Q&A with Martin Burt, ClearStake: Staying Ahead of Rising Financial Transparency Demands in iGaming

As regulations around financial transparency and player protection tighten, operators are facing increasing pressure to meet affordability and anti-money laundering standards. However, these necessary checks often lead to a sharp drop-off in player engagement and retention, with many players abandoning their sessions when asked to provide financial documentation.

The balance between compliance and user experience has never been more critical and the challenge is clear - how can operators adapt to these heightened demands without alienating their player base?

The answer lies in creating seamless, frictionless processes that meet regulatory requirements while maintaining a smooth gaming experience, an essential shift for maintaining trust and retaining players.

Gali Hartuv recently sat down with Martin B. CEO of ClearStake to discuss the growing demand for advanced financial due diligence services, the challenges that operators are currently facing, and the importance of proactively addressing these issues.

With the regulatory environment set to become even more stringent, understanding how to navigate these changes is vital for any operator looking to stay ahead and turn compliance challenges into a competitive advantage.

Gali: What key challenges in financial data requests and compliance has ClearStake tackled, and how has this shaped the player experience and operator outcomes?

Martin: Since we were founded in 2020, ClearStake has been dedicated to streamlining financial data requests and compliance processes for iGaming operators. This is a field that has been underserved historically.

The result has been an unsatisfactory User Experience (UX) for customers, and an increased churn rate for operators.

By adopting innovative approaches, we’ve introduced a range of tools and services for financial due diligence to the market, including real-time financial data analysis, customised compliance workflows, and risk scoring to facilitate informed decision-making.

These types of solutions are designed to improve the user journey during data requests, ultimately providing a better experience to players and an uptick in retention for the operator.

Gali: What is your take on the current direction of the iGaming industry and the challenges faced by companies operating within it?

Martin: We speak to a lot of operators who are losing a large number of players whenever they are hit by compliance, anti-money laundering, or affordability thresholds.

The moment a player is asked to provide financial documentation, a large proportion opt to terminate their session. Many don’t bother returning.

It looks like operators are going to be required to serve more of these requests going forward, and the focus needs to be on developing smoother user journeys through them.

Gali: What trends or developments in the iGaming market have influenced the need for advanced financial due diligence services?

Martin: The growing regulatory focus on player protection has significantly driven this need.

A prime example and the most recent development has been the introduction of light-touch financial vulnerability checks by the UK Gambling Commission, which came into force at the end of August 2024 for all customers with a monthly net deposit of more than ￡500 per month.

That threshold will be reduced to ￡150 per month from February 2025. This essentially means a significant increase in the number of customers who are encountering requests for documentation.

It’s something we’re likely to see continue, both in the UK and other regulated jurisdictions, over the coming years.

Gali: Due to requests for financial data, how big an issue is player churn becoming for operators in the UK right now?

Martin: I’d argue it’s one of the biggest challenges they are facing at the moment.

Remember, this is new legislation that’s only been introduced within the last few months. It’s new to both players and to operators, so there’s going to be a period of adjustment.

Many players are hitting financial request thresholds for the first time, and it can be hard to predict how they will react. On the operator side, they simply aren’t used to processing this number of financial requests.

Those that haven’t suitably prepared are finding it is having a hugely detrimental impact to the UX.

Gali: Could you expand a little more on how these requests are impacting the UX, and how this impact might be mitigated?

Martin: We know that players want as little friction as possible when it comes to financial transactions. Handling deposits and withdrawals is complicated enough; it is a simple fact that additional requests are going to have consequences in terms of the UX.

We’re seeing some operators reporting churn rates as high as 95% whenever they are required to make a request.

It makes sense. If you are enjoying your game experience, and suddenly that’s interrupted and you are being asked to scan and upload bank documents, it’s not a surprise that many just opt to terminate the gaming session instead.

Mitigation is all about meeting the requirements with the lightest touch possible. If players can provide what they need in a few taps, and get a decision back in minutes instead of hours, the process doesn’t have to take them out of the experience they were enjoying.

Gali: How do you stop this issue developing over the coming years?

Martin: As already mentioned, the trend is not going to reverse any time soon. The UK will, this year, reduce the threshold for these checks, and other regulated jurisdictions will likely follow its lead.

What I tell operators is that there’s no point complaining or kidding yourself that this is going to change. Face up to the new reality and view it as an opportunity to not only ensure your players are enjoying within their limits, but also as a chance to gain a competitive advantage over those who are not administering these checks efficiently.

This conversation with Martin B. of ClearStake has illustrated that as the iGaming industry faces an era of increasing regulatory scrutiny, operators must embrace innovation and adaptability to thrive.

The rising demand for financial due diligence and transparency presents undeniable challenges, but it also opens the door to meaningful improvements in player trust and engagement.

Those who act decisively, balancing compliance with a frictionless user experience, will not only retain their players but also set a new standard for excellence in the market.

The question now is, as thresholds tighten and expectations evolve, will your organisation rise to the occasion - or risk being left behind?

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