Payment Processing is a very complex industry. No matter what kind of product pr service the merchant offers at the end the entire risk is covered by the payment institution. This is why payment processors use strict underwriting and KYC verification. To reduce the risk they also use various risk mitigation factors these are usually settlement related. They may also ask the merchant to accept some special filters while accepting payments these may include full AVS or 3DS.
In some situations merchant account acquirers may ask for a certified legal opinion. Please note thet PSPs also have a legal team that also works with underwriters. If the internal legal team recommends or the underwriting team things a legal opinion is required then they ask for it. As an entrepreneur you should be transparent and try should comply with processors requirements. Skill gaming merchants generally are asked for legal opinion depending on various factors.
- Organisations Structure. Some complex organisational structure in relation to UBOs and there nationality or share holding may trigger a legal opinion request.
- The way business is performed
- Where the merchant is venturing into . I mean the markets.
- Gaming or other licences are required or not.
Hope this helps!
Learn more about Payment gateway for competitions in The UK