Should Crypto Casinos Be Required to Publish Proof of Reserves?

[len01]

Should casino published how much money they have in the beginning?

-snip

Does it make sense?

That makes sense from a gambler’s perspective, but from the casino’s perspective, there is no need to do that. A new casino with a relatively small reserve would obviously not want a high roller to see the size of its reserves and become hesitant to gamble on the platform.

At the same time, the new casino wants high rollers to gamble on its platform so that it can generate significant profits and increase its reserves. Therefore, it is very rare for a casino to publicly disclose the size of its reserves.

[Aanuoluwatofunmi]

We are not in a position to determine whether a casino is showing us its proof of reserve; if it is truly intended to do so, it would not hesitate to state it without us requesting it from them. However, having a clue about this information does not lead to any conclusion that a gambling casino is reliable and trusted for use, except that we have conducted more research to know other necessary information, as to why we must choose any for gambling.

[Odohu]

We are not in a position to determine whether a casino is showing us its proof of reserve; if it is truly intended to do so, it would not hesitate to state it without us requesting it from them. However, having a clue about this information does not lead to any conclusion that a gambling casino is reliable and trusted for use, except that we have conducted more research to know other necessary information, as to why we must choose any for gambling.

Such information may not actually be classified, it is just to assure players that their winning will be paid out without excuses. It could even be a marketing strategy by the casino because people will happily play in platforms gives them some form of assurance that they will be paid. Casinos are not mandated to do this, so they can chose not to do it and people can still trust and use their services if they are running their business without complaints.

[lionheart78]

Should casino published how much money they have in the beginning? Sort of Proof-of-Reserves? So that gamblers knows that in a event of a big win, we know that they can cover it? Because I remember a case wherein a new casino what hit with a big win and they paid the winner in staggered and not in out get go.

I'm just thinking of this set-up as most of us says that licenses is no longer the standard for new casinos to have. They can easily apply for it and once they got roll the casino itself here but we don't know if they have enough bankroll in the beginning.

Does it make sense?

I read that licensed casinos undergo the process of proving their funds.  They have to submit their bank accounts, and the licensing board requires that specific casino to hold the amount required for them to operate.  So I do not think that there is a need for the licensed casino to provide their players proof that they have the fund. 

Obviously, it is a different story for unlicensed casinos since their funds reserves are not verified.  In this case, it would be beautiful if the unlicensed crypto casino to provide their proof of funds by signing an address that holds the funds.  But obviously as a gambler we cannot forced this unlicensed casinos to do so.

[The Cryptovator]

Should casino published how much money they have in the beginning? Sort of Proof-of-Reserves? So that gamblers knows that in an event of a big win, we know that they can cover it? Because I remember a case wherein a new casino what hit with a big win and they paid the winner in staggered and not in out get go.

I am not sure if they publish their initial funds at the beginning; at least I haven’t noticed even if there are. But those who are here to do gambling business should have enough funds to cover winning. They even take some investors as well to cover such big winnings.

However, I believe at the end of the day the casino is always the winner. So they shouldn’t have an issue for one single big win where a lot of gamblers have been losing. However, I don’t think gamblers much care about the bankrolling of the casinos. They just gamble; unless there are issues, no one even raises concern.

[DiMarxist]

Is this really necessary I don't think so, the reason is because there are Regulatory bodies that makes sure that every Casino that is approved to operate as a casino meets the requirements. Which I think that the issue of funds will be taken seriously. What we as gambler's should be more concerned about is how genuine a casino is.

Because there are allot of fraud casinos out there, especially online casinos that pup up every here and there, if you check the casinos which has ran away with the funds of their customers, they not be too popular and just use means to popularize themselves to the top. So it important that we watch out for casinos to avoid regrets.

We should make sure that we only patronize very reputable casinos, which has been on the space for a long time. This is because a casino that has been there for a long time has lower probability of running away with peoples funds.

[Crypto Library]

Should casino published how much money they have in the beginning? Sort of Proof-of-Reserves? So that gamblers knows that in a event of a big win, we know that they can cover it? Because I remember a case wherein a new casino what hit with a big win and they paid the winner in staggered and not in out get go.

I would say at least they paid even they did that in staggered because we also saw lots of casino they didn't pay the big winner and try to run aways by giving a silly assumption like you violate the acbdxyz rules just like a scammer. Even we saw the winna casino they also run the signature campaign in the forum but still scamed the people, even though they bribed the moderator to delete scam accusations which are against them. The reason for saying so much is that fraudsters will never pay users and in their case there is no question of publishing Proof of Reserves.

I'm just thinking of this set-up as most of us says that licenses is no longer the standard for new casinos to have. They can easily apply for it and once they got roll the casino itself here but we don't know if they have enough bankroll in the beginning.
Does it make sense?

Obviously, that will be a cool idea if the casino provides proof of reserves, but is it really possible for them to do something like this? Unless the government makes a law for these things.

[Woodie]

Is this really necessary I don't think so, the reason is because there are Regulatory bodies that makes sure that every Casino that is approved to operate as a casino meets the requirements. Which I think that the issue of funds will be taken seriously. What we as gambler's should be more concerned about is how genuine a casino is.

Agreed, those that are regulated and show valid licenses can be exempted from these requirements of showing proof of reserves. And btw, some casino's are to big to have their finances open to the public for security reasons and ofcourse away from the governments eyes who will want more stake in the company either through taxes or licenses... besides these casinos aren't public listed companies, so legally they don't have such an obligation either.

Because there are allot of fraud casinos out there, especially online casinos that pup up every here and there, if you check the casinos which has ran away with the funds of their customers, they not be too popular and just use means to popularize themselves to the top. So it important that we watch out for casinos to avoid regrets.

We should make sure that we only patronize very reputable casinos, which has been on the space for a long time. This is because a casino that has been there for a long time has lower probability of running away with peoples funds.

Easy to say for regulars that are up to date with whats happening in the gambling world,  but for seasoned gambler's or new players it's a different story.

And I agree, in the crypto world reputation is everything, but unfortunately with paid shills, bias review sites, fake review's on platforms like trust pilot , it's now difficult to label which platforms are reputable or not..

[MorganaX]

Should casino published how much money they have in the beginning? Sort of Proof-of-Reserves? So that gamblers knows that in a event of a big win, we know that they can cover it? Because I remember a case wherein a new casino what hit with a big win and they paid the winner in staggered and not in out get go.

I'm just thinking of this set-up as most of us says that a license is no longer the standard for new casinos to have. They can easily apply for it, and once they got roll the casino itself here, but we don't know if they have enough bankroll in the beginning.

Does it make sense?

I think before they were given the right or license to operate, they must have some certain amount of funds to show that they are capable of running such a business. I mean, if there is nothing like this, then it's something to look into because almost anyone can just pop up and decide to start up a casino and we all know how that's gonna end.

So I feel casino already have the capability to pay out big wins and this has been possible verified from the license operator so I don't think we anything to worry except about your much you are going to lose to the casino 😁.

[Cantsay]

And come to think of it, let's say that they have posted it, but behind we don't know if the casino itself has massive debts from behind. So we really don't know it's true financial standings.

If they are to make it public, they would need a system for people to actually verify that the funds are real and not just for show and also not a fake transaction. Whether they are in debt or not, that would be a more difficult system to make public since not all of the casinos transactions or dealings are made public.

I can still remember back when a site, I think it was a mixer that tried to cheat like this but then got caught and it ruined their reputation.

[nelson4lov]

I don't think it's mandatory for casinos and sportsbooks. Unlike exchanges, casinos and sportsbooks are not used like a bank account for storage of funds compared to how people use their exchange accounts as primary venue to store and hold their crypto. And we know that casinos already have their edge and sportsbooks have baked in margins and vigs so they're usually profitable in the long run which means solvency.  For exchanges it's different because they usually borrow or lend out users funds at least that's what FTX showed us.

[fredericktaylor]

Should casino published how much money they have in the beginning? Sort of Proof-of-Reserves? So that gamblers knows that in a event of a big win, we know that they can cover it? Because I remember a case wherein a new casino what hit with a big win and they paid the winner in staggered and not in out get go.

I'm just thinking of this set-up as most of us says that licenses is no longer the standard for new casinos to have. They can easily apply for it and once they got roll the casino itself here but we don't know if they have enough bankroll in the beginning.

Does it make sense?

I don't think this is a good idea, casino is a business a like every other business their aim is profit making which obviously comes from thier bettors. However,  having to show their bettor their weaknesses of not having enough to pay for their big wiin will only reduce trust and keep the casino starving meanwhile, only the big casinos will get the vast majority of gamblers.
Another reason is, casinos are for entertainment so why should they disclose their total amount to you, they shouldn't be thought of outside the business class because they're part of it.

Yes, casino is definitely a business and everyone has their own rules and regulations or strategies to survive in this business. It is never possible to win money consistently through gambling, in the long run the casino is profitable. If the casino reveals the amount of money they trust, then this will increase the attendance of some people but as a result the casino will be in big trouble. The scourge of fraudsters is increasing day by day and their activities are changing with time. If we are gambling for entertainment, then it is better not to worry about whether the casino will reveal their money to everyone or not.

[retreat]

Does it make sense?

It's not a matter of whether it makes sense or not. We know that the casino industry is very secretive about its finances. Because so many people have a stake in the industry, they don't want their financial situation to be fully transparent to the public, and in many cases, they even go so far as to manipulate the numbers just to make their financial records look good. So I think this "proof of reserves" doesn't help much. Because if it's a reputable casino, they don't need proof of reserves to convince their users, since their reputation alone is enough to convince users that they won't run off with the money and will be fair when a user wins big.

[AmoreJaz]

Does it make sense?

It's not a matter of whether it makes sense or not. We know that the casino industry is very secretive about its finances. Because so many people have a stake in the industry, they don't want their financial situation to be fully transparent to the public, and in many cases, they even go so far as to manipulate the numbers just to make their financial records look good. So I think this "proof of reserves" doesn't help much. Because if it's a reputable casino, they don't need proof of reserves to convince their users, since their reputation alone is enough to convince users that they won't run off with the money and will be fair when a user wins big.

I don't think crypto casinos will disclose what's in their vaults. But in the early days of crypto casinos, do remember that we used to ask about their bankroll for these new casinos. Now, it is not being asked anymore as there are other aspects where you can determine the reputation of the site such as license and the acquired reputation throughout the years of their operations.

[PX-Z]

Should casino published how much money they have in the beginning? Sort of Proof-of-Reserves? So that gamblers knows that in a event of a big win, we know that they can cover it? ...
Does it make sense?

It does, but it's not as easy as you think. I'm sure license provider knows such data and its a requirement for them before giving a casinos a license and its a business requirement before they operate but its confidential. Because opposing casinos or other casino supporters will use that against you once it's published.