Loophole in stopping Money Laundering through Wagering

[noormcs5]

As we know that most gambling sites will require you to gamble and wager your whole balance once, before you can cash out or withdraw from the gambling site and they take this measure so people do not do money laundering whereby deposit and withdraw without gambling.

Now the point here is that on the gambling site, there are many easy winning bets with odds like 1.01x etc. If the money lauder is sensible he can easily be wagering the whole amount by placing a few bets where the odds are very low and the winning chances are 99%.

So does this mean that there is a loophole here and the money launderers can easily by pass this wagering requirement?

[Nwada001]

Now the point here is that on the gambling site, there are many easy winning bets with odds like 1.01x etc. If the money lauder is sensible he can easily be wagering the whole amount by placing a few bets where the odds are very low and the winning chances are 99%.

There is no sure winning in gambling; even the lowest odds can still lose a game. So if the intention of the user is to launder money through the Casino, their chances of losing the entire money before even getting it out are high.
 
Lower Odds give one some confidence that their chances of winning are huge, but it does not always happen that way. So trying to use that as a loophole in an online casino might lead you to fall victim to losing all your wagers.

[Oshosondy]

The point is just that it is difficult for those sites to know money laundered. This is because money that were laundered are included in legit businesses which makes it difficult to trace.

As for your question. A good gambling site would have made investigation immediately they see someone that deposit very huge amount of money in a way the launderer will not be able to withdraw even his winning, no matter how small the winning is.  Although I think it would be difficult for a gambling site to identify laundered money unless there is an ongoing case about the money and traced to a gambling site account.

Now the point here is that on the gambling site, there are many easy winning bets with odds like 1.01x etc. If the money lauder is sensible he can easily be wagering the whole amount by placing a few bets where the odds are very low and the winning chances are 99%.

Play 1.01 odd 100 times and see that the winning chance is far lesser than 99%. Those odds are only deceiving people to use huge amount of money to bet and to bet frequently.

[mocacinno]

I remember people talking about using gambling platforms instead of mixers for many, many years... The fact does remain that a gambling platform is not built to mix (or launder) money. They do keep extensive logs (part of their business actually depends on those logs so they can catch fraudsters), sometimes they even require KYC... If you're going to launder criminal funds using casino's, you're just going to get caught sooner or later (and since we're talking about criminal funds, i kinda hope the launderers get caught)

Personally, i don't see anything wrong if you just want to hide your money to protect yourself from a $5 crowbar attack or beggars... You can use about any service that allows you to deposit and withdraw funds... An exchange, a casino, a custodial wallet,... I don't know if the wager requirements of casinos are actually there to stop money laundering, and i wonder if their main goal is to make sure their business stays afloat. Only by requiring your balance to be wagered, they stop people from not gambling... The fact they're discouraging money launderers is just a happy coincidence. Personally, if i'd just want to hide my funds from criminals and beggars, i'd rather use a big exchange for this purpose: the risk is much lower than using a gambling website.

Full disclosure: i'm not a "real" gambler. I did visit gambling sites in the past a couple of times, but i'm far from an experienced gambler, and i haven't logged on to any of my accounts for years... Maybe my image of the gambling industry is wrong...

[Synchronice]

As we know that most gambling sites will require you to gamble and wager your whole balance once, before you can cash out or withdraw from the gambling site and they take this measure so people do not do money laundering whereby deposit and withdraw without gambling.

Now the point here is that on the gambling site, there are many easy winning bets with odds like 1.01x etc. If the money lauder is sensible he can easily be wagering the whole amount by placing a few bets where the odds are very low and the winning chances are 99%.

So does this mean that there is a loophole here and the money launderers can easily by pass this wagering requirement?

To be honest, wagering equipment is just an excuse to increase the chance of the person losing money on casino and has nothing to do with money laundering. Isn't it curious that they only think about money laundering when you try to withdraw your coins but when you deposit and lose it, they act like money laundering hasn't happened. They don't ask for KYC documents when you deposit coins, only when you withdraw, everything is 100% clear here.

Btw, don't really think that if you play dice at 1.01x odd to wager your money you'll be safe, play with some money in a row and you'll see how common it is to nuke yourself on 1.01x odd.

[Apocollapse]

Although the casino ask for 2 or 3 times wager requirements in order to withdraw your money, you must know they also ask the minimum odds you need to gamble, not a safe odds like 1.01x. If we talking about money laundering, it must be related with huge amount of money, if the amount is less than $1000, it just a peanut for the casino and they don't mind to let you to withdraw.

If you deposit a huge amount of money to the casino, they will ask KYC and you will lose your privacy. Remember any casino is centralized and they can't be accessed via Tor, so mixing through casino isn't 100% anonymous.

[yahoo62278]

You want to test the system out and deposit $1,000,000 and play dice at x1.01? What are you going to do when you lose 1 of your bets and say $250,000 goes in the toilet?

I'm not sure why they have a wager requirement really except to make a user wager on the site. They say for anti money laundering but essentially making a wager 1x is pretty easy no matter the amount. Where you really need to be concerned is when they ask you for proof of funds. If you cannot prove where the funds came from in a way that satisfies their requirement, you could lose it all.

[Cantsay]

It's an hypothesis that could work but if anything should go wrong that means your money is gone...

I have seen in crash games where my highest odds that they system was supposed to auto cash out for me was 1.02x and yet the game banged at 1.01x so shit could happen at anytime imagine you wager all your money and the game banged before it even had the chance to even begin in the first place...

Just use your gambling account to gamble and use a reputable mixer to mix your coin rather than make some risk that are not worth it. Besides I don't even see a reason why anyone would want to risk their money this way when we have so many mixers that charge little to no charge (whirlwind.money can be used for free).

[piebeyb]

I think even if you play once, I still think it's very dangerous, even if you bet with 1.01x odds because you could be unlucky at that time and the casino system works to win the game with you, the casino system will definitely read when you make a deposit with big money then the casino suspects your account even though you have played several times to meet the requirements for withdrawing money but don't ever think that casinos are also stupid, they are of course smart to see the potential for money laundering so they will ask anyone to complete KYC.

But that's only users who make deposits with big money and only play a few times then withdraw, of course the casino will suspect you, especially if their system detects it, you will lose all your money if you can't prove where your money came from, because of course, don't ever play. to commit money laundering in casinos let alone other gambling platforms.  

[Wapfika]

As we know that most gambling sites will require you to gamble and wager your whole balance once, before you can cash out or withdraw from the gambling site and they take this measure so people do not do money laundering whereby deposit and withdraw without gambling.

Now the point here is that on the gambling site, there are many easy winning bets with odds like 1.01x etc. If the money lauder is sensible he can easily be wagering the whole amount by placing a few bets where the odds are very low and the winning chances are 99%.

So does this mean that there is a loophole here and the money launderers can easily by pass this wagering requirement?

This is not a loophole because there’s a potentila risk of losing all the money with only one bet. This is very risky and I’d rather go slow on high winning percentage dice with small bets instead of doing all in bet on small odds sports bet. I think there’s a lot of story like this that users lose millions of dollars by wagering on small bets for a peanuts profit that turn out badly.

Money launderers will not use this kind of method that can lose everything in single bet. Besides, Casino will notice this same pattern if they keep doing this while they have a very huge bankroll. It’s clearly the account is laundering if all bet made is just safe bet until they withdraw the funds.

[klidex]

As we know that most gambling sites will require you to gamble and wager your whole balance once, before you can cash out or withdraw from the gambling site and they take this measure so people do not do money laundering whereby deposit and withdraw without gambling.

Now the point here is that on the gambling site, there are many easy winning bets with odds like 1.01x etc. If the money lauder is sensible he can easily be wagering the whole amount by placing a few bets where the odds are very low and the winning chances are 99%.

So does this mean that there is a loophole here and the money launderers can easily by pass this wagering requirement?

Actually betting on all types of bets with a 99% win rate in casino games or betting on sports bets with odds @ 1.01 does not guarantee a win and also each bet has a maximum bet amount limit.
Some examples of someone who bets in a dice game with a 98% chance of winning and bets all of the balance he has but he loses and loses all of his balance.
Another example of someone betting on sports at odds @1.01 bets $1 million but also ends up losing because the opposing team counterattacks.
From all of these incidents, we can ensure that there is no loophole for money launderers to place their money in gambling because gambling or casinos don't want to get too close to money laundering.

[davis196]

As we know that most gambling sites will require you to gamble and wager your whole balance once, before you can cash out or withdraw from the gambling site and they take this measure so people do not do money laundering whereby deposit and withdraw without gambling.

Now the point here is that on the gambling site, there are many easy winning bets with odds like 1.01x etc. If the money lauder is sensible he can easily be wagering the whole amount by placing a few bets where the odds are very low and the winning chances are 99%.

So does this mean that there is a loophole here and the money launderers can easily by pass this wagering requirement?

The wagering requirement has little to do with money laundering and something to do with the casino bonus programs.
The KYC procedures were imposed, in order to fight money laundering. Perhaps the wagering requirement helps for preventing many money launderers to stay away from online casinos, but it's main purpose is to prevent abuse of the bonus programs.
I don't think that the best way to launder money via the gambling industry is to deposit them at an online casino/sportsbook and bet on low odds like 1.01. The best way is to create your own casino/sportsbook and use the dirty money as a bankroll.

[FatFork]

So does this mean that there is a loophole here and the money launderers can easily by pass this wagering requirement?

No, there is no loophole. Even if you have a 99% probability of winning, there is still a 1% chance of losing. From the perspective of the casino, statistically speaking, one out of every 100 individuals will lose, allowing the casino to cover the expenses of paying the other 99 people.

But, most importantly, this is not how money laundering through casinos works. If you try this method, it's a piece of cake for the authorities to track the money and figure out where it came from. The whole point of money laundering is to hide the money's origin and make dirty money look clean and legit.

[SeriouslyGiveaway]

As we know that most gambling sites will require you to gamble and wager your whole balance once, before you can cash out or withdraw from the gambling site and they take this measure so people do not do money laundering whereby deposit and withdraw without gambling.

Now the point here is that on the gambling site, there are many easy winning bets with odds like 1.01x etc. If the money lauder is sensible he can easily be wagering the whole amount by placing a few bets where the odds are very low and the winning chances are 99%.

So does this mean that there is a loophole here and the money launderers can easily by pass this wagering requirement?

They can ask you to wager x2, x3 or x4 of your deposit value.

What is a 2x turnover amount?
In order to withdraw amount from your account, you have to turn over your deposit amount two times. Basically, bet twice the amount of your first deposit.

You will notice that your withdrawal remains to process if you deposit a certain amount and then withdraw the funds without making a bet or betting just a small portion of it. "Coin Mixing" is described as simply transferring funds around in this manner, and it is strictly prohibited in the scope of an online casino. Since this sort of conduct may be viewed as something more sinister and malicious, we are obligated not to enable it. To prevent this, we present two solutions that are utilized in certain circumstances. Utilizations of the following options will be made according to Our judgment.

We can refund the amount to your balance, after which you will use the platform for what it was built for, as a casino, and affirm that you will not repeat the following action.

As per our second option, you will be asked to submit your KYC documents.

I remember people talking about using gambling platforms instead of mixers for many, many years... The fact does remain that a gambling platform is not built to mix (or launder) money. They do keep extensive logs (part of their business actually depends on those logs so they can catch fraudsters), sometimes they even require KYC... If you're going to launder criminal funds using casino's, you're just going to get caught sooner or later (and since we're talking about criminal funds, i kinda hope the launderers get caught)

If they are criminals, they will pick mixers to hide their coin after mixing. Because as criminals, they would have big enough money to use professional mixer services and pay service fees. They will not use gambling sites to mix their coins as saving a little service fee is not a matter with criminals.

Risk to use gambling sites to mix their coins will be bigger than service fee from a professional mixer service.

[mak013]

As we know that most gambling sites will require you to gamble and wager your whole balance once, before you can cash out or withdraw from the gambling site and they take this measure so people do not do money laundering whereby deposit and withdraw without gambling.

Now the point here is that on the gambling site, there are many easy winning bets with odds like 1.01x etc. If the money lauder is sensible he can easily be wagering the whole amount by placing a few bets where the odds are very low and the winning chances are 99%.

So does this mean that there is a loophole here and the money launderers can easily by pass this wagering requirement?

Yes, it is possible. But we saw here a thread, when someone bet more than $1.000.000 with the odd less than 1.01 and lost it. There are no guarantee of winning in gambling, so some moment you can lose even with such odds.
And the casino can KYC such gamblers. Most time it becomes a problem for launderers.

[Eureka_07]

<snip>

That's not a loophole. It may sound easy as you described it, but engaging in such a strategy is a huge gamble, especially when dealing with large sums of money. As other members have mentioned, there is still a possibility of losing. Regardless of the potential winning percentage, placing such a significant bet for a minimal return carries significant risk. Just imagine losing all your money from the first draw!

My current thoughts suggest that the actual loophole might involve the money being laundered by the casino owners. What are your thoughts on this?

[SeriouslyGiveaway]

Yes, it is possible. But we saw here a thread, when someone bet more than $1.000.000 with the odd less than 1.01 and lost it. There are no guarantee of winning in gambling, so some moment you can lose even with such odds.

No guarantee to win with 100% chance in gambling even you bet with low odds like 1.01.

Risk of losing all money by 1 bet with low odds and with all capital to meet 1 wager turn requirement for withdrawal is terrible. Why criminals must accept that risk if they have other choices like using mixers and pay mixing fees?

List of crypto casinos with high wagering requirements

These terms applied to normal deposits (no-bonus deposits)

|	Casino Name	|	Required Wagering	|	Details	|
|	funclubcasino	|	x10-x30	|	10X wagering on slots and 30X wagering on table games if the player is playing on Deposit	|
|	Livecasino.io	|	>x5	|	wagering requirement of at least 5 times the deposit amount when player is suspected	|
|	Bitcasino.io	|	>x5	|	wagering requirement of at least 5 times the deposit amount when player is suspected	|
|	Sportsbet.io	|	>x5	|	wagering requirement of at least 5 times the deposit amount when player is suspected	|
|	thorcasino.com	|	>x5	|	wagering requirement of at least 5 (five) times the deposit amount	|
|	Trustdice.win	|	x5	|	In order to make a withdrawal you must wager 5x for the first deposit only, more details here in this reply	|
|	FortuneJack.com	|	x2-x5	|	x2 wagering requirements for normal users and up to x5 for suspected users	|
|	wildtornado.casino	|	x3	|	x3 wagering and sum of bets made on table games shouldn't be less than 10 times of deposit	|
|	megaslot.com	|	x3	|	Any deposit has to be wagered 3 times before the withdrawal	|
|	BetChain.com	|	x3	|	Any deposit has to be wagered 3 times before the withdrawal	|
|	Coinslotty.com	|	x3	|	Any deposit has to be wagered 3 times before the withdrawal. Additional fees will be charged if users try to withdraw without completing the requirement	|
|	Roobet.com	|	x3	|	Any deposit has to be wagered 3 times before the withdrawal	|
|	BetFury.com	|	×1-x3	|	The deposit has 1× wagering requirement on casino games and 3× wagering requirement on sports betting	|
|	Vave.com	|	×1-x3	|	The deposit amount must be wagered at least x3 for Casino/Live Casino bets and/or x1 for Sports bets prior to requesting a withdrawal.	|

[YOSHIE]

So does this mean that there is a loophole here and the money launderers can easily by pass this wagering requirement?

I have never seen and heard of a gambling site that offers a 99% chance of winning, that seems impossible and will never happen, but I don't know, it seems like a joke.

However, what you say really happens with a 99% chance of winning, for me if the user is honest it really wins fairly, without any other elements that the casino should suspect, I don't think that's one reason it's considered money laundering, the casino should admit it's real luck for those users, even if they have to go through KYC requirements in withdrawals. For example, a user only needs to deposit once and play once in the casino, that is not a reason for money laundering.

However, can it happen.....! 99% chance, that's a bit amusing to hear, usually things like that rarely happen, 99% chance of losing.

[swogerino]

As we know that most gambling sites will require you to gamble and wager your whole balance once, before you can cash out or withdraw from the gambling site and they take this measure so people do not do money laundering whereby deposit and withdraw without gambling.

Now the point here is that on the gambling site, there are many easy winning bets with odds like 1.01x etc. If the money lauder is sensible he can easily be wagering the whole amount by placing a few bets where the odds are very low and the winning chances are 99%.

So does this mean that there is a loophole here and the money launderers can easily by pass this wagering requirement?

In theory it may look so however there are a couple of threads here where people have lost even with 1.01 odds,beside that is not that easy to find any 1.01 odds in pre match markets,only in live markets which most of these guys chase but the casino cannot do anything about it,in every system there are loopholes and exploits otherwise we would not see a single hack if there were no loopholes in the IT industry.It can be done however the money laundering guys I doubt are that patient to be placing 1.01 bets.

Beside that gambling is dangerous as these guys may be tempted to play slot machines and thus losing all that big of a balance,not the smartest way to try and launder money through gambling sites although it can be done.

[ethereumhunter]

Casinos don't ask us to gamble and risk our entire balance, but we can't resist the temptation to gamble and instead spend all our balances. This usually happens when we participate in a certain promo with wagering requirements before we can withdraw all the money. And if we can win a lot, the casino will ask us to do KYC before we can withdraw the money.

Money launderers should be able to pass these wagering requirements easily as they have experience doing it. Those who don't know the plot will be left wondering and curious about what they will do. If you want to take a promo provided by the casino, you should pay attention to the wagering requirements before participating because the wagering requirements are usually higher than usual.