Running a casino during crypto crash

[Fredomago]

You can request new casinos to show their assets, but for old casinos, I don't think they are obliged to show their assets and capability, their so many years of operations just proved that their assets can keep up, and assets are not proofs that the casino will pay their players that won big amounts, they may have it or not but its never a parameter to see if the casino can operate long term.
You cannot even say that my money is safe here because of their assets you can only have money in casinos if you deposited and wins.

For established casinos, they will not be oblige to show their funds it's their business to run and operate for sure they will not ruin the main source of their income, though maybe I can agree that new open casino can show if they've got the money to pay their players in case big wins happen, the bankroll is very important to gain trust from the players, as long as you can really provide then it won't be hard for gamblers to play using your platforms.

[Stalker22]

~
But now I'm curious, how many casinos out there can actually provide the funds in the unlikely event that all of their users decide to withdraw? Or how many casinos out there that are also secretly using their players' money for investment or marketing or something else?

I do not know if a serious casino would choose to do this, as it presents too much of a risk.

While it may sound like the best of both worlds, in practice this could be a disaster for any casino that decides to take this path. Casinos have their core business, which is making money from gambling. Using player funds for investments in other ventures is not something they would normally do. However, if they did so, they would need to make sure the investment was safe and profitable. If the casino loses money on its investments, then it will not be able to pay players back their deposits. Therefore, I do not think that this is a very likely scenario, as it could result in the casino going bankrupt.

[serjent05]

In all means the casinos have its edge. This brings them specific percentage to the house. Depending on the market the bankroll value varies. The market crash won't cause any downturn. Just an assumption, a gambler spends 0.1BTC when the market is at its peak. The same gambler spends 0.1BTC when the market is at its downturn. Will this hurt the house in any means.

Indeed, the casino thrives on the bet of their client, BTC will be paid in BTC, USDT in USDT.  I haven't known any casino that paid Bitcoin bet in USDT.  So no matter how hard the market crash, it has no effect on the payment of the casino.  Of course, it is always a good thing to check if the casino has the fund to pay for big wins because it is an assurance that a player has nothing to worry when they hit huge multipliers in a huge bet.

[Saint-loup]

~
But now I'm curious, how many casinos out there can actually provide the funds in the unlikely event that all of their users decide to withdraw? Or how many casinos out there that are also secretly using their players' money for investment or marketing or something else?

I do not know if a serious casino would choose to do this, as it presents too much of a risk.

While it may sound like the best of both worlds, in practice this could be a disaster for any casino that decides to take this path. Casinos have their core business, which is making money from gambling. Using player funds for investments in other ventures is not something they would normally do. However, if they did so, they would need to make sure the investment was safe and profitable. If the casino loses money on its investments, then it will not be able to pay players back their deposits. Therefore, I do not think that this is a very likely scenario, as it could result in the casino going bankrupt.

Unfortunately in the crypto world, everything is possible. Exchanges and lending platforms have also their own core business model, but we have recently seen they are not all very honest and are doing shady transactions behind their customers' backs, so I wouldn't be surprised if some large casinos were doing this kind of things actually. Because they can easily lock funds of most of customers when they want by simply asking them KYC. So users should always be very careful when they leave cryptos anywhere, and remind that when you have not the key, it's not your coins anymore.

[stomachgrowls]

~
But now I'm curious, how many casinos out there can actually provide the funds in the unlikely event that all of their users decide to withdraw? Or how many casinos out there that are also secretly using their players' money for investment or marketing or something else?

I do not know if a serious casino would choose to do this, as it presents too much of a risk.

While it may sound like the best of both worlds, in practice this could be a disaster for any casino that decides to take this path. Casinos have their core business, which is making money from gambling. Using player funds for investments in other ventures is not something they would normally do. However, if they did so, they would need to make sure the investment was safe and profitable. If the casino loses money on its investments, then it will not be able to pay players back their deposits. Therefore, I do not think that this is a very likely scenario, as it could result in the casino going bankrupt.

Unfortunately in the crypto world, everything is possible. Exchanges and lending platforms have also their own core business model, but we have recently seen they are not all very honest and are doing shady transactions behind their customers' backs, so I wouldn't be surprised if some large casinos were doing this kind of things actually. Because they can easily lock funds of most of customers when they want by simply asking them KYC. So users should always be very careful when they leave cryptos anywhere, and remind that when you have not the key, it's not your coins anymore.

There's no exclusion whether you are dealing on a casino or exchange platform or any services out there which you do deposit out your crypto or funds and having no full control of it.

You are really indeed on a situation which you cant really be able to assure if those funds are safe.Speaking into other topic which for a business to be having that shady act then it would be impossible for a
long term business like gambling casino to focus out on locking up their users account and stole those funds.We know that it is really more worth and good thing to be done
if they would sustain out the business for longer runs which means that revenue would continue to flow and make tons of money rather than on a single situation
which could fucked up their reputation entirely.

[TimeTeller]

~
But now I'm curious, how many casinos out there can actually provide the funds in the unlikely event that all of their users decide to withdraw? Or how many casinos out there that are also secretly using their players' money for investment or marketing or something else?

I do not know if a serious casino would choose to do this, as it presents too much of a risk.

While it may sound like the best of both worlds, in practice this could be a disaster for any casino that decides to take this path. Casinos have their core business, which is making money from gambling. Using player funds for investments in other ventures is not something they would normally do. However, if they did so, they would need to make sure the investment was safe and profitable. If the casino loses money on its investments, then it will not be able to pay players back their deposits. Therefore, I do not think that this is a very likely scenario, as it could result in the casino going bankrupt.

Players won't know also this aspect of casino, whether the casino is using the deposits to something else.
Usually, the community knows there is a problem when they start experiencing withdrawal problems.
A big casino may have other ventures but I am certain, they can very well afford to pay up the winnings of their players.
This is why it is advisable to play on known reputable casinos or bookies, so you won't encounter any withdrawal issues.

[Odusko]

The truth is, no one should trust any platform right now because the entire industry is faced with the issue of trust so for that only leave what you can afford to lose on any casino, just like exchanges, most casinos have a hot wallet that holds the house balance where winning are paid from.
But again the recent market crash has affected many casinos got wallet most especially those that have funds stored in Bitcoin and other highly volatile assets, so we need to be in charge of our funds because the present market condition have call for urgent attention from crypto users.

[passwordnow]

Check the casino's tabs and pages and see if they're showing how much they've got in their bankroll. Some casinos and dice sites do this and if you're not satisfied with the current one that doesn't show it to you then leave them. They don't have the obligation to show how much they've got especially the reputable ones because we know how huge they are. I think it's not a matter to me as long as I know where I am gambling and I have an idea about the track record of the casino. Btw, this topic should be on Gambling Discussion.

Passwordnow, no I disagree with you on this especially with the big gambling sites, I think they should do this . Imagine an exchange as big as FTX were just holding most of the users funds and they couldn't even afford 50% of them to withdraw causing a domino effect  . During this time millions of cryptonians withdrew their money from different exchanges causing them to halt or squeeze budgets , what makes a casino with a "Curaçao" licence  any special ?

I understand the worry and we all want to have that sense of transparency from these gambling sites. But in this situation, as someone who worries about it. Just go and gamble on reputable casinos that have been there for years without any huge issues such as what happened to FTX. Whether you gamble small or big, I also get why someone has to look at their financials or stability. You may ask them directly about it and if they answer and are generous to tell how much they've got in their bankroll, that might give you some confidence to stay with them. Also, as a responsible gambler, you don't deposit all that you've got there just as what the depositors of FTX did.

[decodx]

<...>
Judging the way some casinos offer fairly quick withdrawal in BTC, I would assume they keep a good percentage of money in BTC.

Yes, that may be true. But there are services for such things. Payment providers. Today, anyone can accept deposits and pay out cryptocurrencies, regardless of their base currency.

[khaled0111]

Indeed, the casino thrives on the bet of their client, BTC will be paid in BTC, USDT in USDT.  I haven't known any casino that paid Bitcoin bet in USDT.  So no matter how hard the market crash, it has no effect on the payment of the casino.  Of course, it is always a good thing to check if the casino has the fund to pay for big wins because it is an assurance that a player has nothing to worry when they hit huge multipliers in a huge bet.

As OP already explained in one of his replies, casinos have many expenses other than paying gamblers' winnings. They need to pay their game providers, pay for servers, maintenance and development.. And not all those are paid in crypto and the prices are usually set in fiat value. So the "1 btc = 1 btc" can't be applied here.
The crypto market drop can indeed affect casinos' business if they don't have strategies or plans to protect their capital against high price movements

[yahoo62278]

I thought most casinos had a minimum budget and set the max win based on 100x. So, if a max win is .001btc then the budget is usually at least .1btc. That may have only applied in the past when casinos only had a dice game. These days with all the slots and jackpots that can be won, i'm sure it's much different.

I don't feel like most casinos are going to share their bankroll information publicly, but maybe with a private entity that will confirm a casino is solvent? Unless we see warning signs from a particular casino, I wouldn't worry at this point.

[carlfebz2]

I thought most casinos had a minimum budget and set the max win based on 100x. So, if a max win is .001btc then the budget is usually at least .1btc. That may have only applied in the past when casinos only had a dice game. These days with all the slots and jackpots that can be won, i'm sure it's much different.

I don't feel like most casinos are going to share their bankroll information publicly, but maybe with a private entity that will confirm a casino is solvent? Unless we see warning signs from a particular casino, I wouldn't worry at this point.

Most sites that only having dice game back in the past had already have some huge overhaul on their platform which they added up more casino games which mainly talking about slots and other similar games

which means that bankroll should really be more than on that.Bet limits is standard, it is really just a suicide for them not to set out because huge wins could really cost them big
if ever someone do make a hit.In talking about their capital or bankroll, then i dont really care on seeing at all.It is really just standard that they would be setting
out limits basing on how much they do have money on their bank.

[Chikito]

I think its mandatory for gambling sites to show proof of money they are holding in reserves  .

I agree, we must be vigilant after in what just happened on an exchange before, but gambling and exchange have different. Because not many people keep and hold their money in what they did on the exchange. So it's not mandatory I think, but necessary. So when the gambling site shows the capital on the first page, I think to just make sure the gambler inside trust and believes they put the money in the right place.

[Don Pedro Dinero]

The title of the thread is a bit misleading, as at first glance it seems to be talking about how to run a casino in this day and age and is rather questioning whether casinos have sufficient reserves.

For me, in principle, of the reputable casinos on the forum that have been around for a long time I am not worried, as they will know how to manage their banrkoll and betting limits accordingly. Perhaps it would be good to show the solvency to a third party, as sugggested, but not necessary IMO:

I don't feel like most casinos are going to share their bankroll information publicly, but maybe with a private entity that will confirm a casino is solvent? Unless we see warning signs from a particular casino, I wouldn't worry at this point.

I'm not worried either, there are casinos on the forum that were already up and running in the previous crypto crash, and they are still there.

[Odusko]

I thought most casinos had a minimum budget and set the max win based on 100x. So, if a max win is .001btc then the budget is usually at least .1btc. That may have only applied in the past when casinos only had a dice game. These days with all the slots and jackpots that can be won, i'm sure it's much different.

I don't feel like most casinos are going to share their bankroll information publicly, but maybe with a private entity that will confirm a casino is solvent? Unless we see warning signs from a particular casino, I wouldn't worry at this point.

Fact! I don't think we should worry about that also because casinos already have an existing plans that will cover for unexpected situations like this, and just as you mentioned casino have good bankroll amount that may not be made public but will cover up for players winning even for jackpots.
Some of the old casinos have their bankroll on their site so that visitors can know the exact amount their have in the bank roll, so I don't think worrying about market down or impact it impact on casino ability to pay out client is necessary.

[davis196]

Hello guys, as an attempt to protect new or old users on this forum , I think its mandatory for gambling sites to show proof of money they are holding in reserves  . Unless casinos converts all deposits to a stablecoin , excluding UST hahahah , from year to date most of them should be running on a loss as most utilized crypto coins are down by atleast 65% and that includes Bitcoin .

There will be more and more accusations  created to existing and also new casinos.

 Goodluck,Be safe and smart out there!!

No, it isn't mandatory for the gambling sites to show proof of reserves. It might become mandatory in the future. I don't know about such regulation being imposed over the fiat casinos. New regulations are being imposed over the fiat gambling industry first.
I don't think that most casinos are at a loss because of the crypto winter, because the casinos aren't holding crypto for the long term. They are converting it to fiat. If the crypto casinos were at a loss due to the crypto winter, we should be witnessing a wave of big crypto casinos going bankrupt and turning into exit scams. There's no such thing right now.

[Docnaster]

You can request new casinos to show their assets, but for old casinos, I don't think they are obliged to show their assets and capability, their so many years of operations just proved that their assets can keep up, and assets are not proofs that the casino will pay their players that won big amounts, they may have it or not but its never a parameter to see if the casino can operate long term.
You cannot even say that my money is safe here because of their assets you can only have money in casinos if you deposited and wins.

For established casinos, they will not be oblige to show their funds it's their business to run and operate for sure they will not ruin the main source of their income, though maybe I can agree that new open casino can show if they've got the money to pay their players in case big wins happen, the bankroll is very important to gain trust from the players, as long as you can really provide then it won't be hard for gamblers to play using your platforms.

There is no need for old casino show their reserve, they have been around for so many years and I don't think that they will wind up any moment unless on the ground of mismanagement or change of ownership

new casinos are the ones that are supposed to show the reseerve but it's not supposed to be compulsory. Only smart ones that are planning to be ahead in business who also are transparent would be comfortable showing their reserves.

[piebeyb]

I'm not worried either, there are casinos on the forum that were already up and running in the previous crypto crash, and they are still there.

there are some crypto casinos that have been around for a long time maybe how many times have they missed crypto crashes too they should have gone bankrupt if their casino was impacted just because of the crypto crashes caused from recent FTX issues floating around, OP doesn't know about the cases of Mtgox, Bitfinex and some Exchange sites that get hacked and crash cryptos, there's nothing to bankrupt a casino on, so there's no need to worry about crypto crashes

[arwin100]

I'm not worried either, there are casinos on the forum that were already up and running in the previous crypto crash, and they are still there.

there are some crypto casinos that have been around for a long time maybe how many times have they missed crypto crashes too they should have gone bankrupt if their casino was impacted just because of the crypto crashes caused from recent FTX issues floating around, OP doesn't know about the cases of Mtgox, Bitfinex and some Exchange sites that get hacked and crash cryptos, there's nothing to bankrupt a casino on, so there's no need to worry about crypto crashes

They only go bankrupt if they sell their holdings but if they still continue to use it for business operation then there's no losing will happen since they can still get 1:1 ratio per costumers bet used. Successful casino knows how to interact with this since they already how to handle the market and they can still get the same profit for new bets used by costumer so the only thing they need to do is  not to sell their old balances which has been stored on their hot wallets.

[Slow death]

Casinos have very different money making model to any exchanges. They are not exchanges for a reason. If you gamble with BTC you win btc and you withdraw BTC, that's it. You don't change BTC to usdt and try start a bank run.

And FTX used their own token as a collateral which was one of the reasons this happened to them. And i am not sure what kind of numbers in those reserves would make you happy? One that includes enough reserves for everyone winning for a week for every bet or what?

OP is right, I saw that most people are saying things like: "I don't care because the casino has been on the market for a long time and they are reliable" but actually what OP is saying is something very serious and he should be implemented by all casinos, for example: if a casino states that it has 20 million dollars in reserve (this money will no longer be included in the casino expenses), that means that people could follow it closely whenever that value oscillate (increase or decrease) and this guarantees that customers will have money to withdraw because the casino's finances are healthy, if for example there is a scam accusation in which someone complains that he is not managing to withdraw 5000$ all people will see that the casino has money to pay so the case is not about the casino not having money to pay, there may be another reason

for me actually it doesn't really matter (for me).
because a gambling platform site that already has a good reputation, there is no need to doubt how much reserve fund they keep.
maybe you can see from one of the gambling websites that are able to pay for every ad they display at any time and gambling parties are able to pay 1-2 BTC just to pay for advertisements. so there is no need to doubt how much reserve fund they have.


Ps : don't equate a gambling platform with an exchange like FTX

but you need to start worrying about it, look at the case of 1xBit.com who are scammers, they make selective payments in their casino, but if all casinos had to show how much money they have, maybe we would find that this 1xBit.com casino they are bankrupt, so nobody would be using that casino and there is also something else and if a casino showed that it only has 5 million dollars people would avoid using that casino because they would already know that the casino is really surviving poorly. OP's idea is very good and would solve many problems