Can crypto gambling be provably fair to regulators?

[Latviand]

Yes, its possible I remember hearing a similar discussion in bustabit or bustadice chat room (forgot which one) and they explained this kind of provably fair to one of their users that was curious. I think you can also find this topic being discussed in their main thread. There's positives and negatives to it but still possible afaik.

the what ? the verfication of bets  ? or as known as provaly fair system  ? and what is its negative side  ? i dont think it has but i can only say that its a good idea that they implement such system because this  is for their users to verify if the site is legit or not .

Verification of users are also important so it is necessary to implement it in all of the gambling casinos and site as people are really good at fooling people. Hackers should be detected if it entered a certain gambling platform, manipulator are the one who's very affected. Verification of bets, identity, and etc., of the customers should be strict so that fairness in gambling will stay in its casino. Working hard regulator manages to become more fair when it comes on giving service and managing our casinos so that all of the customers will also be comfortable and enjoyable.

online gamber will be more confident if a platform is provably fair than compare to not    . the topic is also on other gaambling forums and as well here too  .  there are explanations that have been laid out if how those stuffs work   .

It is perfect for this season as you can't go outside to gamble and many of us prefers using online gambling, customers online will enjoy and be satisfied as this gambling casino is very fair and it value customers rights to have a safer gambling experience. Everyone wants comfort while playing with their money so that gambling casinos should verify its customer so that scammers will not enter their platform. We don't understand the effort of the regulator because we don't see what's happening inside the gambling platform, the thing they make is not that easy to do most especially when you're in a wide and popular gambling platform.

[Sanitough]

We'll i dont think there's no need for that as long as it follows the gambling rules and requirements with a feature of provably fair to be trustworthy. Then there's no need for another party to interfere, as you know provably fair ensure the players winning percentage wont be tampered by the online casino itself. Just be sure to only play gambling games to sites that has good feedback and also verified.

When a casino is regulated, regulators will ensure they can't cheat against its gamblers, that's the first priority, and 2nd is they can't cheat against the government as an everyone single profit the site will earn, the government is entitled with a certain percentage as tax.

[Russlenat]

We'll i dont think there's no need for that as long as it follows the gambling rules and requirements with a feature of provably fair to be trustworthy. Then there's no need for another party to interfere, as you know provably fair ensure the players winning percentage wont be tampered by the online casino itself. Just be sure to only play gambling games to sites that has good feedback and also verified.

When a casino is regulated, regulators will ensure they can't cheat against its gamblers, that's the first priority, and 2nd is they can't cheat against the government as an everyone single profit the site will earn, the government is entitled with a certain percentage as tax.

I thought their firs priority is the tax.. lol..

Tax is the lifeblood so that should be, but anyway that is not important, what's important is the site will comply with the rules so they will be able to continue their business and continue to make profit as well, of course if they choose to cheat, they can certainly do that, but that's their call as they know the risk and the consequence when they get caught, not only they destroy their reputation, they could also go to jail.

[mu_enrico]

A few ideas:
- The government manages server seed hash;
- Use future block hash, for example Bitcoin block hash (only applicable for some games);
- Compliance with KYC and AML (regulated).

Well, if we talking about regulators, the outcome won't be fun.

[Botnake]

A few ideas:
- The government manages server seed hash;
- Use future block hash, for example Bitcoin block hash (only applicable for some games);
- Compliance with KYC and AML (regulated).

Well, if we talking about regulators, the outcome won't be fun.

I am not sure the government will go technical on just approving the license, they may have an idea about it but they will only be limited to monitoring and implementing sanction for violators. Managing would be the job of the gambling site, they are responsible for their actions, therefore they need to comply everything.

Compliance with KYC and AML (regulated)

This is given, we can expect the site will implement this and gambling would not be as easy as today.

[CaVO32]

We'll i dont think there's no need for that as long as it follows the gambling rules and requirements with a feature of provably fair to be trustworthy. Then there's no need for another party to interfere, as you know provably fair ensure the players winning percentage wont be tampered by the online casino itself. Just be sure to only play gambling games to sites that has good feedback and also verified.

When a casino is regulated, regulators will ensure they can't cheat against its gamblers, that's the first priority, and 2nd is they can't cheat against the government as an everyone single profit the site will earn, the government is entitled with a certain percentage as tax.

I thought their firs priority is the tax.. lol..

Tax is the lifeblood so that should be, but anyway that is not important, what's important is the site will comply with the rules so they will be able to continue their business and continue to make profit as well, of course if they choose to cheat, they can certainly do that, but that's their call as they know the risk and the consequence when they get caught, not only they destroy their reputation, they could also go to jail.

I think there are some casinos that are doing that, the backdoor per se. Do you think all casinos are honest to the core and following all the rules and regulations? and the provable fairness, I guess it is the responsibility of the casino itself. maybe the government rep will randomly check but it will not be on a regular basis. though I don't have the knowledge about the govt checklist on how they check legal casinos but i guess they will not be so strict if the casino has already acquired gambling license.

[bitcoinst]

A lot of difficulties will be associated with the fact that in different countries cryptocurrency has a completely different legal status.
In some countries, this status has not yet been determined what to take cryptocurrency out of state control, which means it can also be used to launder money through a casino.

[Sanitough]

We'll i dont think there's no need for that as long as it follows the gambling rules and requirements with a feature of provably fair to be trustworthy. Then there's no need for another party to interfere, as you know provably fair ensure the players winning percentage wont be tampered by the online casino itself. Just be sure to only play gambling games to sites that has good feedback and also verified.

When a casino is regulated, regulators will ensure they can't cheat against its gamblers, that's the first priority, and 2nd is they can't cheat against the government as an everyone single profit the site will earn, the government is entitled with a certain percentage as tax.

I thought their firs priority is the tax.. lol..

Tax is the lifeblood so that should be, but anyway that is not important, what's important is the site will comply with the rules so they will be able to continue their business and continue to make profit as well, of course if they choose to cheat, they can certainly do that, but that's their call as they know the risk and the consequence when they get caught, not only they destroy their reputation, they could also go to jail.

They will prioritize the safety of the gamblers as that is the recipe for them to continue collecting taxes, if the site keeps its good reputation, they will continue to be profitable and they will also continue to pay the taxes due to the government.

[thekrakennnm]

In short, it can once crypto itself becomes well-regulated there. Until then not likely we'll see legit and fair crypto gambling to regulators.

[el kaka22]

Provably fair is provably fair, there is no reason to check anything else, even if casino itself creates a user themselves and gamble they do not hold any advantage that is not in the gamblers itself, they are risking as much as other gamblers. The only thing they can actually get out of creating some gamblers themselves (so faking the user number) would be marketing, if you have hundreds of people playing on your website at all times others will think you are cool and will join as well and you will have organic 100+ instead. That is literally the only thing I can think of right now.

There could also be competitions of wagering where they fake numbers and just lose to themselves to get the win and not pay to others. However, there is no stealing investors money by gambling, you lose equally at all times even if you are the house making a new gambler.

[semobo]

Fiat based gambling sites need to be audited well to avoid money laundering but giving the rights to third party doesn't look great idea to be honest.When crypto gambling sites claims that they are provably fair means they are having nothing to cheat so verifying the random bets will be enough to check their legitimacy.

[stomachgrowls]

Provably fair is provably fair, there is no reason to check anything else, even if casino itself creates a user themselves and gamble they do not hold any advantage that is not in the gamblers itself, they are risking as much as other gamblers. The only thing they can actually get out of creating some gamblers themselves (so faking the user number) would be marketing, if you have hundreds of people playing on your website at all times others will think you are cool and will join as well and you will have organic 100+ instead. That is literally the only thing I can think of right now.

There could also be competitions of wagering where they fake numbers and just lose to themselves to get the win and not pay to others. However, there is no stealing investors money by gambling, you lose equally at all times even if you are the house making a new gambler.

+1 to this!

Once your gambling site had been approved then it does signify that it already complied with the rules this is a no-joke business if we do talk on expense or on how big it is.
Its just too dumb for you to mind on doing shady acts to make money on that particular time and of course you will surely think about long term aspects.
I agree that increasing or faking out numbers is one of market strategy that been commonly used and im not surprised with that one.

[Heisenberg_Hunter]

Casinos which are primarily based on accepting cryptos doesn't rely on the regulation and so does the users using them up. But rather the reputation of the site are considered to an extent. Some of them do have open source code which does prove that the casino is running a provably fair site and they aren't scamming the players.

If the outcome of a particular bet is to be known to the gambler or verifying of such an instance by running up a script, it would violate the gambler user agreement with the casino and vice versa. I rely on the trustworthy casinos like FJ, Cryptogames, Freebitco for my rolls and the probability of themselves scamming is of utmost null.

[kawetsriyanto]

~~ casinos are traditionally a good spot for money laundering, so the government needs to be sure that the house doesn't create fake winnings for some players. ~~

I don't want to be pessimistic but I'm not sure the government can do this. In what way the government can ensure people that they guarantee the real winning in a match (not fake winning)? Even the government can make a certain regulation, but it can be manipulated as it is totally the authority of the gambling sites (company). It is the trust-based between the gamblers and gambling sites (company), people will leave them if they know the gambling sites (company) are cheating. And I think the gamblers now are quite smart. 

[Danslip]

I don't think the cheater will use online casinos for money laundering but I don't deny this possibility at the same time. The fairness is relative for both player and casinos, so finding the gold balance will be feasible solution for both sides. Regulators work hard for seizing the funds of money laundries but it will be the forever if everything is encrypted with the help of decentralized blockchain technology.

[Bitcoin Marketing]

Crypto casinos has nothing to do different with the regulators and the regulators do not really care about the crypto side of the business, as long as the casino itself is regulated. On top of that, each need to remember that the regulatory challenge is the exchanges and wallets, and not the operators.

Blockchain tech BTW solving this issue easily, so if the casino is blockchain based, its easy for the regulator to do their work

[Meowth05]

I think that will not be necessary because there will investigations when that happens and I think that is not worth it because you have to spend money to have the maintenance of regulators, it is more beter for investigations because I am there will be audit trail.

[Russlenat]

I think there are some casinos that are doing that, the backdoor per se. Do you think all casinos are honest to the core and following all the rules and regulations? and the provable fairness, I guess it is the responsibility of the casino itself. maybe the government rep will randomly check but it will not be on a regular basis. though I don't have the knowledge about the govt checklist on how they check legal casinos but i guess they will not be so strict if the casino has already acquired gambling license.

Why would casino would still risk on doing that when they have the house edge and they can win most of the time.
There is a saying that "casino always wins" that is true that is why they are profitable and their industry is growing, and most I can read int he news is that gamblers are cheating on the casino, popular ones are gambling cheating vegas.

[witcher_sense]

Do you think it's possible to create a system where a third party can verify that the outcome of the bet wasn't known to any of the parties ahead of the time?

I think it would be possible if it weren't so useless. Provably fair system allows players to verify any bet to ensure that all mathematical rules have been followed. In case of including some regulator or other intermediary, players require to trust not only casino owners, but also that third party, which could be a bad actor and cheat on their part. If casino doesn't follow rules or try to cheat with altered hashes, it could be revealed after a while anyway. What we might need here to implement is a system similar to decentralized blockchain where consensus rules are clear and can't be changed.

[Vaculin]

I think that will not be necessary because there will investigations when that happens and I think that is not worth it because you have to spend money to have the maintenance of regulators, it is more beter for investigations because I am there will be audit trail.

The regulators would already check the gambling site that will apply for a license, and they will not approve it if they will not pass the requirement.
Well, along the way, it's also possible that the site could cheat since not all the time the regulators are operating, but these days, gamblers are already smart, they will do an audit of their own to determine if the site is still trustworthy.