How do AML systems evaluate cryptocurrency withdrawn from casinos?

[sompitonov]

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.

Of course, this is true, and I also think that AML is just an intermediate stage, which is not surprising. But besides everything else, I am absolutely sure that some small part of the cryptocurrency is not obtained from the cleanest places. Probably, there are those who are trying to hide from justice or something like that, because not all players are honest. Therefore, the counteraction to this is AML, this is a logical step in protecting the authority of a gambling casino. Because if they do not do this, then the supervisory authorities will pay attention to the institution itself.

It's just a matter of how carefully they check this. If you search for information on the Internet, I think there are answers to the questions of which casino more carefully monitors the purity of deposited and withdrawn funds.

[internetional]

use not centralized exchanges, but decentralized or bridges if you need to transfer funds from one network to another.

Which of them could you advise for swapping from USDT-TRC20 to BTC?

[stadus]

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.

I can see that it doesn’t seem like users are being affected, since it’s clearly happening. However, as mentioned, this goes against Binance’s TOS.
https://www.binance.com/en/terms

YOUR OBLIGATIONS AND LIABILITY

26.   Prohibited use

f.   use Binance Services to conduct or participate in lotteries; gambling activities; bidding fee auctions; sports forecasting or odds making; fantasy sports leagues with cash prizes; internet gaming; contests; sweepstakes; or games of chance;

[AVE5]

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?

It's always better to gamble I'd reputable casinos and when do, the risks factors would be listed in their terms and conditions.
Even during when executing your financial transactions which may either be the fiats or crypto assets, you'd be alerted with the risks involved in the about to executing transaction.
As for me, I only think being law abiding by not going against the casinos contrary and being concious of scammers is the only risks involved about it.

[shield132]

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 haven't done AML analysis on my casino transactions but I have never had a problem. I use Web3 Wallet for gaming. I withdraw money from Binance to Coinbase Walle USDC, then send USDC from Coinbase Wallet to Metawin via a simple swap click. I can deposit and withdraw money immediately from Metawin to Coinbase Wallet. If I want to cashout my winnings, I withdraw from Coinbase Wallet to Binance and then do P2P trading. I'm using this approach for months and didn't have a problem but I have also sent Bitcoins directly from Bitsler.com to an exchange without a problem too.

Btw if you want to use an AML analyzer, you can try Bestchange's AML analyzer - https://www.bestchange.com/report/
It's only 20 cents but at the moment it's under maintenance.

[Jawhead999]

If they have this rule in their terms, I doubt why @OP need to use AML systems in the first place? I mean, isn't it obvious that your money came from casino? so technically without using AML systems, Binance already know your money came from casino.

If some users said they haven't had any problem to deposit their money from casinos to Binance, we don't know when bad day would happen.

I can see that it doesn’t seem like users are being affected, since it’s clearly happening. However, as mentioned, this goes against Binance’s TOS.
https://www.binance.com/en/terms

YOUR OBLIGATIONS AND LIABILITY

26.   Prohibited use

f.   use Binance Services to conduct or participate in lotteries; gambling activities; bidding fee auctions; sports forecasting or odds making; fantasy sports leagues with cash prizes; internet gaming; contests; sweepstakes; or games of chance;

[Poker Player]

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.

Neither do I, although I don't use CEX or centralized sites like that.

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.

Interesting.

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.

Yes, that's the problem with blockchain analysis and so-called tainted coins. I don't know if just withdrawing first to your address would work but if you know that withdrawn coins from a casino can be problematic you can send them 2 or 3 times to your wallets before sending them to where you know they can be censored. Obviously you will have to do it as normal transactions in that you can not send everything you have in an address out there, because that is usually recognized as a self transfer.

[stadus]

AMLC is the council that manages the AML system, which includes regulations for casinos and exchanges, that’s why KYC is strictly enforced.

That TOS was actually taken from Binance’s website, and there’s a link to verify it, so it definitely exists.

However, for users who haven’t had any issues with their casino transactions going through Binance, they should be aware that this rule is in place, so they won’t be caught off guard if Binance decides to enforce it in the future.

If they have this rule in their terms, I doubt why @OP need to use AML systems in the first place? I mean, isn't it obvious that your money came from casino? so technically without using AML systems, Binance already know your money came from casino.

If some users said they haven't had any problem to deposit their money from casinos to Binance, we don't know when bad day would happen.

I can see that it doesn’t seem like users are being affected, since it’s clearly happening. However, as mentioned, this goes against Binance’s TOS.
https://www.binance.com/en/terms

YOUR OBLIGATIONS AND LIABILITY

26.   Prohibited use

f.   use Binance Services to conduct or participate in lotteries; gambling activities; bidding fee auctions; sports forecasting or odds making; fantasy sports leagues with cash prizes; internet gaming; contests; sweepstakes; or games of chance;

[alani123]

It's not as advanced as they like to play it out as.
Many casinos use a very centralized storage system for their funds so it's easy to figure out which addresses belong to them when withdrawing. So third party observers that just have access to the blockchain are able to see if you're transacting with a casino so long as they know your BTC address.

So if a third party service associates your funds with a casino then they're just using this basic technique, perhaps going back one or two transactions, doing blockchain forensics in their most basic form, to determine that the funds originated from a casino. In that occasion I'd just start using another exchange. Not very many exchanges have an issue with funds from casinos, so it makes sense for not to boycott the ones that do.

[madnessteat]

use not centralized exchanges, but decentralized or bridges if you need to transfer funds from one network to another.

Which of them could you advise for swapping from USDT-TRC20 to BTC?

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 take into account that there is also a check on the purity of funds, and may also require KYC. The same risks are still present in such an exchange, no matter how you look at it. So it's up to you to decide who you trust more. As I said above, I have never had any problems with freezing or blocking of funds withdrawn from the casino. Withdrawal of funds I carry out on non-custodial wallet, and then on the CEX for exchange if necessary.

[Woodie]

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?

Never bothered me to check but after I ran into problems with on of these exchanges like Whitebit holding on to these funds and asking me one too many tasks to get the funds & wallet that sent whitelisted in their system, I have been picky of where to send these funds but 90% of. these funds should have no problem to be spent 

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.

Very true!

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 I got this right, is this in the lines of say deposit USDT-tron and you opt to withdraw BTC after a win?? If yes some casinos won't let you do this , some do and it's a 50-50 thing depending on how platform is set .

[carlfebz2]

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?

We do know that crypto platforms or exchangers would really be always not wanting or liking on getting some deposits directly from gambling sites or casinos online on which you would be having that tendency
that your account would be locked or those funds would really be blocked but of course i have tested it out and didnt have such scenario or situation but its better not to do it since its really that written into their TOS. This is why the thing i do is on the moment i do tend to make some withdrawal on exchangers then i do make some direct transfer into my own personal non custodial wallet and this is the time or moment
i do make some transfer into the exchange platform and so far i havent been able to experience any issues in regarding into this one.

[coolcoinz]

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 never assess any risk, never care about the origin of funds and all that.
I can tell you that exchanges usually don't check funds. They don't care if it comes from a casino or another exchange as long as it's not a very large amount of money.

Honestly, I don't even know people who got their payments blocked by a bitcoin exchange and I used to even send them BCH, ETH, XRP and other coins directly from casinos.

[serjent05]

No, there are no restrictions to that as far as I remember.

What I did was different. I won a bet that is withdrawable and then I sent it to my exchange USDT address. Then, I exchange it in P2P to make it our local currency.
I had no trouble doing that because I think everything you do there will rely on your KYC. Once they know you are money laundering then they know where to find you so it's better if we avoid that.

Is it ok to send the funds from the casino to an exchange account directly?  I thought it would somehow jeopardize your exchange account if it happened that the exchange is not casino-friendly.  There are rare cases that an exchange freezes the account of a user when the exchange traces that the fund is directly coming from a casino platform. I read that Binance and coinbase freezes account in the past due to the funds coming from a casino platform.

Regarding the risk factor, I have no idea that it exists. I don't even check my transactions because I know I am doing it all legally. Also, it's actually more expensive to use an exchange as your wallet because of the transaction fees and the risk is there too so I don't do this anymore.

There is always a risk in depositing a casino fund directly to exchanges, even if one is doing it legally, the exchange may suspect him of illegal activity especially if the flow of funds is somehow abnormal.  So it would be an inconvenience if that happens.

[Hispo]

From what I understand, the AML systems are supposedly coordinated to analyze in real time the interaction some blacklisted addresses of Bitcoin (or any other decentralized assets) have among one another. If you withdraw and deposit money which never had any direct interaction with any of the addresses in their black list, there there should not be any problem for you to access liquidity and do whatever you what with your money.
Though, problems start to appear when one of those addresses happens the be the source of the money which you want to withdraw to an exchange, even if you are not initially aware of it, said exchange will comply with their AML policies and will flag and possibly block your account from further access to markets.

That is why you are only supposed to gamble in reliable casinos which care to check the origin of their fund and they will not allow coin mixing in their website, minimizing the chances of anyone getting tagged by exchanges and authorities.

[alegotardo]

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?

To date, I have not heard of any reports of exchanges blocking cryptos from casinos.

I believe that this could happen in some country where casinos are banned, so the government issues some order or law for the exchanges to block these funds, but in this case the reason for the block is different and has nothing to do with the AML system.

Knowing that some casinos can be used for money laundering, I do not doubt that this could happen in the case of some isolated users, who make large withdrawals and with some frequency pattern that could raise an "alert" on the exchange. But in general, this should not happen to ordinary users who just want to withdraw their legal funds from successful bets.

If something does happen, I believe that the user can always contest the decision and seek a resolution, even linking images of the bets made at the casino and proving the legal "multiplication" of the money won.

[retreat]

Don't know how the AML system works on crypto casinos, but it shouldn't be as complicated as traditional casinos that use fiat as their main payment. Because so far I have never found a case where CEX refused someone's deposit from a crypto casino just because they were suspicious of where the user got their crypto.
And for withdrawing directly to an exchange wallet, it shouldn't be a problem because I usually do it, but always make sure that the wallet address is correct and has not changed because the exchange wallet address can change at any time.

[ethereumhunter]

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 never assess any risk, never care about the origin of funds and all that.
I can tell you that exchanges usually don't check funds. They don't care if it comes from a casino or another exchange as long as it's not a very large amount of money.

Honestly, I don't even know people who got their payments blocked by a bitcoin exchange and I used to even send them BCH, ETH, XRP and other coins directly from casinos.

Even exchanges don't check the funds, we must be careful because the money come from the casino which exchanges don't like. We can use the other ways to avoids the problem and don't have to make us in difficulty. Exchanges can do many things to our account if they know that the money come from the sources that they prohibit and I guess we will not accept that with ease.

Maybe exchanges don't take a look with the other coins but many gamblers use Bitcoin to gamble and send the funds to many places. So they must think about to prevents the problem. Besides that, it is better to avoids than to have the problem

[dansus021]

How do AML systems evaluate cryptocurrency withdrawn from casinos?

First of all, we need to know how money laundry work in the casino according to this website "Money laundering schemes in online gambling
Placement: Illicit funds are introduced into the financial system by depositing money into gambling accounts. Layering: The source of the funds (SoF) is disguised through complex transactions involving multiple bets, transfers, and withdrawals within the gambling platform." https://complyadvantage.com/insights/online-gambling-money-laundering/

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.

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

[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.

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.

Could your AML check-up be considered as a default check that police does to drivers? Like valid drivers licenses or alcohol test. We dont give much attention to that, so why we should feel annoyed, worried or uncomfortable during AML check-ups? Btw, even banknote check-ups at the store can show different results. But if someone gets a warning that his banknote is counterfeited, but later it turns out that it is valid, that does not stop person from visiting that shop.