Even as costs rise and regulation tightens, the real risk to UK operators lies in how verification is delivered, not the obligation itself, says ClearStake CEO Martin Burt.

UK operators are under unprecedented pressure.

With remote gaming duty at 40% and regulatory expectations continuing to rise, the economics of running a competitive online casino or sportsbook in Britain have fundamentally changed. The era of rising with the rise is over; “good enough” no longer cuts it.

Much of the industry conversation has focused on margin compression and the increasing burden of compliance. But this framing misses a more immediate and existential risk: the friction in the player experience that comes alongside it.

Customer due diligence requirements have expanded significantly over the past year. Identity verification, affordability checks and source-of-funds reviews are now firmly embedded in the player lifecycle, and rightly so. These controls are essential to building a sustainable, regulated market.

The issue is not the obligation. It is how that obligation is being fulfilled.

Too often, players are interrupted mid-journey and asked to scan documents, upload files, and wait. Sometimes for hours, sometimes for days. This approach may satisfy regulatory requirements, but it comes at a significant cost to engagement.

We live in a world where instant gratification is now the baseline. Consumers are conditioned by seamless digital experiences every day. Think Uber, Revolut, Deliveroo and countless others shaping expectations. Why do we assume they will suddenly make an exception for verification in gambling? Patience for interruption is limited. When friction appears, attention shifts elsewhere.

The clock is ticking

In some verification flows, operators report losing up to 90% of players at the point of document request. This is not because customers fundamentally object to being verified. It is because the process breaks momentum.

Behavioural science helps explain why. Intent is highest at the moment a request is made, but that intent decays rapidly. The first 90 seconds of any customer due diligence journey are critical: if a player is not quickly reassured that the process will be simple, fast and conclusive, the likelihood of completion drops sharply. T=0 is everything.

This is not a mortgage application or a house purchase, where friction is expected and tolerated. In gambling, players operate in a mobile-first, highly competitive environment, with alternative apps just a tap away. The moment the process feels slow or cumbersome, many will simply leave rather than persist.

This creates a very specific challenge for operators. Verification journeys must be compressed. The closer a decision is delivered to the initial trigger point, the higher the probability of completion, and, by extension, long-term player value.

Encouragingly, technology is beginning to close this gap. Approaches that reduce reliance on manual document handling, such as real-time data verification and bank-connected journeys, are demonstrating that the necessary verification can be delivered in seconds rather than days.

The impact is not just operational efficiency; it is experiential. When verification is embedded seamlessly into the player journey, rather than layered on top of it, friction is minimised and engagement is preserved.

A competitive dividing line

This shift has implications beyond individual conversion rates.

If regulated operators consistently deliver experiences that feel slower, more intrusive or more fragmented than unregulated alternatives, a proportion of players will inevitably look elsewhere. This is not a theoretical risk; it is already visible in player behaviour.

At the same time, a number of UK operators, particularly mid-sized and challenger brands, are beginning to adapt. They are no longer treating compliance as a back-office function, but as a core component of product design.

This is a critical mindset shift. The verification journey is not separate from the player experience, it is part of it. As such, it requires the same level of investment, optimisation and strategic focus as acquisition, payments or retention.

The direction of travel is clear. Regulatory expectations are unlikely to ease, and cost pressures are unlikely to diminish. 

In today’s UK market, compliance is no longer a constraint on growth. It is a defining part of it. Those who reduce friction at the moment it matters most will be best positioned to retain players, protect revenue and compete effectively in an increasingly demanding landscape.