Crypto Casinos vs money laundering.

[Jawhead999]

When the casino ask KYC to the user that has been flagged due to suspicious activity, most of the time his funds will be frozen. During the user already send the KYC to the casino, there's a chance if the casino that partnered with blockchain analysis is investigating where the source come from etc.

But until now I never heard any fraudster or money launder get exposed during playing crypto casinos.

[1714886585]

1714886585

[noorman0]

If KYC is for enforcing AML rules, it's certain that the casinos have their own secretive methods of how they direct their suspicions to this behavior (though sometimes they catch the wrong people). And yes casinos care about money laundering cases in any way to keep the company operating.

[Cling18]

The money being used to gamble is hard to trace and determine if it's from money laundering activities but enforcing KYC will be a big help. They could freeze the account with suspicious activities but not all laundered money will be traceable. Some casinos don't mind checking their gambler's source of funds as long as they're earning.

[KTChampions]

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.

[Stalker22]

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.

Imagine if someone stole your car and then the next day showed up on the car market selling it. The police would be like, "Well, we could not catch him while he was stealing your car, and now he is free to sell it at the market." That cannot be right, because legally speaking, you are still the rightful owner of that car.

The same principle applies to money, because money obtained illegally belongs to the original owner(s) and not to criminals.

[Zackgeno96]

Most casinos that only focus on crypto have little to do with money laundering. You make a deposit with crypto and then you have it paid out again in crypto. That has nothing to do with money laundering. It is of course a completely different story if you play at a casino, deposit there with crypto and then want to cash out on your bank loan. Then you could suffer from money laundering, but it could also simply be legal money. I have read that when you make a deposit via crypto, you are then obliged to also make a payout via crypto. That would immediately solve all problems and you can no longer launder money.

[passwordnow]

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

I'd say yes but they can't stop it coming to their platforms because they're uncontrollable when it's about the volume. They might take some and stop for a little while but to stop them completely, I don't think that it will happen. But since a casino is also a business, if the transactions are volumed up, will they still worry about it? Well, it could be a case to case basis and there could be casinos that have a strong integrity, we will never know and only time can tell for the others.

[Hispo]

The money being used to gamble is hard to trace and determine if it's from money laundering activities but enforcing KYC will be a big help. They could freeze the account with suspicious activities but not all laundered money will be traceable. Some casinos don't mind checking their gambler's source of funds as long as they're earning.

Crypto currency transactions are difficult to check in large numbers, that is why most of the times casinos focus on highly suspicious deposits, KYC helps but it is not a panacea to these issues.
Those casinos that probably do not even mind to check the origin of the funds may not opperate under the law of countries that take the money laundering quite seriously, like the European Union and the United States of America.

Also, another way criminals would try to clean their money is by depositing Bitcoin/ether and then withdrawing after some bets on a different blockchain, if this second blockchain was a privacy focused blockchain like Monero/Zcash would be ideal for them,  this is probably the reason some big platforms do not opperate with Monero.  

[goaldigger]

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

They care about the regulations and many site are already strict with KYC so basically, they are following the instructions from AMLA and if they saw something suspicious they can easily freeze that account subject for investigation. Crypto casinos can’t totally stop them, since the money came outside their platform and they can only freeze that account I don’t know though what would happen to the money if proven guilty, maybe they will surrender it to the authority or they’ll use it, hard to know though.

[lionheart78]

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

It isn't for the casino to investigate if the money deposit in their platform is laundered or not.  It is the work of the authority.  Remember Casino is a business, and as much as possible they wanted to cater to anyone who is willing to bet on their platform.  All the casino had to do is to comply with the terms and regulations imposed on them. 

Now tell me, do local banks care where your deposit comes from?  I bet no.  They will only do certain measures if someone from the authority tags your bank account.  This can be proven by many bank accounts of scammers that are yet to be frozen due to government has not tagged them yet.

In short, casinos have regulations to follow and that is what they care about.

[Marvelman]

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

It isn't for the casino to investigate if the money deposit in their platform is laundered or not.  It is the work of the authority.  Remember Casino is a business, and as much as possible they wanted to cater to anyone who is willing to bet on their platform.  All the casino had to do is to comply with the terms and regulations imposed on them. 

True, but if the regulator or government institutions require them to report all suspicious transactions, how are they going to do it if they don't do at least a basic check?
As far as I can see they have only two options, either comply to all regulatory requirements or run an illegal and unlicensed business.

Now tell me, do local banks care where your deposit comes from?  I bet no.  They will only do certain measures if someone from the authority tags your bank account.  This can be proven by many bank accounts of scammers that are yet to be frozen due to government has not tagged them yet.

This depends on the legal framework in which the bank operates. For example, all banks in the EU must conduct due diligence on all accounts with "suspicious" transactions and report them to government institutions for further investigation. Without any trigger or tag from government institutions.

[jossiel]

The money being used to gamble is hard to trace and determine if it's from money laundering activities but enforcing KYC will be a big help. They could freeze the account with suspicious activities but not all laundered money will be traceable. Some casinos don't mind checking their gambler's source of funds as long as they're earning.

And that's why those that have been into money laundering knows what to do and they're letting it flow to the casinos so that it won't be traceable anymore.

One reason also why gambling business has such a huge tax because of this reason and probably the government has just accepted the fact that it's hard to trace, thus taxed largely.

[Johnyz]

There’s a lot of money being laundered in casinos, let’s admit that many gambling site didn’t care that much about this one though some site asked for a KYC but I think it’s not that effective on tagging money laundering. KYC can’t prove if you are using laundered money especially if you provided fake documents. Well, this is the problem of the regulatory body and they should impose a strict instructions to every casinos on how they monitor money laundering.

[dothebeats]

The money that the gambler uses to play on a casino is out of the casino's business. Even if something suspicious is happening on the account of the gambler, the source of funds IMO should not be questioned. They are not a law enforcement entity nor do they have any authority to ask gamblers where their money came from. If anything it should be the law enforcement that chases after these money launderers, and they can seek help from casinos with what information they store for the user that the police are looking for.

[DoublerHunter]

The money that the gambler uses to play on a casino is out of the casino's business. Even if something suspicious is happening on the account of the gambler, the source of funds IMO should not be questioned. They are not a law enforcement entity nor do they have any authority to ask gamblers where their money came from. If anything it should be the law enforcement that chases after these money launderers, and they can seek help from casinos with what information they store for the user that the police are looking for.

^Definitely right and probably that thing that you will suspect as a suspicious account when you deposit a large amount and then later on you will withdraw them all. That is not their business to interrogate people about where the money comes from, as long as you deposited it from your own account and don't have any questions, you will be fine. Probably the reason some centralized platforms did not want to link gambling casinos, for example, I have a centralized wallet and send the amount to a gambling platform, but they will not allow it.

[dataispower]

It's allegations because their is no prove to write about, when bitcoin came out new, people started saying that Bitcoin is used for money laundering and many people people believe that, but when they started knowing the truth of Bitcoin nobody raise such allegations again.what i will suggest is that those who thought of money laundering with crypto casino just want to castigates crypto gambling because maybe their have lose on it. To summary this all that information of money laundry is not authentic.

[blockman]

The money that the gambler uses to play on a casino is out of the casino's business. Even if something suspicious is happening on the account of the gambler, the source of funds IMO should not be questioned. They are not a law enforcement entity nor do they have any authority to ask gamblers where their money came from. If anything it should be the law enforcement that chases after these money launderers, and they can seek help from casinos with what information they store for the user that the police are looking for.

Basically, that's true and the casino won't mind where their customers are getting funds as they're a business in that form. If there's something to be investigated then they have to let it through a government agency that focuses on it. But these days, due to KYC and other types of verifications, it seems that they're sharing a burden now which is a task of the government. As long as the casino is licensed, those money launderers will just have to go through them with that confidence of not getting caught unless they're asked as they appear and might hold their money if verified they're money launderers.

[fortunecrypto]

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.

The authorities know all about this that is why the license issuer and AML organizations make sure that these casinos have parameters to prevent these abuses, but casinos can only comply based on the terms and rules given to them by the AML and governing bodies, it's an open secret that scammers are using casinos to wash their money

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.

It's not enough they can use dummies as they can pay people to do KYC for them you know we are online and anything and everything can be manipulated, that is why casinos takes a lot of time to verify once accounts to check manipulation and if the person is in the databases of scammers.

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

They should because they are compliant, their license is at stake if they fail to perform their duties.

[Fatunad]

If KYC is for enforcing AML rules, it's certain that the casinos have their own secretive methods of how they direct their suspicions to this behavior (though sometimes they catch the wrong people). And yes casinos care about money laundering cases in any way to keep the company operating.

They would really be abiding laws and regulations as much as they could because if ever there would be some biases or exemptions and they had been caught then it would really be the end of their business.
Considering that casino businesses arent that cheap then it would be understandable that they would really be doing their best not to be affected with those things.
Simply it would really be totally be put up into its customers which i could say that money laundering laws is really just typical not only on gambling busineses
but also into other industries or businesses as well.

[Gozie51]

Some casinos don't mind checking their gambler's source of funds as long as they're earning.

This is by running a kyc and that is the purpose of knowing about the customer. Money laundering may not be checkmated directly by Kyc but it will only ensure that the customer does some legit business that is not laundering of money. It is to show that dubious monies are not  circulated through the casino.