Money laundering in crypto casino

[AbuBhakar]

We all know the recent issue about the mixer status here in the forum. Crypto casino is also being use for money laundering by some criminals that’s why every casino has AML policy.

I’m just curious what will be the fate of crypto casino once money laundering activity from mixer will jump to casino now that mixer will not be advertised here which means it has less exposure. Is there any possibility that crypto casino will be seized by the government just like what happened to mixers in case they failed to screen the laundering activity?

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[Oshosondy]

There is no threat to gambling sites because they are obeying the laws. They have the anti-money laundering policy.

If gambling sites should be affected, organizations that favors money laundering should all be closed down. No bank supposed to be existing again because they are used to launder money. Launderers just get a legit business, then use the business to launder money into bank.

Dirty money used in gambling are also mostly like this. Just as unclean money are in banks.

[AbuBhakar]

There is no threat to gambling sites because they are obeying the laws. They have the anti-money laundering policy.

But money laundering of a thing, if organizations that favors money laundering should all be closed down, no bank supposed to be existing again because they are used to launder money. Launderers just get a legit business, then use the business to launder money into bank.

Dirty money used in gambling are also mostly like this. Just as unclean money are in banks.

Yes I understand that but Binance suffer same fate by unintentionally allowing money transfers from terrorist group even though they later on catch them. I’m thinking if the casino don’t catch the laundering activity(since launderer is now very creative to make it looks like they are legit player) while the authorities trace the source of money of launderer and end up to the casino.

I’m not sure what will be the consequences by unintentionally allowing laundering on your service,

[Cantsay]

No they won’t.

Unlike mixers, casinos constantly monitor activities of their customers and if they notice some unusual behavior they usually block such account and when it has to do with depositing and withdrawing funds to a different address without placing any bets they don’t allow that, and that is part of the measures.

We have seen users come to the forum to open scam accusation thread against casinos but after much investigation it would be as a result of the casino suspecting that their service was being used for money laundering and because of that they had to lock the account until proven otherwise. It’s going to be extremely difficult for the government to tag a casino as a tool for money laundering, unless that specific casino was created for that specific but masked it self as a casino to reduce suspicions but if you’re referring to a normal casino then my answer still remains “no”.

[Orpichukwu]

One of the main reasons why casinos have a wager requirement for deposits is to minimize the way the casino can be used to launder money as possible. It's through that they cant 100% stop scammers from using their system, but their policy is kind of protecting the casino from becoming overused that way. 
 
So if by any chance any casinouser make use of the casino to launder money or mix their money and withdraw other forms of money from the casino, the risk they take is very high, as most casinos when they notice such random cash movement can sanction the owners account and KYC (if not requested from the first place) will be requested, and other forms of identification, which can make it easier for the scammer to be apprehended.
 
Und if by any chance the casino is unable to do the job right and any govement body detects such form of money movement, the casino can be held, as they are licensed business, so they know, how they can be queried, and they can work hand in hand to sort things out, unless on casinos that are not licensed and not meeting AML requirements, that can think of the danger to come.

[AbuBhakar]

One of the main reasons why casinos have a wager requirement for deposits is to minimize the way the casino can be used to launder money as possible. It's through that they cant 100% stop scammers from using their system, but their policy is kind of protecting the casino from becoming overused that way. 
 
So if by any chance any casinouser make use of the casino to launder money or mix their money and withdraw other forms of money from the casino, the risk they take is very high, as most casinos when they notice such random cash movement can sanction the owners account and KYC (if not requested from the first place) will be requested, and other forms of identification, which can make it easier for the scammer to be apprehended.

X1 wagering requirements is very easy to bypass using games with low house edge. Also money launderers wash dirty money which means they have nothing to lose with this kind of money so they don’t consider much the risk involved from gambling games unlike us that using regular money from our hard earned salary.

They can simply bet high on low house edge games then recover their losses from the rakeback of their loyalty rewards. I’m sure a money launderer account will be a whale user with max tier VIP level.

[Nwada001]

X1 wagering requirements is very easy to bypass using games with low house edge. Also money launderers wash dirty money which means they have nothing to lose with this kind of money so they don’t consider much the risk involved from gambling games unlike us that using regular money from our hard earned salary.

They can simply bet high on low house edge games then recover their losses from the rakeback of their loyalty rewards. I’m sure a money launderer account will be a whale user with max tier VIP level.

I understand where you are heading to, but let us also not forget: There is no 100% sure game in gambling. Even if we bet on games with 1 odd, which reduces our chance of losing and increases our chance of winning, we still can't be 100% guaranteed that the game will come out positive, which is the reason why anyone thinking of to launder money will first of all think of other options, before they can think of using the casino. 
 
Another form of financial activity, which requires users to deposit and withdraw, makes it much more easier to mix coins than casinos offer. Exchanges of coins, if not for the fact that they offer KYC, are the major means I know many use to launder and clean their money. So for the casinos, it can still be use for such, but the chances are highly minimal in my own opinion.

[swogerino]

We all know the recent issue about the mixer status here in the forum. Crypto casino is also being use for money laundering by some criminals that’s why every casino has AML policy.

I’m just curious what will be the fate of crypto casino once money laundering activity from mixer will jump to casino now that mixer will not be advertised here which means it has less exposure. Is there any possibility that crypto casino will be seized by the government just like what happened to mixers in case they failed to screen the laundering activity?

Gambling sites have no requirements to find where the source of money come from because as soon as they do that then boom -99% of customers directly out of their business and casinos want money to flow in not out.Therefore it is the duty of government agencies to track mixers and people using them and not the casino duty,if the government agencies is suspicious about one transaction they can ask the casino to further investigate that very transaction in order to get more information if they suspect money laundering is being done there.It is the government agencies duty and nothing would happen to the casinos otherwise we would see so many of them out of business already.

[Accardo]

X1 wagering requirements is very easy to bypass using games with low house edge. Also money launderers wash dirty money which means they have nothing to lose with this kind of money so they don’t consider much the risk involved from gambling games unlike us that using regular money from our hard earned salary.

They can simply bet high on low house edge games then recover their losses from the rakeback of their loyalty rewards. I’m sure a money launderer account will be a whale user with max tier VIP level.

I understand where you are heading to, but let us also not forget: There is no 100% sure game in gambling. Even if we bet on games with 1 odd, which reduces our chance of losing and increases our chance of winning, we still can't be 100% guaranteed that the game will come out positive, which is the reason why anyone thinking of to launder money will first of all think of other options, before they can think of using the casino. 
 
Another form of financial activity, which requires users to deposit and withdraw, makes it much more easier to mix coins than casinos offer. Exchanges of coins, if not for the fact that they offer KYC, are the major means I know many use to launder and clean their money. So for the casinos, it can still be use for such, but the chances are highly minimal in my own opinion.

Casinos can't be used to launder money without being traced, since the funds would go directly to a wallet address. That's for crypto users. Then the receiver still has to mix the crypto to be anonymous. Main reason the government is working hard on following up those mixers, it's the end process. Due to the fact most gamblers still require Kyc to deposit funds in any casino, just like in exchanges, casinos isn't a safe place for money launderers. Even, not all casino restrict withdrawals for gamblers, some casinos allow users to deposit and withdraw without gambling or winning a bet. Money launderers prefer mixers due to lack of KYC. Once those details are collected or even when fake documents are submitted, they'll be trails or traces. Where the law enforcement agencies find it difficult to trace a criminal is when they've left no loopholes of any kind. I think Op is just curious about this due to the recent ban of mixers. Because this forum get tagged whenever a mixer is closed by the government. It's bringing a bad name on the forum. Promoting casinos isn't wrong, we see ads on stadiums, TVs, radios and bill boards regarding casinos and gambling. Remember, the government use the money to finance the health of addicted citizens and the nation.

[Wiwo]

We all know the recent issue about the mixer status here in the forum. Crypto casino is also being use for money laundering by some criminals that’s why every casino has AML policy.

I’m just curious what will be the fate of crypto casino once money laundering activity from mixer will jump to casino now that mixer will not be advertised here which means it has less exposure. Is there any possibility that crypto casinos will be seized by the government just like what happened to mixers in case they failed to screen the laundering activity?

The gambling industry is fully regulatory compliance since the majority of them are centralized and have kyc implementation in the casino,  so there is nothing like a threat and what happens to mixer will not happen to gamble, even though there is a presence of money laundering in the gambling market but also that is not different from what is also obtainable with traditional banks too and every other financial institution,  criminals have a way of getting through,  but if caught then it becomes another case entirely.

So casinos will suspend the accounts of gamblers if they notice any form of money laundering activities,  this is why, sometimes you hear cases of gamblers' accounts being locked with funds in it and an investigation is being carried out,  so for that,  the government will only have problem with decentralized casinos and that is why you see most of them closing down the businesses due to such cases at that.

[Sunderland]

We all know the recent issue about the mixer status here in the forum. Crypto casino is also being use for money laundering by some criminals that’s why every casino has AML policy.

I’m just curious what will be the fate of crypto casino once money laundering activity from mixer will jump to casino now that mixer will not be advertised here which means it has less exposure. Is there any possibility that crypto casino will be seized by the government just like what happened to mixers in case they failed to screen the laundering activity?

There is no KYC with the "centralized mixer", just send the money, swap and receive it after 1 or 3 confirmations and it is possible to launder Millions of dollars with this service.
The reasons to use a mixer service:
1. Anonymity
2. Money laundering

While with the casino = must wager first, daily withdrawal limit, KYC on big withdrawal, also there will be connections between the user deposit address => casino hot wallet => the user withdrawal address (traceable).
Money laundering on a casino is still possible, but ineffective and high risk for the money launderer.
And if there is a casino seized because of money laundering then it will not affect other casinos at all nor their promotions/marketing everywhere including here on Bitcointalk.

[salad daging]

Casinos already have policies and regulations that comply with the government so casinos will continue to monitor the filtering of illegally sourced money activities and they now require KYC if there is a suspected account then the casino will not have the same fate as the mixer.

Suppose if someone does an illegal act of sending money to the casino in large amounts while they do not make bets or bets are not commensurate with the money deposited then it will be suspected and confiscated normally, so with this casino has a stricter policy on money laundering then I think the casino will anticipate this.

[Bananington]

Is there any possibility that crypto casino will be seized by the government just like what happened to mixers in case they failed to screen the laundering activity?

Money laundering through casinos used to be very easy for criminals, but is not exactly very attractive for criminals presently. Money laundering possibilities through Casino's have already been addressed that is why there are lesser casino's without KYC because they have to always know who uses their platform for government compliance. Money launderers will always find other ways now to clean their money now that mixers are under watch, and crypto casino's are difficult to launder money through with the Anti-money laundering (AML) regulations.

[Slow death]

One of the main reasons why casinos have a wager requirement for deposits is to minimize the way the casino can be used to launder money as possible. It's through that they cant 100% stop scammers from using their system, but their policy is kind of protecting the casino from becoming overused that way. 
 
So if by any chance any casinouser make use of the casino to launder money or mix their money and withdraw other forms of money from the casino, the risk they take is very high, as most casinos when they notice such random cash movement can sanction the owners account and KYC (if not requested from the first place) will be requested, and other forms of identification, which can make it easier for the scammer to be apprehended.

X1 wagering requirements is very easy to bypass using games with low house edge. Also money launderers wash dirty money which means they have nothing to lose with this kind of money so they don’t consider much the risk involved from gambling games unlike us that using regular money from our hard earned salary.

They can simply bet high on low house edge games then recover their losses from the rakeback of their loyalty rewards. I’m sure a money launderer account will be a whale user with max tier VIP level.

Money launderers are very intelligent people, they are always in a hurry, they are not scamming people to lose money in a casino. why would a scammer who stole 100 btc deposit 1 btc in a casino with high wagering requirements to lose all 1 btc? and even if these scammers managed to win, how long would he have to keep depositing 1 btc and risk losing until he was able to wash all 100 btc? This would take a long time and he would also run the risk of not having any BTC in the end, not to mention that the chances of going through KYC would be too high. a smart money launderer will not use online casinos to launder money, what could he do, would he create a casino

and with the casino he created, he could launder the money that he stole or that came from drugs or terrorists. it will not be a person who will deposit money to launder, for years that physical casinos have been used by criminals to launder money, for many years that hotels, especially luxury hotels, have been used for money laundering, governments are aware of this, So why don't all hotels close? The answer is very simple: because members of many governments own luxury hotels. Look at the people who appear to be the owners of luxury hotels, I'm not going to talk much about that here.

but the reality is that online casinos are more likely to be free of money laundering compared to physical casinos and hotels and large companies. In my opinion, when governments persecute mixers, it's because mixer owners don't ask for KYC, which makes it difficult for governments to persecute terrorists they don't like. This has become a political and selective issue, because if governments were being fair they would start persecuting hotels and their owners, but they won't do that because they also own the hotels. I hope online casinos don't allow people to deposit a lot of money and withdraw without playing much at the casino, with the wagering and kyc requirements, casinos are on the right track in the eyes of governments

[AmoreJaz]

Is there any possibility that crypto casino will be seized by the government just like what happened to mixers in case they failed to screen the laundering activity?

Money laundering through casinos used to be very easy for criminals, but is not exactly very attractive for criminals presently. Money laundering possibilities through Casino's have already been addressed that is why there are lesser casino's without KYC because they have to always know who uses their platform for government compliance. Money launderers will always find other ways now to clean their money now that mixers are under watch, and crypto casino's are difficult to launder money through with the Anti-money laundering (AML) regulations.

this is the major difference of licensed casinos over mixers. at least with licensed ones, they are following the AML/KYC as mandated by the licensing authority, as stated in their terms and conditions. though the actual implementation may very from one casino to another.
this is why the unlicensed gambling sites should start thinking of getting their license, even if it is for a show only. these days, we are seeing that everything should be regulated by authorities to continue your business.
we can't deny the fact that online gambling may not be totally free with money laundering activities but with their license, it will give these launderers to really push thru huge amounts of money going thru these casinos without submitting their credentials.

[topbitcoin]

Firstly, in my country, gambling is illegal and against the law. And the act of money laundering through a casino, this is fairly new. However, even so, in the country where I live, this kind of mode is often found and this dirty deed is often carried out by a number of regional heads, they do the mode of money laundering through a casino or foreign gambling place, which exchanges the proceeds of crime for casino coins and then the money is exchanged back in cash. And in this way, the results of the money exchange do not become a problem when the money is brought back to their country, because it is considered to come from playing gambling which in some countries, gambling is a legal activity. And in this case of course there are several parties who control the action. and this is where the question becomes, who controls the action? Is it from the casino or not.


I don't know for sure, but I think in this case there is an intermediary who facilitates between the perpetrators of money laundering and a casino that is used as a place to launder the proceeds of crime.

[Saint-loup]

We all know the recent issue about the mixer status here in the forum. Crypto casino is also being use for money laundering by some criminals that’s why every casino has AML policy.

I’m just curious what will be the fate of crypto casino once money laundering activity from mixer will jump to casino now that mixer will not be advertised here which means it has less exposure. Is there any possibility that crypto casino will be seized by the government just like what happened to mixers in case they failed to screen the laundering activity?

Criminals using casinos for laundering dirty money don't want to hide their funds, they usually want to get a legit justification of their origin. So crypto criminals just looking for obfuscation don't need to use the same schemes. And what a random casino can provide for that, they can find it at exchanges. If crypto casinos are really concerned about money laundering/obfuscation, they just need to only allow withdrawals to the addresses used for the deposits and to require a proof of ownership of those addresses. It could be done by signing a message with the private key of the address or by sending a given amount to a given address.

[BlackHatCoiner]

Is there any possibility that crypto casino will be seized by the government just like what happened to mixers in case they failed to screen the laundering activity?

We're one step closer to that, no doubt. If the admin of the original Bitcoin forum decides to no longer allow the discussion and promotion of services which enhance the privacy of your coins, you know things are pretty fucked. Nobody tells us this will not repeat for no-KYC casinos, or other means of improving one's anonymity (e.g., Monero).

It is concerning, not because of the suspension of the advertisement of these services per se; it is the action of censorship in an Internet board which stands up for censorship resistant cash. That is what feels wrong.

[goaldigger]

Most of the site now implement the KYC requirement to prevent this from happening and i don’t think the forum will do the same because crypto gambling are regulated and you are not anonymous here as you provide the KYC and follows the regulations too. Crypto casinos are more strict when it comes to this one, and we all know that your account can be questioned any time as long as the site saw irregularity with your account, so you are not safe in casino if you are doing laundering.

[Wiwo]

Firstly, in my country, gambling is illegal and against the law. And the act of money laundering through a casino, this is fairly new. However, even so, in the country where I live, this kind of mode is often found and this dirty deed is often carried out by a number of regional heads, they do the mode of money laundering through a casino or foreign gambling place, which exchanges the proceeds of crime for casino coins and then the money is exchanged back in cash. And in this way, the results of the money exchange do not become a problem when the money is brought back to their country, because it is considered to come from playing gambling which in some countries, gambling is a legal activity. And in this case of course there are several parties who control the action. and this is where the question becomes, who controls the action? Is it from the casino or not.


I don't know for sure, but I think in this case there is an intermediary who facilitates between the perpetrators of money laundering and a casino that is used as a place to launder the proceeds of crime.

I agree with you on a number of things, but also you forget to mentioned that casinos already have a system in olace to make miney laundering a hard thing to achieve in gambling and that way, any attempts will only get the criminal tendency of losing the money due to wagering conditions, because most of the centralized casinos already have a condition on their deposits and witdrwals which make it impossible for money luanderers to use casino as a safe heaven for their criminal activities.

Also in my country, gambling is a legal activity and at that, and we have policies that mandate every deposit to meet some requirements before being withdrawable, so for gamblers, they already know that any deposits must meet such requirements so that is a bad market for money launderers since they may lose the entire deposits in the process of trying to meet the wagering requirements.