Topic: Why do casinos require users to verify their identity through a KYC policy? - page 2. (Read 659 times)

In rare cases some casinos can outrightly take advantage of the kyc to intimidate or want to seek a loophole through which they could deny a customer his win. Could probably be that such customer has won a big amount of money and have previously done and pass KYC but the casino still request again for a higher level of kyc which could be somehow rigorous for the gambler to pass through successfully and in any mistake they just use it to deny you pay sighting abuse of policy.

Quite okay in the angle of right location but in the aspect of IP address been used to determine alt account under a single user which then lead to kyc verification demands, I feel casinos are not always correct in that area. Why, because a friend could decide to use his friend phone to login into his own account under same casino company which will for sure display same IP address in the two different accounts held by these two different individuals, at the end of the casino site it only appears to be two different accounts under one ownership, whereas it isn't exactly as it appears on their end. So I think this is just one defect in casinos' use of IP address to determine multiple accounts under a single user.

The KYC is proof that you are playing in the right location and you do not have an alt account because all your data are on their database, your IP the computer you're using, and your exact location so they need to know if your information is the same in their database

Casinos have sophisticated tools to track your information, your behavior, and everything that classifies you, which is why we've seen people getting flagged because two or more people are sharing the same location, IP, and machine that constitute multi-accounting.
KYC is a means to clear your name and to make sure that players adhere to what's on their TOS, unfortunately some dubious casinos are using to scam their players.

It has destroyed our privacy because of that KYC, but do we have a choice? None, most casinos top, actually the top casinos including the popular here in the forum are alre regulated, hence KYC is just a basic requirement that everyone has to comply sooner or later. My personal experience in gambling is fine because I don't submit an ID or went through a KYC process like you mention, but I still enjoy gambling and that's the beauty of crypto casino.

I think if we compare crypto and fiat casino, in fiat casino, you need to pass the KYC first before you are allowed to gamble, but on crypto casino, making an account is instant, and you can just pass the KYC later when you are already oblige. 

In casino KYC, You only need to upload the Valid ID and the selfie holding ID for the basic KYC. But there’s some instances which casino requires video interview, financial report, address verification and other requirements depending on the intensity of the case on the account.

This enhance verifications is only for those whale/high wager players that has a huge profit involved. Normal player like us probably will only need up to selfie verification because that’s what the casino needs to verify an identity.

This reason can be attributed to “other violations of ToS” and I don’t think that anyone is seriously concerned about it. In fact, casinos turn a blind eye to the age of gamblers; if the gambler does not violate the rules, then the casino will not deprive itself of income by checking the age of clients too strictly. I mean, of course, online casinos.
The risk of fines from regulators is offset by profits 

It is very important for the government to carry out KYC because it can prevent cases of identity misuse fraud, because in the current digital era there is a lot of fraud from various sites and one of them is casino sites, with the existence of KYC regulations the government is not worried that there will be cases of fraud because of the current casino regulations. it is very strict and if the user wants to be safe he must do KYC before depositing their money to the casino so that they can also withdraw money easily.
If it is not clear, we can hear the explanation below that I got from the information media.

Source = https://www.idnow.io/blog/importance-of-kyc-in-online-casinos/

This is similar to the topic I just replied to now, but first, KYC is mandatory, this is unless the casinos are operating off jurisdiction and such should not be trusted. But the law still gives them some grace, especially if the deposit is not big enough to warrant it or the withdrawal is not too big as well, and this varies depending on the country we are talking about and the activities of the said customers. But casinos are now using this as an excuse even if the customer is not guilty of any of the reasons why they should ask for the KYC, they are technically using the KYC as a powerful tool since the law supports them to ask for it. And this is subject to their discretion, especially if they suspect some activities. But in most cases, they will not suspect any foul play but will still be victimizing their customers, this is why every customer should be well prepared for all the documents possible they can ask of them.

Most customers are only victims, they might be good players who gain regularly or are gambling with a big amount to pose a threat to them if they win big. Instead for them to limit the risks that the customers could take to limit the potential gains automatically,  but for their greed, they will allow the high-net players to continue to wager it big thinking they will lose and they (casinos) will gain the whole money. But if the players now win, it becomes a problem for them. Now, for them not to pay the players, they will be asking for KYC verification, or additional verification if such gamblers had passed the KYC initially. Other casinos could be citing rules and looking for excuses through IPs and multiple accounts. All are to cheat or scam in most cases.

This directly answers the question because most gambling sites prohibits opening multiple accounts so if you undergo KYC verifications it will be difficult to open numerous accounts since your personal details are already captured in one of your accounts.

They want to get your data, do you know how much other companies would pay for a terabytes of data about people? They'll pay you thousands and it's not really a good idea to miss out on that opportunity especially when you're in a position where you can make data collection not a bad thing. There's also the reason of AML, with anonymity out of the question, it would be easier for law enforcement agencies that are catching these money launderers to catch them without a problem because if they see some inconsistency or anomaly in your account, they can just report you to the proper authorities and there's also the fact that most casino owners don't want the flak of being investigated by these agencies for harboring money launderers or becoming suspected of doing so, it's bad for the business and they risk getting big fines if not jail time.

That's why KYC are becoming more advanced and adding more layer of security because there will always be a way to cheat or to bypass the process in KYC, KYC is a very important aspect right now in most of websites that involves in money and especially in gambling sites, just like that if a player is cheating then with KYC then the websites could see who is the accountable and will be punished, that's why I dont know why people are reluctant to KYC if they will not do anything bad or anomaly because if they are not going to do anything bad then why would they dont want to comply in KYC.
 
For me KYC is not a problem to me, because it will serves as the security for both customer and the website and I will not do anything bad that why it will not a problem to me.

this sometimes comes with different idea saying which casino is involved because a legit casino is asking for KYC to protect their interest same as the players interest meaning they wanted to be transparent in accordance to the law.

But there is some casino that uses this KYC verification having a chance to delay the withdrawal or to truly prevent the players from withdrawing the amount.

but KYC is really a good thing if you are playing legally and not hiding anything from the site and the government.

Yeah, transparency and isn't it funny? Because cryptos like Bitcoin, especially Monero, pushes anonymity and they are like a perfect partner for the casino or gambling. I wouldn't wonder anymore on why many crypto users are complaining about this KYC thing but it's only interesting that crypto gambling is still there and they even became stronger.

Guess crypto users just sacrifice their identity only to still use a crypto while playing gambling. I still believe that fraudsters are not choosy but they will still do their thing no matter what. It may now only be easy for the casino to trace them once they notice the unusual activity going from them.

Of course, anyone can cheat the KYC even the minors, but at least the casinos are doing their job on the verification process. If the gambler (minor) lied, that's up to him, it's his responsibility anyway and he'll have to face the consequences of his action.

So with that, it's also challenging to ensure that the gambler is the person who verified his KYC. I haven't verified in a casino yet but in other platform such us exchange or our local wallet, there's this selfie with my ID when I verified, like a live selfie, so I guess that woudl help if the casino will implement the same procedure.

This topic already received too much response and mostly from a mere opinion of players. We have a dedicated topic for this kind of question prepared by @SirJohnVonSlotty on his AMA thread https://bitcointalksearch.org/topic/--5482508. He is the most credible user here that I know that can answer on this specific question.

I share below some of his comment regarding what’s the use of KYC.



To summarize, it’s for legal purposes and at the same time for casino protection to abuse of their promotion.

As a general rule, casinos should ask for KYC as soon as people create an account at the casino, before making any deposits. but this would cause many people not to get involved with casinos, this would cause casinos to lose many customers, but as license providers force casinos to do kyc but probably don't mention whether it should be at the time of account creation then casinos use their own criteria when asking for kyc, in this case it is more advantageous for casinos to ask for kyc when they detect any suspicious activity on the person's account, such as the person having many accounts, so it is enough for the casino to ask for kyc for all suspicious accounts that will be able to confirm which one is true

also in the case of a scammer stealing money and depositing it in the casino and not playing and withdrawing it, in that case the casino will ask for kyc and if the governments are tracking the scammers and reach the casino where he deposited the money, the government will ask for the details of the scammer. scammers and the casino will provide all data including all money that the scammer deposited at the casino. Now if the casino had not done KYC on the scammers, then the government could apprehend the casino under money laundering charges and would accuse the casino owner of committing the crime of money laundering.

KYC/AML policies is necessary for compliance as well as for third party providers to want to work with a casino but my theory is that having a no ''mandatory" identity verification policy could sit in the gray area of law.

But all depends on one's setup, I reckon. Things that help on top off my head:

1. Providing a fully crypto only casino since involving fiat will surely get you a stricter kyc/aml policies to adhere
2. Incorporating off shore and getting licenses similar to curacao ones gets less policing as oppose to other options with stricter monitoring. Ofc, provided that you block those strict countries.


I reckon it's easier to onboard users that way esp if you're relatively new in the game where folks can be skeptical for good reasons.

some people does not know that that is one of the major problem they have towards some part of Casino gambling platform when you create different account with them you will not have what it takes to verify all other account so that is why casino platforms do understand that so many persons in illegal things in their platform so we need to be careful so that will be able to not fall a victim of gambling

To my personal understanding regarding casino kyc strict implementation is because of their security and assurance of not being tricked by scammers who disguised themselves as regular players. This has been discussed so many times as concerns arises most of the time, cheaters has several ways to beat gambling in an unapropriate way and through kyc as the best tool that can suppress this kind of scheme.

Very correct with that, if you don't have multiple accounts and trying to take advantage of the casino's bonuses through those multiple accounts you will not have problems with the casino and no KYC verification for you and also if you have being playing and withdrawing within the limits trenchhold because some casino or even most casinos have a $5k dollar transactions limits for none KYC accounts and if you make transactions above that Amount you be subject to go through verification of account.

I feel like out of all common topics here in this board this is one of those that needs to be reiterated no matter how many times it’s required. People will not understand from the get-go why it’s so important tohave some verification system especially in the casino industry and questions like this will always be there no matter what.Regardless, here are some of the reasons why KYC is a thing in most casinos, reputable ones at least.

1. To abide by KYC/AMLA Regulations: Some countries where you want to operate a casino in, require strict regulations of identity verification to make sure you’re not engaging in criminal activities, particularly money laundering. Casinos require verification of identity not to stop money launderers to do what they keep doing, but to have dome sort of lead to apprehend them when needed.

2. To sort of prevent and punish fraudulent activities: Since players are required to undergo KYC at any point, casinos are given a pretty great grasp of what they have in front of them. In situations where a hacker, a scammer, or someone with fraudulent activities do their thing, the identity they have stored for verification purposes may be used to ID these people and put them to justice.