When a casino confiscates funds, who actually gets the money?

[Wiwo]

Every move should be done with proper guidelines and clearly documented on paper, that’s for the protection of both the casino and the government agency involved. Usually this part is straightforward since it’s the government implementing it. Once an account or person is already on a watchlist, court orders tend to come easily, they just need to enforce it properly to catch and handle the case.

Yes that is why getting the forfeiture from the gambler to the government is quite easy and fast since getting the clearance papers to do so comes easily since the case have been closely monitored and implemented accordingly as inline with the regulator investigations into the case of the players abuse of the law or the syste the hard part is getting the restitution of such money ba k to the players if he eventually win the case over government in the long way down.

[Cryptohygenic]

When a casino freezes an account for a TOS violation and decides to confiscate the funds, what really happens to that money? Does the casino keep it as part of their income, or are they required to remit it to their regulator or some authority?

I don't think anyone that does not own a casino or not related to legislators that issues policies and licences could give perfect response to this question question never had it been made clear where the confiscated funds of users of the platforms is been chanelled to, the governments will never add them to the public revenue and the casino will not tell you they are keeping it for themselves but what I figured there is that both the casino's and authorities disburses the funds by percentages.
That is why we also say the authorities are their there to make money from players in on way and the other.

[Makus]

The funds simply go to the casino because it's not in the gamblers right to own or claim the funds due to restrictions or issues that has to do with cheating. The casino only confiscates funds when the gambler doesn't submit documents that matches KYC details, it would be taken to be a stolen account, in some cases multi accounting can also be the reason why these funds are not paid out to gamblers. The casino doesn't just decide to do this without any cause, if it's done due to mistakes then it would be resolved in a matter of days.

[suzanne5223]

So this is in relation to my first topic created.

When a casino freezes an account for a TOS violation and decides to confiscate the funds, what really happens to that money? Does the casino keep it as part of their income, or are they required to remit it to their regulator or some authority?

Based on my understanding. In most cases. The reasons for the funds confiscation will determine what happens to the funds if the casino keeps them as part of its operating revenue or on the balance sheet, because the TOS are created in the first place to prevent future complications that will force the casino to go out of business.
An example. If the confiscation was due to the creation of another account by a banned user, a user from a banned jurisdiction, a violation of the max bet rule, multiple accounts, or arbitrage. I believe that the funds confiscated for these reasons are held by the casino, but some game regulators require reporting the issue to the gaming commission for future legal purposes.

Casinos often say “funds are forfeited,” but they rarely explain where it goes after that. If it just stays with the casino, that raises obvious questions about incentives and abuse.

Anyone here know how this works in practice, or have experience with licensed casinos explaining this clearly?

You can never expect any business owner to give you an inside information about their model of operation.

[Botnake]

The funds simply go to the casino because it's not in the gamblers right to own or claim the funds due to restrictions or issues that has to do with cheating. The casino only confiscated funds when the gambler doesn't submit documents that matches KYC details, it would be taken to be a stolen account

That wasn't actually the question raised by OP, if you understood it properly. It’s not about debating who owns the funds anymore between the casino and the gambler, because that part is already settled in the discussion, once the funds are confiscated, the gambler loses the right to them. The real debate now is whether the casino is allowed to keep those funds, or if they’re supposed to forward them to the government or the regulator overseeing them.

[boyptc]

The funds simply go to the casino because it's not in the gamblers right to own or claim the funds due to restrictions or issues that has to do with cheating.

The gambler who owns that fund, owns it.

But they're playing the rules that they set in the platform they own and that's why those who aren't proven to be cheating.

They are not going to say the main reason why they need to confiscate it. What these casinos will have to do is to release the funds before banning them for life.

[Perfectbaby]

At first they wouldn't have to touch it for awhile to know if there would be possibility of restoring it back or if it happens that case resulted in court and you happens to win then they would get you back money. But in a case where you did everything possible and you didn't make it up to their ToS then automatically the fund belongs to them but, then they won't still rush to make their final decision towards that fund and of course the funds truly belongs to them.

[Odogwu-Blockchain]

The funds simply go to the casino because it's not in the gamblers right to own or claim the funds due to restrictions or issues that has to do with cheating.

The gambler who owns that fund, owns it.

But they're playing the rules that they set in the platform they own and that's why those who aren't proven to be cheating.

They are not going to say the main reason why they need to confiscate it. What these casinos will have to do is to release the funds before banning them for life.

What if the gambler complete every requirement to retrieve back his funds, undergo every process, will these casinos releases the funds? With the way these casinos behave whenever a player fails rule, I don't think they'll be down to earth to release what no longer belong to them.

I am starting to disbelief in casinos because of their dubious attitude, it sucks

[coinlary]

When you deposit into a casino, the money actually belongs to the casino. So if any violation is direct and doesn't involve a third party, like the government trailing some funds and the like, then the casino gets to keep it while you work toward getting it back (which isn't always easy) depending on the violation.

What if the gambler complete every requirement to retrieve back his funds, undergo every process, will these casinos releases the funds? With the way these casinos behave whenever a player fails rule, I don't think they'll be down to earth to release what no longer belong to them.
I am starting to disbelief in casinos because of their dubious attitude, it sucks

They will return it if it's  actually cleared , but most cases always remain unresolved because  the gambler is actually guilty .  There are some shady casinos though but reputable casino won't  just seize your money for no reason.

Here's  is a resolved  case btw :  https://www.reddit.com/r/onlinegambling/comments/1jvz186/i_got_my_confiscated_10000_back

[Fivestar4everMVP]

So this is in relation to my first topic created.

When a casino freezes an account for a TOS violation and decides to confiscate the funds, what really happens to that money? Does the casino keep it as part of their income, or are they required to remit it to their regulator or some authority?

Casinos often say “funds are forfeited,” but they rarely explain where it goes after that. If it just stays with the casino, that raises obvious questions about incentives and abuse.

Anyone here know how this works in practice, or have experience with licensed casinos explaining this clearly?

There is absolutely nothing here to explain bud, you already should know the answer to your question, yeah, the answer is exactly that which you have in your mind..😁

When casinos ban an account and confiscate the funds on that account, they do not remit it anywhere, that funds has automatically become their own and it's added to their income, this is one of the reasons I said previously that casinos will always be on the lock out for every opportunity to confiscate users fund when ever they catch a user cheating or breaking their TOS, this is usually one of the easiest ways some casinos get to make money.
And this is not something that is peculiar to online casinos alone, even physical casinos, whatever happens that made them seize your money, that money will not be remitted any where, it's added to their income and the least they can do is pay tax from it and that all..

[casey15]

When a player is caught cheating or breaking one of the casinos rule and his account is freezes, temporarily or permanently baned, the money on that players account remains in the casino. The casino claims full ownership.. it is their business and yes it can be added as their profit .
Regulation bodies only come for casinos when they break a rule  or law and are requested to pay a fine, or if one of their customers is to find a law suite against them, then the government can get involved.but for a player you had a misconduct, the mo ey remins with tfe casino and is owned by the casino... That is why casinos are always looking for people who break the rules because sometimes they fefit from it too.

[Hispo]

Any money confiscated by a casino, specially if it is a relatively small amount and the casino is small/unregistered, is going to be taken by the casino administration and assume it as part of their profit.

It is not difficult to imagine that casinos have some article in their terms of services which grants them complete power and right to confiscate money from people and use them at their discretion. They usually give that money to authorities if it is a big amount of money and it is obviously the result of a crime or money laundering.

[maydna]

Casino keep the money and they can considering to be used for many things. That could be their profit, pay some costs or others. Casino will not explains what they do with that money and that is none of our business. Casino can do anything with that money so we don't have to thinks of it.

The only thing you can do is asks to casinos. But I don't think they will explaining because that is part of their secret and business.

[lombok]

Any money confiscated by a casino, specially if it is a relatively small amount and the casino is small/unregistered, is going to be taken by the casino administration and assume it as part of their profit.

It is not difficult to imagine that casinos have some article in their terms of services which grants them complete power and right to confiscate money from people and use them at their discretion. They usually give that money to authorities if it is a big amount of money and it is obviously the result of a crime or money laundering.

The unclear contractual framework allows the small casinos to take user resources at their own will without us having the ability to reject their move in a court of law. You eloquently describe how the money that is confiscated usually finds its way to the company coffers in form of ill-gotten gains. Whenever it comes to multi-billion law suits, merely giving money to the authorities is a way of saving face.

[Maslate]

Casino keep the money and they can considering to be used for many things. That could be their profit, pay some costs or others. Casino will not explains what they do with that money and that is none of our business. Casino can do anything with that money so we don't have to thinks of it.

The only thing you can do is asks to casinos. But I don't think they will explaining because that is part of their secret and business.

Of course, that part falls under their privacy. The issue between the casino and the gambler is really just about the violation or complaint involved. Once the final decision is to confiscate the funds, that’s where it stops from the gambler’s side, there’s nothing more they can really do. If the casino then mishandles those confiscated funds, that becomes an issue between them and the regulator. That’s their liability, and they’ll have to face the consequences, whether it’s penalties or even license revocation. At that point, it’s no longer our business.

[Kasabus]

describe how the money that is confiscated usually finds its way to the company coffers in form of ill-gotten gains.

This actually describes how some casinos keep abusing customers. They’ll claim you violated the TOS and use that as justification to confiscate your balance, but in reality, they’re the ones doing the abuse. If those confiscated funds are ill-gotten gains on their side, then chances are they won’t even report it as part of their declared income. That makes it even worse, because it’s not just taking money from players anymore, it also starts to look like tax evasion on their end.

[Samlucky O]

So this is in relation to my first topic created.

When a casino freezes an account for a TOS violation and decides to confiscate the funds, what really happens to that money? Does the casino keep it as part of their income, or are they required to remit it to their regulator or some authority?

i think if casino freezes an account, what they do with the fund is to keep it to themselves. no one actually knows what they do with it exactly, but i think they first hold it for sometime, after final judgment is made they shear or remit it to some authority like government and some other offices that are involved and keep the rest fund to themselves. if we are to compare this case with that of government confiscating fund, we will understand that they keep the money to themselves and not remit to any authority, but since it is casino they will have to remit some percent to government since they are operating under government license.

[rachael9385]

So this is in relation to my first topic created.

When a casino freezes an account for a TOS violation and decides to confiscate the funds, what really happens to that money? Does the casino keep it as part of their income, or are they required to remit it to their regulator or some authority?

Casinos often say “funds are forfeited,” but they rarely explain where it goes after that. If it just stays with the casino, that raises obvious questions about incentives and abuse.

Anyone here know how this works in practice, or have experience with licensed casinos explaining this clearly?

It depends, sometimes the casinos can make a mistake on their part and the funds will be held temporary until they have settled the issue. But in a case whereby the user of the account is caught cheating then funds would be withheld by the casino. The casino confiscated funds not just because they want to, this only happens when they spot illegal activities in some cases the casino freezes the account.

[FinneysTrueVision]

If they initiate a criminal investigation and law enforcement gets involved, the government can confiscate those funds. There is not much transparency though so we don’t know the exact details of how much is forfeited to law enforcement and how much is kept by the casino.

If just a small fraction of user funds is kept by the casino due to AML reasons, that still represents a good amount of profits. This creates some bad incentives where they could potentially be motivated to steal funds and claim they have a legal justification. They also have a credible business which can be used to launder allegedly tainted funds they confiscate.

[danherbias07]

There are different rules when it comes to how the money will be turned over, and it will depend on where the assets came from. The online casino will still have to keep the account intact, including the funds, because an investigation will happen.

If proven:
1. If the case is against the government's rules, then I guess the government where the casino is located will receive the money. i.e., Money laundering. I don't know what they do after this. It will probably be destroyed and taken out of circulation.
2. There's a victim. If a credit card or a debit card from another person is used to make a deposit, then there's restitution to the victim.