Have some people used casinos to hide the origin of funds?

[Forsyth Jones]

It is true that nowadays, there are several restrictions imposed by the casino due to AML/KYC laws, but in the beginning, that didn't exist (online-casinos).

There have certainly been cases where people have used casinos (and even exchanges) to hide/shuffle the origin of funds, 'cause when you deposit crypto on a platform, your link to the platform's address ends and when you go to withdraw, you withdraw funds from different origin (from other customers). Unless the platform keeps deposit/withdrawal logs of all user operations and provides them to authorities when requested.

This can be done even by people who have no intention of doing so. But that's the nature of cryptocurrencies, so like it or not, it's difficult for authorities to track the funds (even if the person isn't doing anything outside of their country's tax laws).

[HONDACD125]

I've never done anything like that because I never had any funds that I knew could get me in trouble and I needed to shuffle them or change their origin by using either a gambling or an exchange platform.

But, what you said at the beginning of your post reminds me of the old days when cryptocurrency gambling platforms were introduced, there used to be so much freedom, no KYC or anything, to make large deposits and withdrawals without going through lengthy and time-consuming verification processes. One could literally deposit and withdraw thousands of dollars in Bitcoin or other cryptocurrencies and be answerable to no one, not even the casino management.

It's not fun anymore as it used to be back then, there are a lot of regulations and rules and you can't gamble with peace anymore because you know that even if you didn't do KYC yet, if you manage to win something significant, you will be asked to do it.

[Forsyth Jones]

I've never done anything like that because I never had any funds that I knew could get me in trouble and I needed to shuffle them or change their origin by using either a gambling or an exchange platform.

But, what you said at the beginning of your post reminds me of the old days when cryptocurrency gambling platforms were introduced, there used to be so much freedom, no KYC or anything, to make large deposits and withdrawals without going through lengthy and time-consuming verification processes. One could literally deposit and withdraw thousands of dollars in Bitcoin or other cryptocurrencies and be answerable to no one, not even the casino management.

It's not fun anymore as it used to be back then, there are a lot of regulations and rules and you can't gamble with peace anymore because you know that even if you didn't do KYC yet, if you manage to win something significant, you will be asked to do it.

That's true, I think it's annoying, but anyway, trying to launder money with crypto isn't always the smartest way to do it, since today the authorities have advanced tracking and investigation software, they have tax money, so they have the power.

Of course, many do this because they don't want to give the slightest satisfaction to any government, there is also money involved with (real) and heinous crimes.

But anyway, everyone has the right to privacy and it's a duty to use crypto like Bitcoin, Litecoin, Dash etc for this reason (many, like bitcoin, are easily tracked).

[uneng]

It's called money laundering and it has been being done through different methods, gambling included. Even with KYC feature, there are still many people who attempt laundering money through casinos platforms. This feature doesn't prevent anything at all, because it can be bypassed when the money launderer uses multiple accounts or multiple strawmen with their personal accounts to execute the scheme.

This way, big sums of money are never dealed by one single person. Rather, they dilute it into many small parts, which is taken by each strawman, so the casino's radar is less likely to force one of those people to go into KYC procedure. Some may ask what these people earn by allowing to be used by a money launderer, and the answer is usually a small comission over all the transactions they do.

[AliMan]

It is true that nowadays, there are several restrictions imposed by the casino due to AML/KYC laws, but in the beginning, that didn't exist (online-casinos).

There have certainly been cases where people have used casinos (and even exchanges) to hide/shuffle the origin of funds, 'cause when you deposit crypto on a platform, your link to the platform's address ends and when you go to withdraw, you withdraw funds from different origin (from other customers). Unless the platform keeps deposit/withdrawal logs of all user operations and provides them to authorities when requested.

This can be done even by people who have no intention of doing so. But that's the nature of cryptocurrencies, so like it or not, it's difficult for authorities to track the funds (even if the person isn't doing anything outside of their country's tax laws).

There's no specific regulations for cryptocurrency exchanges KYC implementation, that's why it's easy for an individual to transact funds from fiat towards crypto as a dummy for his money in order to become intractable by authorities. Western countries with strict regulations of owning such amount of money that came from online earnings, citizens will be forced to do that due to deprived of financial freedom. How much more with online gambling casino? So let's expect this scenario to exist and it's really beyond our control because it's a rampant activities as well.

[Oshosondy]

If you are not a bad person and your money is clean and you want to block trace, there are some no KYC decentralized and instant exchanges that you can use.

Or just use a mixer or conjoin for it. This is the best but I prefer conjoin which is not centralized like others.

[AmoreJaz]

There's no specific regulations for cryptocurrency exchanges KYC implementation, that's why it's easy for an individual to transact funds from fiat towards crypto as a dummy for his money in order to become intractable by authorities. Western countries with strict regulations of owning such amount of money that came from online earnings, citizens will be forced to do that due to deprived of financial freedom. How much more with online gambling casino? So let's expect this scenario to exist and it's really beyond our control because it's a rampant activities as well.

That is very true. I believe it is happening one way or another. We can't discard the fact that people will try to use online gambling sites to wash their money. However, it is on your own accord if you will submit docs once the casino starts asking you some credentials, especially if the site is licensed. If you have significant amount of money, you have no choice but to comply. But as a player, you should know that you need to read the terms of the site particularly with AML/KYC policy of the site.

Even if you are just a regular gambler with enough funds, you are already somehow benefiting from using the casino. Because once you withdraw the money from the casino, they won't trace the origin of the money. It may show from online transactions that it comes from a gambling crypto address but it won't tell them the individual address of the players.

[OgNasty]

That seems like a terrible way to try and conceal where your funds came from. They’re specifically on the lookout and trying to stop stuff like this. However, this is a great way to get your account and funds locked on the site. I’m sure plenty of those complaining about not being able to withdraw their funds are guilty of this…

[Wexnident]

~

Oh, I reckon it definitely has happened. Otherwise, I don't think there would've been laws passed down for it in the first place! Laws usually originate from trying to ban something after all afaik. And wouldn't these crypto casinos have an internal audit system for such transactions? I've made a few of such systems before but for non-crypto, but it is possible. I wouldn't say it's difficult for authorities since casinos probably have to surrender such user details when they needed.

And if you really wanted to hide your money, I don't think a casino in the first place is the best place to do so lol.

[danherbias07]

Yes, that's right. You don't even need a mixer in the past.

Anyway, that is money laundering without our knowledge or if there's anyone who does it because they are taking advantage of that fact. Others don't.
I think this is why they got stricter, especially with online gambling sites that accept cryptocurrencies and this could also be one of the reasons why they are putting KYC on their service.
It's not surprising when a business wants to run longer than they want. They have to abide by the rules or else they will be so much trouble in the future.

[Jating]

It is true that nowadays, there are several restrictions imposed by the casino due to AML/KYC laws, but in the beginning, that didn't exist (online-casinos).

Pre 2017 if I'm not mistaken, this was the case.

There have certainly been cases where people have used casinos (and even exchanges) to hide/shuffle the origin of funds, 'cause when you deposit crypto on a platform, your link to the platform's address ends and when you go to withdraw, you withdraw funds from different origin (from other customers). Unless the platform keeps deposit/withdrawal logs of all user operations and provides them to authorities when requested.

That's possible that you might have received tainted coins, not sure if there are softwares or apps available to the public that you can trace that the coins that your received from the gambling casinos is tainted.

This can be done even by people who have no intention of doing so. But that's the nature of cryptocurrencies, so like it or not, it's difficult for authorities to track the funds (even if the person isn't doing anything outside of their country's tax laws).

Yes, that's true, we will never know until we get flag down, and so for now, we can't do anything about it. And just hope that freshly minted coins are being transferred to us by the gambling platform. But I think those casinos as very careful as well because they know the consequences of receiving and giving out tainted coins. Maybe they have that mechanism to check, but I'm not 100% sure of that.

[ryzaadit]

Yes, and still they need to at least have 1x wagering deposit to use their service Casino/exchange can block these fund with 2 several situation:
1. They know some big cases and track the wallet, in case there has some incoming transaction to their service from specific address. The account and fund can be lock & seize.
2. Government could be request you to check data of some specific account and request to seize it.

And yes, all service provider can give your data as long government requested those with legit warn information.

[Julien_Olynpic]

If only the casino makes payments in cryptocurrencies and, moreover, in anonymous cryptocurrencies such as Monero, then it makes sense to say that the casino can be used for money laundering. But again, here it is not the casino itself that is used for laundering, but the withdrawal in anonymous cryptocurrencies. Although, if you think about it, what is the purpose of the casino in this scheme? Now there are even atomic exchanges with Monero. Perhaps they meant the legalization of income through casino winnings? If so, then it is possible. You place a bet, win, pay tax and your income is legalized. The only problem is that you need to win to do this. In my opinion, it is easier to legalize funds through a crypto exchange - if a person is really interested in legalizing funds.

[Text]

KYC/AML makes it tougher to launder money anonymously.

On the privacy point, I see the argument for wanting control over your finances. However, I also think there's a balance to be struck. Crypto's anonymity can be a double-edged sword. It can be used for legitimate privacy concerns, but it can also be attractive to criminals.

Maybe there's a way to find a middle ground where people can have some level of privacy without it being completely anonymous. Perhaps stricter regulations for larger transactions or suspicious activity could be a solution.

[EluguHcman]

It's called money laundering and it has been being done through different methods, gambling included. Even with KYC feature, there are still many people who attempt laundering money through casinos platforms. This feature doesn't prevent anything at all, because it can be bypassed when the money launderer uses multiple accounts or multiple strawmen with their personal accounts to execute the scheme.

This way, big sums of money are never dealed by one single person. Rather, they dilute it into many small parts, which is taken by each strawman, so the casino's radar is less likely to force one of those people to go into KYC procedure. Some may ask what these people earn by allowing to be used by a money launderer, and the answer is usually a small comission over all the transactions they do.

And this is also one of the crucial reasons why some reputable Crypto casinos does not allow the accessibilities of a user having more than one account in their casino sites and the need for KYCs to distabilize the criminal thoughts of those who thinks they can launder money successfully through the casino platforms.

And the casinos technology program is also assembled that a specific amount deposited amount of funds in the platform should be alerted suspiciously for criminal investigation.

Many may have scot-free but the casino is not just a feasible place to do away safely with such as thought to be vulnerable for such illegal activities.

[jcojci]

If they wants to hides their money in casino, they must search for the casino that have reputation and many people trusts the casino to makes sure they will not gets scam from the casino. But they must knows that casino can asks them to verify their identity to make sure that their members will not do something illegal that will break their rules. The casino must be careful to accept their members and asks for verification by sending their members document to the casino.

The government can track the funds from the casino to their members, especially when the governments asks the casino to gives their members data to be checked. The casino can not doing anything because they must follow the rules from the government.

[crwth]

Money laundering is everywhere and it’s not a new case whether it’s a land-based casino or an online casino. They are probably on the lookout for people who have that amount of money and maybe track whether or not it came from illegal source or something.

It is possible that they have used a land-based casino in order to wash money. There are a lot of syndicates doing this and it’s not a surprise that they are using probably cryptocurrencies as well.

It is also one of the reasons why regulations are getting harder and harder to prevent this kind of things.

[Poker Player]

It's called money laundering and it has been being done through different methods, gambling included.

Not necessarily, I did it in the past and it was not for money laundering, simply as many people use a mixer, so that bitcoins of different provenance cannot be connected by an external observer. The casino people may know that those bitcoins come from the same person but I doubt they even look at it in most cases. What happens is that as has been mentioned there are almost no casinos that are without KYC and without wagering requirements, so if you want privacy in this sense it is better to use other methods.

[Apocollapse]

Centralized exchanges, casinos, lending or any other centralized sites aren't privacy tools, so it's impossible to use them to hide origin of funds.

Even though I'm not an Chainalysis's employee or someone who work to trace origin of funds, but by using free tracking site like arkhamintelligence, anyone can know the address belong to which site.

Here's the example https://platform.arkhamintelligence.com/explorer/address/bc1q2p65tzw97mft7gjpa8zvkkyfxrnq9jcy482n86mg0utt76tz5zws3rk2x7

This address belong to Roobet, how it can be "anonymous"?

[Peanutswar]

Centralized platform doesn't care if you make a withdrawal to their platform with the usual amount. Because of the different kinds of source of income into cryptocurrency people now getting large amounts of earnings and of course, if you stay into crypto you don't need to worry because only a few policies are applied. Still, once you convert your asset into a fiat currency. You are now using their platform and making a huge deposit or withdrawal which is unusual that's the time you are now getting questionable possible freezing of account and submission of documents where the money came from. This just happens to those unusual account activity but if you are an active user making transaction with your account they will treat this as a normal transaction.