AMA: I Operate an Online Casino

[notblox1]

I might be wrong though, but for me to change my opinion I would need to see a no-kyc money service that has been around longer than 4 years.

Thank you for detailed answers, but let me correct you about something.
Most exchanges and casinos that exist today including Binance all started as non-kyc service and they later changed it gradually to asking full kyc verification because of regulation changes.
Binance and other big exchanges exist longer than 4 years, and many casinos today allow partial non-kyc service, with option to ask for verification at any point.
I am using several big casinos for years and on most of them I was never asked for verification.

[dansus021]

How much revenue that gambling site can earn in a year? Because some companies is not publicly trade then the data is not be shared anywhere So I'm just curious. are they can be loss in revenue or just always profit

There are hundreds of casinos that are a publicly trading company, but people don't know that, and as a publicly trading company they have to disclose their EBIT-a. Betsson is one example, and you can always check out their investor calls and how much money they make. Just keep in mind that they own 10+ brands. In their latest report from last year, they've earned a bit more than 50 Million in 1 quarter, so within 1 year that would be around 200 Million. Here's a link to it: https://www.betssonab.com/en/press/betsson-ab-publ-trading-update-second-quarter-2023-2143785

Thanks for the Answer and I just barely knew that there is a casino that publicly traded. I just thought maybe all casinos is always profit so they don't need additional funds from other people.

But they can still lose right? I just opened the link you gave me and opened yahoo financial that they still have debt too. My imagination is when you operating gambling site it awalys give you pure profit without loss

[SirJohnVonSlotty]

Most exchanges and casinos that exist today including Binance all started as non-kyc service and they later changed it gradually to asking full kyc verification because of regulation changes.

That's what I've said, if you want to be an evergreen player you need to get regulated, but at the same time this industry is one of the few that has a huge amount of no-kyc services and huge amount of scams and hacks going on. Look at what's happening with Reddit right now.

I am using several big casinos for years and on most of them I was never asked for verification.

Yes I can believe you on that, but at the same time you're a solo example of a player that didn't go through a lot of verification. On which casinos do you usually play?  

Thanks for the Answer and I just barely knew that there is a casino that publicly traded. I just thought maybe all casinos is always profit so they don't need additional funds from other people.

But they can still lose right? I just opened the link you gave me and opened yahoo financial that they still have debt too. My imagination is when you operating gambling site it awalys give you pure profit without loss

It's like every other business out there, they have debt because every big player knows how to play around with debt to create more revenue streams. Also, changes do happen, markets close etc, so they are not invulnerable

[notblox1]

Yes I can believe you on that, but at the same time you're a solo example of a player that didn't go through a lot of verification. On which casinos do you usually play?  

Sportsbet is my daily driver now, but I have accounts on other casinos when they have better odds on some events, like Stake, Rollbit, Bets.io and Livecasino is good for casino games.
I didnt found anything better than Sportsbet and they have amazing support for bitcointalk community with so many pools and competitions.
Most crypto casinos I tried and tested, and some I stopped using because of different issues they had.

For interesting games I use L0tt0.com and I updated new logo for their website
https://www.l0tt0.com/

[JackpotRacer]

what happened to the thread?

 is the AMA over?

Cheers

[SirJohnVonSlotty]

The thread will stay open and you can ask away whatever you want. If I don't know the answer I will reach out to some of my team members who would have it.

[JackpotRacer]

The thread will stay open and you can ask away whatever you want. If I don't know the answer I will reach out to some of my team members who would have it.

Great and thanks for the kind answer!

My question

I am working on a skill game and I understand that there is no need for a gambling/online casino license. Is this correct or where can I read more about it to know the latest status?

Cheers

[SirJohnVonSlotty]

If you're new to the industry, then I do not recommend working on a game alone without any backing of operators or game providers. Rather get a job with some of the better known providers and learn how templating, licensing and certifications work, then partner up with someone and launch your idea.

As a solo player you might end up developing a game that is not compliant with any of the programs out there, and the only place where you could place it like that would be an unregulated casino, and that's quiet a narrow market.

So:
- get a job within the industry as a game developer
- learn what a successful game needs to have in order to be deployed on licensed casinos (templating, certifications, licenses, etc)
- if you're good at developing, expand your network with people who are good at selling and amplifying
- once you think you're ready go and partner up with them and launch the game

Acquisitions within the industry are common and if a bigger provider sees that you have an interesting product that is easy to expand to other markets, then you can easily get acquired.

[Coin_trader]

@SirJohnVonSlotty

Do casino holds multiple currency they are offering on their cold wallet for reserve or they have a payment processor that automatically converts your reserve tokens to the specific token which the players is using.

Let’s say, I deposit 1 ETH and won 2 ETH, then does it mean casino has Ethereum on their reserve? I’m curious about this since casino might suffer huge loss or huge profit depending on the market price situation.

Or they are using payment processor that automatically converts their token holdings(stablecoin) to the currency which the players requested to withdraw?

[SirJohnVonSlotty]

@SirJohnVonSlotty

Do casino holds multiple currency they are offering on their cold wallet for reserve or they have a payment processor that automatically converts your reserve tokens to the specific token which the players is using.

Let’s say, I deposit 1 ETH and won 2 ETH, then does it mean casino has Ethereum on their reserve? I’m curious about this since casino might suffer huge loss or huge profit depending on the market price situation.

Or they are using payment processor that automatically converts their token holdings(stablecoin) to the currency which the players requested to withdraw?

It depends on the operation and this was one of my main concerns when we operated our last brand since we went through one "slight" crypto crash and two major bumps. The solution to it was to keep the business crypto-only and calculate all the wins and losses in crypto, and then at the end of the quarter see if it makes sense to transfer it to FIAT or keep it in Crypto.

So basically the payment provider would have "our bank" in crypto, so if you would deposit 1 ETH, it would stay as ETH. If you would win 2 ETH, it would be taken from the ETH pool that has been prepaid at the beginning of the quarter as a "bank fund". All of this would be managed by the payment provider.

I still remember one of my main headaches which was how to say "Up to 100 EUR welcome bonus" when those 100 eur fluctuate constantly in this world and the user would need to calculate it into BTC to figure out how much they would get. Then we transferred all communication to BTC, which was easier for the user, but a headache for the promo/design materials because of all the decimals... in the end I figured out that the easiest approach is just USDT.

Regarding spikes, players rarely leave their coins with us, so you don't have to worry that much about the on-casino wallet. What you do have to worry about is affiliates. They often leave a certain amount of coins on their affiliate wallet and wait 6-12 months for it to double, so effectively instead of making $1000 they've made $2000. And you can't know that as a fresh operator without being in the industry for at least 18 months.

If I would be doing it again from scratch, I would make it more simple and do these things:

#1. The casino would be marketed as an USDT casino, all marketing and communication materials would be in USDT.
#2. On-Page calculator at the deposit/withdrawal page for easier calculations, this can be simply done through a python script
#3. Affiliate commission would be calculated in USDT as well, so that it's fixed and that there are no major positive or negative fluctuations for both sides.

One question that I often get asked is how do you trust the Crypto Payment Provider, they manage hundreds of thousands in crypto. Well, first, you don't work with a random eastern European that you've found on a crypto forum after that you do your extended checks in whom is everyone else using and find a legitimate provider who knows that they will earn more in commission over the next 10 years than if they scam you one time. The vetting process is excellent, and there are rarely scam issues with providers. 

This is why I'm openly laughing when somebody tells me that Netent or Pragmatic can modify their slots RTP's daily. Why would they manipulate or try to scam you one time, and ruin their whole future, when we all pretty well know that the house will always win over the long term?

[Coin_trader]

Thanks for a very thorough explanation. I’m brainstorming this question for a long time since I’m confused why casino doesn’t support crypto as much as possible.

A casino like Duelbits automatically convert all the deposits in USD value coin than let users withdraw on a currency that they want. I’m not sure how they can do this but is this same method like what you said or they are using some sort of exchange to immediately convert their USD to the crypto which players preferred?

[pinggoki]

How are you in terms of personal life when you're managing your casino? Is it stressful? Does the work overlap with personal time? What's the strategy in keeping your workers in working shape and at the same time happy that they're working for you or that you're their boss? The last question is one question that I want to know more about because it seems to me that a lot of managers aren't leaders but bosses that you are scared to confide into so I'm trying to look for the qualities so I don't stumble on the wrong one and stay for long.

[SirJohnVonSlotty]

Thanks for a very thorough explanation. I’m brainstorming this question for a long time since I’m confused why casino doesn’t support crypto as much as possible.

A casino like Duelbits automatically convert all the deposits in USD value coin than let users withdraw on a currency that they want. I’m not sure how they can do this but is this same method like what you said or they are using some sort of exchange to immediately convert their USD to the crypto which players preferred?

You can pick what you want with the payment provider, Coinspaid (and many others) offer several approaches, the only question is how much money you want to lose at it, because those guys are sneaky and take a percentage on every little piece that goes through them, it's crazy.

How are you in terms of personal life when you're managing your casino?

It really doesn't matter what the business is, if you're the one responsible for the numbers, it's 24/7. Then the free time depends on how smart the people below you are.

Is it stressful?

Yes, a lot, but you get used to it. The motto that I sell to those who didn't get used to it is "I see that you're stressed about this problem, but you'll resolve it, and once you resolve it, you'll have an even worse problem to deal with, so stop stressing about them so much."

What's the strategy in keeping your workers in working shape and at the same time happy that they're working for you or that you're their boss?

Same as with girls, if you offer value they will stay, if you don't offer value they will leave. Now what that value is depends on the individual, and you have to take your time, sit down and talk with them about it.

If someone is in Marketing, you offer them a good roadmap where they can quickly move up the ladder together with a good, achievable bonus strategy, and then you also leave them to build their own network that they will sooner or later transfer to somebody else's company, but that's just part of the game and you have to accept it.

If someone is in Compliance, you offer them a good training and certification roadmap for every successful quarter closed, etc. You have to have an individual approach.

And don't ask me about hiring, I've been hiring people for 16 years and I still didn't figure it out. For my last copywritter position I've interviewed 100 people, hired two, fired both of them within 1 month. Then a girl randomly messaged me on Linkedin and now she's the best performer in terms of content.

[Bananington]

How are you in terms of personal life when you're managing your casino? Is it stressful? Does the work overlap with personal time? What's the strategy in keeping your workers in working shape and at the same time happy that they're working for you or that you're their boss? The last question is one question that I want to know more about because it seems to me that a lot of managers aren't leaders but bosses that you are scared to confide into so I'm trying to look for the qualities so I don't stumble on the wrong one and stay for long.

Am sure that with the years of experience, things would be running smoothly and every employee working in the casino would know how to perform their functions with or without the bosses presence.
One thing I like is the fact that this post is structured and orderly and if this is how many casinos operate, am sure users would hardly have issues except they fail to abide by the terms and conditions of the casino.

[SirJohnVonSlotty]

Am sure that with the years of experience, things would be running smoothly and every employee working in the casino would know how to perform their functions with or without the bosses presence.

Nah, that's not the case. Everyone is out there to scam you if you're not observant enough.

CRM managers giving out bonuses to random forum members for a kickback, CS agents "KYC-ing" someone without the actual documents for money, VIP managers having a "friends account" whom they regularly fill up with money, and in the case of having an employee who doesn't do anything of that and is actually decent, you will have him poached through linkedin left and right. The employee retention in this industry is less than 12 months since the salaries are crazy.

One of my acquaintances went from a specialist to a director within 7 years just because she's doing an amazing job and was constantly poached around, she's 33 years old now.


So no, don't say that it's easy. No industry is easy on a larger scale. I'm sure Theymos himself has his share of issues with a forum, let alone someone with several sites.

[Eternad]

I hope you are doing well @SirJohnVonSlotty. I want to ask question here since you have experienced on actual casino operations.

This thread https://bitcointalk.org/index.php?topic=5497290.20 caught my attention since a scam casino is being linked to a much notorious scam casino through the use of same betting platform.

My specific question, is there a merit on assuming immediately the connection of both casino if they are using same betting platform on their website? This specific provider is known for having tons of affiliated scam casino that use same platform. What is your opinion about this?

I’m confused if there’s a possibility that startup casino that is not connected to this scam casino circle will available this betting platform services to their own casino no string attached.

[SirJohnVonSlotty]

My specific question, is there a merit on assuming immediately the connection of both casino if they are using same betting platform on their website? This specific provider is known for having tons of affiliated scam casino that use same platform. What is your opinion about this?

Yes, one investor can have several commercial products under their belt, e.g. own a payment provider, casino platform, game provider and then, also, an operation. It's only natural to use all the resources in trying to create a better product for the user.

Successful casino businesses are rarely build on scams, you need to have a good product and build a user base that stays with you for 18+ months. Just think of it from a logical business perspective; To acquire a user, you usually need to pay anywhere between 300 to 500 eur (depending on the market and your marketing activities). Your goal is to retain that user for at least 8 months, ideally 16 months, to get an ROI on the marketing spent.

Now imagine how stupid it is to just instead try to scam each and every user for 500 or 750 eur (or whatever the amount is). They will leave and bad news will spread, repeat that every month over a year and instead of having a stable user base of 1000 players, you have 1000 negative reviews. It's just not logical.

But back to your question; I can't say for sure if both the platform and operation in question are owned by the same people, but it might be the case, and they might be working with the same business ethics on all of their operations = but they also might not. It's just speculation at this point.

What I do often see is that players who play on these little brands usually have their own agenda in terms of bonus abuse and arbitrage, and what happens to them is they end up dealing with an old, seasoned crew behind the operation that knows how bonus abusers and sports-book arbitrage players work.

And regarding all of those scam accusations, I'm still not sure if it should be a scam accusation if the operator refunded you your initial deposit. People will rarely admit arbitrage actions and it's hard to tell who scammed who, however, if the operator refunded you your initial deposit, then you effectively didn't get scammed in my opinion.

[Eternad]

My specific question, is there a merit on assuming immediately the connection of both casino if they are using same betting platform on their website? This specific provider is known for having tons of affiliated scam casino that use same platform. What is your opinion about this?

Yes, one investor can have several commercial products under their belt, e.g. own a payment provider, casino platform, game provider and then, also, an operation. It's only natural to use all the resources in trying to create a better product for the user.

Successful casino businesses are rarely build on scams, you need to have a good product and build a user base that stays with you for 18+ months. Just think of it from a logical business perspective; To acquire a user, you usually need to pay anywhere between 300 to 500 eur (depending on the market and your marketing activities). Your goal is to retain that user for at least 8 months, ideally 16 months, to get an ROI on the marketing spent.

Now imagine how stupid it is to just instead try to scam each and every user for 500 or 750 eur (or whatever the amount is). They will leave and bad news will spread, repeat that every month over a year and instead of having a stable user base of 1000 players, you have 1000 negative reviews. It's just not logical.

But back to your question; I can't say for sure if both the platform and operation in question are owned by the same people, but it might be the case, and they might be working with the same business ethics on all of their operations = but they also might not. It's just speculation at this point.

What I do often see is that players who play on these little brands usually have their own agenda in terms of bonus abuse and arbitrage, and what happens to them is they end up dealing with an old, seasoned crew behind the operation that knows how bonus abusers and sports-book arbitrage players work.

A very fair and reliable point of view. This is actually the answer I’m looking for since forum might be gate keeping new casino to enter here just because they use same platform without any solid connection while the platform itself offers their service to public and not exclusive to their subsidiary casino.

And regarding all of those scam accusations, I'm still not sure if it should be a scam accusation if the operator refunded you your initial deposit. People will rarely admit arbitrage actions and it's hard to tell who scammed who, however, if the operator refunded you your initial deposit, then you effectively didn't get scammed in my opinion.

This issue is still on gray area because casino typically don’t release proof publicly on any cheat or abused since it might exposed the method to other hacker but the problem is some casino might be using same reason to hold withdrawal since the public can’t check it.

What do you think is the possible solution that will work in the forum?

[SirJohnVonSlotty]

What do you think is the possible solution that will work in the forum?

Unfortunately the forum is to small and I have no idea on how to make it work. A few scam accusations will not stop an operator in being active, same like TrustPilot reviews. Go to their site and just type in any casino and you'll see a massive amount of negative reviews. Do people still play on those casinos? Of course. Why? Because same as this forum, TrustPilot is just not relevant enough to budge.

On the other end, AskGamblers.com is relevant, but even they can't sometimes strong arm larger casino operations.

[tread93]

It's been a year since I've joined this forum and I was somewhat reluctant in opening an "Ask me Anything" thread due to all the spam going on in the gambling section, but several users requested it, and I've also enabled self-moderation to battle the spammers. Hopefully it will be a fun exercise where we can all together make this section more interesting.

So, I've been in this industry for a while now, I'm part of a team that operates several brands, and have also worked within other operations, including MGA, UKGC and Curacao licensed brands. I would say that I know the ins and outs of most of the operations out there, including some high end competitors, and I would love to share any insights or answer any burning questions that someone outside of the industry has. I'm not the owner of the casino though, so I'll not be able to answer questions targeted towards that area of the business, but I can try to shed light on anything else.

I can cover almost anything, game selections, bonus methods, VIP players, troubles with the law, license structure. You can ask anything, and if the questions are really interesting, I'll include them in this post as an edit.

Hey SirJohn,

I am curious if it is hard to keep up with any casino regulators and what your thoughts may be on potential regulatory changes that could perhaps affect your casino in the next five-10 years.

I was curious to see what your thought were on AI integration with the crypto casino technology? Does your brand or brands currently use AI in anything casino related?

I know this may be a tough question to answer for obvious security reasons so please feel free not to answer this part of the question but I am curious how your casino manages the security of the network against cyber related threats & also am curious as to how you safeguard your crypto coins - are they kept in an exchange or in a "hot wallet"

I am also very curious to know what are some of the most valuable lessons that you have learned being in the industry for so long? What have you seen evolve the most and what do you see happening the next 5-10 years out in this industry?

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