Loophole in stopping Money Laundering through Wagering

[Bitinity]

Secondly a clever criminal may deposits small amount of money at once and then withdraw them after wagering them and not deposit high amount of money  in order to avoid the notice of the gambling house. They may repeat this process again and again

It will rise a flag if the person repeat the same thing again and again because the system in the casino may detect it as an unusual thing. Clever criminal will not do it repeatedly in the same place, they will do it in various different casinos. As I said previously before in this thread, a clever criminal who want to launder their money will not use casinos as the place to launder the money unless they are also willing to take the risk of losing all the deposited money.

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[avp2306]

Secondly a clever criminal may deposits small amount of money at once and then withdraw them after wagering them and not deposit high amount of money  in order to avoid the notice of the gambling house. They may repeat this process again and again

It will rise a flag if the person repeat the same thing again and again because the system in the casino may detect it as an unusual thing. Clever criminal will not do it repeatedly in the same place, they will do it in various different casinos. As I said previously before in this thread, a clever criminal who want to launder their money will not use casinos as the place to launder the money unless they are also willing to take the risk of losing all the deposited money.

And I do believe that no criminal do their thing on same place because they can get easily busted if they do that. Those criminals are so smart to know what will be their next best action to do that's the reason why we see them escape so easily. Also I guess they are not using a casino now since KYC is already implemented and mostly they use mixers to cover up their foot tracks then escape from those authorities who want to track them.

[slaman29]

Loophole exists but casinos already know this and watch all accounts for this. Trust me, if you think you're smart and you thought of something that noone else did yet, you are so wrong.

BTW real money launderers use real cash and chips at real casinos. Crypto is much harder.

Another btw forgive me for saying but I think OP is just one of many people who doesn't really gamble, hence the notion of this loophole can work.

[ethereumhunter]

Yes, in the government system, indeed corruption has been embedded from the bottom to the top and they are connected to each other which can protect a little from the acts of corruption that are carried out.
Even though not all government people commit acts of corruption, most of them have entered the circle of corrupt officials.

Usually some of them take a fair share in illegal business and of course when there are people who have the power to enter into illegal business it can run more smoothly without fear of problems occurring.
People like this will look for crypto exchange platforms or gambling sites that are still free so that they can easily rotate money so that they cannot be tracked by the authorities.

And it seems that it has happened because of the increase in users using crypto so I think they have also taken part in using crypto for illegal business. And those corrupt government officials also use crypto because they can freely carry out their illegal business without being found out by government officials carrying out their duties. But I think there must be a way to trace where the laundered money is being used and even if they use crypto, other government officials should be able to trace the actual whereabouts of the money and catch those corrupt officials. Thus, they can still be punished by the government so hopefully, it can reduce the number of people who do money laundering or other illegal businesses.

[Lanatsa]

Secondly a clever criminal may deposits small amount of money at once and then withdraw them after wagering them and not deposit high amount of money  in order to avoid the notice of the gambling house. They may repeat this process again and again

It will rise a flag if the person repeat the same thing again and again because the system in the casino may detect it as an unusual thing. Clever criminal will not do it repeatedly in the same place, they will do it in various different casinos. As I said previously before in this thread, a clever criminal who want to launder their money will not use casinos as the place to launder the money unless they are also willing to take the risk of losing all the deposited money.

And I do believe that no criminal do their thing on same place because they can get easily busted if they do that. Those criminals are so smart to know what will be their next best action to do that's the reason why we see them escape so easily. Also I guess they are not using a casino now since KYC is already implemented and mostly they use mixers to cover up their foot tracks then escape from those authorities who want to track them.

True, they wont really be that so dumb on trying to wash out those tarnished coins via doing gambling knowing about the risks that they would be taking then they cant really just afford on doing so.
Aside from the house edge then they would be normally be trying out to deal with KYC since we are talking with huge amounts of money to be laundered here, so it would really be just normal that it would really be
ringing up the bell by the team or with the platform.

If someone would be pushing up with this kind of option then they are really just basically putting up themselves on big trouble.There are lots of things that could messed up on their main plans on washing off those coins. Its true and would be definitely be the best way on washing those coins is through mixers. Putting up huge money on centralized platforms and regulated ones is a no go. Im aint saying or supporting
those money launderers but they arent really that dumb ones to make such step which they would know that they would be fucked up.

[Shinpako09]

A launderer is often carrying a big amount. Now who's gonna risk such a big amount to launder? considering it's not his own money, an organization to be exact, and will the organization allow to use such a very risky tactic? Not to mention there is kyc and the probability of the site asking for more information if they found you suspicious. An organization will choose to do it under the table or do the usual thing they are doing.

[Gozie51]

BTW real money launderers use real cash and chips at real casinos. Crypto is much harder.

Another btw forgive me for saying but I think OP is just one of many people who doesn't really gamble, hence the notion of this loophole can work.

I'm thinking, is there a way that casino deposit conditions and processes can be bypassed for any launderer? Or will that be possible with casino owner and launderer. Because like you mentioned, it will be difficult to launder money through casino especially with KYC. Till date, government officials who launder money still do it with cash because of the personal relationship existing with the bankers who can easily bypass protocol for them .

[tusandii]

Yes, in the government system, indeed corruption has been embedded from the bottom to the top and they are connected to each other which can protect a little from the acts of corruption that are carried out.
Even though not all government people commit acts of corruption, most of them have entered the circle of corrupt officials.

Usually some of them take a fair share in illegal business and of course when there are people who have the power to enter into illegal business it can run more smoothly without fear of problems occurring.
People like this will look for crypto exchange platforms or gambling sites that are still free so that they can easily rotate money so that they cannot be tracked by the authorities.

And it seems that it has happened because of the increase in users using crypto so I think they have also taken part in using crypto for illegal business. And those corrupt government officials also use crypto because they can freely carry out their illegal business without being found out by government officials carrying out their duties. But I think there must be a way to trace where the laundered money is being used and even if they use crypto, other government officials should be able to trace the actual whereabouts of the money and catch those corrupt officials. Thus, they can still be punished by the government so hopefully, it can reduce the number of people who do money laundering or other illegal businesses.

It's a shame that the government, which should be responsible for the progress of society and the state, is even involved in running illegal businesses just to get some money for personal gain.
Cryptocurrency is developing very rapidly nowadays and with cryptocurrency everyone can use it as an investment or trading tool so they can have an additional source of income but some irresponsible people even misuse crypto which makes many people think badly of the cryptocurrency industry.
If crypto trading platforms and gambling sites always suppress money laundering crimes then I believe cases of corruption and so on can be reduced because they have no place to do money laundering so that they are not traced if it is money generated from corruption or from illegal business.

[Fivestar4everMVP]

Secondly a clever criminal may deposits small amount of money at once and then withdraw them after wagering them and not deposit high amount of money  in order to avoid the notice of the gambling house. They may repeat this process again and again

It will rise a flag if the person repeat the same thing again and again because the system in the casino may detect it as an unusual thing. Clever criminal will not do it repeatedly in the same place, they will do it in various different casinos. As I said previously before in this thread, a clever criminal who want to launder their money will not use casinos as the place to launder the money unless they are also willing to take the risk of losing all the deposited money.

You are right with your last statement,  in-fact, that even has made me to start wondering where this whole idea of money launders using online gambling casinos to launder money came from, that is, i am wondering where the assumption or believe came from, cus for me, if lets assume i was into crime and wants to launder money, there are many crypto exchanges for example where users can withdraw up to 2 bitcoin per day comfortably without kyc, i could selectively use those type of exchanges instead of casino where as little as $5000 withdrawal could trigger the kyc system and ruin the whole show for me.
I could chose up to 5 or 6 or even more of those exchanges where i could withdraw up to 2 bitcoins without kyc depending on how much i want to launder, and sign up on those exchanges with different email addresses.

[ethereumhunter]

It's a shame that the government, which should be responsible for the progress of society and the state, is even involved in running illegal businesses just to get some money for personal gain.
Cryptocurrency is developing very rapidly nowadays and with cryptocurrency everyone can use it as an investment or trading tool so they can have an additional source of income but some irresponsible people even misuse crypto which makes many people think badly of the cryptocurrency industry.
If crypto trading platforms and gambling sites always suppress money laundering crimes then I believe cases of corruption and so on can be reduced because they have no place to do money laundering so that they are not traced if it is money generated from corruption or from illegal business.

That's because everyone wants more money and has to use illegal methods even though they already get a large monthly salary. Entrepreneurs also take part with the government. Even employees also join.

People who use crypto to misuse crypto make crypto bad in society because people think that how can they use crypto as an investment or trade that can be a source of additional income if crypto is only used by people who run illegal businesses. But they are wrong because it depends on each person and crypto is neutral. Crypto trading platforms and gambling sites can help find people who are carrying out money laundering. This corruption case must be prevented first and it must investigate each person suspected by the government.

[SamReomo]

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?

I don't think that the money launderers will have any luck by doing such actions because in online gimbling anything can happen and if a gambler is wagering everything he/she owns then the chances of getting a loss bet is 100%, and I'm quite sure that anyone who gambles regularly know that there is no sure winning thing in the gambling world. Even if a gambler has 99%  of winning but still that 1% is more than enough to make a gambler lose a bet, and if someone is putting the whole capital as a bet then that gambler can face such 1% losses.

It again depends on the luck of a gambler because if a gambler is a lucky person than his/her chances to win and pass wagering requirement without any worries, but if a gambler is unlucky then then of course he/she can lose even with just 1% probability of losing. I would always advice everyone to be careful while gambling because putting 100% of your capital is very risky and with a single loss bet you lose everything.

[noormcs5]

It's a shame that the government, which should be responsible for the progress of society and the state, is even involved in running illegal businesses just to get some money for personal gain.
Cryptocurrency is developing very rapidly nowadays and with cryptocurrency everyone can use it as an investment or trading tool so they can have an additional source of income but some irresponsible people even misuse crypto which makes many people think badly of the cryptocurrency industry.
If crypto trading platforms and gambling sites always suppress money laundering crimes then I believe cases of corruption and so on can be reduced because they have no place to do money laundering so that they are not traced if it is money generated from corruption or from illegal business.

That's because everyone wants more money and has to use illegal methods even though they already get a large monthly salary. Entrepreneurs also take part with the government. Even employees also join.

People who use crypto to misuse crypto make crypto bad in society because people think that how can they use crypto as an investment or trade that can be a source of additional income if crypto is only used by people who run illegal businesses. But they are wrong because it depends on each person and crypto is neutral. Crypto trading platforms and gambling sites can help find people who are carrying out money laundering. This corruption case must be prevented first and it must investigate each person suspected by the government.

Corruption is one thing which may happen at the government level (if the government is corrupt) or at an individual level if some individual wants to use some illegal means like money laundering etc but in both cases the gambling sites need to play their part to stop any illegal use of the platform.

I understand that if the government is involved, it will be difficult for the gambling casino to react but they should try to stop any illegal act they witness, as they are the ones who know exactly how much is being deposited and withdrawn from the casino and the purpose also become clear if anyone is depositing and withdrawing right after the minimum wagering requirements.

[slaman29]

BTW real money launderers use real cash and chips at real casinos. Crypto is much harder.

Another btw forgive me for saying but I think OP is just one of many people who doesn't really gamble, hence the notion of this loophole can work.

I'm thinking, is there a way that casino deposit conditions and processes can be bypassed for any launderer? Or will that be possible with casino owner and launderer. Because like you mentioned, it will be difficult to launder money through casino especially with KYC. Till date, government officials who launder money still do it with cash because of the personal relationship existing with the bankers who can easily bypass protocol for them .

Yes, in real casinos. Gangs they distribute cash to runners. Whose job is to gamble all day, even lose some. Then cash out the chips. Clean money.

Crypto casino much more difficult as betting patterns like OP suggested is immediately given the red flag. Its not even about KYC here but just systems that automatically check for cleaning patterns.

[Viscore]

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?

Would launderers really do that? Risking money for 1.01 odds, although there's a high chance of winning, that is not the right way to do it due to the high risk involved. Detecting money launderers is hard in crypto, so I don't see the sense of betting on 1.01 odds just to mix or launder the funds. Besides, it's crypto; what they will withdraw is crypto as well. It would only be determined once it's cashed out to fiat, at which point the gambling sites are no longer involved, and the exchanges come into play.

There's a reason why some gambling sites still promote anonymous gambling while no exchanges do the same—exchanges are more regulated compared to gambling sites.

[Slow death]

A launderer is often carrying a big amount. Now who's gonna risk such a big amount to launder? considering it's not his own money, an organization to be exact, and will the organization allow to use such a very risky tactic? Not to mention there is kyc and the probability of the site asking for more information if they found you suspicious. An organization will choose to do it under the table or do the usual thing they are doing.

And that's what I've been saying, criminals don't risk stealing a little money, especially scammers in the crypto world, just see that they steal hundreds of bitcoins, so when you look at the price of bitcoin, anyone realizes that they steal a lot of money , and as you said and I have said this too, no scammers would put 10 bitcoins in a casino to launder, the scammers are not dumb enough to make these mistakes, they know that there are mixers that they can use and it will be more practical and safe for their case

in mixer scammers can quickly hide their tracks even if they have stolen a lot of coins and in mixer they do not run the risk of being asked for kyc, while in casinos there is a requirement of 2X or more of the deposit amount to be able to withdraw, who the hell would be stupid to steal 10 btc and put it in the casino and have to risk playing all 10 btc to be able to withdraw? obviously scammers wouldn't do that and I've been saying that. I don't see any sense for governments to be forcing kyc in casinos when casinos can implement requirements to play 2x the deposit amount for withdrawal

[Mr. Magkaisa]

Secondly a clever criminal may deposits small amount of money at once and then withdraw them after wagering them and not deposit high amount of money  in order to avoid the notice of the gambling house. They may repeat this process again and again

It will rise a flag if the person repeat the same thing again and again because the system in the casino may detect it as an unusual thing. Clever criminal will not do it repeatedly in the same place, they will do it in various different casinos. As I said previously before in this thread, a clever criminal who want to launder their money will not use casinos as the place to launder the money unless they are also willing to take the risk of losing all the deposited money.

And I do believe that no criminal do their thing on same place because they can get easily busted if they do that. Those criminals are so smart to know what will be their next best action to do that's the reason why we see them escape so easily. Also I guess they are not using a casino now since KYC is already implemented and mostly they use mixers to cover up their foot tracks then escape from those authorities who want to track them.

        -     Professional criminals often do that. And there is no such thing as a criminal in these times. Also, the only people who often commit money laundering are those who do or are used to doing illegal things.

And probably others are still going through this in the crypto space just so that the authorities don't care about the transfer of from money  to a good way through bitcoin mixing.

[slapper]

A launderer is often carrying a big amount. Now who's gonna risk such a big amount to launder? considering it's not his own money, an organization to be exact, and will the organization allow to use such a very risky tactic? Not to mention there is kyc and the probability of the site asking for more information if they found you suspicious. An organization will choose to do it under the table or do the usual thing they are doing.

And that's what I've been saying, criminals don't risk stealing a little money, especially scammers in the crypto world, just see that they steal hundreds of bitcoins, so when you look at the price of bitcoin, anyone realizes that they steal a lot of money , and as you said and I have said this too, no scammers would put 10 bitcoins in a casino to launder, the scammers are not dumb enough to make these mistakes, they know that there are mixers that they can use and it will be more practical and safe for their case

in mixer scammers can quickly hide their tracks even if they have stolen a lot of coins and in mixer they do not run the risk of being asked for kyc, while in casinos there is a requirement of 2X or more of the deposit amount to be able to withdraw, who the hell would be stupid to steal 10 btc and put it in the casino and have to risk playing all 10 btc to be able to withdraw? obviously scammers wouldn't do that and I've been saying that. I don't see any sense for governments to be forcing kyc in casinos when casinos can implement requirements to play 2x the deposit amount for withdrawal

I beg to differ on your point that scammers wouldn't use casinos for laundering purposes. Although mixers provide a seemingly efficient way to conceal illicit funds, they're not without their risks. With the rise of blockchain analysis, the veil of anonymity mixers offer could be thinning

Casinos, on the other hand, might provide a less obvious, albeit riskier, option for laundering. The threat of KYC might be mitigated by casinos with lax enforcement. The requirement to play through deposits could also be seen as the cost of doing business, rather than a deterrent. Imposing KYC in casinos could act as another layer of security to keep these digital spaces safe

[Fivestar4everMVP]

Secondly a clever criminal may deposits small amount of money at once and then withdraw them after wagering them and not deposit high amount of money  in order to avoid the notice of the gambling house. They may repeat this process again and again

It will rise a flag if the person repeat the same thing again and again because the system in the casino may detect it as an unusual thing. Clever criminal will not do it repeatedly in the same place, they will do it in various different casinos. As I said previously before in this thread, a clever criminal who want to launder their money will not use casinos as the place to launder the money unless they are also willing to take the risk of losing all the deposited money.

And I do believe that no criminal do their thing on same place because they can get easily busted if they do that. Those criminals are so smart to know what will be their next best action to do that's the reason why we see them escape so easily. Also I guess they are not using a casino now since KYC is already implemented and mostly they use mixers to cover up their foot tracks then escape from those authorities who want to track them.

        -     Professional criminals often do that. And there is no such thing as a criminal in these times. Also, the only people who often commit money laundering are those who do or are used to doing illegal things.

And probably others are still going through this in the crypto space just so that the authorities don't care about the transfer of from money  to a good way through bitcoin mixing.

First, Money laundering is a crime for several reasons, and I will mention just two which I remember at the moment.

1. Every country has a maximum amount of their currency that can leave the shores of that country into another country through one individual, so when the amount being transferred to another country by one individual is above that maximum set by the country's government, that is then considered as money laundering and its an offence that is punishable by law.

2. Secondly, through money laundering like i explained it above, which also goes through illegal channels, because moving such money like i explained above can not be done through legal means, so such money can be used by criminals and drug and human traffickers for various degrees of illegal purchase of firearms and funding of various criminal activities..

So yeah , those who are into laundering money are mostly those who are into crimes and all that.

[ethereumhunter]

Corruption is one thing which may happen at the government level (if the government is corrupt) or at an individual level if some individual wants to use some illegal means like money laundering etc but in both cases the gambling sites need to play their part to stop any illegal use of the platform.

I understand that if the government is involved, it will be difficult for the gambling casino to react but they should try to stop any illegal act they witness, as they are the ones who know exactly how much is being deposited and withdrawn from the casino and the purpose also become clear if anyone is depositing and withdrawing right after the minimum wagering requirements.

Corruption is already everywhere, but at the government level, it will be found even more because they relate to the regulations they make. And money launderers or those who carry out illegal activities will try to approach government officials and make attractive offers to them so they can help get their activities done. This has happened many times but it seems that there is no seriousness from government officials to eradicate it or because it has been happening for too long so it is difficult to find the root of the problem.

Government officials who are honest, firm, and willing to take action to clean up illegal activities in their agencies are needed. And this also requires more effort because they may be faced with their own friends who have been doing corruption for a long time. If they do not have the support of the people or their superiors, these government officials will not be able to work optimally because of pressure from corrupt officials so they cannot move freely in investigating these corruption cases.

[arwin100]

A launderer is often carrying a big amount. Now who's gonna risk such a big amount to launder? considering it's not his own money, an organization to be exact, and will the organization allow to use such a very risky tactic? Not to mention there is kyc and the probability of the site asking for more information if they found you suspicious. An organization will choose to do it under the table or do the usual thing they are doing.

And that's what I've been saying, criminals don't risk stealing a little money, especially scammers in the crypto world, just see that they steal hundreds of bitcoins, so when you look at the price of bitcoin, anyone realizes that they steal a lot of money , and as you said and I have said this too, no scammers would put 10 bitcoins in a casino to launder, the scammers are not dumb enough to make these mistakes, they know that there are mixers that they can use and it will be more practical and safe for their case

in mixer scammers can quickly hide their tracks even if they have stolen a lot of coins and in mixer they do not run the risk of being asked for kyc, while in casinos there is a requirement of 2X or more of the deposit amount to be able to withdraw, who the hell would be stupid to steal 10 btc and put it in the casino and have to risk playing all 10 btc to be able to withdraw? obviously scammers wouldn't do that and I've been saying that. I don't see any sense for governments to be forcing kyc in casinos when casinos can implement requirements to play 2x the deposit amount for withdrawal

I beg to differ on your point that scammers wouldn't use casinos for laundering purposes. Although mixers provide a seemingly efficient way to conceal illicit funds, they're not without their risks. With the rise of blockchain analysis, the veil of anonymity mixers offer could be thinning

Casinos, on the other hand, might provide a less obvious, albeit riskier, option for laundering. The threat of KYC might be mitigated by casinos with lax enforcement. The requirement to play through deposits could also be seen as the cost of doing business, rather than a deterrent. Imposing KYC in casinos could act as another layer of security to keep these digital spaces safe

Maybe there are still criminals using casino as their scape route but since KYC has been done maybe they will not put any huge amount since maybe the will be flagged for suspicious activities. Also we can also consider that there are stolen identity on cyber space and maybe some other criminals use this to make their plans succeed that's the reason why we should not give our identities anywhere since most likely this will be use on this cases.

Mixers now are the common platform they use since they can assure their security and they can clean up their mess so they can't be track by anyone.