Topic: Money laundering in crypto casino - page 2. (Read 1459 times)

When we do speak about money laundering then it could be done via small amounts but it will be that obvious and these businesses arent that dumb that they wont be able to notice it out. They will really be accepting deposits as much as they could and when it comes to money laundering then they are really that regulated and if ever they've notice something shady deposits then this is the time that they will really be applying some KYC. It would be that so dumb for these money launderers on making use of casino sites to be their gateway on laundering money on which we do know that these terms and conditions or deposit terms will really be that not easy for them to get out.This is why it will really be that unlikely that they will be using up this method and there are some various ways or methods on which they can be able to launder money and they wont be doing such thing because its suicide once they will be locked up.

I hope you will agree that not always casinos implement KYC for gamblers who deposit, bet and withdraw large amounts. I recently took a look on my gambling history on one of casinos that I play. During several years, in total more than $10k equivalent in crypto was deposited. Huge amount wagered. Constantly bonuses are wins are withdrawn. And I only got my email verified. What I am saying that what stop criminals from having hundreds of account and laundering small amounts?

No, reputable and popular casinos will make money laundering prohibited crime and they will even continue to monitor any suspicious activity involving large of money entering customer accounts, on the other hand, money laundering involvement is mostly not done by the casino but by customers who do use gambling as place to eliminate traces of the source of the money used.
That is why every gambling site implements KYC system for customers, especially for those who use large amounts of money for deposits or withdrawals, all of this is done because gambling sites do not want to get into trouble when there are customers who commit money laundering crimes because it will be very risky and can even result in the closure of the gambling site itself when there is certain involvement.

If we do try to look out on how these things works about money laundering then gambling platforms are really that also included because it will be that possible that these platforms could passed through laundered money on which simply means that the government will be setting out some prohibitions too about money laundering and this one isnt surprising. Focusing into casino then we do see that people who do tend to launder money then it doesnt come easy because at the time that they will be making up some deposits then they will be needing up to wager it 2x of the deposit amount on which simply means that if there's someone who do tend to launder then high chances that they would be losing it all at the time they do gamble because of that wager requirement before you can go out or withdraw.

If we do tend to compare it out with mixers then we have seen on how these things been banned and being seized out on which those are solely places that you can mix up your coins for total anonymity. Somehow there are still some mixers that are running today but sooner or later these places will really be taken down and this is something that normal and we've seen on how many mixers had been taken down. Therefore, we cant be able to assure these platforms will really be continuing to run overtime.

The thing is, what will happen when crypto casinos' yes-KYC flag is 100%? We will actually be talking about anonymous in the case of using bitcoin as the basic premise of the genesis of crypto casinos.(!?)

That's the thing, today there is still a small percentage of casinos that do not offer KYC, but if they discover that your money comes from dark funds, they freeze your account. It is the idea of ​​crypto casinos in their premise to allow playing without KYC but to real players.

That was great but more than 90% of the casinos I know have only limited themselves to following the AML rules with everyone, since KYC should really only be data provided without verification unless the situation warrants it.

Anyway, unfortunately, many casinos in the niche take advantage of this measure to freeze withdrawals, accounts, etc.  Sometimes just because...

I would like to know who would be the last standing crypto Casino where KYC does not exist...here in our forum there are several that operate within the norm, and only require KYC when it is really warranted.

It still remains as one of the favorite ways of criminals to launder money and that is why the massive KYC campaigns during January for many casinos, the regulators want to know who is in posses of such great wealth in cryptocurrencies. This will limit somewhat but it will not stop the phenomena of money laundering, most likely criminals will find other ways through casinos again to launder money. That is a well known fact and it won't change, most people though who play in casinos are regular people and very few use the casinos for such fact. The KYC can heavily stop some of that from happening but as I said money laundering is a thing all over the world and is not going to stop as long as high level profile members of governments will continue to be involved in it. Anyway for us mere mortals we don't deal with such risky activities, only bold people do that and they know very well what waits them when they go bust.

I believe I have said several times before about the chance for people to use casino as mixer, and today I'll say it again that those who try to use casino as mixer are dumb people.
We all know that most casinos has wagering requirement on deposit starting from 1x to 5x (the biggest one I've seen), so if they deposit their big amount of money on casino they need to wager it at least 1x which means that there is a chance for them to lose some of the money or even lose it all.
Aside the fact about wagering requirement, money laundering will also raise a flag on the security system of the casino, high likely the casino will ask for many verification when the user request a withdrawal.
With this fact, I dont think people will use casino to launder their money unless they are dumb or unless they are also gamblers.

Crypto casinos are absolutely different from mixers and if government is trying their possible best to ensure that mixers are no more in existence, then I don't think that same struggles will come down to casinos. People that are into money laundry knows how to go about it and till now, we still have so many mixers that are still in operation. Casinos have their own Anti money Laundry policies which is guiding them from fraudulent activities from their customers. If a casino noticed that you are currently funding your account with huge sum of amount, and then trying to move the money without playing any bet or trying to wanger less bets while the other money is being forwarded, then that could be a suspicious attempt which many casinos will freeze the account and ask for KYC.

If they are operating legit, they would take a look for big depositors on their casino especially for licensed ones. But if the player is just using small funds, they won't flag down him for money laundering. Usually, they will notice if the player is depositing big funds, winning high amount or withdrawing big amount of money. But if you are just a small time roller, they won't notice you.


Some will try to launder their money thru crypto casinos but if they will start depositing big amount one after another, it will surely create a flag and the casino will investigate more of the account. Hence, they may do this without a problem in the first few tries, but in the succeeding attempts of getting in and out of big money, they may face trouble on the site.

Are casinos really interested in money laundering? They earn anyway from regular gamblers. If I was the casino owner, I would not risk my reputation in exchange for % for money laundering. I am not quite sure that casinos are also involved into income legalization schemes today as they used to do in the past. If casinos were really up to money so much, they would cheat users instead.

By decentralized mixers you mean tornado cash? The other mixers are pretty centralized. As for money laundering, it is not only laundering dirty money but legalization of income. And I see no reason why a casino is a bad way to do this. For example, in one casino you bet on one outcome and in another on the opposite, so in one of the casinos you will have a win, with which you can then explain the origin of the funds.

Mixers are not legal business, gambling casinos is, I don't see any reason to compare this two, before our very eyes, we witnessed the government take over and shut down mixers that become too popular and perceived as a den for money launders, while no such fate have ever befallen any casino here, atleast, non I can remember right now.

So, even if mixers wanted to introduce kyc as a way to discourage money launders, they cant because they do not have the license of or permission to obtain and keep users personal data, casinos on the other hand gain this permission immediately they obtain a license allowing them to legally operate withing a country or even abroad.

Actually, you would be surprised how easily it is for criminals to buy the identity of others, in order to launder money.
In developing countries there are thousands of people willing to open accounts on casinos and submit their personal information in exchange of some bucks from criminals, basically they sell their identity for 100$ or less.
Not long ago, there was a campaign going on Binance in the staff of Binance warning people not to accept offers from strangers to verify accounts using the victim's personal information, in exchange of USDT. It is obviously an scheme done by money launderers to make more difficult the work of authorities on catching them.

So you may believe KYC is effective, and it is to some extent, but it is not the panacea when comes to fully stopping money laundering on the internet.

Mixers were purely decentralized and there was no KYC or AMLCs in mixers and you only insert your receiving address amd send the coins to the mixer address and that is all. But in crypto casinos, you have to verify the account with KYC so it is not easy for the money launders to use crypto casinos to launder funds.
Oh yes they were about to use it but when casinos owners discovered it, they started asking for KYC. So it is hard for them now.

But again and on that other hand, kyc was not introduced as a means to fight money laundering alone, there are other things casinos use kyc to prevent, most especially around the casino itself. This is true if we consider that today or this days, kyc is no longer meant for the high rollers alone, a regular gambler betting $10 $20 on games or even lower can be required to pass kyc verification for what ever reason, some casinos even say that they suspect the player for cheating, and as to pass kyc verification as a way to to assure the casino that the gambler is not a cheater.

I can actually say that this days, kyc verification works more for the casino than it does for the regulators fighting money laundry and other financial crimes.

If regulators are effective at doing their job, issues like this wouldn’t happen. Casinos would be required to register the addresses they’re using, and regulators could verify transactions to ensure none are coming from suspected money launderers without being reported by the casino.

That kind of offense is extremely serious, and no casino would risk it. Regulators have the power to shut down a casino with a single command, so operators wouldn’t dare mess up or ignore compliance requirements.

In places where gambling is legal, there are usually policies by the government to guide the casinos in that regards but the challenge has always been with some casinos trying to be smart about it because at some point they do benefit from the money launders and that has been why the casinos sometimes takes the blame when such happens because they may be aware but literally did almost not or tried to cover it up without handling it accordingly as prescribed by the government policies which was supposed to guide them in that regards.

Well to be honest I think it is very difficult now for them to launder money through crypto, and whoever does it must be very novice, governments and drug traffickers launder money in another way, to tell the truth in a very shameless way, I know this because I live in an extremely corrupt country and next to a country where this same thing is handled with the government and where there is drug production like rice, so casinos are not a good deed, I wouldn't say anything if 10 years ago they were, because KYC didn't exist, the only way to do it is if the casino owner consents to it, otherwise I don't think so, very difficult.

Very simple, casinos just need to coordinate with the AMLC, and I'm sure we are familiar with KYC, that's the Casinos systems in place to help prevent money laundering, and the KYC process is a big part of that. So if you’re a gambler who likes to bet big, the system will flag your activity, and you’ll be required to comply with KYC. However, if you’re just an average gambler betting $100 or less, KYC isn’t usually necessary as no one would try to launder such a small amount.

It’s the government agency that established the AMLC, so regulated casinos are required to comply with the mandates set by their regulators. Actually, it’s a systematic process, so it’s not too complicated for the casinos.

In fact, casinos don’t need to dig too deep themselves. As long as they comply with the AMLC’s requirements, they just report suspicious activities. If the council flags a specific address or account, the casino can simply freeze the account, and AMLC will handle the investigation from there.