Where Will It Go If The Money Comes From Illegal Source

[Findingnemo]

Is it legal for casinos to keep the money?

Technically they are not allowed to use that money either but legality has lot of loopholes so they will just use the term money on hold which is just numbers on their platform while the funds deposited will be in circulation as long as they want until they are contacted by government authorities to return the held funds.

[Wapfika]

Casino license comes with regulation from AMLA. Their license is jot only for display but as compliance with authorities to avoid crime within their business. As many already pointed out, illegal funds will go to the authorities which the user is under jurisdiction.

Casino will face legal issue if ever they owned the money from illegal source because they will be part of the crime which is a huge loss rather than keeping the illegal money on their own. Most of the time, Casino refund the deposit of users with suspicion of money laundering and just seize the profit made on the account.

I never saw a case so far that ended up with actual money laundering.

[Cantsay]

But the interesting question is actually whether the casino will hand over the money to the government when the account user who has the nominal does not provide the data to the casino, this is no provision, so it could be kept by the casino or given to the government, and this is difficult to determine because it questions what steps the casino might take.

Due to the fact that such action from the casino would put their license at risk I.e if they decide to go ahead and keep the money for themselves after confirming that it was indeed from an illegal source or not without doing what is expected of them to do.

If confirmed the money would be sent to the government and the casino would banned the account that received the money permanently while if the money was discovered to have come from a clean source then the account that received the money would be reopened and all the balances will be returned back to it - and the user will be notified of it so that they can continue their activities.

[EluguHcman]

I think the casinos operates under the licence, terms and conditions of the governments so, basically it should be the government regulating the casinos and lottery commissions that literally asked those casino firms to request for the KYCs so that it could enable the regulators detect individuals who undercover with the casino after executing their illegal activities.
Else I do not think if the casinos would really care about your source of income but what they would only care about the profits they are generating from your Lost.

So in that case of the government overruling the casinos, the money from such gamblers would be a reverted to the governments custodian and if it is lyes just within the casino then it is another form of fraudulents of illegal extortions.

So, it all goes back to the governments

[iv4n]

Is it legal for casinos to keep the money?

I don't think they can keep the money, they have to inform a law enforcement agency of their findings and turn the money over to them... I'm sure the laws and procedures vary by jurisdiction, but if they just keep the money they took from a player, that's theft.
And if they report it, the player himself should probably get in trouble, an authority should investigate him and see what the person is actually doing. And if everything is in order, a player/person can file a complaint and they should return the money that the casino took from him.

But is this also the case with crypto casinos? I'm not sure and I believe that not all casinos are honest and fair to their players... unfortunately, the crypto gambling space is still the wild west and there are a lot of strange things going on.

[Sunderland]

- snip -
Remember, (CASINO) is not gonna to check, scan, or question your transaction to their service platform unless they are contacted by authorities. So, even your source transactions are coming from illegal activity they will not gonna to due research of your account/transaction.

This information is actually for casinos that use Fiat not Crypto.
Because casinos that use fiat are not able to trace the source of money/deposit which coming from their customers, unlike crypto because there is a blockchain.
Many casinos, exchanges, mixers and 3rd payment providers have used Blockchain analytics tools to detect fraud and money laundering.

[alastantiger]

Do you think the casino will be honest in this scenario? Will the authorities be able to find out if they have a case where funds from a closed account are in the casino?

Casinos do not operate on their own. They are bound by rules and regulation that govern which they must comply with and are judge or audited by such. Nevertheless, there is a chance that some casinos may display unethical behaviours which is not uncommon in some institutions. And that unethical behaviour could entail not reporting to the authorities and keeping the money to themselves. They can even invest it as part of their bank roll.

[South Park]

They do not keep the money to themselves. I think it works this way. When they seize the funds, they then report to the authorities. the authorities will then start an investigation while the investigation is on, the casino still has the funds. When the investigation is completed and it turns out that the cash comes from an illegal source, the casino then hands over the funds to the authorities and their hands are off. However when the reverse is the case, the funds are returned to the account of the owner and their account is unfreezed or unbanned.

That is how it should be, but I doubt that every casino works like that, I suppose a portion of them keeps those coins for themselves, after all KYC has become more widespread than before, and now not only suspicious accounts go through it and now anyone trying to make a withdrawal has to pass those identity checks, so if you got a big win but you are unable to demonstrate the origin of those funds, the casino can keep those funds for themselves and the player will never know this was the case.

[Renampun]

Part of casinos' terms of service is banning your account if you cannot justify your source of income or they think it comes from an illegal source, so if a casino bans your account. You have 6 digits in your account; where will the money go, and do they have the right to keep the money? There is no provision; I read they will turn over the money to the authorities.

Is it legal for casinos to keep the money?

This discussion is based on a question of our bro seoincorporation

Casinos ask for KYC to avoid money laundering, but if the gambler isn't able to give the requested data then the casino keeps the money. If the casino keeps the money isn't that Money laundering?

Let's have an open conversation on this

If the money is suspicious then actually the online gambling owner has full power to lock the funds in that account and that is usually stated in the TOS.

If you have 6 digits that you want to launder in an online casino, you must first meet with the casino owner because it would be very stupid if you launder criminal money but end up having your money locked in that account, usually online casino owners have several active contacts. people who often launder money on their platforms, the term KYC is just a cover, even though they launder criminal money behind the camera.

[Alphakilo]

Remember, (CASINO) is not gonna to check, scan, or question your transaction to their service platform unless they are contacted by authorities. So, even your source transactions are coming from illegal activity they will not gonna to due research of your account/transaction.

So does this mean that those users who go to the scam accusation board to write a complaint about their casino withholding their withdrawal, freezing their account, or outrightly banning, were instructed by the authorities? I thought that it was the other way around and that the authorities do not have an involvement unless they are called upon by the casinos for them to investigate a suspicious account.

Once everything is clear, the casino will hand over the money to the authorities to use as evidence and this is also done to avoid casino involvement in illegal money laundering activities.

I am yet to see any news of any person whose account was blocked by the casino and reported over the authorities being arrested or jailed for their offense. It could be that these cases are not reported on the news or the internet for others to read. We do not even know the conclusion from the authorities.

[AbuBhakar]

If the money is suspicious then actually the online gambling owner has full power to lock the funds in that account and that is usually stated in the TOS.

If you have 6 digits that you want to launder in an online casino, you must first meet with the casino owner because it would be very stupid if you launder criminal money but end up having your money locked in that account, usually online casino owners have several active contacts. people who often launder money on their platforms, the term KYC is just a cover, even though they launder criminal money behind the camera.

This shit is a conspiracy, casino owner itself doesn’t launder money especially if they are licensed since all there transactions is regulated and audited so doing money laundering is a suicide for them.

This conspiracy is true on the off shore casino located on 3rd world country with less restrictions. It’s very hard to collude with laundering as online casino owners with license since crypto has blockchain records to track all the transactions.

Also, Casino owners doesn’t meet anyone regardless of the amount involved.

[SamReomo]

If the casino is a legit one then they will give send the money to the authorities after deep investigation but if the casino is a shady one then they'll keep it for themselves after banning the account. Let's say if the casino in case is 1xBit then the user should forget about his funds because that shady casino really doesn't care to send the funds to authorities or allow the user to use those funds once again.

[sokani]

Is it legal for casinos to keep the money?

If the fund is suspected to have come from an illegal origin, the account will be locked and reported to the authorities. After submitting the proof of source and investigation had been carried out, if it turns out the owner's business is legit, the funds will be unfrozen but if he's into illicit activities, the funds will be handed over to the authorities. Also, if he fails to submit the necessary documents, the funds will be handed over to the authorities.

[vs2014]

It is natural that online gambling companies will require KYC to prevent any kind of money laundering and they will take this step to confirm the legitimacy of the funds in your wallet. But i think it's fine not to search for personal information in very small cases. On the other hand it will be considered as the best security because when your fund is considered valid they will ensure your fund is always safe. Even if you violate their terms, you may suffer a lot. So i think key is always better if your mean amount is big. But according to your secret report you can gamble from hide.

[coinerer]

Regardless of your source of income, when you use a crypto casino site and make a crypto deposit, they will have no ability to know whether your source of income is legal or illegal. But if you don't follow the casino sites rules or try to fool their algorithm or use hacking tools on their site then they can ban your account. Gambling sites should hold an amount of money that you will use to gamble again later and that you have the ability to lose. so in this case, if your account is banned for any reason, it will not cause you any major loss. one should never hold large amounts of money between gambling sites

[EarnOnVictor]

A question like this has been raised many times in the past even before the crypto era and only three answers keep winning over and over again. Even the centralised financial systems and services are also applicable in this regard. However, to summarize it and without mincing words, the following three points should be considered as where your money will go in this kind of situation.

1. If your casino is duly registered and regulated, and is sincere with integrity, such money would be disclosed to the authority after a certain duration of time (grace time). This could take months, if not years to give time for you to reclaim the money with legitimate means/proofs. How the casino and the authority will deal with the money now depends on the two of them.

2. Some casinos will do partial revelation. They will reveal some cases and cover the others. And since it is their system we are talking about, it will be easier for them to do so.

3. For the last set, they will try as much as possible to keep the whole money for themselves whether you like it or not, no revelation whatsoever. This is especially if the regulation tying them is very weak.

[Hispo]

As many have already said, the most logical thing to happen with the money is having it frozen in the account and seized by the casino while authorities validate one is actually using money which comes from illegal activities, though, I must say I have (fortunately) never experienced something as serious or displeasing as having my money frozen because the casino thought I was some random crook on the internet or something similar to it.
Also, I believe it also depends much on the local legislation and the degree of corruption some countries could be going through, whether some casinos with bad influences would be willing to seize funds and not give it to authorities, instead keeping it for their own trunks. That is something I could see happening in countries in Asia and Africa where prosecuting that kind of bad behavior by shady casinos (backed by corrupt politicians) can be very tiring and expensive for the average citizen to try to get their money back.
If we have seen stories on betting operators cheating their gamblers, stuff like that would not surprise me.

[Hatchy]

Let's have an open conversation on this

I don't think they have a reason to research on a users source of funding. If they are to do that then it would be a tiresome process for everyone while completing the kyc process. If this happens, then most Gamblers will just stick to local gambling and it will reduce the rate of online casino gambling. What I think is that after or before the kyc, they ask for ids and so on. This way, when authorities contacts their management and report an illicit activity on a users account they will hand over the users data to the authorities then lock the account. The money remains with them till it's confirmed that the user is involved in illicit activities.

[dothebeats]

Casinos don't really care where your funds come from as long as you lost it in their platform. They don't actively check for your funds' sources unless they are tipped by the authorities and are 'asked' to take a look at your history, KYC details, and other information that are available to them. After they have 'confirmed' with the authorities that your funds came from questionable (or in this case, illegal) source, they will then freeze your funds and send it to the authorities, after which we won't know what will happen to the money.

Usually, after seized the money, they will just keep it and it is considered a part of the government's fund. Casinos don't have the right to keep it at all - they are just used as an instrument to help the law enforcement track and freeze it while it's within their platform. The best thing they can get from that is a pat on the back from the government.

[robelneo]

If they have proven that your funds come from illegal sources and you are using their platform to launder them, then based on their terms and compliance, the funds will be confiscated. If you have submitted your sensitive information, they will report you to your government for possible prosecution.

Casinos have their way off the track if the fund comes from illegal sources and your action constitutes money laundering, so if your account is clean, you can defend the source of funds by submitting your source of income. Your profession should be equal to the money you use to gamble.