Do online casinos have SAFU funds? Comparing hacks/bankruptcies to exchanges

[Fiatless]

Just like I don't believe that all exchanges have these SAFU funds even though they may claim to, I don't believe that all casinos have them too because they don't believe that they will be hacked. As someone who has been in business also, I understand that some businesses are not as rich or performing as well as you see, or they make you believe; this applies to the casino business. There are some casinos that are already in a financial crisis that they are managing to keep the lid on; they have no SAFU funds and are just hoping they do not become a target for hackers.

My suspicion is that only big exchanges that are highly regulated by the government will have Secure Asset Fund for Users (SAFU). In moat cases the government ensures that they have enough funds and assets to cover the deposits of customers in case there is a hack or other uncertainties. I don'talos think that all exchanges does have these backup funds..

This might also be thesame case for casinos. Reputable and those that are under government regulations might have SAFU. However, I have never had any connections with a hacked or bankrupt casino.

[Slow death]

There are few cases of people who deposit a lot of money in a casino or betting house, play and then leave the money in the casino or betting house with the intention of playing later. Most people when they deposit money on gambling sites, play until they lose everything. That is why in my opinion, even if a casino were to be hacked, the casino owners would easily continue to operate and would replace the money of the affected people.

[Dump3er]

I'm sure you guys are aware of what happened to exchanges like Binance, they got hacked but because they have SAFU funds, users weren't affected. Or FTX which declared bankruptcy but because they had assets that got liquidated, users will be refunded based on their published schedule.

Now applying this to casinos:

A. If a casino gets hacked and we have balance there, do they also have SAFU-type funds?
B. If a casino goes bankrupt, can verified (KYC) players still get refunds?

I'm wondering how this works since casinos aren't exchanges.

This is to be considered on a case to case basis and I think whenever someone here was involved when an exchange got hacked, most of us know what it comes down to whether you have a reasonable chance to recover your funds or not. As with exchanges, I think it mostly depends on the size and reputation of the casino. Since essentially everyone can now run an exchange or a casino using templates, you never know. Hence you are better off trusting those that you know have made a good name for themselves or maybe have solved such a case to the satisfaction of the customers in the past.

Is size and reputation always a strong indicator that there is such a think as SAFU-type funds? I think the FTX case answers that question without going into further detail.

Bankrupt casinos, I guess you can obtain some promissory note via legal ways, but what claims are you going to enforce when there is nothing left to serve your claims?

[Mahanton]

I'm sure you guys are aware of what happened to exchanges like Binance, they got hacked but because they have SAFU funds, users weren't affected. Or FTX which declared bankruptcy but because they had assets that got liquidated, users will be refunded based on their published schedule.

Now applying this to casinos:

A. If a casino gets hacked and we have balance there, do they also have SAFU-type funds?
B. If a casino goes bankrupt, can verified (KYC) players still get refunds?

I'm wondering how this works since casinos aren't exchanges.

This is to be considered on a case to case basis and I think whenever someone here was involved when an exchange got hacked, most of us know what it comes down to whether you have a reasonable chance to recover your funds or not. As with exchanges, I think it mostly depends on the size and reputation of the casino. Since essentially everyone can now run an exchange or a casino using templates, you never know. Hence you are better off trusting those that you know have made a good name for themselves or maybe have solved such a case to the satisfaction of the customers in the past.

Is size and reputation always a strong indicator that there is such a think as SAFU-type funds? I think the FTX case answers that question without going into further detail.

Bankrupt casinos, I guess you can obtain some promissory note via legal ways, but what claims are you going to enforce when there is nothing left to serve your claims?

At the moment that hacking incidents do happen then the best thing to have in mind is that dont try out to sue out or trying to chase on what you do have specially if this one talks about hacking or even bankruptcy. Lucky for you if they would be able to compensate into those people who have been that affected with such or simply all of their players and thats a good news but just like on what i have said that better not to expect because not all the time they will be having this kind of step or actions in correlation into their gamblers or users specially if there's no fund that left for them. Whether these exchangers/casinos do have their money left in cold storage then it could be traced up if ever they would be neglecting out on repaying into those affected users on which we know that not all funds will be put up on hotwallet on which means that there's that tendency that they can patch up on whats been lost and fixing up again. The bad thing on here is into their own side on which at the moment that they've been that have that tarnished reputation on which this is that bad for the business for long term. So it will be that up to you whether you do decide to stay up on a site that has recovered and still gained your trust or you would be trying out to look for into those platforms that havent been able to experience any hack or bankrupt issues.

[SmartGold01]

My suspicion is that only big exchanges that are highly regulated by the government will have Secure Asset Fund for Users (SAFU). In moat cases the government ensures that they have enough funds and assets to cover the deposits of customers in case there is a hack or other uncertainties. I don'talos think that all exchanges does have these backup funds..

This might also be thesame case for casinos. Reputable and those that are under government regulations might have SAFU. However, I have never had any connections with a hacked or bankrupt casino.

Those exchange that doesn't have SAFU may either close down or go bankrupt.
To me it's good always locate such exchange and gambling site, but guess what? The ugliest part is that they wouldn't include such in their terms because it may not be that necessary and some times it may attract hackers to come attack them. For gambling site it's good such is being implemented because if you look from the metawin hack no user were affected and they make sure their accounts were credited back and I think same thing happened with stake.com because these are big and reputed companies, they are self funded individuals unlike those that doesn't have Secure Asset Funds for Users.

[batang_bitcoin]

It's a good thought to have them separate SAFU funds. This is because they're also being targeted by the hackers and the customers that they have are surely leaving their funds on them to remove the hassle of depositing time and time again. Although as an enthusiasts and a gambler, we know it that it's bad to leave much funds in them and we should also be responsible for our actions and take care of our funds. But, on their end, aside from security measures, there's also the responsibility coming from them verifying that they have enough funds to cover an unfortunate situation.

Because if they don't then, one hacks could send their business spiral and maybe they will close the casinos. And again, it could be just for the semantics, but we can call it emergency funds or it's simply their profits that they are holding and put aside just in case something bad happen to them.

I guess that they have this strategy that a portion of their profits goes straightly for that purpose of improving their security and then for additional backup finds or emergency funds. And that's a nice strategy until they become bigger and let's just say "too big to fail".

And we all know that if business involved a lot of money, then they really need to be very careful as they will be hold for responsibility, like a banks. They have a lot of support personnel, to ensure that there's no breach or worst if there is one, there are people who can close the gap in minutes so that no big amounts of money can be stolen to them.

That is true, they have to make it sure that they have a lot of back ups and need to be on utmost care with the funds that they're holding. I think they also need to have some insurance policies if just in case something happens. But I am not sure how many of these casinos are insured but pretty sure there is a service like that, right?

[GxSTxV]

I'm sure you guys are aware of what happened to exchanges like Binance, they got hacked but because they have SAFU funds, users weren't affected. Or FTX which declared bankruptcy but because they had assets that got liquidated, users will be refunded based on their published schedule.

Now applying this to casinos:

A. If a casino gets hacked and we have balance there, do they also have SAFU-type funds?
B. If a casino goes bankrupt, can verified (KYC) players still get refunds?

I'm wondering how this works since casinos aren't exchanges.

I believe that bigger casinos are the most common to have SAFU type funds and they must focus more on their customers security because without them, the casino won’t survive for another week. Well, I remember this thing if you are also a fan of movies, we have seen in some movies that physical casinos are often more secured than banks, and that mindset often must be reinforced also foe the big online casinos too.

What I think is:
A. If a casino gets hacked and all the users funds inside are stolen, the top tier casinos likely have reserve funds or insurance to cover losses but I think it’s not always publicly confirmed like Binance’s SAFU. Smaller or shady casinos might just vanish

B. If a casino goes bankrupt, then verified KYC users might have a better shot at claiming funds from the casino license itself, but since casinos aren’t regulated like exchanges there’s no guarantee. It depends on the license jurisdiction always.