Africa’s iGaming Sector Cuts Fraud but Faces Ongoing Verification Challenges
Globally, fraud is escalating. Rates have nearly doubled from 0.70% in 2023 to 1.39% in early 2025, with 82.9% of surveyed operators reporting a rise in fraud. But the picture varies sharply by region, where Latin America’s fraud rate surged by nearly 32%, while mature markets like Europe and North America also saw increases, though less dramatic. Africa, uniquely, moved in the opposite direction thanks largely to targeted investment in verification technology and stronger compliance processes. However, the proportion of fraud among verification attempts remains relatively high across the continent (at 2.55% this year), stressing the need for advanced fraud protection measures to be implemented at every stage of the player journey.
Verification: Gains but Gaps Remain
While the continent’s verification pass rate—a key indicator of both user experience and compliance strength—improved modestly from 65.76% in 2023 to 68.98% in 2025, it remains well below the 80–90% averages achieved in regions such as Europe, North America, and Latin America. The slower progress highlights an urgent need for African operators to close this gap if they are to retain players and grow sustainably. In the report, industry professionals share practical advice on how operators can improve pass rates, from streamlining KYC journeys to adopting reusable and non-document verification methods.
New Fraud Patterns Demand a New Playbook
The report identifies several shifts in the fraud landscape requiring urgent action:
· The 4 a.m. Window: Fraud attempts spike between 4 a.m. and 8 a.m. local time, a period when many compliance teams are offline.
· Beyond Sign-Up: 41.9% of operators now say fraud attempts peak at the deposit stage, not during initial registration.
· AI-Powered Crime: Deepfake-based fraud rose 700% globally between 2024 and 2025, forcing operators to contend with more sophisticated attacks.
Innovation and Regulation Reshape the Industry
Verification technology is evolving in response. Average KYC completion times have dropped from 32 seconds to 25 seconds globally, aided by innovations such as non-document verification, reusable KYC, and portable digital identities.
Meanwhile, a tightening regulatory landscape across Africa matches these advancements. In South Africa, the enforcement of the Travel Rule—effective April 2025—requires crypto platforms to collect and transmit originator and beneficiary data for all transactions, while the National Gambling Amendment Bill proposes expanded powers for a new regulator to block payments to unlicensed iGaming operators. In Kenya, the Betting, Lotteries and Gaming Act is being updated to combat illegal gambling apps, with increased biometric registration requirements and mandatory integration with government databases like the eCitizen portal. Meanwhile, in Nigeria, the National Lottery Regulatory Commission (NLRC) has intensified oversight by suspending licenses, prosecuting unregistered platforms, and mandating stricter KYC processes to prevent fraud and underage betting.
Collectively, these shifts mark a regional pivot toward stricter, tech-driven compliance frameworks—and operators that fall short risk losing their market foothold.
Looking Ahead: Sustaining Africa’s Momentum
“African operators have proven that robust verification isn’t a barrier to growth—it’s the foundation for it,” said Hannes Bezuidenhout, VP of Sales for Africa at Sumsub. “But the same AI-driven threats testing mature markets are at Africa’s doorstep. To stay ahead, operators must build continuous, real-time verification and AI-backed fraud prevention tech into the entire player journey.”
By integrating advanced tools like biometric checks and AI-powered anomaly detection into a unified workflow, the industry can continue to protect revenue while delivering the seamless and secure experiences that players demand.
Notes to editors:
Methodology: The State of Identity Verification in the iGaming Industry 2025 report blends quantitative and qualitative insights for rigorous analysis. The methodology includes a three-year comparative study of identity verification data (2023 – 2025), analysis of over three million fraud attempts, direct survey feedback from 100+ global iGaming operators, and in-depth consultations with compliance and fraud-prevention experts.
To download The State of Identity Verification in the iGaming Industry 2025 report for free, click on this link: https://sumsub.com/igaming-report-2025/?utm_source=tishala&utm_medium=agency&utm_campaign=state-identity-verification-igaming_report_2025
About Sumsub
Sumsub is a leading full-cycle verification platform built to keep iGaming operators and platforms compliant, fraud-free, and growing—whether in regulated or emerging markets. From instant player onboarding to ongoing AML screening, our no-code platform adapts to your markets, risk levels, and regulatory demands without slowing down conversions.
Onboard players in seconds, even without documents, with localized flows in 50+ languages and Non-Doc Verification for select regions, achieving pass rates up to 95.86%. Detect and prevent all major iGaming fraud types, including multi-accounting, account takeovers, illegitimate chargebacks, and bonus abuse.
Automate up to 85% of routine compliance tasks, with AI-powered KYC/AML checks and centralized case management to save time for your agents. Protect the entire player journey—from registration and deposits to withdrawals—with real-time device, IP, email, and phone risk assessments.
Trusted by over 4,000 clients worldwide, Sumsub delivers higher pass rates for genuine players and robust defences against fraudsters—all in one platform.
Elize Engle
Tishala Communications
+27 63 574 5249
PR1@tishalacommunications.com
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