Blockchain + KYC can greatly improve Gambling Exclusion to prevent Addiction

[Beparanf]

In theory, this is a good but not feasible to implement in online casino.

There’s a lot of online casino available and all of them has their own set of limits.

Unless all casino is connected to each other then this is possible but right now I doubt casino will stop accepting user from different casino that already hit their limits to play because they want to get profit as much as possible.

I doubt Curacao and license provider will have time to give this kind of restriction to player that related to limit.

[BitGoba]

KYC is normal in Casino and Gambling addiction is also normal in gambling Industry.  It is studied that gambling addiction can be addressed by integrating Blockchain technology coupled with KYC to trigger an automatic self-exclusion program.

With the help of blockchain, casinos can temporarily block people who are so immersed in gambling and show signs of gambling addiction.  Since blockchain wallet is tied to the casino, the casino can create a temporary flag to the address and block it with certain time cooldown.

The challenge is that this method can be easily circumvented by creating a new wallet and play again due to anonymity.  It is said that this can be fixed by implementing KYC.  Blockchain plus KYC will identify the player even if the player creates multiple addresses.

What is good about this strategy is that blockchain record can be shared globally, so the tagged address can also be blocked by other casinos, preventing the person to deepen its gambling addiction by preventing them from indulging in online gambling.

Gambling addiction is induced by personal choice and external factors; but people tend to forget everything when they are drowning into gambling addiction, so I think the casino needs to step in by blocking the person's access to the platform, making self-exclusion automatic when signs of gambling addiction are seen.

What is your take on implementing a global temporary ban on using online gambling platforms using Blockchain+KYC to prevent people from getting addicted to gambling?


Btw, blockchain is transparent and is able to know an address activities.  Casino have ways to know if a person is so immersed in gambling through their wallet address activity. It is best detailed on this article: What Crypto Gambling Teaches Us About On-Chain Behavior and Wallet Psychology

Although the idea of combining Blockchain + KYC to prevent gambling addiction is innovative, it carries significant risks. Primarily, there is the issue of privacy and personal data protection, as a global database of self-exclusion users could be misused. Additionally, accurately identifying addiction through wallet activity may be unreliable and could result in errors, blocking regular players. Finally, there is still the possibility of circumventing the system through alternative identities or intermediaries

[Oshosondy]

In theory, this is a good but not feasible to implement in online casino.

It is also not good in theory at all, not that it will not only be feasible to implement alone, it is not even possible at all. It means no freedom for people to gamble because it is the gambling site that wants to decide if someone above 18 years should gamble or not and which will be connected to the government. It is very bad, people should go for self-exclusion themselves and not gambling site should be the one determining it.

[Dave1]

In theory, this is a good but not feasible to implement in online casino.

It is also not good I'm theory at all, not that it will be not feasible to implement alone. It is not even possible at all. It means no freedom for people to gamble because it is the gambling site that wants to decide if someone above 18[years should gamble or not and which will be connected to the government. It is very bad, people should go for self-exclusion themselves and not gambling site tshiukd be determining it.

It will be a hard work for casinos, and even if this is easy, it's going to be another operational cost and nightmare for them. Unless the regulatory body says that they are mandated to do this, otherwise I don't see them having to go to the blockchain and analysis the deposit address used by their customers just to be able to stop them from gambling.

And what if customers uses different addresses every time to use and play? Besides, this is gambling, it's a billion dollar business, they are here making money from us, gamblers casual or addicted. So it doesn't makes sense for them to do it. Besides, there are self-inclusion, but even with that, there are big issues as some players can still play despite being in the ban list from casinos.

[maydna]

That can be done if gamblers are very strictly controlling themselves because by many online casinos available, they can move from one casino to another easily. KYC will not be a problem for them and they can search for the casino that doesn't have a strict rule. It is about how people can be responsible with themselves and always prevent the will to continue gambling. Besides that, it is about self-control that gamblers must have so they don't spend too much money or play gambling longer or too often so they can avoid gambling addiction problems.

[btc_angela]

That can be done if gamblers are very strictly controlling themselves because by many online casinos available, they can move from one casino to another easily. KYC will not be a problem for them and they can search for the casino that doesn't have a strict rule. It is about how people can be responsible with themselves and always prevent the will to continue gambling. Besides that, it is about self-control that gamblers must have so they don't spend too much money or play gambling longer or too often so they can avoid gambling addiction problems.

But in this case though, the burden is on the casino that's why the OP thinks that it will be very helpful for gamblers. Because if we rely on gamblers alone, sure maybe they are in self-inclusion. However, we have heard of mental lapses, some of them goes back to the casinos and play again and losses big money.

So in paper it's feasible, but the question is that if casinos are willing and be cooperative in this kind of scenario.

For me the answer is no, they won't go and implement this, it's simply they already have the system in place, which is self-inclusion. And the burden will be on the gamblers themselves and not with them.

[Beparanf]

In theory, this is a good but not feasible to implement in online casino.

It is also not good in theory at all, not that it will not only be feasible to implement alone, it is not even possible at all. It means no freedom for people to gamble because it is the gambling site that wants to decide if someone above 18 years should gamble or not and which will be connected to the government. It is very bad, people should go for self-exclusion themselves and not gambling site should be the one determining it.

Your point is valid, What I’m suggesting good in theory is the fact that can help to control gambling addiction if this was implemented properly to all crypto online casino.

But all this wild idea is just good in theory since in reality profit matters and the responsibility on controlling someone addiction is by ourselves only since we are all playing online.

[Slow death]

People can use many wallets, people have accounts at many casinos, even if some wallet and casino are flagged, they will simply use another wallet and casino. They can even use an exchange to transfer money from the wallet to the exchange and then from the exchange to the casino, and that way they can continue playing.

They can also choose to make large deposits so that they have a large bankroll at the casino and avoid making many deposits, and that way they can circumvent these measures. In my opinion, the best thing is for the casino to simply post warnings about playing responsibly and with only amounts they can afford to lose, and let people be free to choose their paths.

[KTChampions]

People can use many wallets, people have accounts at many casinos, even if some wallet and casino are flagged, they will simply use another wallet and casino. They can even use an exchange to transfer money from the wallet to the exchange and then from the exchange to the casino, and that way they can continue playing.
~

To engage in gambling, there is no need to even transfer money from the exchange to the casino. The exchange provides similar opportunities, trading in short periods (like minutes or even seconds) is no different from gambling.
As for the idea itself, it seems unhealthy to me from the start. Cryptocurrency gained its recognition precisely because people wanted to get rid of the KYC and third-party control, why bring it all back?

[Agbamoni]

If I come could remembered vividly gambling has been in existence for several years today before the Introduction of casinos and other gambling machines today in the world, it doesn't even end there but they further having a site to host many features where you could be at your comfortable zone and still gamble and make winning. Then we can say that people who do lose money then aren't taking records of because of its popularity. Now inverter blockchain into this simply means that you and I can fund our account without any restrictions and limitations out there,. Thus, people talks about transparency because everything happens on the plan side and including kyc, this is to know whom is actually in control of their profits to prevent Anti-money laundry.

Its not something to be skeptical on, gambling existed decades ago, before we were born. The systematic structure of gambling, is risk what you have to get higher returns in a short time. And as years goes by, the structure still remains the same. However humans started (especially those in power) finding a way to benefit from every gambling activities ever since it became well acceptable. I wont be surprised to see more jurisdiction, restrictions and laws in the future, for those in power to benefit from the system.

[davis196]

Gambling addiction is induced by personal choice and external factors; but people tend to forget everything when they are drowning into gambling addiction, so I think the casino needs to step in by blocking the person's access to the platform, making self-exclusion automatic when signs of gambling addiction are seen.

Yes, the casinos would definitely block their most valuable customers(gambling addicts) and voluntarily reduce their own income.
Such KYC automatic exclusion system should be imposed by the authorities to all online casinos(both fiat and crypto). The problem is that I have doubts in the efficiency of such system. First, there are non-KYC casinos. Second, a gambler doesn't necessarily need a casino, in order to gamble. Gamblers could just gather around and play poker(or other gambling games, like dice) without the need of a casino as a middle man.

[Gozie51]

What is good about this strategy is that blockchain record can be shared globally, so the tagged address can also be blocked by other casinos, preventing the person to deepen its gambling addiction by preventing them from indulging in online gambling.

The idea is good and fantastic. The challenge will be the implementation. Which casino will implement it by their own volition by checking for gamblers who have been flagged on the Blockchain for addition? I don't think non will do that. Casinos are there to make money and if not for age restriction laws across different countries, they will allow underage to bet freely because they are there for the money not charity.

So, if the idea will be done that Blockchain can flag a gambler for addition maybe in a particular casino, the next casino can allow him to bet. But if that will be done and successfully, it has to be a law or legislation covering all casino to follow that restriction but if left open then it will lead to confusion and competition among casinos to win an addicted gambler to their casino where they are restricted in another casino.

Thus, it is a good idea but difficult to carry out. Addiction is a personal thing and an adult should be able to control themselves but where they are not able to, then their families and friends should help them by following the necessary steps to control an addicted person including seeking professional help, quarantine or taking away from the reach of the addiction sources.

[Maslate]

Yes, the casinos would definitely block their most valuable customers(gambling addicts) and voluntarily reduce their own income.
Such KYC automatic exclusion system should be imposed by the authorities to all online casinos(both fiat and crypto). The problem is that I have doubts in the efficiency of such system. First, there are non-KYC casinos. Second, a gambler doesn't necessarily need a casino, in order to gamble. Gamblers could just gather around and play poker(or other gambling games, like dice) without the need of a casino as a middle man.

It’s only possible if the government can force the casinos they regulate to comply. But even if that happens, gamblers who really want to play will always find alternatives - whether through unregulated sites or decentralized casinos.

With such a huge gambling industry out there, I doubt this kind of regulation would ever be truly effective. At this point, it feels more like an idea on paper than something that could realistically be implemented.

[Cantsay]

What is your take on implementing a global temporary ban on using online gambling platforms using Blockchain+KYC to prevent people from getting addicted to gambling?

Just a little question, won’t this also affect high rollers who are not that addicted to gambling? Because if the casino should implement this and tracks the way they make deposits or the way they move their funds into their account and then uses that to determine if a user is gambling out of the ordinary or if they are just normal gamblers, won’t it affect high rollers who are always putting huge amount into their gambling accounts?

And we all know that casino really like high rollers since they make the most of their profits from them and if it’s going to affect their best customers I don’t think casinos would be willing to implement it.

[Oshosondy]

Just a little question, won’t this also affect high rollers who are not that addicted to gambling? Because if the casino should implement this and tracks the way they make deposits or the way they move their funds into their account and then uses that to determine if a user is gambling out of the ordinary or if they are just normal gamblers, won’t it affect high rollers who are always putting huge amount into their gambling accounts?

It will affect them and they may prefer to move to gambling sites that will not require KYC. Gambling sites will not want to implement something like this because they like those that are gambling with high amount of money. They have already included in their terms of service that they should gamble for fun and not ways to make money.

And we all know that casino really like high rollers since they make the most of their profits from them and if it’s going to affect their best customers I don’t think casinos would be willing to implement it.

They can not implement it.

[lionheart78]

 Although there are many oppositionss with the idea, I think the idea itself is good enough to improve gambling exclusion in preventing problem gambling.  I can see the concerns since many member of the forum is not KYC friendly, they tend to minimize the power of blockchain and strict KYC implementation.

I also believe high rollers can still practice their normal gambling pattern, since KYC will prove that they have the funds and the source of funds to back their spending.  We may have thought that the government is not interested in these changes, but I feel that we are only discussing the effect of implementations of Blockchain + KYC in helping gamblers avoid gambling addiction.

I am thinking that with the power of blockchain and KYC attached to the address, it is a powerful tool to identify every gambler.  I also think the same as what  @cryptoaddictchie stated.

In my opinion, uing Blockchain + KYC for self-exclusion is a strong idea because it combines transparency with identity verification. Blockchain alone can flag addictive gambling behavior, but players can bypass it by creating new wallets. With KYC, casinos can link activity to a verified identity, making it harder to evade restrictions. This is typically efficient whereas a global system where flagged addresses or identities are recognized across platforms could truly reduce problem gambling.

Although the on-chain analysis is not 100% accurate but the psychology behind the betting pattern of every gambler won't lie.  I'd rather make a slight miscalculation than let a gambler get into a gambling problem.  Besides, it was stated that the exclusion is just temporary, like pouring water on a burning desire to gamble with an emotion of revenge gambling/chase winnings.

[Hispo]

Though, I don't get one could possibly tie the KYC documents or the physical indentity to the Blockchain, as they working completely independent of one another. People can always generate a new set of cryptographic keys with their wallet and gamblers do not need permission from the issuer of their personal documents on order to create wallets on their computer, so the lack of a strong and direct relation between the centralized database and the Blockchain renders this concept to be kind of dead on arrival.

If regulators could have found a way to do what you are describing, then they would have implemented it already, for the sake of reducing anonymity on the Blockchain and discourage criminals from using casinos to blur the source of their money.

[serjent05]

Judging from the number of database leaks, I wonder how this new solution will solve that. For one, I would rather avoid a platform that forces me to do KYC if possible because I can't trust them at all. The number of database leaks appears to be increasing instead of decreasing, which is undesirable.

Well, if casinos implement KYC and you avoid it, then there is no need for gambling exclusion since you won't be gambling on their platform at all  .

Let's say you use blockchain or a similar technology to make the data unreadable. Can we trust that?

What do you mean by unreadable?  Blockchain technology can be both centralized and decentralized, and can be encrypted to let only the authority have access to it.  Since there is concern about the privacy of gamblers, I believe blockchain tech with data encryption can be implemented, but it can be shared across the platform globally.  This way, data information about addresses and gambling tags will be transparent, while the encrypted data is kept from the public.

The intention is good, but many practical issues need to be solved before that becomes the norm imo.

True there are lots of concerns to tackle with.

The first among the concerns is the trust of the gamblers on KYC system, and how the casino will handle the data.  Although data privacy is regulated, we can't deny the facts of leakage. But this does not undermine the effectiveness of Blockchain + KYC in identifying gamblers and their gambling habit.

the data security issues is for another topic to discuss since it is a separate issue from what the thread wanted to tackle.  but I believe that this leakage is a human created error and can be fix.

Though, I don't get one could possibly tie the KYC documents or the physical indentity to the Blockchain, as they working completely independent of one another. People can always generate a new set of cryptographic keys with their wallet and gamblers do not need permission from the issuer of their personal documents on order to create wallets on their computer, so the lack of a strong and direct relation between the centralized database and the Blockchain renders this concept to be kind of dead on arrival.

Are you limiting the power of technology?  We have seen addresses being tagged and blacklisted, so this kind of activity is not new at all.

If regulators could have found a way to do what you are describing, then they would have implemented it already, for the sake of reducing anonymity on the Blockchain and discourage criminals from using casinos to blur the source of their money.

Are they not already implementing this method?  Exchanges have been implementing this, blockchain + KYC, are not the exchanges actively requiring their users to undergo KYC so that their identities will be tied to their addresses?

[alegotardo]

What is your take on implementing a global temporary ban on using online gambling platforms using Blockchain+KYC to prevent people from getting addicted to gambling?

So... if we  look just to technical aspect, I'd say this is completely possible, but think about it with me... would casinos really be interested to implementing something that would limit their customers and reduce their own revenue?
Another question: link KYC and the blockchain is interesting, but it comes at a high cost to our privacy... are we going to let casinos further centralize and monitor our data? What would prevent less honest casinos to use this to illegally collect our data?

In practice, I dont think this would work because depends of the cooperation of several platforms. There are so many platforms that many will certainly not join, making it useless and only limiting the revenue of some casinos... this is a very competitive market and adoption would be really low... I think.

[junder]

Honestly, I find it complicated. Just looking at blockchain activity to decide if someone is addicted to gambling isn’t a solid reference. Anyone can make lots of gambling transactions or play regularly, yet still not consider themselves addicted.

For me, addiction is more about the outcome - how a person reacts and behaves because of gambling. That’s why I think trying to regulate “gambling addiction” this way is useless. Either the government bans gambling completely and punishes violators, or they just let people gamble and accept it as it is.

It's true that anyone can gamble frequently, even if access may be complicated or difficult. However, those who truly want to gamble will certainly find a way to do so. The more transactions they make or the more frequent they gamble, the less likely they are to admit they're addicted. I believe that people who are blinded by winning at gambling don't care about anything other than gambling.
It's difficult to get the government to ban or restrict gambling, or anything else; it's more a matter of individual awareness.