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

[Dr.Bitcoin_Strange]

nowadays is very strict so it is not that easy for people to launder money and remove traces of its origin.

Monday launderers are not only using casinos to clean their stolen money, there are other traditional means by which corruption is taking place and is being undetected by AML agencies. Even some centralized exchanges are being used, and some mobile money agent apps are being used to hide the real origin of the stolen money. It is very possible to hide the real origin of the money. Don't forget, we now have some web3 casinos that don't require customers to perform KYC. You can just connect your wallet, make some deposits, play one or two games, and withdraw your money back to a different wallet. 

[Sunderland]

Laundering large amounts of crypto at once through online crypto casinos is definitely not possible nowadays, unless there is a certain deal with those casinos.
Deposits above $10k will definitely be monitored and many casinos or 3rd party payment providers have used AML software, not to mention increasingly strict KYC policies and wagering requirements before able to withdraw.
Before 2015, to laundering large amount of crypto would have been done through exchanges, not casinos. It is too risky to deposit and store large amounts of crypto in casinos which is can be considered to be illegal because most of them do not have a license at that time

[Findingnemo]

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).

I just want to say the exact opposite, it's so easy to track things since they are recorded on blockchain which is public ledger where no one can alter anything. So we general people may not have the access to those logs but I am pretty sure every casino and exchange keeps it permanently for these kind of legal stuffs. I would not pick cryptos if zi want to launder the money cause with fiat it's easier, untraceable.

[Forsyth Jones]

Isn't that contradictory? Bitcoin and everyone who follows its decentralization model was created to transfer resources to anyone in the world without satisfying anyone, but governments require companies that accept crypto deposits to KYC their customers. Many of these customers are well-intentioned people, they do not commit any crime with their funds, but they are obliged to provide their data to prove that they are not doing anything wrong.

While there really are people who use fiat money to hide their heinous crimes (murders, robberies, etc.), the government should go after these people and not the common person, that is, subject everyone to the same pot.

[bakasabo]

Does such rule and wish to mix funds with casino funds via deposit/withdrawal really work? User deposit to a specific address all the time, he get withdrawal from a bunch of accounts only. Casinos account address are only one more address in chain. All the addresses are transparent anyway. And it is not hard to generate one address for every user, and bind it on him only. I doubt that anything is mixing properly with deposit/withdrawal through casinos.

Do you know that a coin can be traced to a mixer? It is also possible that a transaction can be traced to a conjoin. Coins can be traced to an exchange and also can be traced to a gambling site. This is because the blockchain is transparent. If you mix a coin, it means you block its trace to something. If you are using a casino that does not require KYC, transactions there can not be linked to your real identity and it is a kind of mixing by blocking the trace to something. But what if it is a centralized casino seized the money or the casino forced the person to do KYC. Also that casinos has rules. It can be that a gamble should gamble and win 2x before they can withdraw. Gambling site with no KYC can be used for mixing but not a good idea at all. It is a bad idea because the money can be lost.

I understand that, but the crypto is linked to specific addresses anyway. Maybe this is only my experience, maybe the casino I gamble is specific, but whenever I make a deposit, the casino give same BTC address all the time, same address for BSC tokens for example. And withdrawals come from the same addresses. If I use such casino for money laundering several times, pattern of same addresses in turnover appears. With a pinch of extra knowledge, investigation (from authorities), such fund hiding scheme gets cracked easily.

[lovesmayfamilis]

Isn't that contradictory? Bitcoin and everyone who follows its decentralization model was created to transfer resources to anyone in the world without satisfying anyone, but governments require companies that accept crypto deposits to KYC their customers. Many of these customers are well-intentioned people, they do not commit any crime with their funds, but they are obliged to provide their data to prove that they are not doing anything wrong.

While there really are people who use fiat money to hide their heinous crimes (murders, robberies, etc.), the government should go after these people and not the common person, that is, subject everyone to the same pot.

You are right, but what you say should happen in an ideal world,  where there are no crimes. However, wherever there is a way to deceive people, scammers will not miss their chance. The same thing happens with Bitcoin; it would seem that its idea is quite reasonable, but we cannot speak for those who do not think it is so. Since the beginning of time, there has been greed and deception, and the government cannot turn a blind eye to the crimes that are committed with the participation of Bitcoin; hence, we see so many restrictions, although everyone who truly supports Bitcoin has only good intentions.

[DaNNy001]

nowadays is very strict so it is not that easy for people to launder money and remove traces of its origin.

Monday launderers are not only using casinos to clean their stolen money, there are other traditional means by which corruption is taking place and is being undetected by AML agencies. Even some centralized exchanges are being used, and some mobile money agent apps are being used to hide the real origin of the stolen money. It is very possible to hide the real origin of the money. Don't forget, we now have some web3 casinos that don't require customers to perform KYC. You can just connect your wallet, make some deposits, play one or two games, and withdraw your money back to a different wallet. 

The thing is that there are certain things the government can't actually stop and one of them is means of money laundering, what they can do is just to actually regulate it to some extent but to entirely stop it that's a different case. Just like you said there are different ways in which these exercises can be carried out and one of them is through the web3 casino although not all but some do offer the features that can make this act possible.

[Darker45]

And that's indeed the very reason why casinos are already required to strictly implement KYC/AML verification. Without which, casinos would probably continue to serve the purpose of money launderers who are gambling merely for the sake of giving their dirty money a legitimate source.

That's exactly the story of brick-and-mortar casinos here in my country. Even the infamous Bangladesh bank cyber heist was linked to casinos because it's an easy way for dirty money to come out clean.

[Dr.Bitcoin_Strange]

nowadays is very strict so it is not that easy for people to launder money and remove traces of its origin.

Monday launderers are not only using casinos to clean their stolen money, there are other traditional means by which corruption is taking place and is being undetected by AML agencies. Even some centralized exchanges are being used, and some mobile money agent apps are being used to hide the real origin of the stolen money. It is very possible to hide the real origin of the money. Don't forget, we now have some web3 casinos that don't require customers to perform KYC. You can just connect your wallet, make some deposits, play one or two games, and withdraw your money back to a different wallet. 

The thing is that there are certain things the government can't actually stop and one of them is means of money laundering, what they can do is just to actually regulate it to some extent but to entirely stop it that's a different case. Just like you said there are different ways in which these exercises can be carried out and one of them is through the web3 casino although not all but some do offer the features that can make this act possible.

Well, yes, I agree with you. Money laundering did not start today. Dating back to history, money laundering started in the 1970s, and since then, it has continued till today. If it were possible to stop it permanently, it would have been stopped, but definitely, there are a lot of corrupt people that will definitely be involved in those practices, and the AML agencies are there to catch those they can catch while some are still not being detected.

[hedgeh0g]

I have no evidence, but I think that such casinos definitely exist, maybe they were even invented for this purpose from the very beginning. The Internet is full of stories in which not the best people do such things. I hope there are organizations that understand this and prevent these illegal actions, although at the same time I understand that this is not very easy to do. Also, the process may be hampered by the fact that one of the regulatory authorities may be corrupt. In short, I wanted this phenomenon not to happen at all, but in real life this happens. At least we should know the names of some of them so that we can stop playing there immediately.

[stadus]

I have no evidence, but I think that such casinos definitely exist, maybe they were even invented for this purpose from the very beginning. The Internet is full of stories in which not the best people do such things. I hope there are organizations that understand this and prevent these illegal actions, although at the same time I understand that this is not very easy to do. Also, the process may be hampered by the fact that one of the regulatory authorities may be corrupt. In short, I wanted this phenomenon not to happen at all, but in real life this happens. At least we should know the names of some of them so that we can stop playing there immediately.

Actually, it's not hard to launder funds in a casino if it's not coming from an online transaction. For online transactions, there's a trace, and an investigation can easily be done. However, criminals are smart too; they know how to not get caught with their illegal activities. Nowadays, not all casinos require KYC, so if you have $1 million that you want to launder, you can spread it across different casinos, maybe 50 to 100 casinos, and that wouldn't be noticed since it was just a small amount when spread at that numbers.

[shivansps]

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).

Yes, this could indeed become a problem in the future. Personally, I do not hide cryptocurrency and there is no point in hiding. But there are probably people who can make their money legally through these schemes. I think that the law (regardless of which state) will constantly regulate these rules and try to close these holes. This is why every year it becomes more and more difficult to play online casinos and gambling.

[Obari]

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.

It wasn’t about you but rather op was on a random quest of knowledge in the subject matter.
Previously, there wasn’t this much of strictness on online casinos but currently now, it will be very difficult seeing a reputable casino that doesn’t ask for KYC at any point in time  and this was as a result of some sort of criminality through these casino and money laundering and that’s one thing the the KYC is actually helping to fight in the modern day casinos.

And just like mixers, anything that has the ability to alter the linkage of funds passage can be used for money laundering and that’s exactly what the casino was doing and I think with the help of KYC, such cases have been reduced.

[Dr.Bitcoin_Strange]

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.

It wasn’t about you but rather op was on a random quest of knowledge in the subject matter.
Previously, there wasn’t this much of strictness on online casinos but currently now, it will be very difficult seeing a reputable casino that doesn’t ask for KYC at any point in time  and this was as a result of some sort of criminality through these casino and money laundering and that’s one thing the the KYC is actually helping to fight in the modern day casinos.

And just like mixers, anything that has the ability to alter the linkage of funds passage can be used for money laundering and that’s exactly what the casino was doing and I think with the help of KYC, such cases have been reduced.

Casino was not purposely promoting money laundering activities but it became an avenue that money launders discovered they can use to clean their stolen money not until it was discovered by the government agencies and regulations was added to casino, deeming it necessary that every legally operating casino my request KYC from their customers. Just as you said, every reputable casino will demand for KYC, there are also some reputable web3 casino that doesn't ask for KYC.

[YOSHIE]

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

Money laundering or hiding money has become an open secret and we often see it in various media. gambling and exchange are the targets of news that is always associated with it, whether it is true or just information to scare the public.

If that's what the OP asked, the answer is, don't know, as far as I know, gambling is done by some people just to bet, of course they experience losses and wins, it's logical if I think about why they hide funds on gambling sites, After all, if they bet if they lose or lose, they are the ones who lose or have problems when withdrawing, it's not a higher risk, if the corrupt funds are stored in the casino, I think even then there are only a handful of people.

It's better to buy the money in gold and keep it in the ground, it might be safer for them than in an online casino.

[Fivestar4everMVP]

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).

Well, I do not know actually if there will be people out there who use online Casinos, or exchanges to hide the origin of their funds, since I myself have never deposited funds to a casino or exchanges which such intentions.
One thing I definitely will say is that anyone doing such is not smart enough and sure taking a big risk, and this specially is because; most online casinos and exchanges are kyc enabled, so there is really nothing hidden about such customer who is using the casino or the exchange as a means of hiding the origin of their funds.

There are better alternatives to use, like I believe many of us here can already correctly guess what I am talking about, there is absolutely no need to mention it.

[Obari]

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.

It wasn’t about you but rather op was on a random quest of knowledge in the subject matter.
Previously, there wasn’t this much of strictness on online casinos but currently now, it will be very difficult seeing a reputable casino that doesn’t ask for KYC at any point in time  and this was as a result of some sort of criminality through these casino and money laundering and that’s one thing the the KYC is actually helping to fight in the modern day casinos.

And just like mixers, anything that has the ability to alter the linkage of funds passage can be used for money laundering and that’s exactly what the casino was doing and I think with the help of KYC, such cases have been reduced.

Casino was not purposely promoting money laundering activities but it became an avenue that money launders discovered they can use to clean their stolen money not until it was discovered by the government agencies and regulations was added to casino, deeming it necessary that every legally operating casino my request KYC from their customers. Just as you said, every reputable casino will demand for KYC, there are also some reputable web3 casino that doesn't ask for KYC.

I don’t want this to be some sort of argument but personally I have this feeling that, before the government intervention, some of these casinos were already aware of some of these criminal activities and I could remember a discussion some time ago with some guys in my neighborhood and one of them was proposing that some of these casinos are aware of the fact that their casinos were used to launder money but since there was nothing the government could do about it then, and maybe they could also have a bite from the money, they kept mute and looking into his points, there were some sort of truth in them.

But for the sake of doubt, let’s say they’re not aware, but yes that the casinos were used as a channel to launder money but I don’t think it’s that very easy this days.

[Slow death]

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).

I never used casinos and exchanges to hide the origin of my funds, since I entered the cryptocurrency market my funds have always had only 2 origins:

1 - signature campaign

2 - my bank account, I buy bitcoin using cex.io since 2017 and then I transfer the bitcoins to my wallet, when I want to trade I transfer them to the exchange and when I want to play I transfer litecoin from my wallet to the casino.

Since I got into cryptocurrencies I've been doing this, I always comply with the laws, I believe that complying with the laws is something that helps casinos and exchanges so they don't have problems with governments, and it also helps myself so I don't have problems with the government. unfortunately there are or were people who in the past used exchanges to hide the origin of funds. I don't know if there has ever been a case of a thief using a casino to hide the origin of funds, and I honestly think that someone using a casino to hide the origin of funds is not very smart. because who would steal 1 million and go play in a casino knowing that the chances are low of winning? because even in the past, casinos already had withdrawal requirements, something like 1x or more of the amount deposited. So if a person deposited 1 million, they would have to play with the entire 1 million to be able to withdraw.

[MAAManda]

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.

I once made a deposit on one of the well-known crypto gambling platforms, after making the deposit, I thought I made a deposit that was too big so I made a withdrawal after the deposit. What happened was, I failed to make my withdrawal, that was because I was deemed to have intended to launder money. Talk to customer service & get an idea to play a few hands and then make a withdrawal.

On some other gambling platforms, it must be 1X TO (Turnover) of the deposit amount, to show that we are making a deposit for the purpose of gambling & not money laundering.

[tygeade]

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).

It seems you are only asking the people here in our forum? Because you already know that these things are happening before and even up to this date. Well, in my case, no. I have nothing to hide and I only use the exchange to trade coins. I only admit that I use some casinos as a crypto wallet. Yeah, you heard that right. Crazy isn't it? Because some of you can say that why will I do it when there are still plenty of crypto wallets and then there is a chance that I might gamble my funds away. Well I'm only a newbie that time so I don't know many trusted wallets and I find it hard or hassle to create another. I'm also thankful because I haven't got the urge to gamble my funds away.