Topic: Where Will It Go If The Money Comes From Illegal Source (Read 623 times)

Casinos won't interfair in your personal matter like source of income, legal or illegal until you won the big amount or you put the big amount in games. When you have a lot of money, casinos afraid of paying you if you are going to stake big amount or already won big amount. And i think, that's why they apply this trick, so that they don't need to pay you instant and Start asking your documents and makes the situation difficult. Its okey if you can prove your fund as legal but if illegal then they'll freeze your account and give you a fix time to prove and claim the ownership. Until that, they keep that fund to them temporary. But If you fail then they'll Report this to the authorities and transfer all fund. Otherwise their license will be cancelled and they'll be banned. That's why its better to go for Decentralized one which are becoming popular nowadays.

It would really be that situational because if those funds wont really be find out or be known that it did came from illegal source then for sure they would really be keeping it,
but if its possible that it could be traced up by the governing bodies or authorities then there's no doubt that they would really be surrendering those funds rather than on making their
business to be at risks on which it would really be just that a normal approach that you would really be needing up to consider because gambling business is really that something good for long
term and it wont really be that worth if they would be keeping those illegal funds because they do know the risks once they do get caught then its over for their business or would
be that penalized.

This is a gray area where there are no exact answers and there will be different answers from country to country (jurisdiction to jurisdiction) and from casino to casino.
With fiat everything is quite transparent - in non-cash form it is inseparable from the financial system and if you deposited dirty money into a casino, they cannot appropriate it or launder it. Cryptocurrency is another matter - it is not part of the fiat system and exists on its own, so the casino may try to appropriate these funds under the pretext of “holding” them for law enforcement agencies. But in fairness, it is worth recognizing that in the case of dirty fiat, the casino may send it back or not accept it at all, but with cryptocurrency there is no such option + it is far from a fact that the sender retains access to the sending address, so the returning transaction may simply destroy (block forever) the funds .

Which government? I'll give you a typical situation that happens all the time.

The casino owner is from counytry A.
The casino is registered in country B and it gets its license from there.
The player is from country C.
The person whose money was stolen is from country D.
Often the person who lost the money lost it on an exchange or platform registered in country E and that's where the theft occured.

Who should get the money?

Without a doubt the casinos that have a good reputation are not going to risk it just to gain a few dollars here and there, and as such they have the biggest incentive to send that money to the authorities and then they can decide what it is to be done with the money, but there are many casinos out there which may consider keeping that money for themselves, after all it is not as if casinos owners have any obligation towards their clients to be completely open to them when it comes to their finances, so they may take advantage of this loophole to keep those funds.

Since we have both good and bad casino, we should not be surprised that many of the funds that are seized from gamblers as a result of so many reasons are been achieved by the casino and many of these funds do not go to the government. The funds are not being accountable to the government and that is what has been happening for a long time now. I know some casino that have seized gamblers funds that are more a million dollars and the government are not aware or given the funds. We just have to keep using reputable casinos that would always help us to retrieve our funds anytime we have issues.

Normally such money should go to the government but I've never heard of such happening before when a casino returns money back to the government and j think that should be the right thing to do, but I don't think there are acting based on or working with government agents but rather anyone who defaults the law they trace I and lawfully retain the money but they don't submit it to the government.

I think the government will definitely take the money away from the casino because the casino is regulated by law which is the reason for the rule in the first place, ordinary casino will not give a dem about where the money is coming from, so for sure because of licensing demands that is why there is such rule in the first place, so when the account is blocked because of illegal source of funds, the account and money get reported to the government to take it up from there.

Obviously, the money is going back to the casino it is legal for them to keep it. I know it might sound selfish but the instruction on the privacy and policy or should i say terms and conditions were for users to avoid any trace of illegal activity happening in the platform. And if users failed to comply with them then they will lose their funds while the account will be closed.

Although these days i rarely see a situation where casinos block an account because since the adoption of KYC. It is being easy to access user's database to search any form of criminal record before approving the user.

Casino's are bound by the policies of the government on illegal funds. If a casino demands KYC and they find an amount of money to be illegal they will promptly return it back to the government because they know that holding that amount of money or trying to use it to do business can put them into problems in the future that may threaten their business completely.  Online casinos are now excluded because the laws that are binding to physical casinos are also binding to casinos that run online.

In playing at a casino, it is always quite essential that one ensures the casino has clear and fair policies on verification and depositing of funds. Many reputable online casinos have Know Your Customer (KYC) procedures that are intended to curb money laundering and other illegal activities but these should be implemented in a way that does not hurt honest players.

As a player, you must also be ready to comply with such verification requirements by submitting the required documents which may include proof of identity plus proof of address and sometimes even proof of source of funds. Being aware of this policy from the casino beforehand can prevent any unpleasant surprises for you.

Another important consideration would be to go through reviews and feedback from other players before selecting a casino. Positive reviews are a hallmark of reputable casinos that talk about smooth verification and withdrawal processes. If you ever encounter any issues, opting for a casino with proactive customer support can go a long way in assisting you.

In my country there are many apps that are fake, and that become scams, because basically what they can do is that they distribute the money between users and those users then deposit it to a USDT or any crypto account and from there they legalize it , and at that time is when the apps that are scams stop working for people, then that is the way to launder money for some apps that are scams or the so-called robots that are very fashionable, so this is how they They manage to legalize money that may be dirty or illegal, one of the platforms I am talking about is how those that are in some countries and are called TopFilm Global, BTR, Solesbot, are platforms that will be totally scam.

It don't have to be land based casino to comply with the regulation, if digital business can evade from regulation, SBF won't going to jail since FTX is just an online exchange. Sites that support or are illegal niches sometime get questioned by the web hosting, if you can't meet all of their request, they can shutdown your sites.

Well, there's a possibility they can use that money to add their bankroll because all the transactions are off-chain, just like SBF use his customers' money for investment.

If is not asking what you will do to the seize money but rather he is asking for an open discussion about what will casino do from the money that seize due to illegal sources in which have different answer depending on how the casino management deal with this kind of money.

Normally, it should be reported to Anti money laundering authority so that this money will not cause them a trouble once the authority tracked the money of the illegal source. But I’m not sure if online casino practice this since they don’t have any physical casino while they operate internationally.

Maybe some of this illegal money will go back to their bankroll then just send to authorities when asked for it.

In my own opinion, I will keep the money because to have money now is very hard, so anyway the money comes from, I will keep and use it to give to the less privilege or to those I know that needs helps and our government or none of the authorities are helping, I will give to them, I will just make sure I spend the money wisely but not to myself alone, I will make sure others also benefit from it too, I can't take the money to the authorities because they will also take half or might even share it among themselves meanwhile they don't know how the money was gotten from, maybe illegally or legally, they don't care and you want me to give to them, I can't.

That's true. And due to that reason, it is important to get ready to handle such issues if it happen to you in future and it need to clear from yourself while you are going to deposit a lot of fund in casinos. But I really don't support the fact how casinos keep your money to them when you are fail to prove your source of income or give them the data they asked for. I don't know if there are such kind of rules and regulations given by government or not. But casinos does that and there are many cases already come to light. That's why Its better to join these or select them whom allow you to play without trouble

The money will go to authority account because if they keep such illegal money in their account, and the gambler that use the money went to court to sue the casino, it will make the casino owner to lose big money for the case in court.

The money will not be use by the casino owner, and even though they want to use such illegal money, they will think the consequences that will involve when the authority find out that they kept such money without informing them to take action.

But why must gamblers use illegal money to gamble, when they know that is fully stated in their terms and conditions in the casino, and if any gambler fall victim to such act it will be report to the authority to take legal action.

But assuming they kept that amount for themselves, how can you know this was the case? Obviously that would be incorrect and even illegal, but you will have no way to know this is what they did, after all in all the TOS I have read I do not remember ever seeing this even mentioned once, so it is likely many casino owners may see in those confiscated coins as yet another way to get money from their customers, and even if they eventually gave that money to the authorities, those coins may be used for other purposes during that time and allow them to earn extra cash this way.

Everything is really that stated on their terms and conditions but there might be instances that not everything being disclosed such as this kind of
situation about keeping those confiscated or waived illegal money and since this is really that based up with those regulations that had been set
then it would be likely that they would be needing up to report those incident about getting an illegal amount, unless if they would be deciding on keeping it for themselves then
it could possibly happen too. It is really just that hard to believe that they will be doing it considering that there would be complaints about such as this scenario.
If ever they do get caught on keeping those illegal funds then we do know on whats next.

As of now, we haven't heard any story of that sort here. At least coming from the forum gamblers. I believe such situation rarely happens because most casinos don't trigger the investigation unless, there is a complaint and the authorities start digging the account of the suspected person. That's when they will be obliged to submit the info of their player. Otherwise, they won't initiate giving it to authorities.

If the government keeps the money you stole from the rich people, does it count as money laundering? or does it count as crime evidence?

The same thing applies here. The fact of the matter is, at least for most fiat casinos, a lot of them wouldn't screen you or ask where your money has went, up to a certain threshold at least, in some casinos it's 10k bucks, but soon as you go over that amount, the casino is legally allowed to background check your ass, and ask you where you got the money, one wrong answer and you're looking at jail time.

As in the case for the money, most casinos who found their users guilty of money laundering are definitely able to confiscate their money against the perpetrator's will, but at the same time it's not like they are allowed to spend it either without court jurisdiction, since that came from crime they are obliged by the law to keep the money as is, with no tampering, as it will be used as part of investigation.

So there's your answer, they get to hostage your money but they don't get to spend it, at the very least.

You are talking about fiat money and duly licensed casinos or you're talking about cryptos and offshore casinos? If you are talking about cryptos, have you eventually some examples of such cases to share with us?  Because this is the first time I've heard of that to be honest. People shouldn't be naive, casinos report such cases only if they are really serious and there are solid proofs about laundering or criminal activities from the suspected accounts. They keep the funds of the accounts for them otherwise.

Maybe that's right but maybe they also don't reports to the authority if they knows where the funds comes from. They will keeps that for themselves and use it for their own benefits. We don't know and not sure about that unless we asks that to the casino owner so they will gives the right answers. Besides that, even if they found the suspicious funds, they will not tells public and maybe will only tells to the authority about what they got. But if casino obey the rules, they will tells the authority about money laundry happens to their place, and that will makes the authority investigate the source of the funds and with the helps from casino, they can catch those who use casino for money laundry. Maybe if that case is finish, the authority will makes clarifications to public and explain what's they got.

the reason they confiscated the money was because of anti-money laundering regulations, so it's not them who will confiscate the money, but the regulator. because actually the casino doesn't care about where the user's money comes from, because what they need is for users to play on their platform, and that's all, they don't want to know where the money comes from. however, they need to know the source of the money because they are bound by regulations, so inevitably they will ask gamblers about it to comply with regulations, and when there is something wrong with it they will report it to the regulator.

This is what I thought of it as well but for sure not all providers would do the same thing; some will keep it and use it for personal purposes; let's be real. It would be hard for us to traack on the actual process. Eitherway, it would be a hard time if you're one to be suspected of such thing because funds will be held and that your access into gambling sites as well if one is connected with the other. I've never known instaance wherein such thing actually happened.This is what I am concerned of. The idea of them just owning the money which got restricted, is totally unfair. Make it a habit to read the Tos of platforms you are making transactions with. Also, the negative tendency of not being able to defend oneself's betting account and prove legitimacy of the funds.

I do not fully understand your question however if you are asking if the money suspected to be laundered through their casino and an investigation is done and it is discovered that it is indeed laundered money, in this case the authorities would seize the money. That is you have forfeited them. Secondly if there is need to have you arrested your IP address can easily be traced and if they need to bring  you in through international corporations with local security forces for prosecution, they will.

The casinos could have their way of determining on that but also I think from what you said  both the casinos and the authority can issue the call for investigation. Am convinced that for a casino to be under the regulation of the authority then the authority could make an audit to it's accounts on the movements of money in and out, and certain accounts out of suspicion could be called out for immediately KYC and investigation if there are irregularities to the documents presented by the account owner's. But be it as it may, there is every tendency that all confiscated money by the casino must go to the authority.

Well I just fell like they don’t even give the legal authority the money, unless a report was is made on the account and a trace that the money is stolen so I’m not not sure they are going to give it out unless this is done, must casino that does this I just fell like they do it on their own and keep the money to them self, but how do they know if I may ask? It must be a report so they will definitely return the money if it is a report

Ok, from the previous answers I understood that the money is "handed over to the authorities", but I'm in doubt as to whether this really is the right thing to do.
I say this because the money earned from betting mostly does not belong to the player, but rather to the casino (the player won the bets against the casino).
In this case, why does the casino need to hand over your money to the authorities? It would be correct if only the initial balance that this player deposited was delivered, but not what he won with his bets.
In the "worst case scenario", this money should be returned to other players/casino customers, whether in the form of a free spin, bonuses or even a direct deposit into their accounts. Because when one player wins, others certainly lose and that's where the money comes from.

In any case, I think this is a difficult question to answer with accuracy or certainty.

I do believe many legally operating casinos are regulated and as such users data gotten from their KYC verification is a necessary listing for the regulatory agency to have and scrutinize and if a casino is found wanting for helping Its customers or users launder cash, the penalty many at times can result in the closure or payment of huge fine and imprisonment.

Most of the funds some casinos operate with is often an investment from big cartel bosses and other major players that may have dabbled in shady deals before they come into such wealth, still, I doubt many gamblers who visit such casinos to gamble have pure sources of income even if they do fulfil the KYC requirements.

Illegal sources or not, if a player is caught using illegal funds, such person can either be handed over to the FEDS and or the funds can be seized by the casino pending a proof of ownership I believe, before it can be released.

I don’t think that the casino will keep the money. The only reason why they block the account is because they are asked to do so, and that’s coming from the government (likely to monitor money laundering). So if it even happens, they should be handing the money to the authorities as you have heard.

From what i read on scam sccusations board at least those updated topics some casino don't return the funds confiscated. I don't know if they will keep it as there own or they will turn over it to the authority (whatever country it is).
Returning the funds is very rare case to happen. This is the same thing to whatever violitions the user did, well, some casino do return the funds but not those laundered money.

It's probably because they've got list of those addresses that are involved with bad activities. That's one way that I can think of and how they're going to trace those users that don't want to pass on kyc and they're involved with illegal activities or their funds not knowingly came from it. Not all that doesn't want to go kyc are related to illegal activities, of course we don't like it and we're protecting our privacy.
But for those gamblers that have decent funds on the casino and they're asked to do that, we'd feel obliged to comply because our funds will get stuck and we can't do anything about it. What we think of is we don't do anything wrong and we've got no connections over those funds that came from dirty things so, we comply and prove and pass on with that KYC just for the sake of the remaining funds that we have.
And eventually, we're totally okay now and then to pass on it because we feel guilty that we did even passed to a casino or any exchange and then the next time we'd be asked, that's not going to be questionable anymore and you'd just comply lightly without having any complains.

If it's on their terms and conditions, then it's legal if the casino keep the money if it comes from an illegal source, however I don't think it's right if the casino does this deliberately, especially when gamblers hit nice prizes on the games provided by the platform. This rule should be only taken into consideration in very rare situations where the source of the gambler's funds is blatantly from illegal sources, such as the ones connected to criminal organizations and theft. Then I would say it's right that the casino returns the money to authorities.

But if that is not the case, I see no reason why casinos should be requesting every average gamblers to provide their income sources in order to play or cashout funds from the platforms. It just mean extra bureaucracy and inconvenience for the players who might feel annoyed and tempted to leave the platform for this reason, going to another websites where they can have a simpler and more enjoyable experience.

That's why KYC is importsnt and it is really needed in order tk avoid this kind of scheme where money laundering and many other crimes related to money can be done, that's why I dont get it when a gambler is oppose to the compliance of KYC because we know what is the purpose of KYC it can be served as the security for both the platform and customer, and the platform has the right to lock the account and to lock its funds if the accusation is proven, that's why I'm not against KYC because its either we comply or not and if not then you cant use that platform, there are some platforms that dont require KYC but think again will you not let your funds be safe in case a casino will lock it for no reason? And also have some suspicion because KYC serves as security, and if a platform doesn't have that, then expect that the platform is suspicious.

KYC can be use to trace and identify any customer because personal details and information are included but, I have this thought if the customer didn’t submit KYC at first cause most casino hardly require for Personal information and when such user account get ban, how can the authorities identify the user and the illegal money used for gambling. It’s very difficult without KYC or rather let’s assume the customer submitted every information the casino needed before accessing the site, let’s be realistic during all this process the casino can smell something fishy about the customer in question even before depositing money into the casino. If the casino should keep the money I will call that selfishness cause they don’t want an illegal money so what’s the point keeping the money when the user is already banned, I don’t know how casino run their choice within but, it’s obvious they can’t keep the money.

Depending on the severity of the case when that money confirmed from money laundering then the authority of the law requires them to keep that money temporarily. The casino itself has no opinion but to hold that amount of money at their custody just for investigative purposes.
Money laundering is rampant, particular with drug cartels around the world, and I believed it's really uncomfortable which other illegal activities used gambling as their front image just to hide themselves.

I think it's the casino that has a way of determining of possible money laundering. Then they will coordinate to the authorities for the investigation and any other process that needs to be taken. The authorities will also While the casino will request for more documents such as the source of the money, etc. which needed to confirm if the money is from illegal or not.

If am to base my opinion on money laundering, we would understand that it follows a part and that means, it gets to return to the criminal for his or her use. The casino having to hold this money breaks the process but, where does the money go afterwards raises some concerns. This is an illegal money and a casino having to hold back this money doesn’t make it any illegal. The money ought to be returned to the authorities of the gamblers state of origin.

At times there might not be follow ups on the return of these money but, the policy alone serves as a deterrent to those that might want to be involved in the practice of money laundering. Another policy that plays to this policy is that, you get to use 100% of the deposit in most cases to bet and on an odd that amounts to 1.1 at least. Some criminals still attempt it but, it does serve its purpose to some extent.

In my opinion, the casinos keep the money in most cases, this is because in most cases when people deposit a lot of money and there is no way to prove the source of the money, no government is persecuting that person, no government has given instructions to the casinos to retain funds from person with all the money for himself. We can't pretend that we haven't seen many such cases happening at some point. as cryptocurrencies are something very volatile, there are many people who bought a lot of cryptocurrencies 10 years ago for example

that today the value of the cryptocurrencies they bought 10 years ago are worth a lot, for example, a person who bought bitcoin for the price of $100 and bought 10 btc, today that person has more than $600,000. so that person deposits $50,000 in a casino and the casino asks him for proof of funds, how will that person explain and prove the proof of funds? The casino soon rushes to accuse this person of money laundering in order to keep that person's money, the saddest part is that most people believe the casino's arguments

We as gamblers must comply with all the terms and conditions imposed by the casinos we visit. Because if we violate the terms and conditions that have been regulated, there will be consequences or sanctions that we have to accept, including freezing our account or having the amount of money we previously won in gambling withheld. Therefore, it is very important to understand the provisions and comply with all the terms and conditions that have been imposed by the casino, because no matter how this is done, it is only for our own good, for the sake of safety when gambling or carrying out a transaction.

However, there are some cases where a person may feel like betting anonymously. and this can be risky and illegal depending on the jurisdiction you live in, or the gambling site you visit. Betting anonymously or undercover may violate the law and have potentially serious legal consequences.

 
In this situation, the top priority is to always follow the law and avoid any unlawful practices. Even though KYC verification might prove troublesome to a few, it stands as a crucial measure in upholding the honesty and security of online gaming forums, shielding players from the snares of money laundering malpractices and other illicit activities. This is an issue on which online gamblers are commonly split into two opposing camps.

The decision of whether the casino is legally allowed to withhold money from you is based on the laws and regulations of their jurisdiction, as many casinos are obligated to report suspicious activities to the authorities. In some situations, they should also transfer money received illegally, so the casino can have a right not only to withhold but also to confiscate your funds. If any serious violation of rules or conditions is found (such as use of sources which are prohibited by law), then they may retain some or all money belonging to you.

Yet it must be borne in mind that every case depends on its own individual facts and circumstances, and the laws governing this aspect might differ from one jurisdiction to another. When faced with a scenario where your account is frozen by the casino holding your funds, seek proper legal advice from a competent attorney best suited for your case.

In the law, these are 2 related cases but cannot be made into 1 case.
If someone (lets call him Bob) receives or buys illegal crypto without realizing it, then Bob uses it to deposit into a casino and the casino confiscates the coin for AML reasons.
The casino will never return the coin and they are legally entitled to do so. They will only report about the money to the authority and thats it.

What Bob can do is to report and sue the person who gave/sold the coin, the casino cannot report this to the authority because the victim had to make the report himself.

You are right, I actually thought the same as well. Casinos cannot just wake up one morning and lock up the accounts of their customers; before that happens, there must have been a suspicion somewhere (there's a quote that says, there is no fire without smoke), which can only let them place restrictions on the customers  accounts.That is the reason why, sometimes before a casino can even restrict an account because of a money laundering case, the customer might have already laundered a lot of money through that account on frequent occasions, and lastly, when they get caught, they mayjust abandon the account, and after the casino gives a period of time, waiting for the customer's response and they are getting no response, the money goes to the authority. 

For regions where casinos are been regulated by the government or there are regulatory bodies in charge that takes care of such, when a casino gets to discover such I think they in the ideal situation they Hans it over to the government because if the regulatory body get to know by investigation then it will be a problem to the casinos too so they probably hand it over to the authorities so as to make sure they are able to maintain credibility but then in cases or places where there are no regulations I don't have a good idea how it's handled but then most likely the casino gets to keep the funds.

Since the launder cannot report to any other person they may aswell have to Forfeit the money to the casino but then I have not really got to know how it's handled in regions without stringent measures of regulation.

The way I see it, the casino needs hard proof that the money is from an illegal source and in such case they have the right to hold it and contact the police, but...

In case of cryptocurrencies it's not that clear. How can you know if the money is clean or not. Let's say you buy bitcoin from someone, or someone pays you for a job. He got that money from an illegal source, like a ponzi scheme or theft, but you cannot check it. You bought it and tried to gamble with it and it got confiscated - why? The ethical way to approach this would be for the police to contact you asking where you got the money from and then going after the guy who sold it to you and taking his money (the money you paid him for cryptocurrency) as a compensation to the victims. They shouldn't take what you legally bought from him because you are also a victim.

Based on my understanding as long as you still not able to comply the required KYC. then your money will be kept onhold until you will successfully submitted all the necessary documents. But this thing, I never experienced something like this scenario before but we all know that the platform is responsible for any actions in accordance on it's TOS.

Isn't it the authority that initiates or makes the call for a suspected account to be investigated for illegality or money laundry?

If it's the authority then it's unarguably that the money during and after investigation will be in the custody of the authority which will now take ownership at the end if investigation shows it's a launderers' account. In as much as the law is concerned in all societies any property gotten through criminal means automatically becomes a property of the state when the offender is found guilty after investigations. So in this case it is going to be so with casinos, the money goes to the authority not the casino, except maybe, there's a certain per cent given out to the casino from the total money based  on MOU between the authority and casino.

If they have proven that your funds come from illegal sources and you are using their platform to launder them, then based on their terms and compliance, the funds will be confiscated. If you have submitted your sensitive information, they will report you to your government for possible prosecution.

Casinos have their way off the track if the fund comes from illegal sources and your action constitutes money laundering, so if your account is clean, you can defend the source of funds by submitting your source of income. Your profession should be equal to the money you use to gamble.

Casinos don't really care where your funds come from as long as you lost it in their platform. They don't actively check for your funds' sources unless they are tipped by the authorities and are 'asked' to take a look at your history, KYC details, and other information that are available to them. After they have 'confirmed' with the authorities that your funds came from questionable (or in this case, illegal) source, they will then freeze your funds and send it to the authorities, after which we won't know what will happen to the money.

Usually, after seized the money, they will just keep it and it is considered a part of the government's fund. Casinos don't have the right to keep it at all - they are just used as an instrument to help the law enforcement track and freeze it while it's within their platform. The best thing they can get from that is a pat on the back from the government.

I don't think they have a reason to research on a users source of funding. If they are to do that then it would be a tiresome process for everyone while completing the kyc process. If this happens, then most Gamblers will just stick to local gambling and it will reduce the rate of online casino gambling. What I think is that after or before the kyc, they ask for ids and so on. This way, when authorities contacts their management and report an illicit activity on a users account they will hand over the users data to the authorities then lock the account. The money remains with them till it's confirmed that the user is involved in illicit activities.

As many have already said, the most logical thing to happen with the money is having it frozen in the account and seized by the casino while authorities validate one is actually using money which comes from illegal activities, though, I must say I have (fortunately) never experienced something as serious or displeasing as having my money frozen because the casino thought I was some random crook on the internet or something similar to it.
Also, I believe it also depends much on the local legislation and the degree of corruption some countries could be going through, whether some casinos with bad influences would be willing to seize funds and not give it to authorities, instead keeping it for their own trunks. That is something I could see happening in countries in Asia and Africa where prosecuting that kind of bad behavior by shady casinos (backed by corrupt politicians) can be very tiring and expensive for the average citizen to try to get their money back.
If we have seen stories on betting operators cheating their gamblers, stuff like that would not surprise me.

A question like this has been raised many times in the past even before the crypto era and only three answers keep winning over and over again. Even the centralised financial systems and services are also applicable in this regard. However, to summarize it and without mincing words, the following three points should be considered as where your money will go in this kind of situation.

1. If your casino is duly registered and regulated, and is sincere with integrity, such money would be disclosed to the authority after a certain duration of time (grace time). This could take months, if not years to give time for you to reclaim the money with legitimate means/proofs. How the casino and the authority will deal with the money now depends on the two of them.

2. Some casinos will do partial revelation. They will reveal some cases and cover the others. And since it is their system we are talking about, it will be easier for them to do so.

3. For the last set, they will try as much as possible to keep the whole money for themselves whether you like it or not, no revelation whatsoever. This is especially if the regulation tying them is very weak.

Regardless of your source of income, when you use a crypto casino site and make a crypto deposit, they will have no ability to know whether your source of income is legal or illegal. But if you don't follow the casino sites rules or try to fool their algorithm or use hacking tools on their site then they can ban your account. Gambling sites should hold an amount of money that you will use to gamble again later and that you have the ability to lose. so in this case, if your account is banned for any reason, it will not cause you any major loss. one should never hold large amounts of money between gambling sites

It is natural that online gambling companies will require KYC to prevent any kind of money laundering and they will take this step to confirm the legitimacy of the funds in your wallet. But i think it's fine not to search for personal information in very small cases. On the other hand it will be considered as the best security because when your fund is considered valid they will ensure your fund is always safe. Even if you violate their terms, you may suffer a lot. So i think key is always better if your mean amount is big. But according to your secret report you can gamble from hide.

If the fund is suspected to have come from an illegal origin, the account will be locked and reported to the authorities. After submitting the proof of source and investigation had been carried out, if it turns out the owner's business is legit, the funds will be unfrozen but if he's into illicit activities, the funds will be handed over to the authorities. Also, if he fails to submit the necessary documents, the funds will be handed over to the authorities.

If the casino is a legit one then they will give send the money to the authorities after deep investigation but if the casino is a shady one then they'll keep it for themselves after banning the account. Let's say if the casino in case is 1xBit then the user should forget about his funds because that shady casino really doesn't care to send the funds to authorities or allow the user to use those funds once again.

This shit is a conspiracy, casino owner itself doesn’t launder money especially if they are licensed since all there transactions is regulated and audited so doing money laundering is a suicide for them.

This conspiracy is true on the off shore casino located on 3rd world country with less restrictions. It’s very hard to collude with laundering as online casino owners with license since crypto has blockchain records to track all the transactions.

Also, Casino owners doesn’t meet anyone regardless of the amount involved.

So does this mean that those users who go to the scam accusation board to write a complaint about their casino withholding their withdrawal, freezing their account, or outrightly banning, were instructed by the authorities? I thought that it was the other way around and that the authorities do not have an involvement unless they are called upon by the casinos for them to investigate a suspicious account.

I am yet to see any news of any person whose account was blocked by the casino and reported over the authorities being arrested or jailed for their offense. It could be that these cases are not reported on the news or the internet for others to read. We do not even know the conclusion from the authorities.

If the money is suspicious then actually the online gambling owner has full power to lock the funds in that account and that is usually stated in the TOS.

If you have 6 digits that you want to launder in an online casino, you must first meet with the casino owner because it would be very stupid if you launder criminal money but end up having your money locked in that account, usually online casino owners have several active contacts. people who often launder money on their platforms, the term KYC is just a cover, even though they launder criminal money behind the camera.

That is how it should be, but I doubt that every casino works like that, I suppose a portion of them keeps those coins for themselves, after all KYC has become more widespread than before, and now not only suspicious accounts go through it and now anyone trying to make a withdrawal has to pass those identity checks, so if you got a big win but you are unable to demonstrate the origin of those funds, the casino can keep those funds for themselves and the player will never know this was the case.

Casinos do not operate on their own. They are bound by rules and regulation that govern which they must comply with and are judge or audited by such. Nevertheless, there is a chance that some casinos may display unethical behaviours which is not uncommon in some institutions. And that unethical behaviour could entail not reporting to the authorities and keeping the money to themselves. They can even invest it as part of their bank roll.

This information is actually for casinos that use Fiat not Crypto.
Because casinos that use fiat are not able to trace the source of money/deposit which coming from their customers, unlike crypto because there is a blockchain.
Many casinos, exchanges, mixers and 3rd payment providers have used Blockchain analytics tools to detect fraud and money laundering.

I don't think they can keep the money, they have to inform a law enforcement agency of their findings and turn the money over to them... I'm sure the laws and procedures vary by jurisdiction, but if they just keep the money they took from a player, that's theft.
And if they report it, the player himself should probably get in trouble, an authority should investigate him and see what the person is actually doing. And if everything is in order, a player/person can file a complaint and they should return the money that the casino took from him.

But is this also the case with crypto casinos? I'm not sure and I believe that not all casinos are honest and fair to their players... unfortunately, the crypto gambling space is still the wild west and there are a lot of strange things going on.

I think the casinos operates under the licence, terms and conditions of the governments so, basically it should be the government regulating the casinos and lottery commissions that literally asked those casino firms to request for the KYCs so that it could enable the regulators detect individuals who undercover with the casino after executing their illegal activities.
Else I do not think if the casinos would really care about your source of income but what they would only care about the profits they are generating from your Lost.

So in that case of the government overruling the casinos, the money from such gamblers would be a reverted to the governments custodian and if it is lyes just within the casino then it is another form of fraudulents of illegal extortions.

So, it all goes back to the governments

Due to the fact that such action from the casino would put their license at risk I.e if they decide to go ahead and keep the money for themselves after confirming that it was indeed from an illegal source or not without doing what is expected of them to do.

If confirmed the money would be sent to the government and the casino would banned the account that received the money permanently while if the money was discovered to have come from a clean source then the account that received the money would be reopened and all the balances will be returned back to it - and the user will be notified of it so that they can continue their activities.

Casino license comes with regulation from AMLA. Their license is jot only for display but as compliance with authorities to avoid crime within their business. As many already pointed out, illegal funds will go to the authorities which the user is under jurisdiction.

Casino will face legal issue if ever they owned the money from illegal source because they will be part of the crime which is a huge loss rather than keeping the illegal money on their own. Most of the time, Casino refund the deposit of users with suspicion of money laundering and just seize the profit made on the account.

I never saw a case so far that ended up with actual money laundering.

Technically they are not allowed to use that money either but legality has lot of loopholes so they will just use the term money on hold which is just numbers on their platform while the funds deposited will be in circulation as long as they want until they are contacted by government authorities to return the held funds.

Like so, the casino with the frozen money will be handed over to the authorities but I don't know the mechanism of how the casino runs it, whether it is waiting for a lot of money to be frozen to be directly reported or every thing that is done will be reported directly.

But in this case there must be a lot of money frozen from several users with a small amount of the rest of the casino hoarding more and then after a long time there is no follow-up from the user then maybe it will be reported directly with some data provided.

That is my own assumption, honestly we never know and where the casino keeps the money frozen.

This is ambiguous about what attitude the casino might take, basically if it is true that it is illegal money then it should be handed over to the government that regulates the casino if the user does not provide personal data properly to the casino to justify that it is his money and the results of his work or whatever it is with his money.

But the interesting question is actually whether the casino will hand over the money to the government when the account user who has the nominal does not provide the data to the casino, this is no provision, so it could be kept by the casino or given to the government, and this is difficult to determine because it questions what steps the casino might take.

What I'm certain of is if such reg flag is raised then the authority is informed about the suspicion and investigation will commence by the government and if that money is laundered then it will be seized and converted to state fund while the holder is taken for charges but the question is what happens if the money is genuine after the casino has raised the flag and investigation conducted while they have banned the account, because sometimes you could have hard time trying to get on with your KYC and it might be misunderstood to be fraudulent reason. So the question is what if the money happen to be a genuine money after the owner gambling account is banned 

This is likely the process of what casinos does if someone isn't able to provide requirements for kyc and prove that their funds are clean and not dirty.

That's the main purpose of KYC, to know where your funds comes from as the casinos are also just checking in if the money flowing in to them are clean and they're regulated by the authorities.

So, there's due process and they don't really keep the money unless they'll treat it as a dormant account. Maybe, they can do that or not and that can be a different story and scenario.

Of course it's legal for the casino to withhold someone else money and they will send it to the authority when the gamblers can't verify their KYC and the cases already too long. Check this address, it's belong to U.S. government https://platform.arkhamintelligence.com/explorer/entity/usg

Any licensed and regulated centralized sites have a right to steal your money legally.

And how/when do they deem a player's fund suspicious? I am curious about how bank work in that regard too. Is it because of public regulations, do they have their own system, or it is simply an algorithm that halts the operations in certain cases where different causes are very hard to explain?

Sorry because that's not the topic discussed here, but I find it very interesting and both topics are closely related.

that's what I was actually looking out for. There is every possibility that the money wouldn't get to the authority even after it's been withheld from the person's account but I guess to avoid sanction they wouldn't want to keep the money to there self.

But the main issue is how to identify that a particular money is from a fraudulent means or not. People have sources of income that's not all that illegal but that's also not that genuine to have made it public as an occupation or so and if that's going to be the reason for ceasing a person's fund it might be a bit unjust.

The casino conducts what's called Customer Due Diligence and Enhanced Due Diligence to verify the source of funds when they deem a player's funds suspicious. So if a player fails to provide the requirements in the KYC process, their account may be frozen or closed, and the funds they're trying to bring into the platform may be tagged as illegal. Do you think the casino will be honest in this scenario? Will the authorities be able to find out if they have a case where funds from a closed account are in the casino?

If a casino locks your account without having received a notice from authorities, but just out of precaution... Then there's two possible outcomes if you can't provide sufficient proof that your funds origin is clean:

1. They might deny your winnings or part of it, give back your initial deposit and prevent you from playing further.

2. They might retroactively contact the authorities and keep the funds until they can get a green light to do something specific.

In my experience, the most common outcome is #1, and a certain few casinos will even be more generous in paying out winnings as well, so long as you weren't also involved in match fixing etc. Others will deny every single cent you won and never mind the hit their reputation can have. That's why I like to search in this forum for accusations before I deposit anything significant in a casino.

      -   When that happens, you can probably feel a lot of pressure and depression because, at 6 digits, you don't know if you can recover or not. And even if others say that they are going to submit it to the authorities, I doubt that they will actually do it completely.

For sure, the others there will also be reduced by the casino owner himself; even if they turn it over to the authorities, they will not give it in full. And we who own the fund are the unfortunate ones because they have feasted on money that is not theirs.

It can become a problem for them if they keep the money. Anti-Money Laundering Act will be in effect here especially if they don't know where the money came from which is probably the case on why a banned account happens and freezing their funds.

I think it's legal for them to keep the money until the authorities take it from him. There's nothing they can do unless the owner of the account proves that the money is legal and can prove that he has the source to create such money.
It's better if we could hear some professional answers here from online gambling site's owners or financial team so that we can be clear about this.

That's correct, once it is proven that the money enters in your account is came from illegal sources then your account will be freeze or banned and the money from your account will be reported to the authorities, Casino will not take your money because they are not allowed and every cases like this will be reported to the authorities for reviews and actions. there's a corresponding team or people who's assigned to process this type of cases.

if the money is proven to have come from an illegal source, yes, it is part of AML regulation(as far as I know), as members have already mentioned, the casino doesn't keep the money, they must report if they believe the funds from an account came from an illegal source. also, if casinos don't report incidents like this, they will most likely lose their license and face penalties.

I think the ToS is clear about their stipulations regarding their KYC implementation system.

Generally, online gambling companies that require KYC will at least inquire on the legitimacy of your funds in your wallet to prevent any form of money laundering. Assuming that you deposited more than 6-digits if money to your gambling account, this will necessarily alert the gambling online company to double check the legitimacy of your funds. If they discover something that is not right, they may suspend your account or they may alert you with their CS about it.

Now if their CS asks about the nature of your funds and the person cannot justify with certainty its legitimacy, then the gambling companies would have custody over your funds and they, on the other hand, may turn it over to the officials. Though this may be the case, some gambling companies also may freeze your account and your funds would be transferred to them.

At the end of the day, it is all about their KYC. If you violate any of their terms which is explicitly stipulated, then you will experience its consequences.

Even if they give the tainted coins to the authorities, that's still theft. The player is may not be aware of the tainted coins he has. Just because somebody else before him used these coins to commit crimes, doesn't mean another innocent person should get punished for the crimes he didn't commit. That's way too retarded. If they think this player who deposited the money is the guy who did all those bad things, then why don't they just catch him? If he is innocent, why seize his funds? That's problematic on so many levels.

Either we empower decentralized services or nobody will safe in any centralized services that accept crypto.

I think what the casino will do is the same as when gambler cheats, namely by freezing the account along with all the money in the account balance.
Casino will not keep the money and of course the casino will check and also track every activity that was previously carried out, so that it can be seen clearly what really happened.
Once everything is clear, the casino will hand over the money to the authorities to use as evidence and this is also done to avoid casino involvement in illegal money laundering activities.
Everything will have its own way of working based on the existing provisions and every money laundering problem, the casino will always have various ways to solve it.

This is a good input but along the line there is something I want to also asked this question to know as well..
Let say for instance, I am from Nigeria and I have account with one of the casino's probably my account was ban for completing kyc and they noticed that since I can't complete it and they money is suspected to as laundering knowing too well that its personal funds, how would their authority knows that the money is not from illegal source or legal source knowing too well I am from another country or jurisdictions. Will they have to contact our authorities?

Nope, after they lock and seize your fund. Mostly they will transfer the money to authorities.
1. They getting contacted by authorities for suspicious transactions and are involved in crime on their service platform.
2. Casino receives the order and will begin to lock your account & seize the fund.
3. Mostly users will contact the casino for the reason why their account is locked.
4. Casino explain the situation
5. Once the casino explain these things, and passed a period of time. They will send the the fund to authorities

Remember, (CASINO) is not gonna to check, scan, or question your transaction to their service platform unless they are contacted by authorities. So, even your source transactions are coming from illegal activity they will not gonna to due research of your account/transaction.

They do not keep the money to themselves. I think it works this way. When they seize the funds, they then report to the authorities. the authorities will then start an investigation while the investigation is on, the casino still has the funds. When the investigation is completed and it turns out that the cash comes from an illegal source, the casino then hands over the funds to the authorities and their hands are off. However when the reverse is the case, the funds are returned to the account of the owner and their account is unfreezed or unbanned.

Part of casinos' terms of service is banning your account if you cannot justify your source of income or they think it comes from an illegal source, so if a casino bans your account. You have 6 digits in your account; where will the money go, and do they have the right to keep the money? There is no provision; I read they will turn over the money to the authorities.

Is it legal for casinos to keep the money?

This discussion is based on a question of our bro seoincorporation

Let's have an open conversation on this