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I noticed that there are a lot of web3 casinos popping up in the gambling section. I'm curious if this is the new trend for casinos, as web3 casinos eliminate the KYC requirement since they promote "Anonymity and Privacy," which crypto casinos (not web3) cannot offer because they are regulated and bound to follow the mandates of their regulators.

However, from my other research, I also read that although web3 casinos are not universally regulated, they could still be compliant with regulators, especially concerning Anti-Money Laundering (AML). This puzzles me because I thought web3 casinos would completely offer anonymous gambling, but the word "compliance" suggests that we will still need to verify KYC.

What are your thoughts on this, and how deep is your understanding of web3 casinos in terms of their legal parlance?

What if the government tells all Web3 exchanges and casinos to mandate all their customers to get verified? The customers will still have full control of their coins but they will get verified to know their identity. This is where Web3 is likely going. All that is needed is time.

When web3 was proposed, it was said it would be decentralized but it was not decentralized but centralized. We thought it will make use of nodes, but all what we are seeing are central servers. Everything that are making use of central servers can easily be controlled by the government and web3 is still one of them.

I think where such web3 casino idea will gain more audience and more usership, is in countries or regions where cryptocurrencies is already being accepted and  integrated into the financial system of the place and while KYC may be a mandatory requirement for now, regulators will still demand it for web3, citing the prevention and control of money laundering schemes and of course taxes, of the which have become a means for various governments to earn from the Blockchain network currently.

Web3 casino's are an advance of the regular online crypto casino's, but the advancement does not cut into the area of annonmity as expected.

The idea of the web 3 casino on anonymity cannot be achieved because AML regulations are getting stronger. The government will not ignore Web3 casino's, they also want the same regulations as there as with other online casino's.

Whichs means only El Salvador. Or you meant 'being accepted or  integrated into the financial system'. But according to MetaWin, only the countries where gambling is not accepted are restricted:

According to MetaWin, only the countries that are restricted are where gambling are restricted.

For now let's just wait while this web3 casino was at its start, and with legal parlance I think that the huge companies associated with it is now seriously working on this be eligible and could comply all regulations. KYC is very important, so if you're a legit gambler then everybody should make it as a must and don't dare to ignore it.

Maybe those who are more knowledgeable than I am in the area of web3 casinos legal parlance will want to comment on that, I would have to say that in general, not all web3 casinos are actually fully web3, like I think Ive mentioned in some of my other comments a long time ago concerning a casino known as owl.games, this casino tags itself as a web3 casino because registeration is just by connecting a wallet and then creating a username in the next screen, but in reality, this casino is completely a centralized casino.

One way to know a truly web3 (decentralized) casino is that..
1. There is no registration outside of just connecting your wallet.
2. Every game is built and hosted on chain, and this simply means that, every bet placed is recorded on chain, and the player have to pay for gas to have the transaction confirmed on the blockchain.

Any casino that claims to be web3 and games are hosted and played off chain, that casino is not completely a web3 (decentralized) casino but a centralized one, and can ask their users to pass kyc verification same way normal centralized casinos do.

Web 3 casinos are regulated too, at least they follow some rules and the owners can get in trouble too, there is not a big difference at all, only the fact that they run with blockchain or with smart contracts. I feel like web 3 casinos are a way to integrate part of the casino engine with blockchain. But that doesn't change much.

If the bad guys decide to use the web 3 casinos for money laundering you can be sure the police will be able to trace the operation.

Growth of web3 casinos in gambling industry is interesting. They claim to offer privacy and anonymity by avoiding identity checks but I doubt they can avoid all regulations. As you found out web3 casinos might still need to follow rules to prevent money laundering which could mean some identity verification is required. This seems contradictory and it raises questions about how private and anonymous web3 casinos really are. I think web3 casinos will try to balance following rules with protecting users privacy but it's important to understand legal details. More research and clarification are needed to determine how anonymous web3 casinos really are and how they comply with regulations.

I think it had a chance to get a hold of the market last year, but since more and more people are leaning away from more futuristic forms of crypto application and back to the basics and naturals, they are slowly and steadily losing traction. I mean, for one, they couldn't offer anything better than anonymity and security which is already something that crypto could provide in itself, and as for KYC elimination, while they definitely would have audiences and customers who would appreciate such feature, I don't think it's all the same for everyone.

So yeah, it was a good idea, a fun one too, but it ends there and while I still hope there's more for crypto casinos, I don't think web3 is going to be it anymore.

Whether they're built as web3 casinos right from the start or they're integrating web3 features to their existing platforms, these casinos need license or registration at the very least to be able to operate legally.

That itself is enough to take this "anonymity and privacy" thing with a pinch of salt. To operate legally means they're bound by certain regulations. They cannot insist on "anonymity and privacy" when the regulating bodies to which they're accountable order them to implement KYC/AML policies. We have to remember that these web3 casinos are still private centralized companies. They toe the line or perish.

Which voided the difference in making web3 casinos as they still are going to be regulated and will ask KYC documents still. Not only that but it also puts the user's funds at higher risk upon connecting their wallets to the casino which we know there are cases of hacks.

You'd probably see web3 casinos as not so legal way of gambling imo. They don't have a license nor can they get one unless they go away from the no KYC model after all, and I highly doubt it'd continue on for long since as you've said, casinos deal with money and the government would do absolutely anything so that they can make them adapt KYC for the sake of AML. If they don't, well, the casinos would simply be illegal. Geoblocking would probably be the most basic action you'd see them do, which honestly has a pretty big impact already on their business.

Not to mention that most of the so-called "web3" are still, well, centralized. The only thing they offer that's web3-like is integrations to their wallets and at that point, it lost all it's advantages since in the first place, anonymity was the #1 thing web3 was supposed to provide.

There are three entities in the business: Web3 casino, Web3 wallet, and the users.

I believe we all realize that majority of Web3 casinos and Web3 wallets are built by centralized teams and their identities are even known by governments. We don't know these companies with their products (Web3 casinos, Web3 wallets) don't set up backdoors to violate privacy of their users. Assume they respect their user privacy and don't have backdoors, these companies and their teams can become targets of governments anytime.

With Acts, Laws, Regulations, these people might be requested by governments to handle user data anytime. We can not have privacy even with any Web3 products.

As users, we must be responsible for our activities and privacy too. No company can do this for us if we don't care about it and don't have good activities to defend our privacy.

The real Web3 sites doesn't required to submit KYC, so it's true they're promoting privacy and anonymity. But, most of Web3 sites we see are fake, they're just using "Web3" name and kill the utility. That's why you see there are many self claimed Web3 sites, but they're asking KYC.

Just like Bitcoin, the real utility is decentralized and no third party intermediary, but people choose to use centralized exchanges and many of them hold in there.

I think,  eventually, web3 casino will pin the basket  with the requirements  of SSI (self sovereign identity)  for each client involved into gambling. This approach would be a sweet spot in the middle of  AML requirements from regulators and customers desire to protect their privacy. Regarding gamblers part, SSI could  be considered as a better solution than just a sheer sharing custom  data with casino withing ordinary KYC procedure.

The web 3 space, has been gaining a lot of popularity recently and it's the common trend of the day. Alot of web3 casino, exchange and platforms are piping our if no where filling the spaces of their fellow counter part. They might actually be the new for of casinos but may not totally eliminate them. If we are talking about government regulations, then they might not be too far from following government rules anytime soon. Most of them operate for now without they need to verify but it might not be for long as when there is a need for government regulators t looking into their flaws then they might have to force the kyc or identity regulations on them.

For now we just have to enjoy the few new services they offer to gamblers and the new other forms of service they are bringing into the space. When it com e to the time of kyc we already know that time will come so we as gamblers might be ready for them till then though.

Source - https://www.redappletech.com/how-web3-and-crypto-is-revolutionizing-online-casino-gaming/ (https://www.redappletech.com/how-web3-and-crypto-is-revolutionizing-online-casino-gaming/)

There are other similar articles on the Internet. It all comes down to access, easy transactions, and things related to the financial part of gambling...
but when it comes to games it's basically the same as before. We still play the same in-house games & slots.

It's nice that that part is developing as well, but I'd rather see some new games... sometimes I mention "Dragons Tale", how come there aren't any games like that around, maybe more advanced? Will there be a new game in gambling and when?

A web3 casino is still a casino and it should be regulated like all other casinos.
However, web3 casinos are permissionless, which means that the players aren't required to create an account and provide information.
How can such casino require KYC, if the player doesn't even have to create an account? This doesn't make any sense to me
The whole situation reminds me of the early stages of crypto casinos, when they were unregulated, because cryptocurrencies weren't considered actual money. Gambling platforms are becoming more and more convenient for the average user, which has it's drawbacks. More people might get addicted to gambling...

Ideally these web 3 casinos should be KYC free but in fact they are not. Most of them are not even Web 3 but they are using this fancy word "Web 3", to attract the gamblers that they are modern  Web 3 enabled casino. What's more sad is that even the gamblers aren't aware of what exactly is Web 3 and they just take the word from the casinos and believe in them.

A Web 3 casino should have a lot of features like Anonymity and Privacy, Decentralization, Smart Contracts and Cryptocurrency Integration but most casino lacks them. If there were any true Web 3.0 casinos, it would definitely face Regulatory Challenges because the government will treat them as unregulated gambling casinos and therefore they possess high risk. The rise of web3 casinos reflects a broader trend towards decentralization but it will not be accepted by most of the regulated authorities as they do not want user control in the digital space.

without AML that is what it is supposed to do, but web3 casinos want to operate legally and in order to do that they need a license and the result is they will be regulated. it's the same with crypto casinos, it was supposed to be a casino where gamblers can gamble anonymously but regulation ended that because crypto casinos want to operate legally.

Web3 looks permissionless to you because people that are using it can not register and do KYC. But in reality, the design can change with time in a way the Web3 gambling sites will tell their users to do KYC and have account registered. The benefit people are still getting is that there is no much regulatory pressure on web3 casinos.

Exactly no matter what a casino platform wants in order to implement anonymous state, it cant be because its either they operate legally or illegal, well of course they will want to operate legally, so there's no escape for those who wants to be anonymous they will need to comply with KYC because that's the only way an online casino can operate and to protect their platform for being used in order to do illicit activity that may result a bigger problem, so I understand why there are no web3 casino that can eliminate KYC because they dont have any other choice, and same goes to the customers, they cant withdraw their earnings in a casino without going through KYC, so its your choice but I don't think there is a choice for that. So it's better to comply than to oppose because it's better to play giggling in a casino without a problem. In KYC, you can easily withdraw and deposit money.

If they notice about the existence of Web3 casino which allow users anonymity of their gamblers then provably that they have chance to get called out by government and required them to implement a KYC to their casino or regulate it. But if they can't really control them then maybe the same with mixers they also try to impose a total ban since they will think about that its a threat for their interest and might link it that there's something to do with money laundering schemes or other illegal acts.

Decentralization of a certain platform is seems to be impossible to happen since the government have all the power to control whatever things they like. Hopefully we don't see it on Web3 based casino but also we need to be prepared on their possible actions.

The anonymity of web3 casinos is a temporary phenomenon.

If web3 casinos are not currently regulated (as a new direction in gambling), then after some time this niche will be regulated and KYC requirements will be integrated there. It's unavoidable. The regulator will not leave the web3 casinos without its sensitive supervision, because taxes and control are the initial goals of the regulator.

My thoughts on web3 casinos is that they're a living conundrum, they offer the ability to be anonymous while gamble but at the same time, they need to make sure that they're regulated and that they follow the rules or else they risk losing their business. This is probably a thing that would make a lot of gambling regulators all over the world change how they're going to do things when it comes to regulating casinos because Web3 casinos will definitely not falter to a measly KYC policy just because the authorities says so, there's bound to be a lot of takedown operation to this casinos eventually but I'm sure that it's a long one.

The current Web3 casino is not really what you are describing since they are still regulated and use an account for registration. The only application of Web3 on these casino is the ability to connect web3 wallets but besides that those “web3” casino is just a regular casino that has KYC.

You are describing a decentralized casino with this feature because that’s the real casino that offers anonymity and privacy but you can’t play regular games from 3rd party providers on these casino their games should be on-chain.

They are still same centralized casino ehich allow web3 wallet connection. They are not totally web3.

Yeah for now its temporary since maybe  government didn't know the existence of web3 technology so maybe once they find out that there's some running business that offer anonymity to people then provably that they will be regulated. Also for sure that they would follow especially if they already got a lot of clients playing on their casino and for sure they won't let their business go down since that's huge loss for them.

So if we see a successful web3 casino then maybe the best thing we can do is to enjoy it and get ready for possible implementation of KYC on their platform since for sure that time will come that they would comply on the government requirement so that they can let them operate legitimately.

Web3 casinos are not completely anonymous because what I know is that when you use web3 you still have to deposit your funds from the metamask to the casino account and when withdrawing the opposite, so for me in this way it is clear that the casino will still ask for your KYC at any time when a problem occurs for you.

The casino has existing licenses and regulators so there is no way that in full anonymity the casino can still control your account.
Web3 is now a new trend so casinos are integrating this because people may argue that with web3 it is fully anonymous.

Web3 promotes anonymity and claims to be a decentralized platform, and in fact, it can operate that way. However, if you are a gambler looking to gamble in a web3 casino and ensure they are operating legally, then you'd kill the very purpose of a web3 casino.

I think no one can avoid this regulation as the government would always see what the popular platforms in the crypto gambling industry are, so it's either these platforms, including web3 casinos, will comply, or they'll ban them. As for users like us, it's not a problem if we don't demand legality as web3 casinos can exist even without a license.

They already existing for many years already check this directory  Dapp Radaar (https://dappradar.com/rankings/nft/collections?keyword=casino)
they are trending in the community where the smart contracts of the Web3 platforms are created

They do not yet need compliance because the laws that govern WEB3 compliance are under development so the framework is not yet up but if these Web3 casinos become competitive then the regulators may need to come out with laws that will govern WEB3 because if they do not they will become the next target of money launderers to launder money.

Reference for this discussion
Web3 Gaming and its Legal Implications (https://magiccraft.io/tpost/ys6f7in051-web3-gaming-and-its-legal-implications-p)

So far we only have a few of these Web3 casinos in our community but based on the success of some many more will come to promote their platform here.

Web3 was a trend in few years ago, now it's no longer a new trend. A new trend is AI, that's why many altcoins are created using AI name. Is there any AI casino? not yet, but if there's a casino that adopt AI and following the trend, it will be a new achievement than other casinos.

And why they need to ask KYC? they ask to deposit from metamask and then if you want to withdraw your money, you withdraw it to metamask, metamask is a non custodial wallet, not centralized exchange.

I was aware of that but they werent popular back then, just recently they are gaining popularity as we can see in the gambling section where lots of web3 casinos popping up.



I think what we should be looking at here is the amount of money coming in and out of these casinos. I believe I've seen one before that already had almost a billion dollars in total wagers. That was just one casino, so if we combine it with the others, that easily makes it a billion-dollar industry.

So it is a matter of time before the AMLAC gets an alarm on the activity of these WEB3 casinos, these casino models are smart contracts based, and all actions are triggered on the configuration of the contract so there may be a configuration that will cause the alarm if a certain amount is reached in the withdrawal in web3 platform.

The centralized casinos are still popular but once these web3 casinos get into the top 10 casinos in the industry the authorities will have to impose their regulatory power to monitor and regulate these contract-based transactions.

Actually I have never experienced like this at web3 casino and have never played with such a system, it's just that what we think when they ask for KYC is normal from big wins of course big wins are usually sensitive to the investigation of wins to make users feel uncomfortable.
Supposedly once metamask is a non-custodial wallet it means no KYC, but we don't know if there have been cases of KYC issues when they use web3 in their casinos.

Not happening in most web3 casinos, I guess. Unless your account gets banned, you won't be able to access your funds. But as long as you can access your account, transactions are through MetaMask where casinos have no control, with that said, you can do whatever you want. However, time will come when the government notices, since they notice everything that they can get money from, then expect that things will change and that KYC will be required in this type of casino.

I can't share much more about this as I personally haven't used web3 casinos. I'm just sticking to some old and popular casinos for my sports betting activities.

As far as I know, online casinos never stop promoting their casinos in various ways, as time goes by and technology develops, that's the actual fact on the ground that we can see people gambling, even though we know crypto casinos are a gambling industry that people often visit, it's no surprise that web3 casinos are popping up with the way they connect wallets or hardware to support their web3 casino platforms.

Believe it or not Web3 casinos have millions of users today, users once logged in stay on their web3, that's why they don't need kyc, you stay inside via your connected crypto wallet, essentially whatever looks like an online crypto casino or web3 casino, KYC or not in terms of fraud is very simple, experts in certain fields can also become victims, so gamble on a casino that can be responsible for everything.

I am not sure that web3 casino is free from anonymity and privacy because once a gamblers wins much money, casino can asks them to identify their account before they can withdraw their wins money. If people wants to avoids KYC, they must not playing gambling using much money. When they use their wallet to log in to casino, they can directly playing gambling at that casino.

But web3 casino doesn't wants their casino is illegal so they must follows the regulations and will asks their members to do KYC. Web3 casino maybe the next new trend in the gambling business because web3 casino offers an easiness to gamblers not to register a new account. Gamblers can log in using their wallet and start to playing gambling.

But the government will not stops from monitoring those web3 casino. The government wants to control any casino and knows the customer from that casino.

Blockchain decentralized gambling concept requires responsability, autonomy and specific knowledge from users regards its features. Do you think the largest portion of this community or a considerable portion of this industry has such traits in order to adopt Web3 casinos? I don't think so... People are heavily dependant on middlemen, third party services, regulators and authorities when deciding what they will adopt and what services they will use. Web3 doesn't look something gamblers in general would feel attracted to.

There is also the legal aspect as well, which can be an obstacle, if regulators decide for considering it a forbidden practice. I think it would be hard for them to punish decentralized concepts of casinos, because there isn't a central responsible or CEO behind it, but they could punish everyone using it from the jurisdiction where the regulations are a must. Probably something similar to the approach they take from piracy practice.

Actually current web3 casino works the same like what you describe. They allow to link metamask wallet to the casino yet you still need to provide additional information such as email to have a safety feature to recover your account once you forgot your metamask seedphrase.

Also most of web3 casino still has KYC. Web3 is just being use to create an account but the casino account itself has their own wallet address which the casino controlled.

Just like the signature you are wearing OP as it states that it is a web3 casino. 😁 But personally I don't have that much idea about web3 casino since I never tried one yet. All I know from google is that it is a new kind of internet service that offers decentralization but what confused me is that compliant casinos are centralized since they are regulated so maybe it is a decentralized web casino that offers centralized gambling activities I don't know. 😅

I played on web3 casinos and you have to link your wallet and sign it in to be able to sign up on Web3 casinos everything here is automated so KYC is out of the question unless the developers find a way through contract configuration for you to do  KYC.
So many players are not used to doing this because many of us do not like the concept of linking our wallet to a platform all I know is the contract should be audited so there will be no bugs or other codes that will steal coins from our wallet.
If many web3 casinos come in we have to research how to secure ourselves in these and what will be the reaction of the regulators.

Web 3 gambling is a relatively new concept, it is about using the potencial of smart contracts to provide gambling services running on blockchains, like those on Ethereum. Since the casino itself is a collection of decentralized apps (dapps), the only thing a person needs to gamble there is having a set of private and public keys (aka wallet). In theory, all games running on those casinos are supposed to be provably fair as well.
Though, there is always a catch, and the catch here lies on the fact most of those casinos are programmed, so the owner/developer of it can use their private key to access centralized functions which any other user would have.
Launching a truly decentralized casino would imply the developer to take the risk of putting his funds and the funds of his gamblers at risk, because of bugs, or exploits. It would not be the first time a dapp gets hacked and stripped of their funds. Look up for what happened to Pickle Finance.

One of the advantages of the web3 casinos can also be linked to transparency and instant withdrawal, as they preach, as most of them make it very easy for you to follow up on the game through the public blockchain, and as they say, there is no possible way of freezing users withdrawals. 
 
On the aspect of the government coming after the Web3 casino, to start with, most of the Web3 casinos are not completely decentralised, so those that fall under that category can easily be forced to enforce KYC on their platform.
 
But for the other aspect, how will they make that mandatory? Will they force the casino to enable KYC on gamblers so that the only interaction they have with the casino is their wallet connection? How will they implement that? Just curious.

Well, at least it's a start I think. Having the web3 casinos being played upon would help add more customers that are quite tech-savvy. Casinos need to have those regulations because people might not try their products if they are not regulated. It's important always I think in casinos to be legal and to prevent possible malicious behavior of the house or something.

Maybe a decentralized one?

This is why they are not popular among gamblers, the developers of these web3 casinos should explain and ensure their players are safe and their funds are safe while playing here because it is a command base and you grant these casinos permission, these web3 casinos should be properly audited and monitored by a reputable smart contract auditor.
I still prefer a centralized exchange where regulations are in place and you are more familiar with the environment.

Web3 is surely a trend but it introduces attack vectors and issues that are so much more easily solved under s trust based model.
Fully decentralized platform are not capable of allowing flexibility of transactions whereas in a centralized system it's very much none to berry little resource intensive to run your gambling tasks on a server.

So the mere inefficiency is a large cost factor that prevents many from going into web in general,

It seems that WEB3 casino is becoming more popular these days I saw a token on Coingecko called JetTon Games after checking the website I saw lots of casino games.
A gala token also has a player-to-player web3 poker and it seems we will see more incoming Web3 casinos.

The only problem for some of those is they have a KYC policy meaning it requires IDs and selfies, another problem with using Web3 casino is you need to connect your wallet online no offline transactions which I think is not safe compared to others casinos here on the forum.

And that they can't guarantee as hackers are always on the works to find a loophole on these platforms. This is why a lot of these gamblers are still sticking to centralized casinos/bookies. At least, if they got a problem, they can easily contact support and possibly resolve their situation.

Besides, we don't know how honest is their 3rd party smart contract auditor. For all we know, the auditor itself is also part of the business of their platform.
For now, some of these developers are trying their chance on web3 casinos. We will see if they will indeed proliferate in the coming years.

I don't really know much about it and I haven't tried it yet.

I only read one article about this on Medium and somehow that enlightens me about the comparison between physical casinos, web2 online gambling platforms, and web3.
Decentralization they say which I think is a cool idea but what's the difference with the decentralized gambling platforms that are already in the market?
I think it's the other offers that will stand out for this new type of gambling. It's either they will create their own coins or offer investment features that can also enhance the number of investors and gamblers to come in.
It's fresh, that's what I could tell, but there's no certainty if it will work.

That is exactly how a crypto casino can get an adoption. Not only that but we must also ensure that casinos are legal in our jurisdiction. The only difference of Web3 casinos from the normal crypto casinos is I think they are kind of decentralized, so KYC can be optional there. That is a good and big thing for many crypto users. I can believe more that regulators demand a KYC to tax the users and not specifically to combat the money laundering schemes and other frauds happening around.

I'd say crypto, more than Blockchain. But Blockchain is I think also huge and without it, cryptos and Web3 casinos won't exist. So maybe it's nice if people can also give credits to it sometimes.

We all know that even before web three casinos came to live or becoming a trend in the space, lots of KYC casino already exited and have had so many customers that have already passed KYC on those casino are still going to be using their old choice of casino, if they are going to switch to web3 casinos, I think those web3 casinos should have something more to offer than just being a non-kyc casino, I have not used any web3 casino, so I don't know if there's anything more unique about it.

 Secondly, just as someone already said in the comments above, if there's any case of money laundering in those casino, the government will definitely go against them and they will have to comply with the authorities or have their business closed.

IMO it doesn't work like that, Anti Money Laundering is not a reactive law or policy, it's the prevention of doing such illegal activities. And to ensure that it will eradicate or prevent the problem, casinos are required to impose a KYC policy that should be compulsory from its users.

This web3 casino cannot be requiring if they are not regulated, and there are casinos that stays unregulated and still operating fine because they kept their good repution that's why they have loyal gamblers on them, could attract new gamblers as well.

Well first of all that was supposedly the idea with web3 tech as in it's supposed to offer some kind of anonymity for its users but with the way things are turning up it's almost as if that whole idea is completely just a lie because all the casino are actively demanding your KYC, if it's not for opening an account then it's gonna be for maybe funds withdrawal at the end.

To me the actual advantage of centralized casinos are two: they have a track record within the industry and the fact they are easier to patch when some bug or exploit appears. Centralized casinos can have their wealth located in multiple wallets and hardware wallets (decentralized casinos / web 3 casinos would be unable to have their funds located within a hardware wallet, it would require a human being pushing the buttons and approving transactions), they can recover from hacks and theft of funds. Stake is a good example of it, it got hacked by north Koreans some months ago and it is still well a running.
On the other hand, because of the way web 3 casinos work, if they get exploited once, all the money will be gone and with little to no chance of recovery.

So, if web3 casinos are operating and maintaining their good reputation, let's assume that someone actually committed a money laundering crime and started to use any of the web3 casinos to clean up the money. Because he didn't want to be detected, he was doing the deposit little by little, but unfortunately for him, the casino detected what was going on. What do you think the web3 casinos will do? Since they don't have KYC information for such user, even if they lock the account of the user, he must have already withdrawn a lot of the money. In such a case, what will the casino do to keep their reputation clean? 

That is never an issue for me. I am not using high amount of money to gamble. Out of my weekly salary, I use less than 5% to gamble. So what should I be afraid of when I use just little amount of money to gamble?

Sometimes I think some people are too privacy conscious. Or if you think that you have huge amount of coins and you want to send part of it to your casino account, you can first send it to a mixer or an exchange before sendimg it to the casino site.

No, without coordination with the AMLC, casinos cannot effectively spot money laundering activities. While they might be suspicious of certain accounts, they cannot prove anything definitively. In fact, it's difficult to suspect money laundering if the user is smart and gambles little by little, as such transactions are normal for gamblers.

Only when a casino is regulated can the money laundering council detect who the launderers are, thanks to the identity associated with account owners. This is only possible if there's a KYC requirement for every user. Regulators always push for casinos to be registered so they can regulate them. Casinos that do not apply for registration may be considered operating illegally and can be sanctioned by the law if caught.

What kind of web3 casino would require their gamblers to deposit the funds to the casino and then gamble? How is it a web3 casino if that is the case? A web3 platform is supposed to be decentralized which means that you won't need to make a deposit or withdraw when you use that platform because everything happens on-chain, it means that when you make a bet, you bet the funds directly from your wallet because you will connect your wallet with the platform.

When you win in a web3 casino, the funds go straight into your account that you have connected with the platform, so you don't need to withdraw. If a platform asks you to make a deposit or withdraw your funds when you win, it is centralized and that cannot be a web3 casino.

Maybe you could take a look at MetaWin? I see that the balance must first be deposited into a MetaWin account and then you can bet.
How is it possible to bet directly from the decentralized web3, means if so every time you bet you have to confirm the transaction via metamask? Then that's what I know every web3 casino will end up depositing the balance too.

So with web3 casino it is only limited to transferring your balance to the casino account but on the other hand when withdrawing it will be more instant.
But then again until now I have never bet with the web3 casino.

We have no other option but to be this way, after all how many horror stories we have heard over the years about people losing everything because they trusted on the wrong person or company? So we cannot afford to be careless with our money, even if the amount is small, as you never know if that is how a skilled hacker can get access to the rest of your coins, and while such view may seem to be too distrustful, I prefer to be this way than the alternative.

Regulations Crack the box of money laundering, I wouldn't be surprised the traffic and trend coming from web3 gaming is as a result of money laundering, it is there even though it might not be obvious for now but I think this was how gambling use to be on the normal web2 where you just play even though you don't have access to your own funds, there were nothing like KYC then, in fact people were avoiding kyc back then until almost all casino where not operating without the use of KYC.

If Dexes could survive all the attacks of the regulations commission and still functioning to date, I'm not sure web3 gaming will leave sooner, they exist on their own but because of regulations, they might not outshine the normal gambling that we have and for their fear of scams, the growth will take a lot of time before they reach where they can stretch to, regulations can hinder the growth of anything you know.

It is very simple and do not make it hard as long as you go the right way. Use the right gambling site. If you use the right gambling site, you will have no problem from the site. But if it is a fake gambling site, they can go away with your money. Even in Web3, there is a way they can steal all the money that you have on your noncustodial wallet that you connect with the Web3 gambling site. If you are using small amount of money to gamble, this also makes it better because only little amount of money would be on your noncustodial wallet to gamble with.

So, peradventure a money Launder is using web3 casino to clean their stolen money, they may not be notice by casino or AMLC because the casino is not regulated. Which if it's a case where the account involved in the crime has already been marked and finally it got traced to the web3 casino, it would still interfere with their business.

Permit me to use th case of mixers, that lead the authorities to bring down three different mixers because they feel it was majorly used to clean stolen money.

If peradventure, money crime is traced to a web3 casino after several investigations, they will be sanctioned like you said and it will after their business since they can not provide any information of the customer that implicated them.

You pointed out a relevant example, although there's a huge difference between a mixer and a non regulated casino as mixers job is to mixed the coins so it will be untraceable, or hard to trace, at least. So in terms of the authorities doing their job, if they can't regulate a casino, they'll just likely ban it, but they'll also look the impact of the casino itselt on how big they had catered already, just like the mixers, they only targetted the bigger ones.

I don't really believe in casinos that really enhance privacy and security for users by not imposing KYC on them but still complying with regulators. Because how can they be a regulated casino but not enforce a KYC policy on their platform? KYC is a basic requirement for a casino to be regulated and that is contrary to what they say. And the jargon "Web3: Anonymity and Privacy" is just a gimmick in my opinion to attract interest from potential users to be able to use their services, even though in fact they are the same as other crypto casinos.

Anything that they think can be used to launder money will either be banned or regulated. Mixers were free from everything for a while until they got the attention of the authorities and then they started cracking them down one by one, if there are casinos that promote web3 technology and decentralization, I'm sure they will be their next targets because they can't let people use decentralized services because they doubt criminals can misuse such things to benefit from them.

Even though they can be right and a person might be able to use a web3 casino platform to launder or mix their money, it doesn't come off as a good thing for us normal users because we do want to have some freedom but they are not going to allow us to have that and they will regulate every single place promoting freedom.

Yes, we all know how the government love regulations, they prefer what they can easily regulate, they love a transparent system but when they can't regulate any company they want and when the company have become so successful, they will definitely attracte the attention of the government which could result to penalty.


You actually sum up my thoughts in these comment. It's not news how the government don't like decentralization. They want to control everything, as long as web3 casinos can be used for some money crime without being detected, the government might one day go after those casinos that support web3 but that might not happen anytime soon. Web3 casino have not really been so popular.

I would like you to perish the idea of Web 3.0 evading regulations, that's not the purpose for which it was created. Although, there would be some better control by domains, but certainly not the decentralised means that will help them blind the regulator. Yes, it is decentralised, but that is for the purpose of taking full control and avoiding third-party internet mediators like Apple, Google, and Facebook that are reaping them in Web 2.0 initiative.

Mind you, once you are dealing with human beings, you are not out of the reach of the authorities so we should not let Web 3 deceive us. What I believe is happening right now is that when there are new developments like that, some new actors may still start doing whatever they like, this is possible until the rod of the authorities gets to them.

This is not also peculiar to Web 3.0 because the present version they are now trying to fade off still has some unregulated companies. So it is not a big deal, there are always good, ugly and bad or adamant actors everywhere. However, the only benefit and beauty I would like you to focus on with Web 3 is the transition from Web 2.0 which is developmental and will come with a whole lot of advancement technology-wise.

Honestly, I don't see much of a difference with common casinos, this is because all casinos need to have a license to operate and then they will ask for KYC, so there isn't much difference with common casinos when it comes to legal issues, perhaps in terms of resources the casinos may have difference. but on the legal side, all casinos need to follow the same script: have a license and ask for kyc. something funny is that many of these web3 casinos when they appeared here on the forum, they said that they didn't need a license, they wouldn't ask for kyc and that I kept asking myself how long they would operate without a license knowing that governments could learn the casino and accuse the casino and the owners of being money launderers and operating unlicensed casinos, and I was laughing when a few days ago I saw that web3 casinos already have licenses and ask for kyc

Not that deep.

But we can take the example of early decentralized exchanges. From there, they're known and become one of the best preference of many traders but eventually, they have to go south and require kyc.

I am not expecting a lot with these web3 or decentralized casinos. The demand for them isn't that much and even if they boast about having no-kyc casino.

Still, at some point of their operations that they're going to require it.

I haven't seen a lot of web3 casinos lately as I have only played only a few number of times on one of them. The experience was largely the same with that of traditional crypto casinos except the fact that I wasn't asked to provide KYC docs (yet). I might still give it some try a few times but other than the no-KYC submission, they have some of the worse UX and there really isn't any distinction features that I could point out. Sometimes, the devil you know, is better than the Angel you don't know. (Traditional casinos as the devil and "Web3 casinos" as the angel).

Maybe they could adopt a policy that allows the gambler stay anonymous until a very irregular activities is carried out in the account and the there's a need to confirm if it's still the person who has been gambling on the account because there are times where the activities on a particular account become suspicious and the only way to Tracking such person is to get their account closed first not allowing them be able to claim the innocence of their account.

There should be casinos rules and policies asides that of their regulators which they will make sure gambler LS stick to and if at any point the gambler is defaulting, he should then do KYC to be able to retrieve back their accounts even with the funds in it, same could also apply when they win max payout so as to be able to protect both the gambler and the casino too aswell, but some may not get to see it in such light as they would want to stay completely anonymous which definitely doesn't happen all the times.

They are not a new trend but they're also doing something out of this. One example of it is making their own token and that's still gonna be monitored by the regulators whether they should be security or not. Telling that their casino is a web3 won't guarantee them to be whole and 100% a web3 casino. In our current time, no one can skip the chains of the regulators because even the mixers and other anonymous platforms and services, they're being able to get tracked and that's why it's hard to believe that they'd be 100% kyc free.

You can't compare a mixer to a casino since, obviously, mixers don't require KYC. For casinos, they can announce that they are non-KYC or KYC compliant, but at the end of the day, we know that those who claim to be non-KYC will eventually become KYC compliant in the future. They don't want to risk their growing business. When your business gets better, the government will easily notice it, so there is a risk of getting banned if they don't secure a license. I think that's the trend now, so there's really no such thing as a "non-KYC" casino. Those who promote it might be lying or are just new in the business, which makes them hard to trust based on their reputation.

Well, when we talk about online casinos, it creates an edge to other casinos if they are considered as web3 casinos as they represent the best trends having online gambling platforms. Compared to some ordinary casinos, these web3 casinos will always gain more thrill and excitement on part of their players. But still having a license to operate and KYC verification are still a must for these type of casinos. Or else, it will be another case subject to money laundering.

The term Web3 means different things to different people. By definition, we must assume that, for example, a Web3 wallet cannot be custodial, but Binance introduced such a wallet, called it Web3, although it was completely custodial and with CUS. To be honest, I don’t understand what prevents Web3 casinos from requesting a KUS check from their clients. Web3 is just a buzzword used for marketing and does not always correspond to its basic meaning in any context. Since casinos in most countries are government-regulated institutions, it would be strange to expect that the government would not require casinos and bookmakers to comply with anti-money laundering policies.

Gamblers will be like if casino have license so they will search for the casino that have license and will make sure that the license is real. They also search for the reputable casino because that can makes them feels calm and no worry when they playing gambling on that casino. KYC verification will implement on the casino, including web3 casino and that's about a matter of time to see web3 casino will apply KYC verification like the other casinos.

The government wants to control every business so they will asks casinos to have license and asks their members to do KYC verification. If the casino doesn't asks KYC for the first time they launched their casino, the casino will do that after they reach many customer because at that time, the government will watch the casino closely and will monitor.

Well, they are already working on the legal bedrock for them to regulate or try to limit the access the public have to decentralized apps and decentralized services which have anything to do with money management, exchange and even gambling. Uniswap is a good example of it, being a decentralized exchange, means the protocol is not supposed to ask or care for the origin of the funds you would try to exchange for other completely different asset, same with decentralized/web3 casinos.
It is just especulation, though, it is very possible many of those so-called web3 casinos will end up complying with regulations which would make them not actually web3, and in the end, it will be just a buzzword as you mentioned.
we are in a state of the industry in which liquidity for money laundering and also privacy are being frontally attacked (look at the case of Monero), decentralized services could be next.

It sounds like a load of gimmicky buzzword rubbish. I ask you - what do you think is the difference between "web2" and "web3" exactly, besides the anonymity and privacy thing you quote but don't actually specify how you think this is achieved. Casinos do not want to impose KYC on their customers and they would make a lot more money if they didn't. They are forced to impose it, if they want to be headquartered in any half decent country, because the financial regulators require it and the owners will be heavily fined or even jailed if they do not collect it. You cannot be anonymous and comply with regulations, as to stop money laundering you have to know who is transferring money around, so please explain why you say otherwise because it makes no sense.

Web3 casinos are not something new to the crypto world, it’s been more than a year now, we have seen many updates in gambling industry lately and it is getting insane with a lot of competition to build better casinos. Honestly and with my own thoughts, I can’t trust a web3 casino to make a deposit there and start playing, knowing your money is with very high risk if that casino disappeared one day while your account is filled.
Web3 term itself means there is no centralized thing in that casino which means you will never be asked for KYC or any documents, and probably the identity of the team behind that casino also are hidden, beside that not many providers would agree to license your casino and provide their slots to web3 casinos.

We need more time to build that trust on such casinos, to have a fan base of this type of casinos we need to trust first the team behind it with proofs and much caution to not get hacked with infected smart contracts while accepting the transactions.

I don't think that web3 casinos can achieve complete anonymity for their gamblers because I doubt that any government will allow it, they'll always require some sort of KYC to monitor money laundering activities through them. I always wonder how a private or centralized establishment can successfully run a business that will guarantee anonymity for it's customers, so I think that there's no way that a web3 casino can fully attain complete decentralized status. We'll just wait and see how the innovations of future gambling through web3 casinos will fare.

+1
That's right, the real trend is not the (web3) casino, the trend to follow is profits and that is achieved by overcoming variance, so, no matter where you play, bankroll management and trust in the casino are the priority.

Technically and legally speaking they can since they are using cryptocurrency which many country still not regulates the use of it. They can simply just restrict country that has clear regulations about crypto.

Real web3 casino offers decentralized services which doesn’t need any license. The government will never find out your casino if you are operating in decentralized manner but ofc there’s a cons on doing this since you can’t offer games that provided bu 3rd party and focus only on probably fair games.

I am not comparing them. What I meant to say is that even mixers that should stay anonymous with their operations were tracked down by the authorities. And that's why casinos that are regulated will definitely not going to skip on this that even if they tell that they're nonkyc or no kyc 100%, the time will come that they're going to ask their customers that they should be compliant to kyc for legal purposes. That's why even if a service for example a web3 casino says that they won't be asking that, it's not 100% sure.

Is web3 casino the new trend for casinos? A trend maybe yes since an online casino nowadays accept crypto as payment and some casino even like you have said earlier can login with simple metamask account. Web3 is really hit the market now Decentralized Exchange is everywhere. A loan platform like AAVE is almost on everychain. Trend ?? It could be because its simply no KYC and you can do gamble at a glance.

If you know there is a layer 2 of etherum called ZKCasino but now is winding down because of regulation but the idea is very simple to build a network of L2 just for casino. How crazy is that ?

Which project are you referring to? A quick search shows me a dying project (or maybe a scam) where its customers claim their ETH was stolen from them. They just tweeted again saying they can refund their ETH back but the user needs to buy some tokens afaik. Is this the one you're referring to, or is there another ZKCasino that already closed down?

That being said, the idea of building a dedicated layer just for casinos is a bit overkill IMO. I dunno if anyone needs a new blockchain for their gambling activity, not to mention the security of that new chain is questionable if nobody supports it. Using a stronger network would be preferable, since the users can interact with web3 easily since years ago already, CMIIW.