Bitcoin Forum

hi,
it might be linked to money laundry or not but I see different posts from which I deduce that gambling money are to be avoided in transactions...

Can you explain?

Is it applicable for profits from trading too?

thanks

If you are not gambling with terrorists and money launderers, why will you avoid gambling money. Gambling money are cool money if you win. Trading money also is cool money if you win, but the losses can make someone to be sad, that is why we should cut our cloths according to our sizes, never use what can not be afforded by you to lose.

dunno, just check several services announced on Exchanges forum section where they don't accept gambling money so I became curious about the reasons...

So, what does gambling money have to do with money laundering, is there anyone here doing money laundering and the money is used in gambling, what can be explained about the OP's question.

I was twirling to read back and forth but didn't get it from the heart of the OP question.

Gambling money, why avoid it, if you gamble and win money, just enjoy the money, why avoid transactions.
There are some gambling players who benefit from this money and there are also losing, gambling one luck for the individual, if you get gambling money, enjoy it, no money laundering in gambling.

Maybe it's because of the policies, rules and regulations of the exchanges. They're very strict in which source your deposit is coming from.

But they wouldn't know it unless they ask you for an interview and admit it.

Money from gambling and trading are similar.

A casino platform/house get profit from gambler who loss when they play it and an exchanges/market get profit from the fees traded + withdrawal, they didn't doing any illegal activity to earn profit.

Whenever you're gambling or trading using with your own money and not use "dirty money" (e.g. corruption, stolen money etc) it's definitely clean money.

Because there are certain countries banned online gambling that's why others avoid to do any transaction since they might get a problem if they insist to do so, but there are also there are other reasons which other regulations involve.

In trading's I think not since you are doing it on legal ways so any transaction came unto that platform is good so far.

I don't understand, do gambling money have a stamp or sign on them that the exchanges will know it's gambling money? I don't quit get your point here, what type of money are you trying to deposit and on which exchange? This days we have decentralized exchanges or P2P platforms that can people can use

In my opinion, every gambling site is like a mixer. They might ask you to pass KYC only if you deposit or trying to withdraw a huge amount of money. In any other case - buy hundred VPN, accounts or what ever you one. Divide your illegally gained crypto, play a bit, then withdraw "clean" cryptocurrency. As soon as you deposit, your funds got mixed with dirty money. Of course casinos might withdraw from an address, which exchange will mark as dirty, but I think you can always make a honest face and say that you simply won that. That is why as soon as you make a deposit, your money instantly gets dirty.

One really needs to go through the TOS of both the gambling sites and the exchanges they intend to use. Regulation in some countries delimits or prohibits online gambling, and some of those countries have the power to extend their tentacles to some of the exchanges, whom may prohibit or restrict activity with addresses related to gambling sites (I figure by chain analysis, and having a set of addresses known to be tied to these sites).

Going over the TOS, Binance seems not to make an explicit reference, but since online gambling is prohibited in the US, it may not make it explicit whilst complying with US regulations. Coinbase makes the prohibition explicit, whilst Bitstamp does so using the term "illegal gambling operations" (meaning that there may be a wiggle room is some cases for movements related to licences sites – speculating here).

There are few possible reason,
1. Gambling is illegal on country where the exchange operate.
2. Gambling is legal, but they don't want risk user deposit from non-licensed casino.
3. Gambling is legal, but funds from casino are deemed risky and they don't want take the risk.

I'm a bit confused with the statement, but you can't tell if the money came from gambling or money launderers, only if they confess it came from that, although sometimes the money from this peoples are from what I have heard I'm not saying its true, they use it on gambling, but there is no way to trace if it came from them, if this gets caught I think they will just say 20million of the money are lost in gambling something like that I think.

Maybe there are some restrictions in the exchange or wallet that you are using where gambling money is not accepted or maybe gambling is illegal in your country.

There are also some exchanges or custodial wallets that will monitor where your funds came from like for example in a gambling website or address. Especially if it is a high amount of money the wallet could restrict or freeze your account thinking that the funds you put in your wallet maybe came from illegal transactions like money laundering.

There is no way they can always keep the track of where your funds came from the chances are if it is a huge investment and your a low profile you will probably get a notice or the account might be restricted at some point.

Because they have to follow with the rules and regulations set by their license provider/ the country they are operating their business. For example, in my country, gambling is totally prohibited. And now if someone wants to operate business, they must have to follow this rule and as a part of this, they will not allow any gambling moneh deposit.

Financial institutions like banks or exchanges have a right to refuse a client if they deem them too risky. Just like some banks don't want to deal with clients who have crypto-related transactions, some crypto exchanges don't want to deal with crypto gambling transactions, because most of crypto gambling is unregulated and could indeed be used for money laundering. Someone can just move their dirty money through a money-laundering casino which would create a fake winning for them. This doesn't happen in regulated fiat casinos because they run special software that allows the government to make sure that no fake bets are made.

It could also be a KYC  thing. Centralized KYC enforcing services (such as exchanges) are forced not to accept any money that comes from any centralized service that refuses to enforce KYC (such as bitcoin gambling sites).

Gambling can be addictive.
I always feel that I can win money next time.
But not everyone has good luck.
Losing money is a high probability event.

It's the reputation of online casinos that forced centralized exchanges and even custodial wallets to disallow funds coming from these platforms. It is a fact that money launderers have used them before to wash off their dirty money.

Most crypto online casinos are also registered in Curacao so you can't really blame exchanges when they don't want to deal with them. It has the lowest of standards compared to UK and Malta

Is there anything you wanna know? Why people didn't even try to avoid gambling and making so much money? Well they just need to enjoy everything in there life others might say that money can't buy happiness but for them money is that matters and why avoid those transaction ? and i haven't heard about gambling being linked into money laundering even you hit the jackpot it be given you as cash they not even deposit it into your bank account. Or maybe if the gambling is illegal for some reason.

I'm not quite sure, if I understand your question correctly, but you're right, there are some exchanges that are quite critical when it comes to cryptocurrencies that are are beeing transferred from crypto gambling websites. For example, I have heard stories that e.g. Coinbase closed accounts because the affected users had transferred bitcoin from various gambling websites.

If you want to be on the safe side, one option is of course to send the Bitcoins to a Bitcoin Mixer (e.g. ChipMixer) first and from there to the appropriate exchange.

By the way, the topic mentioned by OP is also discussed in another thread in the Service Discussion section: An interesting thought about spending signature campaign payouts (https://bitcointalk.org/index.php?topic=5314274.0)

Good gambling sites have their systems to detect deposits from dark sources (money laundering, fraudulent activities, or tumblers). They can suspend your account or refund your deposit if they detect such suspicious and dangerous things for their sites. They use to present it in their ToS (Terms of service)

If you want to enhance privacy and anonymity for your bitcoin transactions, you can use one wallet to receive withdrawal. After that, try to use Wasabi wallet or good tumbler as Chip Mixer. It is for your privacy after withdrawal from gambling sites. Remember that there is risk for your deposit after you mix your coins in tumblers as said.

I think it is applicable for trading too.