KYC procedure in online casinos does more good than bad or the other way around?

[ruthwithers1980]

I've read a lot of replies in some casino-related threads talking about how they hate KYC procedures. I get it they don't want all the hassle if giving personal info during registration, that they don't want complicated processes, esp. when withdrawing, and that they are afraid the casinos will exploit their players' details who provided their personal info. But perhaps some people think about KYC positively — like KYC reduces the risk of money laundering and protects the casinos from fraudulent players?

I'm not saying I am pro or against KYC. I really just want to get insights from different perspectives.


I combined most of the responses of those who don't approve of the KYC process in casinos and was able to come up with an article: 4 Reasons Crypto Players Skip KYC Casinos

Also, here's another bitcointalk thread focused on those reasons: https://bitcointalk.org/index.php?topic=5136360.0;all

[STT]

I'm mostly against KYC but its a requirement in some jurisdictions, I dont see how its a great benefit to the consumer.   There is a basic argument it could help in account recovery as the person can use their personal id to reestablish control on an account.
I would also mention a couple of times KYC has been used for profit and removal of funds that belonged to me.  Even after proof of identity was provided the company cited KYC as a reason they would lock money within an account, unfortunately people now associate kyc negatively for experiences similar to that

[sunsilk]

that they are afraid the casinos will exploit their players' details who provided their personal info.

This is the main reason I guess why many are subject to this policy, we all want to remain anonymous as we gamble, trade or anything that we do with cryptocurrencies. But some who are in their position, are doing this shady act. They are exploiting and taking advantage of their customers identity.

Making their own database with those customers that passed on their KYC. There's pros and cons on it but I'm starting to feel off about it although I've passed on with KYC in some websites that I really need.

[rhomelmabini]

As long as the website is trusted and operating for years and has a good reputation, why not? I know that it is a hassle for some user to do KYC but I guess it's for safety reasons as well that it will never be exploited by abuser, cheater, or by worst to criminals or terrorist.

[shoreno]

first of all  , i didnt know that casino/gamblings sites do also cater kyc  . all the times i thought that kyc is only present on ico before we invest and also to some trading exchange sites   .  anyway  , im also against this kyc thing because for me it only causes alot of hassel  . aside from that  , i dont also want to expose my identity online   . what  is the purpose of playing online if we will give our personal infos to some one else  ?  eh ?

[Bitinity]

first of all  , i didnt know that casino/gamblings sites do also cater kyc  . all the times i thought that kyc is only present on ico before we invest and also to some trading exchange sites   .  anyway  , im also against this kyc thing because for me it only causes alot of hassel  . aside from that  , i dont also want to expose my identity online   . what  is the purpose of playing online if we will give our personal infos to some one else  ?  eh ?

There are many gambling sites asks for KYC to their players in order to withdraw. Of course, most of them are not bitcoin/crypto gambling sites. Most sites that asks for KYC is a hybrid gambling sites that accepts both fiat and crypto. Probably due to the regulation of the license so they need to ask their users to provide KYC.
I'm one of gamblers who do not like to do KYC, I'll avoid all casinos that requires KYC as I want to gamble anonymously. I do not even required to provide too much personal information to gamble in local fiat gambling sites. In this hybrid sites, players need to provide something like Driver License, National ID, Bill address, Selfie photo etc while I do only need to provide bank account to play on local fiat gambling sites.
My last personal opinion about KYC for gambling activity, it is OK for casino to ask KYC but for special condition only. Something like if the player is indicated to do money laundering or other suspicious thing. But asking KYC generally to all players is not reasonable enough imo. Small bankroll players wont do that because it does not worth the risk.

[alisafidel58]

*snip*
But perhaps some people think about KYC positively — like KYC reduces the risk of money laundering and protects the casinos from fraudulent players?

That`s the main reason why they implemented KYC. Casino`s also need to protect themselves from such people like hackers and fraudster, who can deposit/withdraw money from their unsuspected victims. Internet is vast and full of malicious people, businesses like online casino need such regulation to protect their investment.


On the other hand they are complying to city regulation which force them to implement KYC as part of a legal business. Hence KYC is good for both parties to secure both their identity and business from malicious intent from criminal elements.

[CryptopreneurBrainboss]

I don't encourage KYC on online casinos although if the company is based in a country that requires them, i see no problem for them asking their customer to verify their identity. Majority of users attracted to online casinos are those searching for privacy amd other reason. asking them to provide kyc will just make you loss them to other online casinos not requesting for kyc.

Generally speaking, kyc does more good since it can help prevent fraudulent activity but consider the privacy of the customer I don't buy the idea of online casinos requesting for them.

[darklus123]

I'm mostly against KYC but its a requirement in some jurisdictions, I dont see how its a great benefit to the consumer.   There is a basic argument it could help in account recovery as the person can use their personal id to reestablish control on an account.
I would also mention a couple of times KYC has been used for profit and removal of funds that belonged to me.  Even after proof of identity was provided the company cited KYC as a reason they would lock money within an account, unfortunately people now associate kyc negatively for experiences similar to that

Fact!, One of the main reason why people gambles online because it is either illegal in their place or they just want to hide their identity. However it is still in the law that some online casinos should follow.

It is just too simple if you are agianst it then don't play casinos that requires it.

[Ipwich]

I don't like KYC, I like to have a complete freedom in online gambling.
Without KYC we can enjoy more as we are playing anonymously, so I believe that crypto gambling should not require KYC as that is only for fiat gambling.

[pinoycash]

I am not a fan of KYC in any casino or cryptocurrency websites (eg. exchange)

The sole reason why i stop going to traditional casino in my local area is when they start requiring a valid ID before you can enter their premises and filling up a 2 page forms for their membership ID card and this becomes a mandatory to all casino goers.

KYC is a double edge sword, Its useful for casino operators to protect them against users that using their platform to launder ill gotten cryptocurrency. But for a casual casino players this will be a painful procedure specially if you just a small time casino players.

I am UP for KYC if the players is dealing with a certain amount of bitcoins just like how exchange platform operate their KYC procedure.

[rommel_BCA]

KYC does more good than bad to casinos because it's usually a part of the requirements they have to comply with, especially if they are licensed and if they are operating in strict jurisdictions. plus, KYC makes them less prone to having money launderers. If a certain casino is proven to be an instrument to money laundering activities, it can be held liable as well.

On the contrary, KYC does more bad than good to players — but that is if the players are acting in good faith and that the casino they chose is not a scam. Casinos are also businesses that try to protect their own interest, so to avoid hackers, illegal players (like minors and restricted individuals as per their jurisdiction's laws), and money launderers, they implement the KYC procedure.

But to simplify things, if one hates KYC regardless if it's a process the casino does in good faith or not, then don't sign up with a betting site that has KYC.

[nakamura12]

It's either good or bad for cryptocurrency gambling site. First, KYC can prevent money laundering and consume time to verify your account for their safety requirements. Second, KYC can be used to verify your account if it's you are the only person who has access to the account and no one else. It can be also use to recover an account proving that you own the account by giving personal data or doing a KYC.

[Pmalek]

There are two sides to every medal.
Casinos perform KYC to make sure that they know who is gambling on their site. Without KYC any minor could open an account and gamble. Online and offshore gambling is illegal in the US and the government doesn't allow US citizens to gamble online. That is why you can see that many online casinos don't accept US citizens.
On the other side people who don't want to do KYC want to remain anonymous. Maybe they even have something to hide - money laundering was mentioned by other users as one of the reasons. Underage gambling is another.  

[bering]

Crypto offering gamble with anonymous and if people have to submitting their personal data before starting gamble i think anonymous feature eventually don't exist anymore but besides that in my view people don't liked KYC because they fear the casinos eventually will abusing costumers datas and there is no guarantee those casinos will be honest to their costumers because every possibility will happend and with not submit our KYC to the casinos i think it will be decrease the risk from data abuse

[nakamura12]

Crypto offering gamble with anonymous and if people have to submitting their personal data before starting gamble i think anonymous feature eventually don't exist anymore but besides that in my view people don't liked KYC because they fear the casinos eventually will abusing costumers datas and there is no guarantee those casinos will be honest to their costumers because every possibility will happend and with not submit our KYC to the casinos i think it will be decrease the risk from data abuse

That's also one of the reason why KYC is bad or good to gambling sites because it differs in every country where some country legalized gambling and other country gambling is illegal so gamblers have to deal with this problem to be able to gamble but some don't want to be anonymous and other want to be unknown for some reason. I also agree to pmalek for that statement which is true in some situation regarding the gamblers personal data safetiness.

[semobo]

WHen the owner of gambling site want to get more players for playing on their site then they will skip KYC because people want anonymity while gambling due to many reason and I don't think many sites were asking for too.Only you are asked to verify yourselves when there is something wrong with your account.

[darklus123]

WHen the owner of gambling site want to get more players for playing on their site then they will skip KYC because people want anonymity while gambling due to many reason and I don't think many sites were asking for too.Only you are asked to verify yourselves when there is something wrong with your account.

Then what are the main reasons why they are actually doing the KYC ? as far as I am concern it is because of the LAws being given by their LGU? maybe to track their payable taxes?

I am also thinking, can the KYC policy certifies a certain casinos fair policy as well? because it could only mean that if they follow rules given by the LGU then one of those might be the fair policy.

Unlike if you use gambling sites that are not certified. there is a good chance that this certain casino is operating illegally and bias as well?

[traderethereum]

The KYC can minimize the risk of money laundering, but we don't know if they will protect our data and not sell to the third party. When data is on the internet, we don't know if that data will be safe or not. That is why we don't like to fill KYC, and I think it's better to search a gambling website without using KYC.

Besides that, I think if we only want to play gambling, we don't need that KYC but if for the other business, maybe it is fine to fill the KYC. But still, I don't prefer to fill KYC.

[Yaunfitda]

Of course most of us chose playing with crypto because we wanted to be anonymous and we don't want to go the hassle of submitting our personal information. But the problem with some crypto related casino is that they are somewhat 'enforcing' KYC specially if you're going to withdraw a big amount.

Which for me defeats the purpose on why we are in crypto related casino in the first place, decentralized, (psuedo) anonymous. If that is the case then we might as well play in fiat-based, because it seems that there are no difference after all.