Why investing in the bank of a centralized cryptocurrency casino is a bad idea

[BuyingFast]

How can anyone invest after reading this? It's like throwing away money.

https://gamblers-united.com/investing-bank-centralized-cryptocurrency-casino-bad-idea/

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[BetKing.io]

Because the author doesn't have a clue what he's talking about?

Laughable to call all crowdfunded gambling sites scams. When was the last time one scammed? Dice.ninja was the last major one.

All the more recent ones? If you get scammed by putting your money into a casino with no players and a 1 BTC bankroll you're going to have a bad time.
It's investing. Do research.

Just-dice returned ~56k btc (around $31 million iirc) to investors in 2014 after it closed. I returned 6k btc (around $5 million) to investors in December when I closed.

Bitdice has seen great returns for it's investors.

He doens't know the law at all.
FYI BetKing was operating legally from the UK without having on onlne licence. Pay a lawyer and follow the advice.
It's also not illegal to setup a company in Costa Rica and pay less tax.

I do agree with some of his points, particularly that licenses are scams.

But to just call all centralised casinos scams is stupid.

Decentralised online casinos will never be as popular as centralised ones. Great tech and great ideal sure but it won't work.

P.S. newbie account posting the link, assume it's the offer.

Also he's not a feared poker player, I've never heard of him

[Kyraishi]

How can anyone invest after reading this? It's like throwing away money.

https://gamblers-united.com/investing-bank-centralized-cryptocurrency-casino-bad-idea/

If you do your research out here, then you can definitely make a profit from investing in a casino.

The biggest risk that you have is exchange rate risk with bitcoin going down whilst your investment is going on, if you choose a reputable casino then you have little chance of getting scammed in my opinion and my experience at least.

Some of his points are valid. But as Dean stated the last scam was a long while ago and people are getting so wary that the scams are basically getting weeded out because of their poor effort in their design etc. because nobody plays there.

And in the cyberspace i believe that whether or not a company is registered or not or whether the admin is known or not doesn't matter as much as how much the guy is trusted and how high his moral standards are. There are many scammers that have their identity out there but still scammed big amounts. Think josh garza.

[BuyingFast]

BitKing your arguments are all over and really disprove nothing. How about bitdice's terms of service by the way? They're like screaming "I'm a scam". Also, in the article the word "scam" is obviously used as a joke, making it similar to the Identification of parties part of a contract. If you didn't even understand this part, maybe start reading texts that are less complicated.

[NLNico]

Pretty sure OP is heavily invested in those sites and doesn't want to his share to be diluted Seriously though..

Funny story: smart dude who knows math, made a journal in a shitty forum where he tracked his investments across the top 9 Bitcoin gambling investments sites.

I actually corrected that smart dude multiple times specifically on his bad math skills. But I guess that is pretty irrelevant.

Overall I would say: "investing" in bitcoin casinos is indeed extremely risky and I wouldn't specifically recommend it to anyone. Especially if you are stupid naive(?) enough to put your money in 9 random casinos, you are indeed likely to lose money. The key is to actually be active in the community and somehow try to figure out which sites and owners are reputable. Reading a TOS is personally irrelevant for me, that's just some bullshit text on a site. The way the owner actually acts, deals with site issues, promotes his site, how long the site has been online, etc etc is more relevant for me. And still I would limit certain amounts on certain sites based on my personal risk calculation.

But I wouldn't try to convince you to "invest" in these sites.. I rather keep my share bigger in those sites and earn money myself (to be clear: I definitely made very decent money with putting money in casino's BR since 2013 - starting on JD and BK)

[Mike Mayor]

If you exclude those 3 bad investments the profit is over 20% As long as they dont run you can make profits. That is the only concern​I have and the only one I feel is necessary​ when it comes to casino investments. You must not be in a rush to invest your money you should take your time. Thank goodness that guy invested in the casinos so we didn't have to. Now we know.

[MinerHQ]

We can't completely ignore what is written in that article because there are scams we see now and then and sometimes more reputed sites also closing without any warning. That's why these casino investments are very risky and one shouldn't invest more money into it. Diversifying your funds will help but should invest only on reputed sites, not on new sites.

[milewilda]

If you exclude those 3 bad investments the profit is over 20% As long as they dont run you can make profits. That is the only concern​I have and the only one I feel is necessary​ when it comes to casino investments. You must not be in a rush to invest your money you should take your time. Thank goodness that guy invested in the casinos so we didn't have to. Now we know.

Really thanks to him because if it now been busted then for sure lots of potential investors would really experience loss. Investing on casinos is really good for long term but depending on how reputable the site or company is but still not an assurance that they will not run later on that is why invest on your own risk and dont cry when they ran all the money you had on them.

[Kprawn]

Because the author doesn't have a clue what he's talking about?

Laughable to call all crowdfunded gambling sites scams. When was the last time one scammed? Dice.ninja was the last major one.

All the more recent ones? If you get scammed by putting your money into a casino with no players and a 1 BTC bankroll you're going to have a bad time.
It's investing. Do research.

Just-dice returned ~56k btc (around $31 million iirc) to investors in 2014 after it closed. I returned 6k btc (around $5 million) to investors in December when I closed.

Bitdice has seen great returns for it's investors.

He doens't know the law at all.
FYI BetKing was operating legally from the UK without having on onlne licence. Pay a lawyer and follow the advice.
It's also not illegal to setup a company in Costa Rica and pay less tax.

I do agree with some of his points, particularly that licenses are scams.

But to just call all centralised casinos scams is stupid.

Decentralised online casinos will never be as popular as centralised ones. Great tech and great ideal sure but it won't work.

P.S. newbie account posting the link, assume it's the offer.

Also he's not a feared poker player, I've never heard of him

It would be reckless to say that all Bitcoin casinos will react the same.... there are smaller operators and scam sites. It is just as reckless to say

all centralized Bitcoin casinos are scam sites. You should also question people's motives when they generalize like that.... What is the agenda

behind this? Could it be sponsored by Brick and Mortar casinos that wants to prevent crowd funding for their competition? 

[KingDice]

In general i would agree with both NLNIco and Dean.

First of all: "scams with the meaning of centralized online cryptocurrency casinos", i really wanted to stop reading after this, since this makes the whole article less serious and less valid.

As dean said, there has been many sites in the past that had returned quite an amount of bitcoins, thus making them trusted in the community.

Secondly the licensing part. I wouldnt really agree that all licensed sites are scams. For example having a legal entity(company) licensed in i.e curacao, you can justiy your  site's income and pay the proper taxes, integrate more slotgames ( since some providers require mainstream license ) etc.
Does this mean that the Casino cant cheat? No.
Does this mean that the Casino cant do money laundering ? No. ( Anyway money laundering is an old friend of Landbased casino since the old times , so nothing new. )
Does a licensed casino provide more protection for the player ? Not in the bitcoin gambling world. In fiat casinos with i.e Maltese licenses, maybe. Its just that the user "wants" to believe that bitcoin licensed casinos are more "legal" and "safe".

About Costa Rica, some can of course make an offshore company there and operate online gambling site. His company will be legal and will be operating from a legal jurisdiction. Of course the Costa Rica "license" is not a license, since there are no licensing laws in costa rica for online gambling.
Plus we must not forget that all the "Licensing" laws in different countries are made to protect the gambler from frauds and scams. If the player wants to accept that, in the bitcoin world, which most player do, then the liability is to the user.

Anyway, i find the article a bit prejudiced, but thats because the author maybe was the guy who invested in 9 casinos and lost his money?   Lets hope not!

[BartS]

How can anyone invest after reading this? It's like throwing away money.

https://gamblers-united.com/investing-bank-centralized-cryptocurrency-casino-bad-idea/

Nothing new, if you invest into a scam you are going to lose money, if you invest in a serious business you can still lose money but most of the time you are going to win, this seems like scare tactics to me.

[AmoreJaz]

How can anyone invest after reading this? It's like throwing away money.

https://gamblers-united.com/investing-bank-centralized-cryptocurrency-casino-bad-idea/

Nothing new, if you invest into a scam you are going to lose money, if you invest in a serious business you can still lose money but most of the time you are going to win, this seems like scare tactics to me.

i think if we would look at the words used it would clear things up... due diligent for ones own Investment! if you put your cash on the river . it may float away! and investing in a gambling site is different then playing or being a patron in my IMHO

[ultrloa]

How can anyone invest after reading this? It's like throwing away money.

https://gamblers-united.com/investing-bank-centralized-cryptocurrency-casino-bad-idea/

Nothing new, if you invest into a scam you are going to lose money, if you invest in a serious business you can still lose money but most of the time you are going to win, this seems like scare tactics to me.

Heard about this for many times and ofcourse it will be worse idea to invest at them if the crypto gambling site we are invested at are proven scam and promising some high returns, But if we invest on some legitimate site like bitdice,betking.io or even in cryptogames well we can expect that we are in safe hands and can generate some profits for them at timely manner.

[RHavar]

The conclusion is rather silly. The article makes a lot of valid points, but to jump from "it's very risky" to "it's a bad idea" doesn't really follow. Like any investment, diversification is the key. I would say if you're putting more than ~1% (?) of your money in a single site, you're risking too much. And for what it's worth, I know quite a few people who have participated in crowd funding bankrolls from the time of just-dice, and every single one of them is has made a good return (and that even includes someone who had a very considerable amount of money stollen in the dice.ninja scam).


Also the bitroll investment comparison, is not really representative how normal people would invest. Despite the urging of several people, he left his money in dead/dying/idle sites, just for the purpose of computing a review. The coinwin and icedice loss was completely avoidable, by anyone paying attention. Probably a much better example is this: https://bitcointalk.org/index.php?topic=1585408.0  by someone who actively monitors their investments and pulls the plug when things aren't looking great

[ethereumhunter]

How can anyone invest after reading this? It's like throwing away money.

https://gamblers-united.com/investing-bank-centralized-cryptocurrency-casino-bad-idea/

Nothing new, if you invest into a scam you are going to lose money, if you invest in a serious business you can still lose money but most of the time you are going to win, this seems like scare tactics to me.

its a good advice and this is what is happen with the gamblers, many of them is not ready for their loses so they can loss all of their money and don't know where the way to back home. to avoid to getting scam while we are invested our money, we need to read everything the info with details until we are understand what is the important point and thing that they offers to us.

[xypos]

The conclusion is rather silly. The article makes a lot of valid points, but to jump from "it's very risky" to "it's a bad idea" doesn't really follow. Like any investment, diversification is the key. I would say if you're putting more than ~1% (?) of your money in a single site, you're risking too much. And for what it's worth, I know quite a few people who have participated in crowd funding bankrolls from the time of just-dice, and every single one of them is has made a good return (and that even includes someone who had a very considerable amount of money stollen in the dice.ninja scam).


Also the bitroll investment comparison, is not really representative how normal people would invest. Despite the urging of several people, he left his money in dead/dying/idle sites, just for the purpose of computing a review. The coinwin and icedice loss was completely avoidable, by anyone paying attention. Probably a much better example is this: https://bitcointalk.org/index.php?topic=1585408.0  by someone who actively monitors their investments and pulls the plug when things aren't looking great

Agreed. The article has good content but i don't like the way they jump to conclusions, especially when the author of the article appears to be basing his arguments mainly off other experiments instead of trying for himself. I disagree with OP because central gambling sites will always be more popular than decentralised platforms because it's easy to access and you can use it with any currency. If you handpick your portfolio and spread your coins out on different sites there is a very low chance that you'll lose everything. There is a much higher chance that a lot of people bust on their site and therefore you make profit.

[maydna]

How can anyone invest after reading this? It's like throwing away money.

https://gamblers-united.com/investing-bank-centralized-cryptocurrency-casino-bad-idea/

i think the article is only telling about one side and i think the author needs to search more info about investing in the casino. because i can see that we can invest our money into casino and make some good profit especially if we investing with large amount and in the end of the cycle, we can take big profit too without playing gambling. like what i am doing now, i make investing in gambling site and every week, i can make profit although its only small amount. its still free money for me without playing gambling and i can do other work without confusing about collecting the money from the gambling sites.

[Hydrogen]

A few years ago, there was a bitcoin gambling site that offered a payment scheme to buy "shares" that would allow share owners to collect a percentage of the site's overall profits.

It was implemented as a last ditch attempt by the website owner to cover his losses via distributing them to share owners.

I don't remember what the name of the site was, it ended in .eu. I think it was bitcoinsports.eu.

Anyone wanting to research it can look it up, could be a decent opportunity to learn from history.

[hatshepsut93]

How can anyone invest after reading this? It's like throwing away money.

https://gamblers-united.com/investing-bank-centralized-cryptocurrency-casino-bad-idea/

It's just a FUD article, with stupid arguments like "don't invest or something bad will happen". It's dumb, because this is the point of investment, you knowingly risk your money, assuming that the chance of failure is very-very low, in order to get profit. Every investments is the same - traders deposit their money to exchanges and they don't cry that it might be hacked or exit scam them, in real life people invest in companies that actually might be ponzis, shitty startups just take money from investors and run away. There's no big profit without risk.

[iluvbitcoins]

A few years ago, there was a bitcoin gambling site that offered a payment scheme to buy "shares" that would allow share owners to collect a percentage of the site's overall profits.

It was implemented as a last ditch attempt by the website owner to cover his losses via distributing them to share owners.

I don't remember what the name of the site was, it ended in .eu. I think it was bitcoinsports.eu.

Anyone wanting to research it can look it up, could be a decent opportunity to learn from history.

https://bitcointalk.org/index.php?topic=142101.0

Well, that would be a good attempt if the owner was legit?