Bitcoin Forum

My questions are for those who withdraw cryptocurrency from casinos:
Have you checked the risk level of the funds you’ve withdrawn? What risk level is assigned to them in AML systems?

I'm curious because I know that in the fiat financial system, transactions related to casinos are categorized as high-risk traffic, and some financial service providers are suspicious of funds associated with gambling.

What about in crypto? Are there any issues when exchanging assets withdrawn from a casino? For example, if I withdraw USDT-TRC20 and want to exchange it for Bitcoin using a CEX, will the CEX accept funds coming from a casino? Or will it block them? And is it safe to withdraw directly to an exchange address to avoid extra fees?

I never use any tools to check the risk level of my funds coming from casinos and I have never had any problem when I withdraw from casinos to CEX. If you worried with that, you can just use either no KYC P2P or DEX that listed on kycnot.me

It's true some CEX do categorized gambling funds as high-risk, but I guess it's for strict CEX especially local exchange.

As far as I know judging from the site i do use to gambling like stake.com I do sent out cryptocurrency from there to directly exchange and so far, there is no restrictions or limitations or do I say since I haven't requested for a large withdrawal to directly to exchange address I haven't been restricted neither did they required SoF since then till right. Perhaps I will say since there isn't such activities being reported from exchange to the casino or from casinos to exchange then it's fine and no restrictions.

About fee, it all depends on the gambler choice and often time it's required for the gambler to withdraw from wallet they have access and the seed phrase or private keys to the casinos. Most of the casinos always records the first address and any refund would be directly sent back to the address, so if you withdraw funds from exchange to casino's then it's always advisable to have access to that same exchange so that if there are any refunds then they wouldn't mind sending back to the originate address. Therefore giving them another address would be seen as scam activity and likely to get your account ban or blocked.

Some CX will accept it, some will not, and some will even return the funds to the sender's address, while some will freeze your account for such an act.
 
It all depends on the exchange policies, as some frown upon getting a deposit directly from the casino to the exchange wallet. Aside from this too, I even advise someone to get their withdrawal down to their personal wallet first before they can send it over to the exchange address.

Is there a way to check risk level of withdrawal crypto? I think casino just flag an account to AML policy if it’s satisfied the criteria of potential violation but a normal crypto withdrawal and deposit coming legal source is not being monitored by the casino unless the source wallet was already flagged for being involved on shady activity.

AFAIK casino only reports user to AMLA but never monitor each withdrawal real time. They use KYC to track users that committed violation not before.

No, there are no restrictions to that as far as I remember.

What I did was different. I won a bet that is withdrawable and then I sent it to my exchange USDT address. Then, I exchange it in P2P to make it our local currency.
I had no trouble doing that because I think everything you do there will rely on your KYC. Once they know you are money laundering then they know where to find you so it's better if we avoid that.

Regarding the risk factor, I have no idea that exists. I don't even check my transactions because I know I am doing it all legally. Also, it's actually more expensive to use an exchange as your wallet because of the transaction fees and the risk is there too so I don't do this anymore.

Which DEX supports the pair USDT-TRC20 <-> BTC?

Regarding P2P, they can block the funds as well. Two years ago, I bought BTC on LocalCoinSwap, and when seller's BTC were escrowed, I received a message from LCS support where the informed me that the coin is "dirty", and I should neither send fiat to seller, nor cancel the trade. That coin is still on the escrow address.

Which CEXes do this if cryptocurrency comes from a casino?

I didn't know that there is a way to check the risk level of funds withdrawn. How is this done. I am just curious and want to know how to do it.

I am learning this today. Wow.

For me in crypto most of my withdrawals from crypto goes directly to CEX. The accept it and I have never had any issues with withdrawal whatsoever. In my estimation, it is absolutely safe.

I have only heard of Coinbase that is against it. I have used many exchanges before to directly receive from gambling sites and no coin seized. But you can first send the coin to a noncustodial wallet address before sending it to the exchange. I have used Binance, OKX and Bybit to have received directly from gambling sites before.

There are no issues when exchanging assets withdraw from casino.

To answer your question. CEX accepts fund coming from a casino, and they will not block them without a concrete reason.

Also, it's safe to withdraw directly to an exchange site address as long as you're using Non-KYC Cex.

I used to withdraw cryptocurrencies from casinos straight to a local crypto exchange account. My account was flagged due to 'suspicious activities' even though I only transferred money to that same account on 3 occasions. Up until now, that account is on hold with the funds in it, and I need to provide an attorney explaining that I have the financial capability to play in crypto casinos and that I'm not involved in shady activities.

Surprisingly, my bank has no problem with me withdrawing and depositing huge sums of money in a short span of time even though they know that it is being transferred to an online casino. It may be 'high-risk' but to them, money is money, and don't want to push their customers away just because the money that is being deposited to their account came from an online casino. IMO, that is the way to handle things, and not jump the gun immediately and place a restriction on the account unless you have a strong probable cause to do so.

Btw, the exchange that I still have problems with is Coins.ph. It's weird how $200 is enough to alert them that something might be off even though they know that I was able to regularly deposit way bigger amounts to that said account. And all that just because the money came from a gambling website lol.

For what I have seen... in all these years no CEX has ever wanted to ask me for details on these funds
(basically I don't win anything that is not in line with my income from work/previous buy).
I think this is partly one of the tricks to not having big problems with them... of course I haven't never sent funds directly to CEX

As far as my experience playing in casinos and making withdrawals directly from casinos to CEX it goes safe without having any risk this is often... so not once or twice doing it but every withdrawal is always to CEX... but I do not know the level of risk this is because it has never been experienced.

Maybe the exchange will block your account if you deposit BTC from the mixer, this is often mentioned as money laundering or criminal acts like some other cases that are not.

For casinos, I think it's still safe... Because casinos have existing licenses and regulations, CEX accepts funds from casinos.

I can also attest on this as I haven't encountered any problem with my local currency exchange. But don't get too confident as it may vary from one country to another. Check the terms of your exchange where you want to use your casino funds. Each country specifically have their protocols when it comes to crypto funds coming from gambling sites and how these local crypto-exchanges are treating this type of fund.

For you to make sure, you won't have any trouble, you need to consult or ask the technical support of your local exchange or the exchange you want to trade with about this fund coming from a gambling site. Should have an assurance from their end that they are accepting such funds and should take a snapshot as a proof that they are indeed allowing it.

Depending on the exchange, Coinbase will terminate your account once and for all with no questions asked if they traced the funds deposited from a casino whether directly or indirectly.

Other than that exchanges have no issues with you depositing funds directly from a casino but for your sake of security it's not recommended to do a TX where you don't hold the keys on any of the side so that you don't need to worry in case if the TX got stuck due to low fee or many other things.

I always take precautions even though I don't know the risk of transferring my coins directly from casinos to exchange because i've already lost one of my exchange accounts from this situation. I'd rather pay extra than risk it once more only to save a bit of fees. You always have the option to wait out the network for several days or weeks if there's a big spike in fees.

Recently, i've made a direct transfer through another exchange without any issues and i've used altcoins instead of bitcoin. I still don't recommend doing it because it doesn't mean we're safe when they can frequently update their terms and conditions.

I have never checked the risk level of the coins withdrawn, but I don't think there will be high risk generally associated with gambling profits. I have also sent proceeds from gambling to exchanges multiple times and also withdrawn directly to an exchange with no issues.

You'll have to double check with the ToS of the exchange and also confirm the legitimacy of gambling in your country before moving your funds there.

I never thought about this before, and I continued to make transactions between casino withdrawals to cex without worry, but now I realize that I need to be more careful, do international exchanges have rules regarding funds from casino flows?

It is something new for me too. Most gamblers are sometimes too excited by a win, especially a huge one; they may never concern themselves with trying to verify the risk level of funds.

It is possible that your withdrawals went smoothly because the funds you withdrew had no risk associated with them, and even though you did not bother to check the risk level associated with the funds, the CEX already did it.

I think if you regularly play in trusted and reputable casinos, you would rarely have this issue of withdrawing funds with a high risk level.

There is no such terms on most of the exchange will explicitly mention it but they all are saying funds can be frozen at any time which implies the point. If you have been using it for more than 6 months then it's safe to assume that your funds are safe even if you deposit directly to your exchange from casino but if you ever go on to new exchange or whenever you see the terms have been updated then you have to be careful.

Or even better if you just ask the support of the exchange whether you're allowed to do it or not but make sure you have no funds left while asking such questions.

For any CEX to clamp down on or reject funds directly sent from casino then they should have that stated in their ToS to which the gambler may not have taken out time to read and abreast himself with before use. While some casinos may have no issues with funds withdrawn from casino except when there is suspicion of irregularities in the withdrawal pattern and the amount withdrawn too if huge could raise concern that may warrant account freezing or blocking of such funds from entering the exchange.

The best bet is to make use of self-custodial wallet address when making huge or lump sum of withdrawal from crypto casino and save slef from unexpected event.

From personal experience I don't remember having problems with direct withdrawal to the exchange I make use of from since I have been on it. And I also don't get bothered with the fees either.

I have not had such experience of funds having issues with casino or cex upon withdrawal or deposit. I believe casinos and cex have limits to which triggers the AML system to trace the transaction  from the source or origin. Although they do not state such publicly but I know such mechanism do exist and that is what they use.

Possibly there is always amount level or range that triggers the AML function to be automatically activated towards an account with some certain deposit or withdrawal and that makes them in most cases request for KYC from such account holder to check if the details they submitted initially will correspond with the one such person would submit for the New KYC.

Isn’t it when exchanges or certain people who have regulatory things are required? I believe it has been always the flag with the amount. If it’s really high, it might be flagged and investigated, right? I’m really not sure and usually, the wallets of casinos are already tagged and might be checked if necessary.

Do you have funds that you would withdraw that you would reach that amount?

The point of AML thresholds and investigations are that they are not meant to be easily identifiable. You might withdraw money from one financial institution to another a hundred times with no issue, but the 101th time triggers the red flags to go off. The financial institutions will often not be legally allowed to alert you that you are under investigation and certainly don't want to help you avoid it, because they are legally responsible and may be prosecuted if they did. There is evidence of some exchanges banning activity that comes from known casino wallets, because they have assessed it as a risk they do not want to take - you should never lose your money because of that, but they don't want your business and you may only find out after being burned.

I have heard of many cases of forum members having troubles when withdrawing their gambling profits to exchanges, and this is because they are immediately asked to pass their KYC policies and demonstrate where that money came from, and you cannot just say that you won it at the casino and still need to provide some evidence you got that money in some other way, something that can be very difficult for a person that got a massive win, so it is better for you to withdraw to your own address and then do whatever you want to do with your coins.

That depends on a lot of factors one being the amount of money you are transferring. If the amount is not too big to the point of concern then they will not give you a hard time and they will accept it however some exchanges might find a certain amount alarming which can set their alarms off.

I have heard of many stories where they had to submit documents and verify their identity before continuing.


 

When CX exchange Even before you start enjoying full features of the exchange, you will first of all be asked to complete the KYC and make sure that everything is in place.
 
Even with the account being fully KYCed, if the client still deposits an amount, which will trigger more investigation of how the amount came about and the source of it, the customer can still be asked to make provision of more details in order for them to be sure of what they are doing. The details can be anything, either proof of funds, etc.

I'd rather not do it if I were you, especially if you're not open to providing additional information about you and your finances. Many are saying it's not a problem at all and they've been doing that, but certain exchanges don't like gambling money.

Coinbase, for example, has made it clear that you can neither send nor receive money to and from a gambling platform, respectively. Moreover, I've just raised a question to another exchange a couple of weeks ago about gambling assigned with a risk value equal to that of human trafficking, child abuse, and other serious crimes.

Moreover, not just one or two but a number of friends had problems with a local wallet for receiving money from online gambling platforms.

It doesn't hurt to withdraw your gambling money to a non-custodial wallet first before sending the same to an exchange.

If a user withdraws cryptocurrency from the casino Know what checks may be required because of AML. Gambling-related assets tend to be considered high risk. Both fiat systems and cryptocurrencies Central Exchange (CEX) often have AML systems that can mark such transactions. That brings extra audit requirements. If you withdraw USDT-TRC20 from a casino and wish to exchange that to Bitcoin using CEX, the site can also scan the origin of funds and may ask you to show evidence in order to comply with the policies. Policies vary from each site so is worth referring to requirements for the platform you are using. Withdrawals to an exchange address often remove further fees. The proper address must be used and ensure the exchange accepts such deposits. It should have proper transparency regarding the source of funding and know the terms of the exchange to aid a smooth trading process.


You provide accurate information about the risks and challenges one may encounter while withdrawal of money is made from the gaming platform. This happens mainly when using some special exchange, such as Coinbase, that have very strict policies. This arises because some of the exchange may term the currencies associated with gambling to be risky. As compared to other serious issues Therefore, this issue should be handled seriously. If you would not like disclosing additional documents or maybe to have problems with the exchange's rules, you can use a common wallet as an intermediary. In this case, you will be able to personally manage your funds and not depend on any exchanges. Instead of directing them there This should avoid some checks and pains. Thanks for the precious thoughts.

No, I don't have to check the funds I withdrawn because I trust the casino and don't to ask them except if I have wait for some time. If you withdraw the funds into your private wallet, there is no question from anyone except the casino but that will depends on you. If you don't cheat the casino, there will be no problem and you can withdraw the funds.

I don't directly send the funds into CEX but I use my private wallet and many times I used DEX to send the funds to CEX especially if I want to withdraw the funds into my bank account. I don't withdraw too big money because I don't want my bank sounds the alarm. I don't know what will happen if I directly send the funds into CEX. Maybe CEX will block my account and asked from where the funds come from.

If we look at the Stake.com entity (https://platform.arkhamintelligence.com/explorer/entity/stake-com) on the Arkham platform we can see that a lot of withdrawals from their hot wallets go directly to major exchanges like Binance. You can also look up other casinos and see something similar.

https://www.talkimg.com/images/2024/09/17/g2Uf5.png

I have not used centralized exchanges in many years, but in the past I did used to sends funds from casinos directly to Coinbase. I never had a problem but I would probably be smarter about it today when using a CEX and withdraw to a self-custodial wallet first so there is some plausible deniability if they suddenly started freezing funds coming from casinos.

The problem is that some casinos don’t support withdrawals in Bitcoin and only allow USDT-TRC20. But I have no use for these tokens. The only thing I want to do with them is exchange them for Bitcoin. And to do that, I have to pass them to someone - an exchange, a swapping service, etc. That’s why I’m concerned about the risk status of these tokens. If it’s high, then the exchange, swapping service, or any person I want to trade with might think I’m involved in fraud. And I don’t want any unnecessary trouble.

Why? Isn't it better to tell the truth?

I have had problems only when I have used USD-t as they explicitly show the name of the entity that have sent funds to you. I always use one exchange from bestchange website and I am not saying their name here yet they have exchanged always without problems when I have used Bitcoin, Litecoin, Ethereum and Ethereum Classic and they are very reliable when exhanging funds from crypto to debit/credit card while with USD-t they frozen my exchange and only after I did a massive KYC they released the funds. Moral of the story, never use USD-t as currency when playing in crypto casinos.

We all remember and know the site bestchange.com. The rules of many exchanges of this aggregator include a condition that all transactions will strictly undergo AML verification.
But even if you do not need to exchange on this aggregator, you can check your crypto addresses for those red flags that can be found fault with during the exchange by paying a few cents.

https://www.bestchange.com/report/



In the same way, I often came across the exchange conditions that they ask not to transfer funds directly to their exchangers from gaming sites and even provide (if I'm not mistaken) a list of some casinos.

https://www.bestchange.com/wiki/amlmarks.html

This really depends on the policy of a particular exchange, whether it's local or international. I’ve personally experienced withdrawing funds directly from a casino to a local exchange, and unfortunately, that led to my account being closed. I didn’t even contest it since I knew from their terms that gambling is illegal. The strange thing is, I had been gambling for years and they didn’t lock my account until they decided to get stricter.

Right now, I use Binance, but I’m not entirely sure if it’s banned there, so I’m taking precautions. What I do is route my funds through a third-party wallet before sending them to the exchange. Every time I transfer, I make sure it goes through a third party. I also use another exchange (which I won’t name since it’s not reputable and has a lot of scam accusations), but I haven’t had any issues with gambling funds there. I take the risk, but I only transact amounts I can afford to lose, it feels like gambling in itself, using a non-reputable exchange.

I dont think that a regular gambler should worry a lot about withdrawing money from casino to a CEX, as I dont think that gamblers withdraw regularly large amounts. I see no problem if someone withdraws, lets say $10-300 regularly. That is only a drop in the ocean of transactions. If a gamblers withdraws round $100k every day, only then there might be question, but the casino will be first to ask them. Nevertheless, even if there are such gamblers who withdraw large amounts, I believe there are not many of them, and CEX and casinos have resources to check funds origins without worrying gambler.

You are right, but it is always unpleasant to understand that at some point you are limited by someone who doubts the origin of your funds, accusing you of any illegal actions. I once got into such a situation; it was not crypto from a casino, but they told me to provide all the evidence of the origin of these funds, then followed questions that knocked me off my normal state of mind, making me nervous. From reviews, I know that the more we refuse to explain anything, the longer the account block can last. Therefore, you should not think that any exchanges are aimed at large amounts. Where there is AML, firstly, an automatic check is triggered, and then the support is connected, decently bringing us to emotions.

But you know how they say "if you can't stand the heat, get out of the kitchen". I dont think that your unpleasant experience stopped you from depositing to that exchange. I can suppose, that people have wrong vision or their vision about AML has formed incorrectly. People think that AML is a thing, created to take away their money, and are afraid of it. For me, AML is not a procedure to be afraid of. That is only and extra step on a way to finish. If person lives a fair life, he should not be scared of anything money related. People are simply used to one and the same process, but that AML only makes a little pause on a way to an end. Everything that isnt "like they used to", people consider as bad, scary, negative, unpleasant.

No, I was not involved in any fraud, and I still think that they wanted to check me, but I do not understand why. And I still believe that this can happen to anyone. I checked my funds later on another site, and they had no complaints. The first exchange returned everything to me, yes, but I did not go back and trust them anymore. That is why I recommend checking your funds, wherever they come from, before doing anything.

To be clear, I believe that the AML may one day be wrong by setting danger levels where there should be none.

I have never had any problems with freezing or blocking of funds withdrawn from gambling sites. But if you are afraid that this may happen, then use not centralized exchanges, but decentralized or bridges if you need to transfer funds from one network to another.

The casino can be used as a mixer to obfuscate the cryptocurrency trail, so such problems can technically occur. If you have the ability to officially verify your income and you do not violate the rules of the gambling site, then you have nothing to worry about, because most likely the gambling site will assist in solving this issue.

Of course, this is true, and I also think that AML is just an intermediate stage, which is not surprising. But besides everything else, I am absolutely sure that some small part of the cryptocurrency is not obtained from the cleanest places. Probably, there are those who are trying to hide from justice or something like that, because not all players are honest. Therefore, the counteraction to this is AML, this is a logical step in protecting the authority of a gambling casino. Because if they do not do this, then the supervisory authorities will pay attention to the institution itself.

It's just a matter of how carefully they check this. If you search for information on the Internet, I think there are answers to the questions of which casino more carefully monitors the purity of deposited and withdrawn funds.

Which of them could you advise for swapping from USDT-TRC20 to BTC?

I can see that it doesn’t seem like users are being affected, since it’s clearly happening. However, as mentioned, this goes against Binance’s TOS.
https://www.binance.com/en/terms

It's always better to gamble I'd reputable casinos and when do, the risks factors would be listed in their terms and conditions.
Even during when executing your financial transactions which may either be the fiats or crypto assets, you'd be alerted with the risks involved in the about to executing transaction.
As for me, I only think being law abiding by not going against the casinos contrary and being concious of scammers is the only risks involved about it.

I haven't done AML analysis on my casino transactions but I have never had a problem. I use Web3 Wallet for gaming. I withdraw money from Binance to Coinbase Walle USDC, then send USDC from Coinbase Wallet to Metawin via a simple swap click. I can deposit and withdraw money immediately from Metawin to Coinbase Wallet. If I want to cashout my winnings, I withdraw from Coinbase Wallet to Binance and then do P2P trading. I'm using this approach for months and didn't have a problem but I have also sent Bitcoins directly from Bitsler.com to an exchange without a problem too.

Btw if you want to use an AML analyzer, you can try Bestchange's AML analyzer - https://www.bestchange.com/report/
It's only 20 cents but at the moment it's under maintenance.

If they have this rule in their terms, I doubt why @OP need to use AML systems in the first place? I mean, isn't it obvious that your money came from casino? so technically without using AML systems, Binance already know your money came from casino.

If some users said they haven't had any problem to deposit their money from casinos to Binance, we don't know when bad day would happen.

Neither do I, although I don't use CEX or centralized sites like that.


Interesting.


Yes, that's the problem with blockchain analysis and so-called tainted coins. I don't know if just withdrawing first to your address would work but if you know that withdrawn coins from a casino can be problematic you can send them 2 or 3 times to your wallets before sending them to where you know they can be censored. Obviously you will have to do it as normal transactions in that you can not send everything you have in an address out there, because that is usually recognized as a self transfer.

AMLC is the council that manages the AML system, which includes regulations for casinos and exchanges, that’s why KYC is strictly enforced.

That TOS was actually taken from Binance’s website, and there’s a link to verify it, so it definitely exists.

However, for users who haven’t had any issues with their casino transactions going through Binance, they should be aware that this rule is in place, so they won’t be caught off guard if Binance decides to enforce it in the future.

It's not as advanced as they like to play it out as.
Many casinos use a very centralized storage system for their funds so it's easy to figure out which addresses belong to them when withdrawing. So third party observers that just have access to the blockchain are able to see if you're transacting with a casino so long as they know your BTC address.

So if a third party service associates your funds with a casino then they're just using this basic technique, perhaps going back one or two transactions, doing blockchain forensics in their most basic form, to determine that the funds originated from a casino. In that occasion I'd just start using another exchange. Not very many exchanges have an issue with funds from casinos, so it makes sense for not to boycott the ones that do.

If I need to exchange USDT TRC20 for Bitcoin, but can't use centralized exchanges, I would do it on one of the exchangers with a good reputation on bestchange. But take into account that there is also a check on the purity of funds, and may also require KYC. The same risks are still present in such an exchange, no matter how you look at it. So it's up to you to decide who you trust more. As I said above, I have never had any problems with freezing or blocking of funds withdrawn from the casino. Withdrawal of funds I carry out on non-custodial wallet, and then on the CEX for exchange if necessary.

Never bothered me to check but after I ran into problems with on of these exchanges like Whitebit holding on to these funds and asking me one too many tasks to get the funds & wallet that sent whitelisted in their system, I have been picky of where to send these funds but 90% of. these funds should have no problem to be spent  ::)


Very true!

If I got this right, is this in the lines of say deposit USDT-tron and you opt to withdraw BTC after a win?? If yes some casinos won't let you do this , some do and it's a 50-50 thing depending on how platform is set .

We do know that crypto platforms or exchangers would really be always not wanting or liking on getting some deposits directly from gambling sites or casinos online on which you would be having that tendency
that your account would be locked or those funds would really be blocked but of course i have tested it out and didnt have such scenario or situation but its better not to do it since its really that written into their TOS. This is why the thing i do is on the moment i do tend to make some withdrawal on exchangers then i do make some direct transfer into my own personal non custodial wallet and this is the time or moment
i do make some transfer into the exchange platform and so far i havent been able to experience any issues in regarding into this one.

I never assess any risk, never care about the origin of funds and all that.
I can tell you that exchanges usually don't check funds. They don't care if it comes from a casino or another exchange as long as it's not a very large amount of money.

Honestly, I don't even know people who got their payments blocked by a bitcoin exchange and I used to even send them BCH, ETH, XRP and other coins directly from casinos.

Is it ok to send the funds from the casino to an exchange account directly?  I thought it would somehow jeopardize your exchange account if it happened that the exchange is not casino-friendly.  There are rare cases that an exchange freezes the account of a user when the exchange traces that the fund is directly coming from a casino platform. I read that Binance and coinbase freezes account in the past due to the funds coming from a casino platform.


There is always a risk in depositing a casino fund directly to exchanges, even if one is doing it legally, the exchange may suspect him of illegal activity especially if the flow of funds is somehow abnormal.  So it would be an inconvenience if that happens.

From what I understand, the AML systems are supposedly coordinated to analyze in real time the interaction some blacklisted addresses of Bitcoin (or any other decentralized assets) have among one another. If you withdraw and deposit money which never had any direct interaction with any of the addresses in their black list, there there should not be any problem for you to access liquidity and do whatever you what with your money.
Though, problems start to appear when one of those addresses happens the be the source of the money which you want to withdraw to an exchange, even if you are not initially aware of it, said exchange will comply with their AML policies and will flag and possibly block your account from further access to markets.

That is why you are only supposed to gamble in reliable casinos which care to check the origin of their fund and they will not allow coin mixing in their website, minimizing the chances of anyone getting tagged by exchanges and authorities.

To date, I have not heard of any reports of exchanges blocking cryptos from casinos.

I believe that this could happen in some country where casinos are banned, so the government issues some order or law for the exchanges to block these funds, but in this case the reason for the block is different and has nothing to do with the AML system.

Knowing that some casinos can be used for money laundering, I do not doubt that this could happen in the case of some isolated users, who make large withdrawals and with some frequency pattern that could raise an "alert" on the exchange. But in general, this should not happen to ordinary users who just want to withdraw their legal funds from successful bets.

If something does happen, I believe that the user can always contest the decision and seek a resolution, even linking images of the bets made at the casino and proving the legal "multiplication" of the money won.

Don't know how the AML system works on crypto casinos, but it shouldn't be as complicated as traditional casinos that use fiat as their main payment. Because so far I have never found a case where CEX refused someone's deposit from a crypto casino just because they were suspicious of where the user got their crypto.
And for withdrawing directly to an exchange wallet, it shouldn't be a problem because I usually do it, but always make sure that the wallet address is correct and has not changed because the exchange wallet address can change at any time.

Even exchanges don't check the funds, we must be careful because the money come from the casino which exchanges don't like. We can use the other ways to avoids the problem and don't have to make us in difficulty. Exchanges can do many things to our account if they know that the money come from the sources that they prohibit and I guess we will not accept that with ease.

Maybe exchanges don't take a look with the other coins but many gamblers use Bitcoin to gamble and send the funds to many places. So they must think about to prevents the problem. Besides that, it is better to avoids than to have the problem ;D

How do AML systems evaluate cryptocurrency withdrawn from casinos?

First of all, we need to know how money laundry work in the casino according to this website "Money laundering schemes in online gambling
Placement: Illicit funds are introduced into the financial system by depositing money into gambling accounts. Layering: The source of the funds (SoF) is disguised through complex transactions involving multiple bets, transfers, and withdrawals within the gambling platform." https://complyadvantage.com/insights/online-gambling-money-laundering/

Meaning in simple terms is the criminal is do multiple deposit and multiple withdraw putting lot of bet and maybe they have cooperate with the casino itself.

But with AML maybe a compliant casino can detect a pattern from it I hear in the other day that some user using 2 different account with 2 different laptop and IP with 2 different ID and somehow the casino can still detect it.
I believe right now there is an AI pattern can make easy to detect that pattern

Could your AML check-up be considered as a default check that police does to drivers? Like valid drivers licenses or alcohol test. We dont give much attention to that, so why we should feel annoyed, worried or uncomfortable during AML check-ups? Btw, even banknote check-ups at the store can show different results. But if someone gets a warning that his banknote is counterfeited, but later it turns out that it is valid, that does not stop person from visiting that shop.

That's correct, I remembered a year when almost a similar topic to this one was created, some said that if you withdraw from a casino to an exchange that doesn't accept deposit from casinos, your account will be blocked. There are some exchange that usually state it on their terms&policy that they don't accept deposit from casino and they usually state the consequences of violating the rule.

There is nothing wrong using an casino for withdrawal to centralized exchange. This what I have done many times and there was never a problem with that. Issue might comes up if the funds from such casino has been flagged by the Anti Money Laundry bot which can out a restriction on the address if has been noticed that funds are linked to such address. This can happen when we are using a scam casino to gamble without knowing that funds from such casino, especially the wallet address has been flagged. It is better we try to check the casino address especially when we are new to the casino if it is flagged by AML bot. This could help us save the stress we might undergo explaining to the centralized exchange if actually something like that happens.

Do people really check about the risk involved from the source of their money? This is indeed good to check atleast to be on a safe side but if a casino has a strong reputation, by that I mean they are registered and recognized by atleast the company origin then you there is nothing to be fear most especially when there is company registration, it will be easier to track because no company can operate for long time openly without any red flags.

If there is any problem of risk, I bet one or two users particularly the ones that deals with large funds would have one or two problems and they will raise an alarm immediately and I think the casino wallets are similar to the ecchanges, some onchain analysts do tag their wallet address to monitor if the casino is liquid or when they are moving large amount of money to another destination.

I don't, because I always prefer BTC, and each of my coins can be put into an LN payment channel where AML abuse is impossible. But if the only option is USDT-TRC20, I don't know how to deal with them.

I found only one suitable answer here:

But, honestly, it's not so suitable.

It seems I can only hope that in the cryptocurrency space, tokens coming from casinos aren’t considered so high-risk that they might get blocked because of it.

stake is a famous online gambling brand that is popular all over the world and the same judgment is available in the one you shared. Cryptocurrency can be sent directly for exchange from here and it has no adequate restrictions. But since this is a casino site, the time to withdraw from the gamblers preferred wallet and casinos depends on the seed phrase or private keys. But you can see that most casino sites accept the first address as the record. So you can send funds directly from the exchange to the casino.

As a vendor that accepts Bitcoin for good and services, this is something I’ve been wondering lately how concerned I should be about it. Someone should create a tool to help evaluate our own stashes to see if something suspicious is afoot. With all the people complaining about exchanges keeping withdrawals, not just casinos, I think this is an issue that is going to become more and more prevalent.

That’s what criminals do, they launder money, or in simpler terms, they "wash" dirty money to make it clean.
 

When it comes to the guidelines set by AMLC, those are solely from them, and the casino is just following that guidelines. Having multiple accounts or cheating the casino doesn’t automatically fall under AML because it doesn’t fit the definition. Whatever tools the casino is using, it’s there to protect their own interests not specifically to prevent money laundering.

As far as I know, some casino's have restriction on withdrawals, specially if it will be coming from gambling sites. I remember some local exchanges banning crypto deposits from casinos, and so their account has been ban as well. That's why you really need to read the ToS of CEX when depositing.

And before there are casinos that their addresses are being tag and that's why CEX know that it is coming from that particular casinos. But not sure today today, specially with the implementation of Segwit addresses, it might be hard for CEX now to trace whether that addresses belongs to a casino or not.

I don't see any high risk here, the worse is for the verifying party to ask you for the proof of funds. But such has not happened ever since I've been dealing with cryptocurrency and I already have many years of dealings.

This is not particularly true unless their regulator forbids cryptocurrency. They are now interested in cryptocurrency and are even partnering with crypto firms.

I've been doing this for almost 4 years now with no issues at all. Any money I withdraw from a casino is my money, exchanges even respect that and I've never heard that anyone had issues with casino withdrawal to exchanges. I also exchange the money back and forth as I like and withdraw as I like with no questions asked.

Cryptocurrencies are highly decentralized and confidential, making them difficult to track and monitor. Anti-money laundering legislation is also constantly changing, making it difficult for platforms to keep up with these changes. Some people may exploit loopholes in the system to commit fraud and money laundering.
Legally, platforms and financial institutions that handle these funds must ensure their original source and that they are not linked to any illegal activity. They must also carefully verify the identity of users, including conducting the necessary verification processes (KYC).

It's better to use an intermediary address as for now imo, because fees are really low currently, and it will avoid you many complications, if the centralized exchange you are using doesn't accept funds coming from casinos, or doesn't like them very much but tolerate them until you reach one specific percentage of your deposits and afterwards triggers controls and heavy KYC procedures once you've reached such level. Or even close your account and ban you from using the exchange anymore if it clearly prohibits it in its ToS.

It is only when the crypto exchanges or gambling sites granted them access, if they don't, there is no how they can mange to know anything about the users information, the government will send a request from their agency AML demanding for the granting of access to them concerning the users information, some may give while some may not, that is why we are not safe with our information left on any centralized platform.

I also have not come accross any problems withdrawing funds directly from a casino to an exchange, and for as long as I have used those exchanges to receive cryptocurrency deposits from casino, I don't have any issues with that and nothing have really affected my method or volume of transaction due to that before and for such I think only on a few occasions, if there is any exchange just like the coinsbase that you mentioned that restrict direct crypto deposit from gambling site or even a. Mixer.

I have not also read any were that a user account got locked because of his or her involvement in gambling, this is not allowed in most cases and sometimes, the exchange are just about their business and not against where and how the user receive those coins unless when there is issues with investigation, that way the wallet could be investigated to see if the funds are clean or not.

But this doesn't happen on a regular basis, and it only take one out of 100 of such transactions to get flagged in such a manner and even at that the ratio is almost none existence since most times, casino have a good and clean transaction mechanisms that can be compatible with all other mode of transactions.

Though it's still traceable, at least casinos could justify not blocking an account since there's no direct link to a gambling site. It's like a bridge where every transaction must pass through before reaching its intended destination. I think it could work, it’s a simple method, but always proceed with caution to minimize risks. If they decide to investigate, they can still find all the links and potentially determine that an account has violated the TOS.

It's called "conceal" where you not directly send the coins to the address, instead you send it to somewhere and then send it to the centralized exchange. It's not safe at all, one of centralized exchange i.e. Gemini didn't allow this What Do Centralized Exchanges Consider as Taint? (https://bitcointalk.org/index.php?topic=5398316.msg60111074#msg60111074)

I think converting your coins to other coins is more private since it's break the exchange to track your coins.

That's a nice question to be honest. Even I would like to know if there's actually any platform that offers the service to check for such funds.
As far as I know, whenever someone scams others the addresses get flagged and the platforms keep tracking them to know where the funds are going.
May be this is how the AML authorities do it too.

Yes, the rule will always be carried out, because using AML authority in gambling will minimize money laundering crimes and several other crimes.

So early detection can be done with AML, if someone does not want to use AML then he cannot increase the withdrawal to a larger extent because every casino has a threshold for withdrawal and if it exceeds then AML is very much needed to know who you are and where the money is going.

What I mean is that is not going to be enough even if it is the truth, exchanges are not going to take what you say at face value, and instead they will doubt you at every step, so even if you got that money through a jackpot, you will need to present evidence to the exchange that you are not a hacker or a criminal of another kind, and passing those checks can be exceptionally difficult for some gamblers that cannot offer a definite proof of income coming from a bank statement.

The very reason why you need to ask or read their terms when it comes to your deposit. If they are strict with the source of funds, you need to be cautious as to where you are getting your money from. You can also ask their technical support directly if you can't find certain subject in their terms. At least, clarify things before you jeopardize your funds. Because most of the time, you will be waiting in vain if something goes wrong with your account like freezing your funds for some additional requirements.

If the exchange prohibits replenishment of the deposit from the casino balance (to be honest, I have not heard of such), then it is obviously better to use an intermediate address. But if the exchange has claims specifically to the purity of funds, then how will an intermediate address help here? If the funds are dirty (or the exchange considers them dirty), then even when passing through an intermediate address, they will remain dirty. As I understand it, now everyone uses blockchain analysis tools and a couple of intermediate addresses do not change the purity assessment.

But it's the question whether uses AML or any blockchain analysis tool if there are any to check if the coins are clean? And are we sure that the casino's coins are also clean and not tainted as we don't know were the funds is coming from? It is directly from bitcoin mining or just they buy from exchanges and then keep it in their hot wallets as funds to pay for gamblers?

So we still don't know how AML will track everything. And we might be surprise that one day, our accounts might be identified as being tainted when we really don't know the source of our funds in the first place? So it's really very very tricky and it seems that there are more questions from us.

AML policies are crucial in preventing money laundering and enuring transparency and it's not applicable to gambling but every financial sector.
On the other hand, the effectiveness of these AML policies cannot be guaranteed since we don't know how are they tieing up with different sectors.
For example: Money can be glowing from crypto gambling to fiat to real estate and it would be difficult to determine if the AML regulatory bodies are able to cope up with these sectors.
If not then these AML policies are only increasing the burden of legitimate users.

Any withdrawals you make from casino doesn't comes from another person, it comes directly from hot wallet of the casino, they operate the way centralized exchanges operate, so when you initiate a withdrawal from casino to centralized exchanges, the funds source is directly from the casino wallet which I'm not sure the centralized exchange are going to reject especially if the casino wallet is identified with a name on the blockchain network.

Unless the casino is been tagged by chain analysts that they have accepted some tents Bitcoin from their wallet, like Bitcoins that are scams, Bitcoin that are drain from victims wallet, if such Bitcoin is a large amount of Bitcoin and it eventually get deposited into the casino and the casinos accepted it, I'm sure that any coin that is withdrawn from such wallet will be seize taken to any reputable centralized exchanges.

Whether or not it is rejected actually depends on how each CEX is regulated, but most CEXs implement AML to avoid money laundering as often happens with casino wallets, CEXs even have to comply with the regulations that are applied not to receive funds from gambling activities.

Instead of having to be confused about making a withdrawal, it is better to use a Non-Custodian wallet and it can be withdrawn easily, then just send it to the CEX, the problem is solved.

But some withdrawals from casinos must include KYC if the maximum limit of funds withdrawn is reached, with the aim of avoiding money laundering practices.

And for some casino wallets it will indeed be detected on the Blockchain and you can check it directly on the https://platform.arkhamintelligence.com, and everything will be visible. As in this Rollbit Hot Wallet.

https://www.talkimg.com/images/2024/10/04/ivUQ9.png
https://platform.arkhamintelligence.com/explorer/entity/rollbit