A poster from the Sportsbook Forum message board has asked what is the protocol for sending government issued ID to online sportsbooks in order to request a payout.
He has asked if it is standard operating procedure to block out sensitive data, for instance, the unique number assigned to a driver's license.
While many of the themes are covered in the Know Your Customer 2015 edition, this particular topic is geared toward what would be standard procedure dealing with offshore online sportsbooks, who have their own set of industry standards and regulations in light of in some cases less rigorous regulatory framework.
Establishing Your Identity
It used to be the case that when depositing through cash and getting paid in cash that sending ID was not always common.
The request was customary however with making deposits through cashier options like credit card, along with sending over a credit card authorization form, and photo ID, whether driver's license or passport. A public library card would never count, for instance.
However, with the introduction of sportsbook cashier options such as bitcoin, online sportsbooks need to ensure that their rules are not breached with respect to multiple accounts, limits circumvention, double bonus popping, and more.
Protecting Consumers from Fraud
It is not all about protecting the online sportsbook. If your identity or credit card was stolen, would you expect the business who may receive your data to exercise some level of due diligence before crediting your hard earned funds in association with a player deposit?
There are bad apples everywhere, and by establishing some level of KYC, online sportsbooks are ultimately protecting consumers in the end by ensuring that they are who they say they are, and that Joe Blow is not really a neighbor of yours or someone who had the misfortune of having their identity stolen for profit.
Do I need to Comply?
The short of it is - yes.
If you have already made your deposit to the online sportsbook, then you are bound by their terms and conditions and must reasonably comply with what is requested of you.
The good news is that most players only ever have to show ID once. Sportsbook Review suggests keeping commonly requested documents on a flash/USB drive to cutdown time from having to scan documents each time an online sportsbook requests to see documentation.
Sending expired documents or blacking out key details (Photoshopping essentially) is not advisable, and will likely only increase the time-frame associated with receiving your winnings.