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Now that I am unaffiliated, I can shed some operational light on this issue.
Every ADW that I know of uses a third party vendor for automating the ID Verification process. Some use more than one. Commonly it's a credit reporting agency like Equifax, or a company that specializes in ID Verification like EVS. Any time you sign up for an account, or change your address, you are going to go through what's called a "top level screen" from whichever vendor they are using to verify your ID. This is not a credit pull, so it doesn't show up on your credit report.
If you fail the automated process, then the ADW is going to ask you for documentation to support the address you are claiming to be your residence. Normally, a government issued ID with the matching address will suffice. If you haven't updated your ID yet, then something else (normally a utility bill for services rendered to that address, or a lease or purchase agreement) could also be allowed. Our process was the same at Premier Turf Club, and at AmericaTab which I also ran previously.
If you are changing your address or are registering for a new account immediately following a move, you are likely going to get caught up in needing to manually provide data, as these changes take a while to get to the third party vendors. Yes, it's a hassle, but it's not the ADWs fault because KYC is a high priority item now. It was a bit lax before all the FinCEN / AML requirements and State licensing requirements tightened, but no longer.
And yes, at least in Oregon where all the major ADWs are licensed, there are annual audits which include spot checks of KYC identifications. KYC is serious business in online gaming and the fines can be substantial. The sports betting companies all have entire departments devoted to compliance, and I would say the ADWs are rapidly catching up if not there already.
As for the bridge jumping question, how each ADW puts up with known bridge jumpers will vary. At PTC, we always would factor how much was bet, the tracks bet on, what State the customer lives in, and most importantly, whether or not the customer was also betting other pools.
It is very easy to get significantly upside-down on these bets (meaning you are losing money on every bet). For every wager an ADW takes, in addition to covering whatever the negative breakage is, they also still have to pay the host fee, the State tax, and if required the Source Market fee. If the ADW is rebating, that's usually something the ADW will claw back, but not always. At PTC we had a multi-step process of notifications, clawing back rebates and blocking pools before completely cutting people off, but if you were in a high source market fee State and never did anything but bridge jump, you would eventually have had your account closed.
Back in the day, good Mutuel Managers would not allow show betting on races with heavy favorites (and sometimes even place) if State regs allowed. It's very rare now. With simulcasting, as long as a host track didn't have a large bridge jumper on track (or doesn't handle much), it actually benefits the track to allow it now since the bulk of handle comes from off-track. They get paid the host fees (and source market fee if applicable) on a larger than normal pool and the guest sites have to cover the negative breakage. It's a win for them, which is why you don't see the pools removed by the host track very often.
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