How do AML systems evaluate cryptocurrency withdrawn from casinos?

[Dr.Bitcoin_Strange]

What about in crypto? Are there any issues when exchanging assets withdrawn from a casino? For example, if I withdraw USDT-TRC20 and want to exchange it for Bitcoin using a CEX, will the CEX accept funds coming from a casino? Or will it block them? And is it safe to withdraw directly to an exchange address to avoid extra fees?

Some CX will accept it, some will not, and some will even return the funds to the sender's address, while some will freeze your account for such an act.

That's correct, I remembered a year when almost a similar topic to this one was created, some said that if you withdraw from a casino to an exchange that doesn't accept deposit from casinos, your account will be blocked. There are some exchange that usually state it on their terms&policy that they don't accept deposit from casino and they usually state the consequences of violating the rule.

[Wakate]

There is nothing wrong using an casino for withdrawal to centralized exchange. This what I have done many times and there was never a problem with that. Issue might comes up if the funds from such casino has been flagged by the Anti Money Laundry bot which can out a restriction on the address if has been noticed that funds are linked to such address. This can happen when we are using a scam casino to gamble without knowing that funds from such casino, especially the wallet address has been flagged. It is better we try to check the casino address especially when we are new to the casino if it is flagged by AML bot. This could help us save the stress we might undergo explaining to the centralized exchange if actually something like that happens.

[Antotena]

My questions are for those who withdraw cryptocurrency from casinos:
Have you checked the risk level of the funds you’ve withdrawn? What risk level is assigned to them in AML systems?

I'm curious because I know that in the fiat financial system, transactions related to casinos are categorized as high-risk traffic, and some financial service providers are suspicious of funds associated with gambling.

What about in crypto? Are there any issues when exchanging assets withdrawn from a casino? For example, if I withdraw USDT-TRC20 and want to exchange it for Bitcoin using a CEX, will the CEX accept funds coming from a casino? Or will it block them? And is it safe to withdraw directly to an exchange address to avoid extra fees?

Do people really check about the risk involved from the source of their money? This is indeed good to check atleast to be on a safe side but if a casino has a strong reputation, by that I mean they are registered and recognized by atleast the company origin then you there is nothing to be fear most especially when there is company registration, it will be easier to track because no company can operate for long time openly without any red flags.

If there is any problem of risk, I bet one or two users particularly the ones that deals with large funds would have one or two problems and they will raise an alarm immediately and I think the casino wallets are similar to the ecchanges, some onchain analysts do tag their wallet address to monitor if the casino is liquid or when they are moving large amount of money to another destination.

[internetional]

Do people really check about the risk involved from the source of their money?

I don't, because I always prefer BTC, and each of my coins can be put into an LN payment channel where AML abuse is impossible. But if the only option is USDT-TRC20, I don't know how to deal with them.

I found only one suitable answer here:

If I need to exchange USDT TRC20 for Bitcoin, but can't use centralized exchanges, I would do it on one of the exchangers with a good reputation on bestchange.

But, honestly, it's not so suitable.

take into account that there is also a check on the purity of funds

It seems I can only hope that in the cryptocurrency space, tokens coming from casinos aren’t considered so high-risk that they might get blocked because of it.

[vs2014]

stake is a famous online gambling brand that is popular all over the world and the same judgment is available in the one you shared. Cryptocurrency can be sent directly for exchange from here and it has no adequate restrictions. But since this is a casino site, the time to withdraw from the gamblers preferred wallet and casinos depends on the seed phrase or private keys. But you can see that most casino sites accept the first address as the record. So you can send funds directly from the exchange to the casino.

[OgNasty]

As a vendor that accepts Bitcoin for good and services, this is something I’ve been wondering lately how concerned I should be about it. Someone should create a tool to help evaluate our own stashes to see if something suspicious is afoot. With all the people complaining about exchanges keeping withdrawals, not just casinos, I think this is an issue that is going to become more and more prevalent.

[stadus]

Meaning in simple terms is the criminal is do multiple deposit and multiple withdraw putting lot of bet and maybe they have cooperate with the casino itself.

That’s what criminals do, they launder money, or in simpler terms, they "wash" dirty money to make it clean.
 

But with AML maybe a compliant casino can detect a pattern from it I hear in the other day that some user using 2 different account with 2 different laptop and IP with 2 different ID and somehow the casino can still detect it.
I believe right now there is an AI pattern can make easy to detect that pattern

When it comes to the guidelines set by AMLC, those are solely from them, and the casino is just following that guidelines. Having multiple accounts or cheating the casino doesn’t automatically fall under AML because it doesn’t fit the definition. Whatever tools the casino is using, it’s there to protect their own interests not specifically to prevent money laundering.

[Kemarit]

My questions are for those who withdraw cryptocurrency from casinos:
Have you checked the risk level of the funds you’ve withdrawn? What risk level is assigned to them in AML systems?

I'm curious because I know that in the fiat financial system, transactions related to casinos are categorized as high-risk traffic, and some financial service providers are suspicious of funds associated with gambling.

What about in crypto? Are there any issues when exchanging assets withdrawn from a casino? For example, if I withdraw USDT-TRC20 and want to exchange it for Bitcoin using a CEX, will the CEX accept funds coming from a casino? Or will it block them? And is it safe to withdraw directly to an exchange address to avoid extra fees?

As far as I know, some casino's have restriction on withdrawals, specially if it will be coming from gambling sites. I remember some local exchanges banning crypto deposits from casinos, and so their account has been ban as well. That's why you really need to read the ToS of CEX when depositing.

And before there are casinos that their addresses are being tag and that's why CEX know that it is coming from that particular casinos. But not sure today today, specially with the implementation of Segwit addresses, it might be hard for CEX now to trace whether that addresses belongs to a casino or not.

[EarnOnVictor]

Have you checked the risk level of the funds you’ve withdrawn? What risk level is assigned to them in AML systems?

I don't see any high risk here, the worse is for the verifying party to ask you for the proof of funds. But such has not happened ever since I've been dealing with cryptocurrency and I already have many years of dealings.

I'm curious because I know that in the fiat financial system, transactions related to casinos are categorized as high-risk traffic, and some financial service providers are suspicious of funds associated with gambling.

This is not particularly true unless their regulator forbids cryptocurrency. They are now interested in cryptocurrency and are even partnering with crypto firms.

What about in crypto? Are there any issues when exchanging assets withdrawn from a casino? For example, if I withdraw USDT-TRC20 and want to exchange it for Bitcoin using a CEX, will the CEX accept funds coming from a casino? Or will it block them? And is it safe to withdraw directly to an exchange address to avoid extra fees?

I've been doing this for almost 4 years now with no issues at all. Any money I withdraw from a casino is my money, exchanges even respect that and I've never heard that anyone had issues with casino withdrawal to exchanges. I also exchange the money back and forth as I like and withdraw as I like with no questions asked.

[Kavelj22]

Cryptocurrencies are highly decentralized and confidential, making them difficult to track and monitor. Anti-money laundering legislation is also constantly changing, making it difficult for platforms to keep up with these changes. Some people may exploit loopholes in the system to commit fraud and money laundering.
Legally, platforms and financial institutions that handle these funds must ensure their original source and that they are not linked to any illegal activity. They must also carefully verify the identity of users, including conducting the necessary verification processes (KYC).

[Saint-loup]

It's better to use an intermediary address as for now imo, because fees are really low currently, and it will avoid you many complications, if the centralized exchange you are using doesn't accept funds coming from casinos, or doesn't like them very much but tolerate them until you reach one specific percentage of your deposits and afterwards triggers controls and heavy KYC procedures once you've reached such level. Or even close your account and ban you from using the exchange anymore if it clearly prohibits it in its ToS.

[Dunamisx]

My questions are for those who withdraw cryptocurrency from casinos:
Have you checked the risk level of the funds you’ve withdrawn? What risk level is assigned to them in AML systems?

It is only when the crypto exchanges or gambling sites granted them access, if they don't, there is no how they can mange to know anything about the users information, the government will send a request from their agency AML demanding for the granting of access to them concerning the users information, some may give while some may not, that is why we are not safe with our information left on any centralized platform.

[Ojima-ojo]

What about in crypto? Are there any issues when exchanging assets withdrawn from a casino? For example, if I withdraw USDT-TRC20 and want to exchange it for Bitcoin using a CEX, will the CEX accept funds coming from a casino? Or will it block them? And is it safe to withdraw directly to an exchange address to avoid extra fees?

I have only heard of Coinbase that is against it. I have used many exchanges before to directly receive from gambling sites and no coin seized. But you can first send the coin to a noncustodial wallet address before sending it to the exchange. I have used Binance, OKX and Bybit to have received directly from gambling sites before.

I also have not come accross any problems withdrawing funds directly from a casino to an exchange, and for as long as I have used those exchanges to receive cryptocurrency deposits from casino, I don't have any issues with that and nothing have really affected my method or volume of transaction due to that before and for such I think only on a few occasions, if there is any exchange just like the coinsbase that you mentioned that restrict direct crypto deposit from gambling site or even a. Mixer.

I have not also read any were that a user account got locked because of his or her involvement in gambling, this is not allowed in most cases and sometimes, the exchange are just about their business and not against where and how the user receive those coins unless when there is issues with investigation, that way the wallet could be investigated to see if the funds are clean or not.

But this doesn't happen on a regular basis, and it only take one out of 100 of such transactions to get flagged in such a manner and even at that the ratio is almost none existence since most times, casino have a good and clean transaction mechanisms that can be compatible with all other mode of transactions.

[stadus]

better using an intermediary address imo

Though it's still traceable, at least casinos could justify not blocking an account since there's no direct link to a gambling site. It's like a bridge where every transaction must pass through before reaching its intended destination. I think it could work, it’s a simple method, but always proceed with caution to minimize risks. If they decide to investigate, they can still find all the links and potentially determine that an account has violated the TOS.

[Solosanz]

Though it's still traceable, at least casinos could justify not blocking an account since there's no direct link to a gambling site. It's like a bridge where every transaction must pass through before reaching its intended destination. I think it could work, it’s a simple method, but always proceed with caution to minimize risks. If they decide to investigate, they can still find all the links and potentially determine that an account has violated the TOS.

It's called "conceal" where you not directly send the coins to the address, instead you send it to somewhere and then send it to the centralized exchange. It's not safe at all, one of centralized exchange i.e. Gemini didn't allow this What Do Centralized Exchanges Consider as Taint?

I think converting your coins to other coins is more private since it's break the exchange to track your coins.

[pawanjain]

My questions are for those who withdraw cryptocurrency from casinos:
Have you checked the risk level of the funds you’ve withdrawn? What risk level is assigned to them in AML systems?

I'm curious because I know that in the fiat financial system, transactions related to casinos are categorized as high-risk traffic, and some financial service providers are suspicious of funds associated with gambling.

What about in crypto? Are there any issues when exchanging assets withdrawn from a casino? For example, if I withdraw USDT-TRC20 and want to exchange it for Bitcoin using a CEX, will the CEX accept funds coming from a casino? Or will it block them? And is it safe to withdraw directly to an exchange address to avoid extra fees?

That's a nice question to be honest. Even I would like to know if there's actually any platform that offers the service to check for such funds.
As far as I know, whenever someone scams others the addresses get flagged and the platforms keep tracking them to know where the funds are going.
May be this is how the AML authorities do it too.

[taufik123]

That's a nice questions to be honest. Even I would like to know if there's actually any platform that offers the service to check for such funds.
As far as I know, whenever someone scams others the addresses get flagged and the platforms keep tracking them to know where the funds are going.
May be this is how the AML authorities do it too.

Yes, the rule will always be carried out, because using AML authority in gambling will minimize money laundering crimes and several other crimes.

So early detection can be done with AML, if someone does not want to use AML then he cannot increase the withdrawal to a larger extent because every casino has a threshold for withdrawal and if it exceeds then AML is very much needed to know who you are and where the money is going.

[Silberman]

you cannot just say that you won it at the casino and still need to provide some evidence you got that money in some other way

Why? Isn't it better to tell the truth?

What I mean is that is not going to be enough even if it is the truth, exchanges are not going to take what you say at face value, and instead they will doubt you at every step, so even if you got that money through a jackpot, you will need to present evidence to the exchange that you are not a hacker or a criminal of another kind, and passing those checks can be exceptionally difficult for some gamblers that cannot offer a definite proof of income coming from a bank statement.

[AmoreJaz]

you cannot just say that you won it at the casino and still need to provide some evidence you got that money in some other way

Why? Isn't it better to tell the truth?

What I mean is that is not going to be enough even if it is the truth, exchanges are not going to take what you say at face value, and instead they will doubt you at every step, so even if you got that money through a jackpot, you will need to present evidence to the exchange that you are not a hacker or a criminal of another kind, and passing those checks can be exceptionally difficult for some gamblers that cannot offer a definite proof of income coming from a bank statement.

The very reason why you need to ask or read their terms when it comes to your deposit. If they are strict with the source of funds, you need to be cautious as to where you are getting your money from. You can also ask their technical support directly if you can't find certain subject in their terms. At least, clarify things before you jeopardize your funds. Because most of the time, you will be waiting in vain if something goes wrong with your account like freezing your funds for some additional requirements.

[KTChampions]

It's better to use an intermediary address as for now imo, because fees are really low currently, and it will avoid you many complications, if the centralized exchange you are using doesn't accept funds coming from casinos, or doesn't like them very much but tolerate them until you reach one specific percentage of your deposits and afterwards triggers controls and heavy KYC procedures once you've reached such level. Or even close your account and ban you from using the exchange anymore if it clearly prohibits it in its ToS.

If the exchange prohibits replenishment of the deposit from the casino balance (to be honest, I have not heard of such), then it is obviously better to use an intermediate address. But if the exchange has claims specifically to the purity of funds, then how will an intermediate address help here? If the funds are dirty (or the exchange considers them dirty), then even when passing through an intermediate address, they will remain dirty. As I understand it, now everyone uses blockchain analysis tools and a couple of intermediate addresses do not change the purity assessment.