Crypto Casinos vs money laundering.

[Zlantann]

I believe that crypto casinos shouldn't worry about this, but they often need to comply with the laws of the countries they operate in order to continue operating.

Money laundering is one of the crimes that have given the crypto space a bad image. But enforcing KYC rules might be very counter productive to the income and operations of these casinos. This is because there are people that have genuine reasons for choosing to protect their privacy or remain anonymous. Cultural, religious or societal factors can be genuine reason why someone might want to be unknown and not necessarily because of crime. Such persons would avoid casinos because of this policy. KYC policy can also give rise to illegal casinos that would take loopholes of the challenges of this policies. The best way to prevent money laundering is to block or stop the source of the money that would be laundered. 

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So, what do you say, does crypto casinos really care about money laundering?

gambling companies create platforms as a place to play gambling not to find out where the money comes from and they don't care where the money comes from, the most important thing is their platform has done the best of KYC and platform security from data theft.
and actually things like that are not one of the responsibilities of gambling companies but there are already investigating such as the police who may later ask the gambling company for help to provide some data on people who have high stakes from certain countries.
so in conclusion the gambling company has no time for that kind of thing

[darkangel11]

I feel like most casinos care about making money the safe way. They want high rollers but they also want to look legit in the way that they did everything they could to prevent laundering. The best thing they can get is a scammer launderer that is good and has all the fake documents they can ask for. They don't really care where the money comes from as long as their hands are clean and they can defend in court if it comes to that. 

[n0ne]

Crypto casinos definitely care about Money Laundering as they are also casinos and are subject to enforce AML & KYC regulations to avoid penalties that can cripple their business. They may not make it too strict so as not to scare away some customers who may be wondering the importance of these details, but they must show a level of compliance to prevent being shut down by the people in charge of ensuring that AML & KYC RULES are enforced.

I doubt if every Casino really cares about money laundering, applying KYC or AML doesn't mean fighting for money laundering. They do this to ensure everyone who comes to the Casinos is the person who fulfills the requirements. For example, someone should be 18+ and not comes from restricted countries. Regarding avoiding money laundering, it surely depends on the Casino itself whether they really have a program to fight this or it is just a side impact on KYC/AML procedure. CMIIW

I don't know how they will be able to fight against the money laundering. If gambling companies start focusing on KYC/AML procedure surely it is gonna lose a big number of its users. So, they never take these into consideration until the money laundering is affecting their business.

[rhomelmabini]

Do casinos want to make money? Sure they do, but most will not risk their license if the player becomes too suspicious.

Of course they do but is it really a thing for an unlicensed casino to be the safe haven from these money launderers? Is there a top and reputed casino out there that hasn't yet have a license, and if there is then how can they still operate? I often wonder about this stuffs.

Having your license is one your edge here in crypto gambling so most probably, many have their own license and that could be the reason why they are implementing KYC to strictly monitor money laundering. Decentralized gambling site are more prone to this but of course, if you are a gambling you won’t play on that kind of site where you can’t see any security. This is the job of the site to protect the platform from any money laundering, KYC can still be a big help.

I think decentralized casino is more trusted if they are audited by best audit firm in the space like Certik or something else similar to them. Decentralized gambling is the future just like what we've seen on Uniswap, we've never heard of it before when it boom but right now it's being used internationally with millions of users and billions of liquidity. If casino won't recognize it's a laundered money then they'll just keep making on it too, what if they're just layering the money on some actors in the casino?

[EarnOnVictor]

There is no way one can separate the casino and money laundering, not even the KYC tactics, they are doing that for doing sake, most casinos are not dully registered, so they can do their shit. Money laundering through casinos would always thrive because for financial institutions to have been involved in money laundering in the past, casino issues should not be surprising.

In case you don't know, some casinos work with cartels in the pretence that they win so that they will use the opportunity to launder money for the. A lot is happening in the sane world, not to talk of the casino world that is not sane. It all has to do with the integrity of the casino you are playing with.

[michellee]

I don't know how they will be able to fight against the money laundering. If gambling companies start focusing on KYC/AML procedure surely it is gonna lose a big number of its users. So, they never take these into consideration until the money laundering is affecting their business.

Every casino will have its own way of fighting money laundering if they really want to fight it. Yes, maybe complete KYC can be one way to find out in addition to other ways so that nowadays, many casinos have started implementing it for their members.

If the casino decides to go one way or the other, it will surely get rejected by its members. But if the casino can explain that this is not what they want but to keep their business from being disrupted or getting in trouble for something illegal, maybe its members will understand and comply. And those who disagree will look for another casino. Everything will have its own consequences and the casino knows that.

[kamvreto]

the implementation of KYC may be a little help to overcome money laundering crimes, but for criminals who do have more flight hours and KYC professionals can be manipulated using fake identities. Those who do money laundering on online gambling sites are very skilled at eliminating their tracks, usually some of the funds will be divided into several online gambling sites. Law enforcement will start tracking the flow of funds in and out.
Owners of professional online gambling site platforms do have to implement a better system so as to avoid laundering and which will also harm them.

Indeed, since KYC involves fund or bankroll history.  So basically if the casino investigated an account thoroughly, they might found out gaps and holes that can be used to sanction accounts.  Asking for fund sources is one of the key factors of KYC.  A laundered money will find it hard to produce a  perfect document to prove the legality of the fund unless these people have powerful allies/connections in the authority or financial industry.

and in the end the casino platform policy becomes the main policy that will stop the money laundering. this is also useful for police officers to be able to further investigate where the money went and police officers will also have special access to check all transactions on accounts suspected of money laundering. but if those crooks had paid the platform to keep their mouth shut and delete or falsify all the documents, maybe they would get away with it. But it's very rare to do.

[Bobrox]

Every casino will have its own way of fighting money laundering if they really want to fight it. Yes, maybe complete KYC can be one way to find out in addition to other ways so that nowadays, many casinos have started implementing it for their members.

If the casino decides to go one way or the other, it will surely get rejected by its members. But if the casino can explain that this is not what they want but to keep their business from being disrupted or getting in trouble for something illegal, maybe its members will understand and comply. And those who disagree will look for another casino. Everything will have its own consequences and the casino knows that.

Each casino gambling site can adapting with  KYC procedure if want fighting with money laundering, but I am little worry when adapting with KYC for all member they not interested for playing on casino have priority with KYC process, I think money laundering not only happen with crypto casino but also many site have chance and ability how laundering money. The same claimed with cryptocurrency is the best way for money laundering but I think fiat have chance with money laundering too.

Some countries illegal with casino website and access trough hidden IP, when adapting with KYC procedure to take risk from money laundering I think have bigger impact with casino website quiet, some gambler hidden document and real data when active on casino gambling exactly with cryptocurrency casino, but if allowed to pass KYC they will left and looking for other casino support without have submit KYC.

[KTChampions]

Your analogy is wrong. When the swindler took possession of the money, there is no longer a choice to catch him or not (if there is, of course, he must be caught), but there is a choice - to pay taxes on this money or not. If he at least pays taxes, it will be better than if he doesn't.

No. I used an analogy to illustrate how the legal system treats money obtained illegally. No matter where you live, I do not believe there are too many differences in this regard. I suggest you do your research or ask some legal counsel if you want to know more. Basically, money associated with illegal activities cannot be used legaly, which is why money laundering has become a profitable activity and anti-money laundering laws have been introduced into the legal system of almost every country in the world. Paying taxes has absolutely nothing to do with this and is not even part of the same legal act.

But if the fraudster is not caught when he did the fraud, then all he has to do is legalize the money, right? What is your suggestion? A specific proposal from the real and not the fictional world? Go back in time and still catch him? In the real world, the scammer will launder money one way or another and pay taxes on it.

What do you think? Or do you live in an ideal world where this simply cannot be because all the scammers are caught?

I am not talking about the perfect world, but about the legal system that every country governed by law has. Of course, no legal system is perfect, and there are many corrupt politicians and government officials who allow crime to go undetected and unpunished, but that is not the point.

So again what is your specific suggestion? The scammer will launder money by simulating receiving income from a business or receiving winnings from a casino. What do you suggest? Prohibit people from paying taxes because this is how money is laundered? Or are you suggesting a ban on money?  Can you say something specific?

[Finestream]

Let's be honest, money laundering is the best thing that can happen to a casino and there is where most of high rollers comes from. I have seen some rollers in the past that runs some huge scams and then go to the casinos to play with the scammed money and with that justify where they get the money from after hitting some huge wins.

Nowadays most casinos has KYC, but i don't think that is enough to stop the money laundering, what casinos should do is to investigate the source of the deposits to fight against this illegal activity, but that will not happen because is a win-win game from them.

So, what do you say, does crypto casinos really care about money laundering?

I am not sure we can equate money laundering as the same as scammed money. Both are illegal, sure, but that still does not have anything to do with the other. If you get caught with scammed money then obviously that money will be seized. As far as money laundering goes, it might not be allowed to be seized by the casino unless they recieve an order from the police to seize the laundered money, but you will still get into trouble with the law.

I doubt any online or offline gambling casino, whether crypto based or fiat based, cares about enforcing the law. They do it because they have to. Of course they would rather make more profit and not give any of their players up if they had a choice.

Gambling casinos are here for business and profits so that's the only thing they will care the most. If bettors come with huge funds to bet, regardless if it came from money laundering or not, as long as they passed the KYC and yet no alarm from authorities, then it won't be tracked for sure since gambling casinos are mostly concern for their own profits, and having high rollers to play in them will create more chances for them to gain big profits that time.

[kawetsriyanto]

I don't know how they will be able to fight against the money laundering. If gambling companies start focusing on KYC/AML procedure surely it is gonna lose a big number of its users. So, they never take these into consideration until the money laundering is affecting their business.

Every casino will have its own way of fighting money laundering if they really want to fight it. Yes, maybe complete KYC can be one way to find out in addition to other ways so that nowadays, many casinos have started implementing it for their members.

Yep, if the Casino really has the intention to fight money laundering, they can apply a strict KYC/AML procedure. But surely this way may impact the less interest of people to join the Casino because they probably feel uncomfortable with a strict KYC/AML. Moreover, there are too many online casinos, and many of them seem not to apply a strict KYC/AML. Although there are some casinos starting to apply this way to fight money laundering seriously, some other casinos may not really care about it. Even if they have KYC/AML, it is only for the formality only or to fulfill their own rules only.

[BitcoinPanther]

I doubt if every Casino really cares about money laundering, applying KYC or AML doesn't mean fighting for money laundering. They do this to ensure everyone who comes to the Casinos is the person who fulfills the requirements. For example, someone should be 18+ and not comes from restricted countries. Regarding avoiding money laundering, it surely depends on the Casino itself whether they really have a program to fight this or it is just a side impact on KYC/AML procedure. CMIIW

Indeed casino did KYC to follow the government regulation and to continue their operation smoothly.  KYC implementation is just another expenditure for the Casino since they have to pay for the KYC services that verify the authenticity of documents submitted by players.

Money laundering is one of the crimes that have given the crypto space a bad image. But enforcing KYC rules might be very counter productive to the income and operations of these casinos. This is because there are people that have genuine reasons for choosing to protect their privacy or remain anonymous. Cultural, religious or societal factors can be genuine reason why someone might want to be unknown and not necessarily because of crime. Such persons would avoid casinos because of this policy. KYC policy can also give rise to illegal casinos that would take loopholes of the challenges of this policies. The best way to prevent money laundering is to block or stop the source of the money that would be laundered. 

I think implementing KYC can go both ways, counter productive because it will possibly hinders potential players and productive because it will enable the casino to do their business smoothly.  Between the two, I think implementing KYC is more beneficial to the Casino in terms of continue and smooth operation.

Gambling casinos are here for business and profits so that's the only thing they will care the most. If bettors come with huge funds to bet, regardless if it came from money laundering or not, as long as they passed the KYC and yet no alarm from authorities, then it won't be tracked for sure since gambling casinos are mostly concern for their own profits, and having high rollers to play in them will create more chances for them to gain big profits that time.

Everyone is, everyone cares about their own benefits only, that is why many players are whining about KYC  requirement because it is a hassle for them, without even thinking how hassle it is for the Casino to have problem with authority if they do not implement the needed requirement imposed by the government.

[abel1337]

Let's be honest, money laundering is the best thing that can happen to a casino and there is where most of high rollers comes from. I have seen some rollers in the past that runs some huge scams and then go to the casinos to play with the scammed money and with that justify where they get the money from after hitting some huge wins.

Nowadays most casinos has KYC, but i don't think that is enough to stop the money laundering, what casinos should do is to investigate the source of the deposits to fight against this illegal activity, but that will not happen because is a win-win game from them.

So, what do you say, does crypto casinos really care about money laundering?

I am not sure we can equate money laundering as the same as scammed money. Both are illegal, sure, but that still does not have anything to do with the other. If you get caught with scammed money then obviously that money will be seized. As far as money laundering goes, it might not be allowed to be seized by the casino unless they recieve an order from the police to seize the laundered money, but you will still get into trouble with the law.

I doubt any online or offline gambling casino, whether crypto based or fiat based, cares about enforcing the law. They do it because they have to. Of course they would rather make more profit and not give any of their players up if they had a choice.

Gambling casinos are here for business and profits so that's the only thing they will care the most. If bettors come with huge funds to bet, regardless if it came from money laundering or not, as long as they passed the KYC and yet no alarm from authorities, then it won't be tracked for sure since gambling casinos are mostly concern for their own profits, and having high rollers to play in them will create more chances for them to gain big profits that time.

Of course business is business, Casino want to gain profit from you whether the money is dirty or not. If they are being suspicious of you, They can easily flag the account and ask KYC and as long as their reputation won't be affected they won't care that much.

I'm just thinking what might happen if the gambler use dirty money, withdraw it given that the gambler passed KYC and having no standing warrant at that current time. and the casino let the gambler withdraw. Will there be a chance that the casino be caught red handed by the authorities even the gambler withdraw his funds 2 months after?  

[molsewid]

I believe that crypto casinos shouldn't worry about this, but they often need to comply with the laws of the countries they operate in order to continue operating.

Money laundering is one of the crimes that have given the crypto space a bad image. But enforcing KYC rules might be very counter productive to the income and operations of these casinos. This is because there are people that have genuine reasons for choosing to protect their privacy or remain anonymous. Cultural, religious or societal factors can be genuine reason why someone might want to be unknown and not necessarily because of crime. Such persons would avoid casinos because of this policy. KYC policy can also give rise to illegal casinos that would take loopholes of the challenges of this policies. The best way to prevent money laundering is to block or stop the source of the money that would be laundered. 

Indeed , because most of the people in crypto world more prefer to be unknown rather than be known, they don't want to make KYC most of us chooses crypto because we can hide our identity and freely use it to anywhere we wanted to invest with, but with KYC there will be some feeling maybe we can be afraid because that certain establishment can use our identity somewhere most especially if we are to active in gambling.

[Kelvinid]

I believe that crypto casinos shouldn't worry about this, but they often need to comply with the laws of the countries they operate in order to continue operating.

Money laundering is one of the crimes that have given the crypto space a bad image. But enforcing KYC rules might be very counter productive to the income and operations of these casinos. This is because there are people that have genuine reasons for choosing to protect their privacy or remain anonymous. Cultural, religious or societal factors can be genuine reason why someone might want to be unknown and not necessarily because of crime. Such persons would avoid casinos because of this policy. KYC policy can also give rise to illegal casinos that would take loopholes of the challenges of this policies. The best way to prevent money laundering is to block or stop the source of the money that would be laundered. 

Indeed , because most of the people in crypto world more prefer to be unknown rather than be known, they don't want to make KYC most of us chooses crypto because we can hide our identity and freely use it to anywhere we wanted to invest with, but with KYC there will be some feeling maybe we can be afraid because that certain establishment can use our identity somewhere most especially if we are to active in gambling.

Yes, and it was unfortunate that KYC has already been pushed by major exchanges and gambling sites making us closer to no options but to submit our KYC. I'd foresee that sooner or later, KYC is be going to mandatory, especially if crypto becomes legalized in all countries and that was the time to have no other options. But, this will not put an end to money laundering as this will be a long-lasting war that never find yet an effective solution.

[ChiNgadOr]

I feel like most casinos care about making money the safe way. They want high rollers but they also want to look legit in the way that they did everything they could to prevent laundering. The best thing they can get is a scammer launderer that is good and has all the fake documents they can ask for. They don't really care where the money comes from as long as their hands are clean and they can defend in court if it comes to that. 

There are some legal casinos that really cares about money laundering act and they do take normal precautions to make sure that gamblers will not come to there casinos and use funds that are stolen or illegal on there casinos because the government also can come for them if they don't regulate the rate funds flow into the casino.
This is why there is maximum amount we can use to gamble on a casino which is one of the reasons set aside to regulate and make sure that gamblers stick to rules of the casino.
There are so casinos that we never care about money laundering act because they can majorly after inflow of funds to there casinos with checking the risk it might post later to them.

[milewilda]

I believe that crypto casinos shouldn't worry about this, but they often need to comply with the laws of the countries they operate in order to continue operating.

Money laundering is one of the crimes that have given the crypto space a bad image. But enforcing KYC rules might be very counter productive to the income and operations of these casinos. This is because there are people that have genuine reasons for choosing to protect their privacy or remain anonymous. Cultural, religious or societal factors can be genuine reason why someone might want to be unknown and not necessarily because of crime. Such persons would avoid casinos because of this policy. KYC policy can also give rise to illegal casinos that would take loopholes of the challenges of this policies. The best way to prevent money laundering is to block or stop the source of the money that would be laundered. 

Indeed , because most of the people in crypto world more prefer to be unknown rather than be known, they don't want to make KYC most of us chooses crypto because we can hide our identity and freely use it to anywhere we wanted to invest with, but with KYC there will be some feeling maybe we can be afraid because that certain establishment can use our identity somewhere most especially if we are to active in gambling.

But we know that these platforms are regulated even they do know their customers doesnt really like KYC but they dont really have any choice or option since people does always prefer on having that
anonymity.Those people who doesnt really love KYC doesnt automatically means that they are doing money laundering but we cant really deny that this is one of the best way on hiding out yourself
if you do really have those bad intentions or illegal actions which is connected to laundering but not all would really be doing that but cant really be  avoided for it not to be taking advantage on.
Platforms who do operate on legal ways and fair wont really be having no choice but to comply on whats been asked or mandated to them.

[Stalker22]

Your analogy is wrong. When the swindler took possession of the money, there is no longer a choice to catch him or not (if there is, of course, he must be caught), but there is a choice - to pay taxes on this money or not. If he at least pays taxes, it will be better than if he doesn't.

No. I used an analogy to illustrate how the legal system treats money obtained illegally. No matter where you live, I do not believe there are too many differences in this regard. I suggest you do your research or ask some legal counsel if you want to know more. Basically, money associated with illegal activities cannot be used legaly, which is why money laundering has become a profitable activity and anti-money laundering laws have been introduced into the legal system of almost every country in the world. Paying taxes has absolutely nothing to do with this and is not even part of the same legal act.

But if the fraudster is not caught when he did the fraud, then all he has to do is legalize the money, right? What is your suggestion? A specific proposal from the real and not the fictional world? Go back in time and still catch him? In the real world, the scammer will launder money one way or another and pay taxes on it.

But that is not how our legal system works. Look, here are some examples from the real world:

Four Individuals Charged with Conspiring to Launder Money Obtained from Romance Scams
Two Florida Men Charged with Conspiring to Launder Money Obtained from Internet-Enabled Scams
Virginia Man Charged with Conspiring to Launder Money Obtained from Internet-Enabled Romance Scams
Five individuals charged in multi-million dollar money laundering conspiracy

In each case, the suspects were not caught while committing the fraud, but rather after trying to "legalize" the illegally obtained money. That is the whole point of the AML laws.

So again what is your specific suggestion? The scammer will launder money by simulating receiving income from a business or receiving winnings from a casino. What do you suggest? Prohibit people from paying taxes because this is how money is laundered? Or are you suggesting a ban on money?  Can you say something specific?

No suggestions, I just wanted to point out that the following statement of yours is false:

The easiest way to launder money is to make two large bets (or several smaller ones) at different bookmakers on opposite events and go to the tax office with the winning ticket. In principle, I don’t see anything wrong with this, because if the police couldn’t catch the criminal while committing a crime, then there’s nothing to be done, and if he pays taxes, then that’s good.

[Wakate]

I believe that crypto casinos shouldn't worry about this, but they often need to comply with the laws of the countries they operate in order to continue operating.

Money laundering is one of the crimes that have given the crypto space a bad image. But enforcing KYC rules might be very counter productive to the income and operations of these casinos. This is because there are people that have genuine reasons for choosing to protect their privacy or remain anonymous. Cultural, religious or societal factors can be genuine reason why someone might want to be unknown and not necessarily because of crime. Such persons would avoid casinos because of this policy. KYC policy can also give rise to illegal casinos that would take loopholes of the challenges of this policies. The best way to prevent money laundering is to block or stop the source of the money that would be laundered. 

Indeed , because most of the people in crypto world more prefer to be unknown rather than be known, they don't want to make KYC most of us chooses crypto because we can hide our identity and freely use it to anywhere we wanted to invest with, but with KYC there will be some feeling maybe we can be afraid because that certain establishment can use our identity somewhere most especially if we are to active in gambling.

But we know that these platforms are regulated even they do know their customers doesnt really like KYC but they dont really have any choice or option since people does always prefer on having that
anonymity.Those people who doesnt really love KYC doesnt automatically means that they are doing money laundering but we cant really deny that this is one of the best way on hiding out yourself
if you do really have those bad intentions or illegal actions which is connected to laundering but not all would really be doing that but cant really be  avoided for it not to be taking advantage on.
Platforms who do operate on legal ways and fair wont really be having no choice but to comply on whats been asked or mandated to them.

I think many of the casinos I know do have a partial KYC where they will ask for users email, and some info about them which can be for different reasons. Nobody wants there information to be exposed to the world or be in the hands of wrong person which can happen if those casinos that requires KYC from gamblers eventually lost the data to the hands of scammers or those that might use the information illegally or sell it to people that could use it against us.
So many reasons why nobody will like to play or gamble on a KYC casinos because anything can happen and those casinos might get hacked losing vital information.