf\" rel=\"noreferrer noopener\">National Economic Benefits of the Canadian Gaming Industry<\/a>, Canadian Gaming Association (2017 figures)<br><sup>2<\/sup>&nbsp;<a target=\"_blank\" href=\"https:\/\/blog.marketresearch.com\/the-gambling-industry-forecasts-and-trends\" rel=\"noreferrer noopener\">The Growing Gambling Industry: Forecasts, Technologies, and Trends<\/a>, The Business Research Company (Feb 2020)<br><sup>3<\/sup>&nbsp;<a target=\"_blank\" href=\"https:\/\/go.jumio.com\/online-gaming-report\" rel=\"noreferrer noopener\">Account Opening in the Online Gaming Industry<\/a>, Jumio<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Improving convenience and reducing fraud for Canadian gaming customers According to a recent global survey, more than one in four prospective customers have abandoned a registration process with an online gaming site. Introduction In Canada, lotteries and gaming have evolved over the past few decades from a relatively minor \u2014 if enjoyable \u2014 source of&hellip;<\/p>\n","protected":false},"author":8,"featured_media":80452,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"content-tags":[952,788],"content-category":[189],"spokespeople":[],"in_the_know_post_format":[177],"class_list":["post-80443","content","type-content","status-publish","format-standard","has-post-thumbnail","hentry","content-tags-enterprise-and-government","content-tags-interac-verified","content-category-business","in_the_know_post_format-whitepapers"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.2 (Yoast SEO v27.2) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Digital Identity in Lottery &amp; Gaming - Interac<\/title>\n<meta name=\"description\" content=\"See how digital ID enhances lottery and gaming in Canada\u2014enabling secure age verification, reducing fraud, and supporting responsible play.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.interac.ca\/en\/content\/business\/digital-identity-in-lottery-gaming\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Digital Identity in Lottery &amp; 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