Topic: Crypto Casinos vs money laundering. - page 4. (Read 3580 times)

If they have a close relationship with the owner of that casino then it is possible for them to launder money through that platform and since the money launderers are very smart now maybe there are many who own each casino themselves and they launder money through their own casino and in different places.  Millions of dollars are smuggled

They can't distinguish that unless they've got an experiment and did on their own and got the sending address from their receiving address from the experiment through the use of a mixer.

What they can do is to block that address and if that's the only address that the mixer is using to send their mixed coins, they'll detect the source. However, that's not how mixers work and it's an unlikely situation to happen.

Blocking isnt 100% to be precise and there's no way that casinos could really trace up on any deposits that they get unless if there are some incidents of hacking then it did really spread up on the news
or something a huge deposit and trying out to check its source then this is where they can possibly make some check because we know that they are regulated which means they are
also been monitored which it isnt really that surprising and not something new for these platforms to have these kind of monitoring.
Money laundering is always been a tied up issues on gambling sites or any platforms that involves big money.

What about the use of mixers. Will it also tell where the money is coming from? We know that mixers hide this things eventhough there are on the blockchain. So how is anyone going to trace it to its dirty source? Please explain this to me to understand.

It depends how big they are but most of the professional operations that have been around for many years and have threads here are in actual fact very conscious about the risks of money laundering. They do not want it and they do not entertain it, because they can make enough legitimate money that they don't need it around. If they ever get discovered as having had a strategy that encourages or allows it and they are based in any reasonable country then it will eventually catch up to the staff or even owners. Money launderers are much more likely to be hanging around the plentiful mixer operations that exist out there, because that is their very purpose - however else they try to disguise their "service"

That is also possible, however, there might be some few casinos out there who only had that kind of department who seeks justice themselves and commence their own investigation before flagging the authorities. The other case is that they won't exhaust some of their resources for that reason as it will be an expensive move for them and because they knew that it's the duties of the authorities and they are indeed getting paid for that particular role. Just my thought tho.

But on a serious note should every huge transaction be termed for money laundering, this is just a common mentality that when it has to do with huge amount transaction then the AML is involved, is it that easy to scam ànd cart away funds, we have a good number of businessmen making their cool money without being dependent on any bank, exchange or government to save keep their money, they turn the money into assets they can easily convert into money when necessary.


And despite all the KYC and AML investigations were they able to still find out the source to their money? they will rather ended up being bribed and die down the case at the long run, am not against the government agency for performing their role but are they actually accurate with their precision on money laundering?

If that's happen, most of KYC free casino will terminated his account since there's no rules to ask his KYC to get his personal information. They don't have a rules about multi accounts, they don't have a rules about VPN, so they're really free to accept any gambler who want to play on their casino. If the representative ask the gamblers of his 100 BTC, it would be stupid for them since there's no fraudster who admit if he's a fraudster.

But of course there's will be a suspicious activity that can distinguish between an innocent gambler and a fraudster.

That's true but almost every player out there wants to play on a KYC-free casino. These KYC-free casino would become a target for them money launderers.

If a person comes to " KYC-free casino x" with 100 btc, what should the owner of that casino do? Seize the money? Report the guy to the FBI? Deny service? Or just ignore him?

This is a pretty delicate matter. A person with 100btc very well may be a clean dude.

KYC can prevent money laundering cases, but money launderers are smart enough to move their funds from one place to another and know how much money they can spend in one place. Of course, they are so experienced in money laundering that it can make it difficult for casinos and other places of business to trace the source of that person's funds.

If there are customers who often play at the casino and spend very large sums of money and have a close relationship with the casino owner, it will make it easier for them to launder their money there because the casino owner will not suspect them.

As almost every casino has KYC system where kyc is required when someone invests huge money or wins huge amount.  In that case I don't think a crypto casino can be a big cause of money laundering.  Because if someone is doing money laundering there then his identity will be revealed due to KYC so I don't think anyone will choose crypto casino as a money laundering route.

I'm sure it won't work, because the way it works and the logic isn't as simple as you say.
imagine if the amount of money is 1000 times what you say, how long will it take to withdraw it. you can also apply it on some crypto exchanges, if the funds are suspected to be suspicious, then what will happen is that your account will be temporarily frozen.

Money laundering is not something foreign to all of us, there are many cases of money laundering involving large funds.
I'm not sure that online casinos are an option for money laundering, but if land-based casinos are possible, it can happen. and even then on the condition that it will involve many important people to smooth the disbursement.
Basically every online casino or exchange has procedures and regulations that deal with something that goes wrong like one of the examples we are discussing in this thread.

believe me, money laundering is not as easy as we discuss here. because it is an act that is strictly prohibited, contains great risks and criminal sanctions that will await, risking a reputation that has been pioneered.

That's correct. Casinos doesn't really care about that money laundering or if their platform is used for the same reason, it is the authorities who implented the law and put pressures to the casinos to enforce KYC. It is their own way to track the casino's clients and to know if they are laundering some money by using the platform. These casinos are just forced to do so because their license is on the line, that is what I think.

small transactions like 100$ hardly lead to the casino asking for KYC, the criminal money launderers make big deposits because they don't have time to wait too long to launder the dirty money. probably criminals make deposits of something like 20 btc and then make a lot of bets and then lose or win and withdraw everything from the casino and repeat the same process again, and in this sense that casinos start paying attention to the person who made a deposit of 20 BTC and what is his behavior in the game, if he would be betting randomly because he doesn't mind losing or winning and then withdrawing to make it look like the money he has comes from the casino, the casino team takes all of that into consideration. it's just that in this process there are many casinos that are reporting abuse, they close people's accounts because they saw suspicious activity but don't give details of what suspicious activities they are talking about


but creating an online casino is something difficult and how would the criminal manage to manage the online casino? And if he doesn't have customers, how would he launder money? would justify what if his casino has no customers? as crazy as it sounds, criminals send money to third-party sites, because it's rare cases where they ask for KYC

Blockchain documents everything by default. And regardless of whether the casino knows the client and how important he is to them, if he uses dirty money, they will be blocked, and information from transactions will go to the police. Do you think casino owners are so stupid to risk all their business (and maybe even freedom) for someone to use the "loopholes" in their casino? I am sure that no owner will take such risks, only if the casino was originally created for money laundering, then maybe.

I am not really experienced when it comes to money laundering, but I know it's a big issue in some countries and it gives a bad feeling to the online gambling industry. That's why it's good if casinos want to be more save and include KYC on their website. With it they are not only protecting themselves but also making seem gambling more trustworthy. Of course KYC is not going to get rid of money laundering, there are too many ways around it. Like you said people will just pay someone else to open an account for them and use their name. I would expect that all the criminals with large amounts are using other people and identities to launder their money. Once you get enough money you want the freedom to use it, having a clean name without any limitations is the main goal. For a casino to prevent that it's very hard. The other way through bribery seems easier preventable. Communications online are so easy to save, even when done through messenger apps. And it's not only the communications that can be found also large sums of money being transferred to employees of the casinos will be a red flag. Once a big bribe scandal comes out the brand name of the casino will be ruined and it becomes very difficult for a casino to not lose all it customers quickly.

That is the case almost every day in the world where corruption after the pandemic and the war going on is on the rise.Luckily this won't happen in huge trusted online casinos as they make huge amount of money by the gamblers who happen to be whales and who are gambling huge amounts there.These very gamblers are subject to declare their funds where do they come from in the beginning as per the terms and conditions of a lot of trusted casinos online.Certain casinos have even a clause that says that if you are unable to verify your source of the funds we may as well keep them frozen until you do.This is in place to stop any cheater,scammer or money launderer to refrain from using casinos to launder their money.

I think some police are also corrupt so even if we say they caught a money launderer, those police can demand them a good amount of money for them to be released in the cell or they won't be arrested at all. Indeed that the world we are living is not perfect but at least not all are like that. We are thankful that some of them chooses to be good and choose their dignity.

In terms of online casino, I think the ones that will do that are the casinos which are not trusted but casinos that are the top are already earning huge so they won't receive bribes anymore only to allow criminals to launder money on their platform because they are afraid that someone will know this negotiation or the criminals themselves are the ones who will expose them.

This has a probability to happen. If someone is determined to launder money, he will definitely find a way to do so. After all, if they initially have the money to launder, they sure have other resources to find their way out such as paying someone or bribing the platform itself.

Assuming a person is rich enough to launder money and has the power, laundering money will be an easy task. Avoiding taxes is one of the reasons why they do it. Another thing would be non-declaration of money source. Using another identity to put up an account for your funds could be an option. Just like you said, they can easily hire someone to open up an account for them and place all the money there without other people they know of, being suspectful of them. They can also make a ghost account using other people's identity by infiltrating the system or bribing the people working there to manipulate or make an account readily available for them. There are really so many ways to launder money in different platforms if you just have enough means. Which is why the security should be tightened, in general, to determine these kinds of illegal activities. KYC is one thing, and they should probably add other security measures to ensure that the casino is safe and is not tolerating fraudsters. This will be a minus points for those who don't like KYC, but it's becoming more and more needed these days which is why I can't really blame the government for regulation since there are many unusual activities happening in some platforms involving finances.

Actually there is another thing that makes it difficult to do money laundering at the casino, there is wager requirements, casinos are not like exchanges where after making a deposit without doing any activity you can make a withdrawal, there are obligations that players must fulfill before making withdrawals and when players fulfill these obligations there are two things that can be obtained make the funds increase or decrease even to zero because they lose.
If the Casino has required KYC regardless of the withdrawal then KYC will still be applied even if it is a small value unless it is the first withdrawal but most casinos do not require KYC unless there is something suspicious