Why do casinos require users to verify their identity through a KYC policy?

[Riginac111]

I've read a lot of comments in this board stating that a user is required to undergo KYC if their account is suspected of cheating. Can anyone explain how it is necessary related to the subject? A detailed explanation would be better, but everyone's ideas are welcome, as I believe it's worth discussing so gamblers will not be misled regarding this matter, which pops up from time to time.

What sort of cheating do you mean, is about the gambler cheating in games or having multiple accounts with one casino? In the case of multiple to one casino surely KYC will be able to reveal because a single individual can't use same particulars to pass KYC in different accounts, he will be caught in the process. I think casinos'ask for KYC when certain account are suspected to be owned by one individual just so they can prevent against abuse of bonuses and other offers and their policy too

some people who have a different or a multiple account is people that always have issue for verification of account and the mainly they are the people who is cheating for any gambling platform because to verify the account they will find it very difficult so that is why request platform of Casino gambling or other gambling always request for kyc verification

[nelson4lov]

Aside from the multiple accounts issue, casinos are often required by their gambling licensing firm (in some cases, not all) to collect customer id documents especially if the amount exceeds a  certain amount — say $1K and above. Most of the reports you see in forum are thousand multiples hence whry the requirements. Smaller withdrawals usually fly under the radar.

Additionally, if there are manipulative behaviors spotted, it can be flagged for KYC. In some cases, the casino might just outright want to do it on their own accord.

[Casdinyard]

I've read a lot of comments in this board stating that a user is required to undergo KYC if their account is suspected of cheating. Can anyone explain how it is necessary related to the subject? A detailed explanation would be better, but everyone's ideas are welcome, as I believe it's worth discussing so gamblers will not be misled regarding this matter, which pops up from time to time.

I feel like out of all common topics here in this board this is one of those that needs to be reiterated no matter how many times it’s required. People will not understand from the get-go why it’s so important tohave some verification system especially in the casino industry and questions like this will always be there no matter what.Regardless, here are some of the reasons why KYC is a thing in most casinos, reputable ones at least.

1. To abide by KYC/AMLA Regulations: Some countries where you want to operate a casino in, require strict regulations of identity verification to make sure you’re not engaging in criminal activities, particularly money laundering. Casinos require verification of identity not to stop money launderers to do what they keep doing, but to have dome sort of lead to apprehend them when needed.

2. To sort of prevent and punish fraudulent activities: Since players are required to undergo KYC at any point, casinos are given a pretty great grasp of what they have in front of them. In situations where a hacker, a scammer, or someone with fraudulent activities do their thing, the identity they have stored for verification purposes may be used to ID these people and put them to justice.

[Odusko]

some people who have a different or a multiple account is people that always have issue for verification of account and the mainly they are the people who is cheating for any gambling platform because to verify the account they will find it very difficult so that is why request platform of Casino gambling or other gambling always request for kyc verification

Very correct with that, if you don't have multiple accounts and trying to take advantage of the casino's bonuses through those multiple accounts you will not have problems with the casino and no KYC verification for you and also if you have being playing and withdrawing within the limits trenchhold because some casino or even most casinos have a $5k dollar transactions limits for none KYC accounts and if you make transactions above that Amount you be subject to go through verification of account.

[AliMan]

I've read a lot of comments in this board stating that a user is required to undergo KYC if their account is suspected of cheating. Can anyone explain how it is necessary related to the subject? A detailed explanation would be better, but everyone's ideas are welcome, as I believe it's worth discussing so gamblers will not be misled regarding this matter, which pops up from time to time.

To my personal understanding regarding casino kyc strict implementation is because of their security and assurance of not being tricked by scammers who disguised themselves as regular players. This has been discussed so many times as concerns arises most of the time, cheaters has several ways to beat gambling in an unapropriate way and through kyc as the best tool that can suppress this kind of scheme.

[Riginac111]

some people who have a different or a multiple account is people that always have issue for verification of account and the mainly they are the people who is cheating for any gambling platform because to verify the account they will find it very difficult so that is why request platform of Casino gambling or other gambling always request for kyc verification

Very correct with that, if you don't have multiple accounts and trying to take advantage of the casino's bonuses through those multiple accounts you will not have problems with the casino and no KYC verification for you and also if you have being playing and withdrawing within the limits trenchhold because some casino or even most casinos have a $5k dollar transactions limits for none KYC accounts and if you make transactions above that Amount you be subject to go through verification of account.

some people does not know that that is one of the major problem they have towards some part of Casino gambling platform when you create different account with them you will not have what it takes to verify all other account so that is why casino platforms do understand that so many persons in illegal things in their platform so we need to be careful so that will be able to not fall a victim of gambling

[Potato Chips]

My concern was not on that basic thing, it comes with a situation which I have mentioned, and I'll write it for you again "suspected of cheating", see that words? Without that, they might not choose to require you a KYC or they will, it's up to them but the rules of the government or the regulators, KYC is necessary to all users.

KYC/AML policies is necessary for compliance as well as for third party providers to want to work with a casino but my theory is that having a no ''mandatory" identity verification policy could sit in the gray area of law.

But all depends on one's setup, I reckon. Things that help on top off my head:

1. Providing a fully crypto only casino since involving fiat will surely get you a stricter kyc/aml policies to adhere
2. Incorporating off shore and getting licenses similar to curacao ones gets less policing as oppose to other options with stricter monitoring. Ofc, provided that you block those strict countries.

So why they don't require a user a KYC when they sign up? and why would they wait until they'll suspect a user before they will let them pass the KYC?
That's the big question now, and I appreciate your response but it does not hit what I'm trying to imply.

I reckon it's easier to onboard users that way esp if you're relatively new in the game where folks can be skeptical for good reasons.

[Slow death]

As a general rule, casinos should ask for KYC as soon as people create an account at the casino, before making any deposits. but this would cause many people not to get involved with casinos, this would cause casinos to lose many customers, but as license providers force casinos to do kyc but probably don't mention whether it should be at the time of account creation then casinos use their own criteria when asking for kyc, in this case it is more advantageous for casinos to ask for kyc when they detect any suspicious activity on the person's account, such as the person having many accounts, so it is enough for the casino to ask for kyc for all suspicious accounts that will be able to confirm which one is true

also in the case of a scammer stealing money and depositing it in the casino and not playing and withdrawing it, in that case the casino will ask for kyc and if the governments are tracking the scammers and reach the casino where he deposited the money, the government will ask for the details of the scammer. scammers and the casino will provide all data including all money that the scammer deposited at the casino. Now if the casino had not done KYC on the scammers, then the government could apprehend the casino under money laundering charges and would accuse the casino owner of committing the crime of money laundering.

[Coin_trader]

This topic already received too much response and mostly from a mere opinion of players. We have a dedicated topic for this kind of question prepared by @SirJohnVonSlotty on his AMA thread https://bitcointalk.org/index.php?topic=5482508.msg63538590#msg63538590. He is the most credible user here that I know that can answer on this specific question.

I share below some of his comment regarding what’s the use of KYC.

It's called a KYC matrix. With a huge influx of players you can't manage each of them individually, and you (as the casino) can't get into any legal trouble if they just spent the money on your casino, so you create a KYC matrix that checks every player that joins the casino and rates them. However, if someone is from an illegal country like US, and they deposited $100 and won $100.000, and all your red flags point out that that money will go to a US based user, you will rather refund him the $100 than have problems with the FBI.

Fines in this industry are huge, and I could write a whole article just about the legal issues you can have. For an example, I have a lot of friends in the industry who can't travel to Turkey anymore, because they operated a casino business there and the government decided to ban them from entering the country. So, in other words, you don't want to fuck with a jurisdiction in which you can't operate legally.

To summarize, it’s for legal purposes and at the same time for casino protection to abuse of their promotion.

[freedomgo]

You dig to far with your wild imagination I like that, but the very simple answer for KYC requirement is to ensure that they are not serving a minor.

Lolz, that's still part of it, but I like the fact you said "the very simple answer, simple answers aren't always the best answers if you will agree with.
And you also will agree that kyc have not stopped minors from gambling, many online casinos are still serving minors without knowing, even when they ask the minor to kyc, he or she still can used the document of his or her older relative or friend to pass the kyc verification.

Anyways, thanks for bringing such an interesting discussion to the forum this beautiful Saturday. 😎

Of course, anyone can cheat the KYC even the minors, but at least the casinos are doing their job on the verification process. If the gambler (minor) lied, that's up to him, it's his responsibility anyway and he'll have to face the consequences of his action.

So with that, it's also challenging to ensure that the gambler is the person who verified his KYC. I haven't verified in a casino yet but in other platform such us exchange or our local wallet, there's this selfie with my ID when I verified, like a live selfie, so I guess that woudl help if the casino will implement the same procedure.

[redsun114]

Short answer for Transparency.
It would prevent fraudulents acts without their notice or them not having any power over.
Like the name implies Know your Customers, It is becoming more like a requirement by the government to allow any platform dealing on cryptocurrency continue running without the government tagging them terrorist sympathizers or frauds.
It all boils than to the user if the comfortable with conforming with the rules of the Casino.

Yeah, transparency and isn't it funny? Because cryptos like Bitcoin, especially Monero, pushes anonymity and they are like a perfect partner for the casino or gambling. I wouldn't wonder anymore on why many crypto users are complaining about this KYC thing but it's only interesting that crypto gambling is still there and they even became stronger.

Guess crypto users just sacrifice their identity only to still use a crypto while playing gambling. I still believe that fraudsters are not choosy but they will still do their thing no matter what. It may now only be easy for the casino to trace them once they notice the unusual activity going from them.

[bitterguy28]

this sometimes comes with different idea saying which casino is involved because a legit casino is asking for KYC to protect their interest same as the players interest meaning they wanted to be transparent in accordance to the law.

But there is some casino that uses this KYC verification having a chance to delay the withdrawal or to truly prevent the players from withdrawing the amount.

but KYC is really a good thing if you are playing legally and not hiding anything from the site and the government.

[Assface16678]

You dig to far with your wild imagination I like that, but the very simple answer for KYC requirement is to ensure that they are not serving a minor.

Lolz, that's still part of it, but I like the fact you said "the very simple answer, simple answers aren't always the best answers if you will agree with.
And you also will agree that kyc have not stopped minors from gambling, many online casinos are still serving minors without knowing, even when they ask the minor to kyc, he or she still can used the document of his or her older relative or friend to pass the kyc verification.

Anyways, thanks for bringing such an interesting discussion to the forum this beautiful Saturday. 😎

Of course, anyone can cheat the KYC even the minors, but at least the casinos are doing their job on the verification process. If the gambler (minor) lied, that's up to him, it's his responsibility anyway and he'll have to face the consequences of his action.

So with that, it's also challenging to ensure that the gambler is the person who verified his KYC. I haven't verified in a casino yet but in other platform such us exchange or our local wallet, there's this selfie with my ID when I verified, like a live selfie, so I guess that woudl help if the casino will implement the same procedure.

That's why KYC are becoming more advanced and adding more layer of security because there will always be a way to cheat or to bypass the process in KYC, KYC is a very important aspect right now in most of websites that involves in money and especially in gambling sites, just like that if a player is cheating then with KYC then the websites could see who is the accountable and will be punished, that's why I dont know why people are reluctant to KYC if they will not do anything bad or anomaly because if they are not going to do anything bad then why would they dont want to comply in KYC.
 
For me KYC is not a problem to me, because it will serves as the security for both customer and the website and I will not do anything bad that why it will not a problem to me.

[CODE200]

They want to get your data, do you know how much other companies would pay for a terabytes of data about people? They'll pay you thousands and it's not really a good idea to miss out on that opportunity especially when you're in a position where you can make data collection not a bad thing. There's also the reason of AML, with anonymity out of the question, it would be easier for law enforcement agencies that are catching these money launderers to catch them without a problem because if they see some inconsistency or anomaly in your account, they can just report you to the proper authorities and there's also the fact that most casino owners don't want the flak of being investigated by these agencies for harboring money launderers or becoming suspected of doing so, it's bad for the business and they risk getting big fines if not jail time.

[Cryptoprincess101]

The casino may believe that the person with the two or more accounts will not be able to provide different KYC documents for more than one account.

This directly answers the question because most gambling sites prohibits opening multiple accounts so if you undergo KYC verifications it will be difficult to open numerous accounts since your personal details are already captured in one of your accounts.

[EarnOnVictor]

I've read a lot of comments in this board stating that a user is required to undergo KYC if their account is suspected of cheating. Can anyone explain how it is necessary related to the subject? A detailed explanation would be better, but everyone's ideas are welcome, as I believe it's worth discussing so gamblers will not be misled regarding this matter, which pops up from time to time.

This is similar to the topic I just replied to now, but first, KYC is mandatory, this is unless the casinos are operating off jurisdiction and such should not be trusted. But the law still gives them some grace, especially if the deposit is not big enough to warrant it or the withdrawal is not too big as well, and this varies depending on the country we are talking about and the activities of the said customers. But casinos are now using this as an excuse even if the customer is not guilty of any of the reasons why they should ask for the KYC, they are technically using the KYC as a powerful tool since the law supports them to ask for it. And this is subject to their discretion, especially if they suspect some activities. But in most cases, they will not suspect any foul play but will still be victimizing their customers, this is why every customer should be well prepared for all the documents possible they can ask of them.

Most customers are only victims, they might be good players who gain regularly or are gambling with a big amount to pose a threat to them if they win big. Instead for them to limit the risks that the customers could take to limit the potential gains automatically,  but for their greed, they will allow the high-net players to continue to wager it big thinking they will lose and they (casinos) will gain the whole money. But if the players now win, it becomes a problem for them. Now, for them not to pay the players, they will be asking for KYC verification, or additional verification if such gamblers had passed the KYC initially. Other casinos could be citing rules and looking for excuses through IPs and multiple accounts. All are to cheat or scam in most cases.

[klidex]

It is very important for the government to carry out KYC because it can prevent cases of identity misuse fraud, because in the current digital era there is a lot of fraud from various sites and one of them is casino sites, with the existence of KYC regulations the government is not worried that there will be cases of fraud because of the current casino regulations. it is very strict and if the user wants to be safe he must do KYC before depositing their money to the casino so that they can also withdraw money easily.
If it is not clear, we can hear the explanation below that I got from the information media.

KYC is an important part of Anti-Money Laundering (AML) and Counter Terrorism Financing (CTF) regulations in many countries. Compliance with these regulations will protect operators from reputational or monetary risks, as well as protect customers and the national economy.

In addition to preventing fraud and ensuring compliance with age restrictions, KYC helps operators ensure responsible gambling practices and screen out problem gamblers. By monitoring customers' gambling activities and evaluating their spending patterns, operators can identify those at risk of gambling problems, such as gambling addiction.

Source = https://www.idnow.io/blog/importance-of-kyc-in-online-casinos/

[KTChampions]

The casino asks you to complete the KYC in the following cases:

1.) If you are suspected of having many accounts and you are a bonus hunter.

2.) You use the casino as a mixer without actually engaging in gambling.

3.) Suspicion that you topped up your account with stolen money.

4.) If you win big and request a withdrawal of funds, then in order to avoid problems with the AML policy (sometimes to delay or refuse payment), the casino asks for the KYC.

Another reason that I think makes casinos to require users to verify their identity through the KYC method is still to prevent underage people from gambling on their platform because by law they are some particular documents when issued that will clearly state the age a person is, as well as a passport photograph of the person which should match facial verification. These things are difficult for underage people to fake hence can be discouraging to those who wish to try gambling from an unqualified age.

This reason can be attributed to “other violations of ToS” and I don’t think that anyone is seriously concerned about it. In fact, casinos turn a blind eye to the age of gamblers; if the gambler does not violate the rules, then the casino will not deprive itself of income by checking the age of clients too strictly. I mean, of course, online casinos.
The risk of fines from regulators is offset by profits 

[Coin_trader]

So with that, it's also challenging to ensure that the gambler is the person who verified his KYC. I haven't verified in a casino yet but in other platform such us exchange or our local wallet, there's this selfie with my ID when I verified, like a live selfie, so I guess that woudl help if the casino will implement the same procedure.

In casino KYC, You only need to upload the Valid ID and the selfie holding ID for the basic KYC. But there’s some instances which casino requires video interview, financial report, address verification and other requirements depending on the intensity of the case on the account.

This enhance verifications is only for those whale/high wager players that has a huge profit involved. Normal player like us probably will only need up to selfie verification because that’s what the casino needs to verify an identity.

[Distinctin]

So with that, it's also challenging to ensure that the gambler is the person who verified his KYC. I haven't verified in a casino yet but in other platform such us exchange or our local wallet, there's this selfie with my ID when I verified, like a live selfie, so I guess that woudl help if the casino will implement the same procedure.

In casino KYC, You only need to upload the Valid ID and the selfie holding ID for the basic KYC. But there’s some instances which casino requires video interview, financial report, address verification and other requirements depending on the intensity of the case on the account.

This enhance verifications is only for those whale/high wager players that has a huge profit involved. Normal player like us probably will only need up to selfie verification because that’s what the casino needs to verify an identity.

It has destroyed our privacy because of that KYC, but do we have a choice? None, most casinos top, actually the top casinos including the popular here in the forum are alre regulated, hence KYC is just a basic requirement that everyone has to comply sooner or later. My personal experience in gambling is fine because I don't submit an ID or went through a KYC process like you mention, but I still enjoy gambling and that's the beauty of crypto casino.

I think if we compare crypto and fiat casino, in fiat casino, you need to pass the KYC first before you are allowed to gamble, but on crypto casino, making an account is instant, and you can just pass the KYC later when you are already oblige.