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

[dimonstration]

For sure, most of the time the confiscated money remains at the disposal of the casino. In some cases, if the money was confiscated on the instructions of the authorities investigating the crime, the money is transferred to these state bodies (police, etc.). This may be related to the laundering of criminally obtained money. But in most cases, which are not related to crime, but only because of a violation of the TOS, the money is confiscated in favor of the casino.

That’s right but in general for crypto casino funds usually stay to the casino just like you said since their license provider is from Curacao or Anjouan which is not active on properly regulating the casino.

Most crypto casino doesn’t allowed US and UK players which are popular for having a government that is active user regulation so it means that confiscated funds have less chance to be seized by the government itself.

[xbetz.io]

In most regulated jurisdictions, confiscated funds do not simply become casino profit by default. What happens depends on the license: some regulators require funds to be held in segregated account, some require forfeited balances to be reported or transferred or in others, funds may offset operational or legal costs

The key point is that the rules are defined by the licensing authority, not the casino itself, which is why transparency varies so much between jurisdictions.

[XOOMBOX]

In most regulated jurisdictions, confiscated funds do not simply become casino profit by default. What happens depends on the license: some regulators require funds to be held in segregated account, some require forfeited balances to be reported or transferred or in others, funds may offset operational or legal costs

The key point is that the rules are defined by the licensing authority, not the casino itself, which is why transparency varies so much between jurisdictions.

Many people think that if a casino seizes money from an account then it goes straight into casino's pocket but in reality it is not that simple because the rules of the country or region that licenses licensed casinos are the final say here. So in some cases the seized money has to be kept in a separate trust account, in others, it has to be reported after a certain period of time or sent to a state fund. In some cases it is also allowed to use the money to cover legal costs or administrative expenses.

This is why it is not right to expect that the casino policies of one country will match those of another. The problem is that users often do not get a clear idea of ​​​​the rules because the level of transparency varies from license to license. So the wisest thing for players is to find out about the casino's license, terms and conditions and local regulations in advance. This reduces misunderstandings and gives a clear answer to the question of who actually gets the money.

[Zadicar]

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?

Why would they say so,? on what would they do into those confiscated funds.? There's only one thing on my mind about with those amounts on which it would be added up into their income. They wouldnt be for sure telling about if ever there's some sort of remitting into authority or what. In regarding into those potential shit reasons on why they cant pay then this would be mostly be seen into those non reputable or new sites on which they are locking up their users funds and telling some bullsh*t reason like this and like that, but of course not all complaints will be that valid considering that there are actual users who are that violating sites terms and conditions. So it will be that totally understandable that they do have the full rights on what they gonna do considering those TOS has been there in the first place. People would be only making up complaints without even realizing that they had violated something.

[Muba20]

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

Usually, when casino platforms ban a user, they do not do anything directly with the funds, but they keep them on their own platform. Moreover, if someone takes legal help, those funds are kept under their control, but if they declare them confiscated, it will be understood that the right of the person who has the money is over. The owner of that money is the casino. If they ban someone logically, then they can do that with their funds. Some may say that it can be given to the government in accordance with the law. But I think it remains with the casino.

[sokani]

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?

I think it depends. If the casino bans a user for violating minor rules like creating multiple accounts, use of VPN, etc, the casino will keep the money. However, in situations that involve criminal activities like money laundering, they are required by law to report to the authorities, and in such cases, I think they will have to hand over the money to the authorities.

[Pandu Geddon]

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

We really don’t know for sure how the money seized by the casino is used. But I think it depends on the nature of the violation. If the violation is purely related to issues with the casino, such as using multiple accounts, the casino has the right to manage all seized money. However, if the case involves a larger institution, such as a government agency, maybe due to hacking, theft, or money laundering, the seized money will definitely become evidence and will be requested by investigators for processing.

[Beparanf]

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?

I think it depends. If the casino bans a user for violating minor rules like creating multiple accounts, use of VPN, etc, the casino will keep the money. However, in situations that involve criminal activities like money laundering, they are required by law to report to the authorities, and in such cases, I think they will have to hand over the money to the authorities.

I doubt casino will voluntarily handle the confiscated funds that marked as laundering. They will just wait for the authorities until it was being asked since they are online and not regulated by all the countries aside from their license provider.

The money will just sit to their bankroll and will just stay in there until being asked which we all know money laundering on international level while the person originates from 3rd world countries is frequently just vanished since user will not complete KYC.

[panjul07]

Case by case because not all casinos use the same term/policy for such a situation so basically we cant have a single general answer for this case because there are always some possibilities.
The money (usually the deposit) can be returned to the players while the winning is confiscated, while we may see other options in some other cases. '
For the reason of the confiscation, I think most casinos will give the reason to the affected players only but as far as I can see the reason is not really specific.
In some cases, trusted casinos may give the detailed reason along with the proofs.

[KiaKia]

The only way a casino can hurt me is if I win a lot of money and they won't let me withdraw for some reasons, because I am never going to be in a position where I risk alot on gambling anyways, I am always with my two dollars on casinos looking for a good time.

Casinos can never confiscate my funds, I don't deposit a lot on any casinos, and yes casinos actually get the money in the end because they will use that faulty of yours to take that money away from you.

My advice is make sure that you don't get on the wrong side of any online casinos, they are just like centralised exchanges, they have every right to take your money from you and banned you for life.

[Asiska02]

No, it is not always like that for all casinos. In regard to a crypto casino, what happens to consolidated funds depends on jurisdiction and licensing. In strict jurisdiction and licensing, the regulators confiscate the funds, keeping them pending until a final decision is made on whether the casino takes them or they take the funds. While in lightly regulated casinos, the casinos simply take the funds, which will be recorded under confiscated funds and used for operational purposes.

I think one thing is clear about this. If the confiscated funds has nothing to do with the gambler illegally obtaining the money that could involve the government’s intervention, the money will belong to the casino just as in the case of violation of ToS. In a more serious case of confiscation of funds, if the gambler have moved the money into the casino and the government agencies responsible for case investigations like this trace the money into those casinos, once confiscated, the money belongs to the government and even the casino does not have the right to hold the money longer than when due when the government has intervened and the money happens to be stolen from criminal activities or laundering. This is how this casinos handle money in their casino after confiscation.

[Sonia_123]

The casino will not explain to anyone what the money that was confiscated will be used for, they will use it for whatever they want to use it, but it also depends the kind of confisticate  either is due to fraud, violation of law, money laundering due to crime will be handed over to the government.

Violation of gambling rules, the money will be held down by the casino until the problem is being ratified, also wins with some issues.

[leonair]

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?

Good question, but the answer to this question is simple. When a casino site freezes someone's account for ToS violation or for any other reason, that user gets an opportunity to appeal by submitting a valid reason or document explaining why they did so. However, this is only a consolation prize. These funds remain with the casino sites.

Casino sites are centralized so when you deposit money there, that money goes to their cold storage and only shows a balance number in your account and in case of withdrawal, they remove that amount of money from your account and give you money from their main wallet. So if your funds are frozen, in that case your account will show a balance for life but your main money will be used by the casino platform like them.

[Z-tight]

If they are legally obliged to keep the money for themselves? I believe that depends on certain factors. Do they keep confiscated funds to themselves? Yes they do.

So many casinos confiscate players funds, especially when they win a large amount of money, simply because they do not want to pay out the winnings. And in many occasions they even refuse to return the players deposit. So it is not hard to understand that they keep the money to themselves and block the player out of their account.

[Accardo]

Violation of gambling rules, the money will be held down by the casino until the problem is being ratified, also wins with some issues.

In most cases the funds won't be ratified, then the funds belongs to the house for boycotting their terms of service. However, a casino can't run dry after paying a player's seized money, the money will be compiled with other existing money in the casino, but cases like that hardly get fixed.

[Johnlomape]

In most regulated jurisdictions, confiscated funds do not simply become casino profit by default. What happens depends on the license: some regulators require funds to be held in segregated account, some require forfeited balances to be reported or transferred or in others, funds may offset operational or legal costs

The key point is that the rules are defined by the licensing authority, not the casino itself, which is why transparency varies so much between jurisdictions.

In many occasions there are many cases where casinos owns the money and their is nothing the regulation wants to do about it. Most times, they are not even aware about the confiscated funds because this is mostly the business of the casino and the players. When casinos confiscate your funds, they keep it in their account and when the right time comes, they will use the fund to settle gamblers and pay for bet wins if their are high wins from their platforms. Casinos are the most benefiting companies here and players are the ones that are losing their money.

[Dunamisx]

The casinos control the wallet the money is, they are also in charge of the casino you're using, we don't have any access to our fund with them, not even with any key to grant access on them from the blockchain, so if they restrict us and confiscate our money, it's all up to them being the illegal owner, the casino take charge, except the government also step on them to claim part of it.

[Cyber_warrior]

A good example is money laundering cases, where casinos are required to freeze or confiscate funds in coordination with the government. But in that situation, do casinos actually have the right to keep the money for themselves? No, they don’t.

The OP already mentioned it that if a casino freezes an account for Terms of Service violation, and not a money laundering violation. If it’s a Terms of service violations, then the casino should hold the money, the money will have to go to the casino account, but when it’s a money laundering case, then that’s different because the government will have to be involved, so I feel the money is going to be refunded to the right authority, and the casino won’t be able to hold the money.

[Nwada001]

The casinos control the wallet the money is, they are also in charge of the casino you're using, we don't have any access to our fund with them, not even with any key to grant access on them from the blockchain, so if they restrict us and confiscate our money, it's all up to them being the illegal owner, the casino take charge, except the government also step on them to claim part of it.

Talking about having access to the key to access the fund is like a dream since everything is centralized. We already all know it's the owners that have the final say; what we see as a balance on our dashboard could be manually input without any actual balance behind a real wallet. The question is, who actually ends up with the money they seize from customers' rule violations? Such money is obviously going to owners.

[Rgram]

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.

While this might be very concerning as, it might lead one to think that, should the funds be left with the casinos, it would be a driving force to promote more and more forfeitures but, you’ve got to understand, they need you to play for the business to run. That means, this wouldn’t be done else, you’ve actually violated some terms.

When terms are violated by gamblers, you could be rest assured that these funds are kept with the casino. It becomes a form of restitution to them for the many violations that were noticed late and abused bonuses.
When the source of the gambling funds is of criminal origin, that could be given to the authorities.