How do AML systems evaluate cryptocurrency withdrawn from casinos?

[Lida93]

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 Are there any issues when exchanging assets withdrawn from a casino?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? fees?

For any CEX to clamp down on or reject funds directly sent from casino then they should have that stated in their ToS to which the gambler may not have taken out time to read and abreast himself with before use. While some casinos may have no issues with funds withdrawn from casino except when there is suspicion of irregularities in the withdrawal pattern and the amount withdrawn too if huge could raise concern that may warrant account freezing or blocking of such funds from entering the exchange.

The best bet is to make use of self-custodial wallet address when making huge or lump sum of withdrawal from crypto casino and save slef from unexpected event.

And is it safe to withdraw directly to an exchange address to avoid extra

From personal experience I don't remember having problems with direct withdrawal to the exchange I make use of from since I have been on it. And I also don't get bothered with the fees either.

[CryptSafe]

I have not had such experience of funds having issues with casino or cex upon withdrawal or deposit. I believe casinos and cex have limits to which triggers the AML system to trace the transaction  from the source or origin. Although they do not state such publicly but I know such mechanism do exist and that is what they use.

Possibly there is always amount level or range that triggers the AML function to be automatically activated towards an account with some certain deposit or withdrawal and that makes them in most cases request for KYC from such account holder to check if the details they submitted initially will correspond with the one such person would submit for the New KYC.

[crwth]

Isn’t it when exchanges or certain people who have regulatory things are required? I believe it has been always the flag with the amount. If it’s really high, it might be flagged and investigated, right? I’m really not sure and usually, the wallets of casinos are already tagged and might be checked if necessary.

Do you have funds that you would withdraw that you would reach that amount?

[Fortify]

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?

The point of AML thresholds and investigations are that they are not meant to be easily identifiable. You might withdraw money from one financial institution to another a hundred times with no issue, but the 101th time triggers the red flags to go off. The financial institutions will often not be legally allowed to alert you that you are under investigation and certainly don't want to help you avoid it, because they are legally responsible and may be prosecuted if they did. There is evidence of some exchanges banning activity that comes from known casino wallets, because they have assessed it as a risk they do not want to take - you should never lose your money because of that, but they don't want your business and you may only find out after being burned.

[Silberman]

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?

I have heard of many cases of forum members having troubles when withdrawing their gambling profits to exchanges, and this is because they are immediately asked to pass their KYC policies and demonstrate where that money came from, and 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, something that can be very difficult for a person that got a massive win, so it is better for you to withdraw to your own address and then do whatever you want to do with your coins.

[peter0425]

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?

That depends on a lot of factors one being the amount of money you are transferring. If the amount is not too big to the point of concern then they will not give you a hard time and they will accept it however some exchanges might find a certain amount alarming which can set their alarms off.

I have heard of many stories where they had to submit documents and verify their identity before continuing.


 

[Ever-young]

That depends on a lot of factors one being the amount of money you are transferring. If the amount is not too big to the point of concern then they will not give you a hard time and they will accept it however some exchanges might find a certain amount alarming which can set their alarms off.

I have heard of many stories where they had to submit documents and verify their identity before continuing.

When CX exchange Even before you start enjoying full features of the exchange, you will first of all be asked to complete the KYC and make sure that everything is in place.
 
Even with the account being fully KYCed, if the client still deposits an amount, which will trigger more investigation of how the amount came about and the source of it, the customer can still be asked to make provision of more details in order for them to be sure of what they are doing. The details can be anything, either proof of funds, etc.

[Darker45]

I'd rather not do it if I were you, especially if you're not open to providing additional information about you and your finances. Many are saying it's not a problem at all and they've been doing that, but certain exchanges don't like gambling money.

Coinbase, for example, has made it clear that you can neither send nor receive money to and from a gambling platform, respectively. Moreover, I've just raised a question to another exchange a couple of weeks ago about gambling assigned with a risk value equal to that of human trafficking, child abuse, and other serious crimes.

Moreover, not just one or two but a number of friends had problems with a local wallet for receiving money from online gambling platforms.

It doesn't hurt to withdraw your gambling money to a non-custodial wallet first before sending the same to an exchange.

[Yatsan]

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?

If a user withdraws cryptocurrency from the casino Know what checks may be required because of AML. Gambling-related assets tend to be considered high risk. Both fiat systems and cryptocurrencies Central Exchange (CEX) often have AML systems that can mark such transactions. That brings extra audit requirements. If you withdraw USDT-TRC20 from a casino and wish to exchange that to Bitcoin using CEX, the site can also scan the origin of funds and may ask you to show evidence in order to comply with the policies. Policies vary from each site so is worth referring to requirements for the platform you are using. Withdrawals to an exchange address often remove further fees. The proper address must be used and ensure the exchange accepts such deposits. It should have proper transparency regarding the source of funding and know the terms of the exchange to aid a smooth trading process.

I'd rather not do it if I were you, especially if you're not open to providing additional information about you and your finances. Many are saying it's not a problem at all and they've been doing that, but certain exchanges don't like gambling money.

Coinbase, for example, has made it clear that you can neither send nor receive money to and from a gambling platform, respectively. Moreover, I've just raised a question to another exchange a couple of weeks ago about gambling assigned with a risk value equal to that of human trafficking, child abuse, and other serious crimes.

Moreover, not just one or two but a number of friends had problems with a local wallet for receiving money from online gambling platforms.

It doesn't hurt to withdraw your gambling money to a non-custodial wallet first before sending the same to an exchange.

You provide accurate information about the risks and challenges one may encounter while withdrawal of money is made from the gaming platform. This happens mainly when using some special exchange, such as Coinbase, that have very strict policies. This arises because some of the exchange may term the currencies associated with gambling to be risky. As compared to other serious issues Therefore, this issue should be handled seriously. If you would not like disclosing additional documents or maybe to have problems with the exchange's rules, you can use a common wallet as an intermediary. In this case, you will be able to personally manage your funds and not depend on any exchanges. Instead of directing them there This should avoid some checks and pains. Thanks for the precious thoughts.

[ethereumhunter]

No, I don't have to check the funds I withdrawn because I trust the casino and don't to ask them except if I have wait for some time. If you withdraw the funds into your private wallet, there is no question from anyone except the casino but that will depends on you. If you don't cheat the casino, there will be no problem and you can withdraw the funds.

I don't directly send the funds into CEX but I use my private wallet and many times I used DEX to send the funds to CEX especially if I want to withdraw the funds into my bank account. I don't withdraw too big money because I don't want my bank sounds the alarm. I don't know what will happen if I directly send the funds into CEX. Maybe CEX will block my account and asked from where the funds come from.

[FinneysTrueVision]

If we look at the Stake.com entity on the Arkham platform we can see that a lot of withdrawals from their hot wallets go directly to major exchanges like Binance. You can also look up other casinos and see something similar.



I have not used centralized exchanges in many years, but in the past I did used to sends funds from casinos directly to Coinbase. I never had a problem but I would probably be smarter about it today when using a CEX and withdraw to a self-custodial wallet first so there is some plausible deniability if they suddenly started freezing funds coming from casinos.

[internetional]

it is better for you to withdraw to your own address and then do whatever you want to do with your coins.

The problem is that some casinos don’t support withdrawals in Bitcoin and only allow USDT-TRC20. But I have no use for these tokens. The only thing I want to do with them is exchange them for Bitcoin. And to do that, I have to pass them to someone - an exchange, a swapping service, etc. That’s why I’m concerned about the risk status of these tokens. If it’s high, then the exchange, swapping service, or any person I want to trade with might think I’m involved in fraud. And I don’t want any unnecessary trouble.

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?

[swogerino]

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?

I have had problems only when I have used USD-t as they explicitly show the name of the entity that have sent funds to you. I always use one exchange from bestchange website and I am not saying their name here yet they have exchanged always without problems when I have used Bitcoin, Litecoin, Ethereum and Ethereum Classic and they are very reliable when exhanging funds from crypto to debit/credit card while with USD-t they frozen my exchange and only after I did a massive KYC they released the funds. Moral of the story, never use USD-t as currency when playing in crypto casinos.

[lovesmayfamilis]

Is there a way to check risk level of withdrawal crypto?

I didn't know that there is a way to check the risk level of funds withdrawn. How is this done. I am just curious and want to know how to do it.

We all remember and know the site bestchange.com. The rules of many exchanges of this aggregator include a condition that all transactions will strictly undergo AML verification.
But even if you do not need to exchange on this aggregator, you can check your crypto addresses for those red flags that can be found fault with during the exchange by paying a few cents.

https://www.bestchange.com/report/

Description of service
For visitors who plan to exchange cryptocurrency, the BestChange website provides the opportunity to conduct an AML check of the crypto address from or to which they plan to send cryptocurrency.

The AML analyzer allows you to check the crypto address for receiving both coins (native cryptocurrencies such as BTC, ETH, LTC, DOGE, TRON, XRP) and tokens (assets created through smart contracts based on existing blockchains) in various networks, for example, using technical standards ERC20, TRC20, BEP20.

In the same way, I often came across the exchange conditions that they ask not to transfer funds directly to their exchangers from gaming sites and even provide (if I'm not mistaken) a list of some casinos.

https://www.bestchange.com/wiki/amlmarks.html

Gambling — funds associated with various online gambling services that do not have the necessary licenses.

[Finestream]

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?

This really depends on the policy of a particular exchange, whether it's local or international. I’ve personally experienced withdrawing funds directly from a casino to a local exchange, and unfortunately, that led to my account being closed. I didn’t even contest it since I knew from their terms that gambling is illegal. The strange thing is, I had been gambling for years and they didn’t lock my account until they decided to get stricter.

Right now, I use Binance, but I’m not entirely sure if it’s banned there, so I’m taking precautions. What I do is route my funds through a third-party wallet before sending them to the exchange. Every time I transfer, I make sure it goes through a third party. I also use another exchange (which I won’t name since it’s not reputable and has a lot of scam accusations), but I haven’t had any issues with gambling funds there. I take the risk, but I only transact amounts I can afford to lose, it feels like gambling in itself, using a non-reputable exchange.

[bakasabo]

I dont think that a regular gambler should worry a lot about withdrawing money from casino to a CEX, as I dont think that gamblers withdraw regularly large amounts. I see no problem if someone withdraws, lets say $10-300 regularly. That is only a drop in the ocean of transactions. If a gamblers withdraws round $100k every day, only then there might be question, but the casino will be first to ask them. Nevertheless, even if there are such gamblers who withdraw large amounts, I believe there are not many of them, and CEX and casinos have resources to check funds origins without worrying gambler.

[lovesmayfamilis]

I dont think that a regular gambler should worry a lot about withdrawing money from casino to a CEX, as I dont think that gamblers withdraw regularly large amounts. I see no problem if someone withdraws, lets say $10-300 regularly. That is only a drop in the ocean of transactions. If a gamblers withdraws round $100k every day, only then there might be question, but the casino will be first to ask them. Nevertheless, even if there are such gamblers who withdraw large amounts, I believe there are not many of them, and CEX and casinos have resources to check funds origins without worrying gambler.

You are right, but it is always unpleasant to understand that at some point you are limited by someone who doubts the origin of your funds, accusing you of any illegal actions. I once got into such a situation; it was not crypto from a casino, but they told me to provide all the evidence of the origin of these funds, then followed questions that knocked me off my normal state of mind, making me nervous. From reviews, I know that the more we refuse to explain anything, the longer the account block can last. Therefore, you should not think that any exchanges are aimed at large amounts. Where there is AML, firstly, an automatic check is triggered, and then the support is connected, decently bringing us to emotions.

[bakasabo]

I dont think that a regular gambler should worry a lot about withdrawing money from casino to a CEX, as I dont think that gamblers withdraw regularly large amounts. I see no problem if someone withdraws, lets say $10-300 regularly. That is only a drop in the ocean of transactions. If a gamblers withdraws round $100k every day, only then there might be question, but the casino will be first to ask them. Nevertheless, even if there are such gamblers who withdraw large amounts, I believe there are not many of them, and CEX and casinos have resources to check funds origins without worrying gambler.

You are right, but it is always unpleasant to understand that at some point you are limited by someone who doubts the origin of your funds, accusing you of any illegal actions. I once got into such a situation; it was not crypto from a casino, but they told me to provide all the evidence of the origin of these funds, then followed questions that knocked me off my normal state of mind, making me nervous. From reviews, I know that the more we refuse to explain anything, the longer the account block can last. Therefore, you should not think that any exchanges are aimed at large amounts. Where there is AML, firstly, an automatic check is triggered, and then the support is connected, decently bringing us to emotions.

But you know how they say "if you can't stand the heat, get out of the kitchen". I dont think that your unpleasant experience stopped you from depositing to that exchange. I can suppose, that people have wrong vision or their vision about AML has formed incorrectly. People think that AML is a thing, created to take away their money, and are afraid of it. For me, AML is not a procedure to be afraid of. That is only and extra step on a way to finish. If person lives a fair life, he should not be scared of anything money related. People are simply used to one and the same process, but that AML only makes a little pause on a way to an end. Everything that isnt "like they used to", people consider as bad, scary, negative, unpleasant.

[lovesmayfamilis]

I dont think that a regular gambler should worry a lot about withdrawing money from casino to a CEX, as I dont think that gamblers withdraw regularly large amounts. I see no problem if someone withdraws, lets say $10-300 regularly. That is only a drop in the ocean of transactions. If a gamblers withdraws round $100k every day, only then there might be question, but the casino will be first to ask them. Nevertheless, even if there are such gamblers who withdraw large amounts, I believe there are not many of them, and CEX and casinos have resources to check funds origins without worrying gambler.

You are right, but it is always unpleasant to understand that at some point you are limited by someone who doubts the origin of your funds, accusing you of any illegal actions. I once got into such a situation; it was not crypto from a casino, but they told me to provide all the evidence of the origin of these funds, then followed questions that knocked me off my normal state of mind, making me nervous. From reviews, I know that the more we refuse to explain anything, the longer the account block can last. Therefore, you should not think that any exchanges are aimed at large amounts. Where there is AML, firstly, an automatic check is triggered, and then the support is connected, decently bringing us to emotions.

But you know how they say "if you can't stand the heat, get out of the kitchen". I dont think that your unpleasant experience stopped you from depositing to that exchange. I can suppose, that people have wrong vision or their vision about AML has formed incorrectly. People think that AML is a thing, created to take away their money, and are afraid of it. For me, AML is not a procedure to be afraid of. That is only and extra step on a way to finish. If person lives a fair life, he should not be scared of anything money related. People are simply used to one and the same process, but that AML only makes a little pause on a way to an end. Everything that isnt "like they used to", people consider as bad, scary, negative, unpleasant.

No, I was not involved in any fraud, and I still think that they wanted to check me, but I do not understand why. And I still believe that this can happen to anyone. I checked my funds later on another site, and they had no complaints. The first exchange returned everything to me, yes, but I did not go back and trust them anymore. That is why I recommend checking your funds, wherever they come from, before doing anything.

To be clear, I believe that the AML may one day be wrong by setting danger levels where there should be none.

[madnessteat]

~snip~

I have never had any problems with freezing or blocking of funds withdrawn from gambling sites. But if you are afraid that this may happen, then use not centralized exchanges, but decentralized or bridges if you need to transfer funds from one network to another.

The casino can be used as a mixer to obfuscate the cryptocurrency trail, so such problems can technically occur. If you have the ability to officially verify your income and you do not violate the rules of the gambling site, then you have nothing to worry about, because most likely the gambling site will assist in solving this issue.