LeoVegas’s Christian Reinheimer highlights critical gaps in verification systems and regulatory approaches as industry evolves.
The gaming industry’s relationship with payments technology remains fraught with contradictions – a sector that has embraced cutting-edge user experiences while still grappling with fundamental verification challenges that seem almost archaic by today’s standards.
“It’s mind-boggling that in 2025, we still can’t unambiguously confirm whether a customer – whose address, phone number, and social security number we collect during KYC at sign-up – is actually using their own bank account or card to make a payment,” says Christian Reinheimer, Group Director of Payments Strategy at LeoVegas Group. “That simply isn’t good enough.”
This candid assessment from Reinheimer, who will be speaking on Open Banking at the upcoming SBC Summit Malta, reflects broader frustrations within the gaming payments ecosystem about the gap between technological capability and practical implementation.
The verification paradox
Despite collecting extensive customer data during onboarding, gaming operators still struggle with proof of payment instrument ownership – a fundamental security requirement that Reinheimer argues urgently needs addressing. The industry, he suggests, requires “more robust tools to build a safer industry, without adding so much friction that players are pushed toward the black market.”
This friction versus security dilemma has become increasingly complex as both payments and KYC processes have evolved from back-office functions into competitive differentiators. “Simple, transparent flows contribute to a positive user experience that helps attract and retain customers,” Reinheimer notes, highlighting how payment experience now directly impacts business outcomes.
The challenge is particularly evident in emerging payment technologies. While Open Banking has matured significantly – evolving from “new and unrefined to becoming household solutions” – Reinheimer identifies critical barriers limiting further adoption. Payment services still involve more friction compared to seamless options like Apple Pay, and crucially, they “typically lack effective dispute management, which can undermine consumer trust.”
The data side of Open Banking faces even steeper challenges. Despite technical improvements that make sharing financial data easier than traditional document uploads, consumer hesitancy remains high. “Many users remain hesitant to share such data due to ongoing privacy concerns,” Reinheimer observes, noting that data services remain “at a more premature stage of development compared to payment services.”
These trust and friction challenges are driving gaming operators to explore alternative technological solutions. While much AI discussion focuses on large language models, Reinheimer points to more practical applications already delivering results. LeoVegas is working with payment orchestration systems that use machine learning to optimize transaction routing rules, “which has helped us further improve the performance of our payment processing.”
This represents a more pragmatic approach to AI adoption – focusing on specific operational improvements rather than broad technological implementation. Looking ahead, Reinheimer sees potential for expanding machine learning applications to deliver more personalized player journeys based on platform interaction patterns.
However, perhaps the most significant technological disconnect lies in cryptocurrency regulation. Despite crypto ownership and usage “increasingly becoming mainstream,” Reinheimer notes it’s “mostly offered on black market casinos right now” due to regulatory caution.
“I would like to see regulators adopt a more realistic stance toward crypto-based payment options,” he argues, suggesting that current regulatory hesitancy is creating an unfortunate market distortion. Beyond payments, he sees blockchain technology’s potential for identity verification services that could “strengthen KYC processes and reduce identity theft” – solutions that exist but require “regulatory support” to reach critical mass adoption.
Local markets, global challenges
Managing payments across multiple jurisdictions requires constant market monitoring and cultural understanding. Reinheimer emphasizes that local payment preferences are shaped by various cultural factors including “how willing customers are to share personal data, how quickly they adopt new technologies, and the strength of the local fintech ecosystem.”
This localization challenge is compounded by regulatory complexity. Successfully navigating compliance across gaming and payments regulations requires “strong collaboration between internal compliance teams and trusted external subject matter experts,” along with thorough documentation and audit trails.
Industry collaboration imperative
Looking ahead, Reinheimer advocates for closer collaboration between gaming and fintech sectors. The industry needs “greater support from the fintech sector and infrastructure providers” to solve persistent challenges around payment instrument verification and user experience optimization.
His perspective reflects a broader industry recognition that gaming payments can no longer be treated as a niche vertical but rather as a sophisticated ecosystem requiring specialized solutions and regulatory understanding.
As the gaming industry continues to mature and expand into new markets, the payment infrastructure supporting it must evolve beyond current limitations. The question isn’t whether change is needed – it’s whether the industry can coordinate effectively enough to implement it.
Christian Reinheimer will be speaking about Open Banking in gaming at SBC Summit Malta. For more information about the event and to register, visit the SBC Summit website.
Source: https://paymentexpert.com/2025/05/30/leovegas-on-crypto-ai-and-open-banking-but-still-no-verified-cardholder/
