Is web3 casino the new trend for casinos?

[GxSTxV]

What are your thoughts on this, and how deep is your understanding of web3 casinos in terms of their legal parlance?

Web3 casinos are not something new to the crypto world, it’s been more than a year now, we have seen many updates in gambling industry lately and it is getting insane with a lot of competition to build better casinos. Honestly and with my own thoughts, I can’t trust a web3 casino to make a deposit there and start playing, knowing your money is with very high risk if that casino disappeared one day while your account is filled.
Web3 term itself means there is no centralized thing in that casino which means you will never be asked for KYC or any documents, and probably the identity of the team behind that casino also are hidden, beside that not many providers would agree to license your casino and provide their slots to web3 casinos.

We need more time to build that trust on such casinos, to have a fan base of this type of casinos we need to trust first the team behind it with proofs and much caution to not get hacked with infected smart contracts while accepting the transactions.

[Kelward]

Whether they're built as web3 casinos right from the start or they're integrating web3 features to their existing platforms, these casinos need license or registration at the very least to be able to operate legally.

That itself is enough to take this "anonymity and privacy" thing with a pinch of salt. To operate legally means they're bound by certain regulations. They cannot insist on "anonymity and privacy" when the regulating bodies to which they're accountable order them to implement KYC/AML policies. We have to remember that these web3 casinos are still private centralized companies. They toe the line or perish.

I don't think that web3 casinos can achieve complete anonymity for their gamblers because I doubt that any government will allow it, they'll always require some sort of KYC to monitor money laundering activities through them. I always wonder how a private or centralized establishment can successfully run a business that will guarantee anonymity for it's customers, so I think that there's no way that a web3 casino can fully attain complete decentralized status. We'll just wait and see how the innovations of future gambling through web3 casinos will fare.

[famososMuertos]

...//..

+1
That's right, the real trend is not the (web3) casino, the trend to follow is profits and that is achieved by overcoming variance, so, no matter where you play, bankroll management and trust in the casino are the priority.

[Wapfika]

I don't think that web3 casinos can achieve complete anonymity for their gamblers because I doubt that any government will allow it, they'll always require some sort of KYC to monitor money laundering activities through them. I always wonder how a private or centralized establishment can successfully run a business that will guarantee anonymity for it's customers, so I think that there's no way that a web3 casino can fully attain complete decentralized status. We'll just wait and see how the innovations of future gambling through web3 casinos will fare.

Technically and legally speaking they can since they are using cryptocurrency which many country still not regulates the use of it. They can simply just restrict country that has clear regulations about crypto.

Real web3 casino offers decentralized services which doesn’t need any license. The government will never find out your casino if you are operating in decentralized manner but ofc there’s a cons on doing this since you can’t offer games that provided bu 3rd party and focus only on probably fair games.

[bhadz]

They are not a new trend but they're also doing something out of this. One example of it is making their own token and that's still gonna be monitored by the regulators whether they should be security or not. Telling that their casino is a web3 won't guarantee them to be whole and 100% a web3 casino. In our current time, no one can skip the chains of the regulators because even the mixers and other anonymous platforms and services, they're being able to get tracked and that's why it's hard to believe that they'd be 100% kyc free.

You can't compare a mixer to a casino since, obviously, mixers don't require KYC. For casinos, they can announce that they are non-KYC or KYC compliant, but at the end of the day, we know that those who claim to be non-KYC will eventually become KYC compliant in the future. They don't want to risk their growing business. When your business gets better, the government will easily notice it, so there is a risk of getting banned if they don't secure a license. I think that's the trend now, so there's really no such thing as a "non-KYC" casino. Those who promote it might be lying or are just new in the business, which makes them hard to trust based on their reputation.

I am not comparing them. What I meant to say is that even mixers that should stay anonymous with their operations were tracked down by the authorities. And that's why casinos that are regulated will definitely not going to skip on this that even if they tell that they're nonkyc or no kyc 100%, the time will come that they're going to ask their customers that they should be compliant to kyc for legal purposes. That's why even if a service for example a web3 casino says that they won't be asking that, it's not 100% sure.

[dansus021]

Is web3 casino the new trend for casinos? A trend maybe yes since an online casino nowadays accept crypto as payment and some casino even like you have said earlier can login with simple metamask account. Web3 is really hit the market now Decentralized Exchange is everywhere. A loan platform like AAVE is almost on everychain. Trend ?? It could be because its simply no KYC and you can do gamble at a glance.

If you know there is a layer 2 of etherum called ZKCasino but now is winding down because of regulation but the idea is very simple to build a network of L2 just for casino. How crazy is that ?

[joniboini]

If you know there is a layer 2 of etherum called ZKCasino but now is winding down because of regulation but the idea is very simple to build a network of L2 just for casino. How crazy is that ?

Which project are you referring to? A quick search shows me a dying project (or maybe a scam) where its customers claim their ETH was stolen from them. They just tweeted again saying they can refund their ETH back but the user needs to buy some tokens afaik. Is this the one you're referring to, or is there another ZKCasino that already closed down?

That being said, the idea of building a dedicated layer just for casinos is a bit overkill IMO. I dunno if anyone needs a new blockchain for their gambling activity, not to mention the security of that new chain is questionable if nobody supports it. Using a stronger network would be preferable, since the users can interact with web3 easily since years ago already, CMIIW.

[Adbitco]

What if the government tells all Web3 exchanges and casinos to mandate all their customers to get verified? The customers will still have full control of their coins but they will get verified to know their identity. This is where Web3 is likely going. All that is needed is time.

When web3 was proposed, it was said it would be decentralized but it was not decentralized but centralized. We thought it will make use of nodes, but all what we are seeing are central servers. Everything that are making use of central servers can easily be controlled by the government and web3 is still one of them.

You know there is this casino I found out that one certain time where one I used to gamble like if I want to connect my address to make deposit or I will have to signup then the system automatically generate address for me were I will have to make deposit to start gambling. Now, this is because if you don't trust the site to connect your wallet your can make an account to start deposit instead of wallet connection.

Now, what I understood there is if you connect your wallet you wouldn't have to go through kyc but if sign up there is need to pass kyc meaning this site constitute between decentralized/centralized casino and if the system detects any ill activity it would require the gambler to pass through kyc to be credited his winning.

[Viscore]

That being said, the idea of building a dedicated layer just for casinos is a bit overkill IMO. I dunno if anyone needs a new blockchain for their gambling activity, not to mention the security of that new chain is questionable if nobody supports it. Using a stronger network would be preferable, since the users can interact with web3 easily since years ago already, CMIIW.

I agree, any blockchain is already enough for our transactions; besides, casino games are not decentralized—they have their own providers. What we are discussing mostly in calling them crypto casinos is based on their payment system, and since most casinos now accept Bitcoin and altcoins, they are more or less the same. About web3 or decentralized casinos, I think they can still be subject to regulation as no financial system operates completely freely. If the idea of decentralization worked perfectly, it could have also worked with exchanges, and Binance DEX isn't even popular—that's a testament that everything should be regulated.

[Catenaccio]

That being said, the idea of building a dedicated layer just for casinos is a bit overkill IMO. I dunno if anyone needs a new blockchain for their gambling activity, not to mention the security of that new chain is questionable if nobody supports it. Using a stronger network would be preferable, since the users can interact with web3 easily since years ago already, CMIIW.

Building up a new blockchain or a new layer on top of an available blockchain is risky. If we already have good blockchains to use, no company will want spend resources from human to financial for building up their own ones with risk of compromise, hacks, money steal and more. They can simply deploy their tokens on available big blockchains like Ethereum, Binance Smart Chain, Solana and have less risk of security as well as save a lot of cost for development, test, security, maintenance too.

I agree, any blockchain is already enough for our transactions; besides, casino games are not decentralized—they have their own providers.

The importance users ask for is provably fairness of games they want to play. Because with Provably Fairness, users know that they are treated fairly and it is verifiable too. So casinos won't be able to build up shady games and turn negative results, failures to users for their business profit while users have no ways to know about this unfairness and can not prove it.

[Viscore]

I agree, any blockchain is already enough for our transactions; besides, casino games are not decentralized—they have their own providers.

The importance users ask for is provably fairness of games they want to play. Because with Provably Fairness, users know that they are treated fairly and it is verifiable too. So casinos won't be able to build up shady games and turn negative results, failures to users for their business profit while users have no ways to know about this unfairness and can not prove it.

Provably fairness isn't a problem in popular casinos. The fact that they became popular means they don't cheat their gamblers. The topic is about the anonymity that web3 casinos could bring, since you can just connect your non-custodial wallet and withdraw anytime without the intervention of the casino, as they claim it to be automatic. If you read the OP, the main concern is the KYC and privacy issue.