Sports betting has experienced significant growth in recent years, with the U.S. market expanding rapidly following the Supreme Court's 2018 decision to overturn the federal ban on Sports Betting wagering. This expansion has led to increased scrutiny regarding the identification and verification processes employed by sportsbooks, particularly concerning the requirement of a Social Security Number (SSN) for account creation and transactions.
The SSN Requirement
In the United States, the SSN serves as a primary identifier for individuals in various financial and Sports Betting legal contexts. Sportsbooks often request an SSN to:- Verify Identity: Ensuring that the individual is who they claim to be, preventing identity theft and fraud.
- Prevent Underage Gambling: Confirming that the bettor meets the legal age requirement for gambling.
- Comply with Anti-Money Laundering (AML) Regulations: Monitoring financial transactions to detect and prevent money laundering activities.
- Tax Reporting: Reporting significant winnings to the Internal Revenue Service (IRS) for taxation purposes.