Topic: Crypto Casinos vs money laundering. - page 11. (Read 3580 times)

The argument of kyc because of money laundering doesn't hold water to me personally. Let me come from your angle that gambling is restricted in your country. It is even a greater risk to try and complete KYC with any gambling site. The implications are if you complete kyc, they will eventually understand that you are gambling from a restricted area through the help of VPN or any ip hider. This will make the company to threat you with unfair. If you win big instead of paying you, they may decide to call out the government on you or withhold your winnings at most and you will not have any legal right to act and claim your winning.


You are very correct,  when scammers know that people are avoiding kyc, they will use it as a bait to attract people to their scam casino which doesn't last long. When they perfect their plans they will immediately exit the market and return with another domain to continue their scamming. The best practice is to be patient and find a reliable gambling site and stick with them.

Op said that gambling sites should investigate the sources of income of the gamblers. How will that even be possible? Even the kyc won't help because many people complete identity verification with fake or stolen identities.

Of course, money laundering is bound to happen in many businesses, not just in casinos. But now that crypto casinos are popular, it makes money launderers want to give it a try and I guess they started it a long time ago and were not detected by the casinos or the government. Casinos want to prevent that from happening on their premises and they implement KYC as a precaution. But money launderers are also smart to see loopholes that they can use to continue to launder money.

Those who do money laundering will look for casinos that don't require KYC to help them keep laundering money. And somehow, they can always find a casino that can help them and I think that could be because they have a lot of sources that will tell you that one or two casinos don't need KYC so they can use it.

We are still lucky because we have several casinos that do not implement strict KYC/AML so we don't need to verify. Besides, I think if we don't use big money to gamble and never do anything that could make the casino suspicious, we will be safe and well playing in that casino. Maybe the casino will apply the casino randomly and not based on how much money the gambler will use to play gambling and we should be prepared if it applies to us. Maybe we will move to another casino if the casino asks us for KYC because we don't want to do that verification. But some gamblers will be happy to do KYC because they already feel comfortable playing gambling at the casino.

There are absolutely no guarantees, this is why as much as possible, you try to avoid platforms with strict KYC. The problem is, most casinos not implementing strict KYCs are only good for a couple of months before they close, either because they are a scam site or that they are ordered to do so by the government. Mishandling of KYC documents is also a valid reason to raise, and we don't know anything whether our personal information is already being sold to a third-party or remains safe at the hands of the government. Whatever it is, KYC remains to be the necessary thing to follow, but we're too conflicted in actually doing it because of a lot of bad things that is associated with completing the said requirement on most casinos.

If becomes too much anonymous it is a cons to the gambling casino too because if someone looks for the record of the activity of the player and there's no level 1 KYC it is hard for them to give information or feedback, that's why most of the time the large amount wagers most likely have a KYC to make sure there's no abuse happens in the game, but it is quite hard if the gambling casino wont allowed the users to make a withdraw to their funds can become a burden to the player instead enjoying the winnings they took too much suffering in the casinos restriction.

This argument of money laundering is just an excuse to compel the online casinos to implement stricter KYC requirements. And it may look harmless on the outside. But KYC can be misused by both state and non-state players. And it will put people like me in trouble. For example here in India, gambling is 100% illegal (except for the state of Goa). What is the guarantee that the Indian authorities will not use KYC information to harass those individuals who participate in gambling? And also, what is the guarantee that KYC documents won't be stolen and used for identity theft?

I don't think so. Traditionally casinos, and I mean even physical casinos before the Internet existed, have been used to launder money, both by gamblers and casino owners. Let's think about how important the mafia was in the development of Las Vegas, for example.

Today in crypto casinos, I think it could be used more by the players than by the casinos themselves. After all, they usually have licenses from tax havens, where there are very low taxes, so they can declare everything legitimately and paying very little they have their profits legalized.

As to whether they care about money laundering by players or not, I think they do to some extent, because that is why they are introducing more and more KYC procedures. What is not clear to me is that this is as much in the spirit of collaboration with anti-fraud authorities as it is somehow imposed by international AML procedures.

I think many of the casinos I know do have a partial KYC where they will ask for users email, and some info about them which can be for different reasons. Nobody wants there information to be exposed to the world or be in the hands of wrong person which can happen if those casinos that requires KYC from gamblers eventually lost the data to the hands of scammers or those that might use the information illegally or sell it to people that could use it against us.
So many reasons why nobody will like to play or gamble on a KYC casinos because anything can happen and those casinos might get hacked losing vital information.

But that is not how our legal system works. Look, here are some examples from the real world:

Four Individuals Charged with Conspiring to Launder Money Obtained from Romance Scams
Two Florida Men Charged with Conspiring to Launder Money Obtained from Internet-Enabled Scams
Virginia Man Charged with Conspiring to Launder Money Obtained from Internet-Enabled Romance Scams
Five individuals charged in multi-million dollar money laundering conspiracy

In each case, the suspects were not caught while committing the fraud, but rather after trying to "legalize" the illegally obtained money. That is the whole point of the AML laws.


No suggestions, I just wanted to point out that the following statement of yours is false:

But we know that these platforms are regulated even they do know their customers doesnt really like KYC but they dont really have any choice or option since people does always prefer on having that
anonymity.Those people who doesnt really love KYC doesnt automatically means that they are doing money laundering but we cant really deny that this is one of the best way on hiding out yourself
if you do really have those bad intentions or illegal actions which is connected to laundering but not all would really be doing that but cant really be  avoided for it not to be taking advantage on.
Platforms who do operate on legal ways and fair wont really be having no choice but to comply on whats been asked or mandated to them.

There are some legal casinos that really cares about money laundering act and they do take normal precautions to make sure that gamblers will not come to there casinos and use funds that are stolen or illegal on there casinos because the government also can come for them if they don't regulate the rate funds flow into the casino.
This is why there is maximum amount we can use to gamble on a casino which is one of the reasons set aside to regulate and make sure that gamblers stick to rules of the casino.
There are so casinos that we never care about money laundering act because they can majorly after inflow of funds to there casinos with checking the risk it might post later to them.

Yes, and it was unfortunate that KYC has already been pushed by major exchanges and gambling sites making us closer to no options but to submit our KYC. I'd foresee that sooner or later, KYC is be going to mandatory, especially if crypto becomes legalized in all countries and that was the time to have no other options. But, this will not put an end to money laundering as this will be a long-lasting war that never find yet an effective solution.

Indeed , because most of the people in crypto world more prefer to be unknown rather than be known, they don't want to make KYC most of us chooses crypto because we can hide our identity and freely use it to anywhere we wanted to invest with, but with KYC there will be some feeling maybe we can be afraid because that certain establishment can use our identity somewhere most especially if we are to active in gambling.

Of course business is business, Casino want to gain profit from you whether the money is dirty or not. If they are being suspicious of you, They can easily flag the account and ask KYC and as long as their reputation won't be affected they won't care that much.

I'm just thinking what might happen if the gambler use dirty money, withdraw it given that the gambler passed KYC and having no standing warrant at that current time. and the casino let the gambler withdraw. Will there be a chance that the casino be caught red handed by the authorities even the gambler withdraw his funds 2 months after?  

Indeed casino did KYC to follow the government regulation and to continue their operation smoothly.  KYC implementation is just another expenditure for the Casino since they have to pay for the KYC services that verify the authenticity of documents submitted by players.




I think implementing KYC can go both ways, counter productive because it will possibly hinders potential players and productive because it will enable the casino to do their business smoothly.  Between the two, I think implementing KYC is more beneficial to the Casino in terms of continue and smooth operation.


Everyone is, everyone cares about their own benefits only, that is why many players are whining about KYC  requirement because it is a hassle for them, without even thinking how hassle it is for the Casino to have problem with authority if they do not implement the needed requirement imposed by the government.

Yep, if the Casino really has the intention to fight money laundering, they can apply a strict KYC/AML procedure. But surely this way may impact the less interest of people to join the Casino because they probably feel uncomfortable with a strict KYC/AML. Moreover, there are too many online casinos, and many of them seem not to apply a strict KYC/AML. Although there are some casinos starting to apply this way to fight money laundering seriously, some other casinos may not really care about it. Even if they have KYC/AML, it is only for the formality only or to fulfill their own rules only.

Gambling casinos are here for business and profits so that's the only thing they will care the most. If bettors come with huge funds to bet, regardless if it came from money laundering or not, as long as they passed the KYC and yet no alarm from authorities, then it won't be tracked for sure since gambling casinos are mostly concern for their own profits, and having high rollers to play in them will create more chances for them to gain big profits that time.

But if the fraudster is not caught when he did the fraud, then all he has to do is legalize the money, right? What is your suggestion? A specific proposal from the real and not the fictional world? Go back in time and still catch him? In the real world, the scammer will launder money one way or another and pay taxes on it.


So again what is your specific suggestion? The scammer will launder money by simulating receiving income from a business or receiving winnings from a casino. What do you suggest? Prohibit people from paying taxes because this is how money is laundered? Or are you suggesting a ban on money?  Can you say something specific?

Each casino gambling site can adapting with  KYC procedure if want fighting with money laundering, but I am little worry when adapting with KYC for all member they not interested for playing on casino have priority with KYC process, I think money laundering not only happen with crypto casino but also many site have chance and ability how laundering money. The same claimed with cryptocurrency is the best way for money laundering but I think fiat have chance with money laundering too.

Some countries illegal with casino website and access trough hidden IP, when adapting with KYC procedure to take risk from money laundering I think have bigger impact with casino website quiet, some gambler hidden document and real data when active on casino gambling exactly with cryptocurrency casino, but if allowed to pass KYC they will left and looking for other casino support without have submit KYC.

and in the end the casino platform policy becomes the main policy that will stop the money laundering. this is also useful for police officers to be able to further investigate where the money went and police officers will also have special access to check all transactions on accounts suspected of money laundering. but if those crooks had paid the platform to keep their mouth shut and delete or falsify all the documents, maybe they would get away with it. But it's very rare to do.

Every casino will have its own way of fighting money laundering if they really want to fight it. Yes, maybe complete KYC can be one way to find out in addition to other ways so that nowadays, many casinos have started implementing it for their members.

If the casino decides to go one way or the other, it will surely get rejected by its members. But if the casino can explain that this is not what they want but to keep their business from being disrupted or getting in trouble for something illegal, maybe its members will understand and comply. And those who disagree will look for another casino. Everything will have its own consequences and the casino knows that.