Should Crypto Casinos Be Required to Publish Proof of Reserves?

[Rruchi man]

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?

Even if some casinos publish the amount of money they have in reserve as evidence that they can pay out big wins, they may still decide or can still decide not to pay out a big win to an individual for some reasons that are not so tangible because they simply do not want to.

Proof of reserve is not proof of reputation because casinos can flaunt a big balance but still fail to pay wins as they should.

[acroman08]

Does it make sense?

Personally, yeah, it does. I mean, it would be nice to know whether the casino has the funds to actually pay their gamblers, especially when someone hits a big win in the casino. Also, if I remember correctly, there was a time here in the forum where casinos would post their hot wallet to show their bankroll when they launched their casino. I can't remember if it became a trend, but I do remember some casinos posting their hot wallet to show how much bankroll their casino has.

[CryptoHeadlineNews]

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?

Having a proof of reserve doesn't stop a casino from refusing to pay you when you win a huge sum of money, but having a proven record of always paying high winners is enough reason for any new gambler who wishes to gamble on casino to consider. And this is a more reason why it's always advisable newbies gamble on reputable casinos, and not rushing to gamble on a newly launched casinos with no proof records of paying it's gamblers conveniently without delay. Because a casino can still publish their proof of reserve to the public and yet not want to pay you when you hit a jackpot.

[Haunebu]

It would obviously be great if they were required to provide proof of reserves at any time, but it's not feasible considering various reasons such as player records, inexperienced teams etc which is why this will probably never become mandatory.

Licensing helps to a certain extent while player withdrawals of varying amounts regularly help provide a better picture.

[Nathrixxx]

Don't expect that many crypto gambling casinos will be able to provide you with this, in which gambling platform do have their policy and some may not be willing to open up their worth as regards what they have as proof of reserve, and this does not mean that they don't have reputation if they are unable to do so, while the casinos that does all this may not be as reputable as the one that don't in some cases, therefore it's all varies and depends on the particular gambling platform we are dealing with and how trusted they are.

[JunaidAzizi]

Casinos run on trust, and that comes with transparency. The more they demonstrate this, the more people will blindly trust them. To achieve this, casinos show two models, one is the license, and the second is the reputation. However, they are now using another model by showing how much funds they have and their payouts, because a license can be bought by anyone, and reputation cannot be built in a single day, it takes too much time. Therefore, the fastest way is to show the funds as it is now the best way to get the trust and will help identify the shady ones.

[Bryan jessy]

It does make sense but even if a casino shows how much money they have it still does not prevent anything that is bound to happen and what if the amount displayed is not actually the exact amount they truly have you would not know so to me I do not think it's one of the necessary requirements to determine the standard or authenticity of a casino if that is what you want to look out for, because they can still establish such information and still do otherwise, though I doubt if a good casino with good reputation will withheld huge wins from gamblers, I am sure they set the games on the very amount they can take care of without ruining their reputation.

[crwth]

If it's new, I would really rely on that, especially if they haven't been long in the business yet. You can never really know when that casino could decide to pull an exit scam.

TBH, it's not enough yet, because even if you see that a casino has $10m, but it owes $11m, do you think that's going to be okay? I think deeper or more proof, like with liabilities, could be beneficial. I'm not sure if there's a standard way of doing it.
^{(you know that crypto can be moved easily and wallet balance could change instantly)}

A complete report may be enough 

[Obim34]

Having a proof of reserve doesn't stop a casino from refusing to pay you when you win a huge sum of money, but having a proven record of always paying high winners is enough reason for any new gambler who wishes to gamble on casino to consider. And this is a more reason why it's always advisable newbies gamble on reputable casinos, and not rushing to gamble on a newly launched casinos with no proof records of paying it's gamblers conveniently without delay. Because a casino can still publish their proof of reserve to the public and yet not want to pay you when you hit a jackpot.

It is different when they have the funds but refuse to pay than convincing their customers as being able to pay, when they are not able to survive paying huge withdrawals. Most casinos do have a maximum payout, it is expected for every casino to have their maximum payout already in their wallet as a reserve.

If the casino can provide proof of reserves, gamblers will have more confidence before using the casino, believing they can disburse maximum wins or pay huge wins without flinching. It is easier to pursue a legal case for a casino that has the funds and refuses to pay than a casino that cannot afford a maximum payout.

[Cryptomultiplier]

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?

There is no need for such a thing, because no casino pays out more to a gambler than it has won.
Even a newly established casino distributes what it collects from players only in small increments.
We cannot view casinos in the same way as crypto exchanges.
This is because, in casinos, the gamblers themselves constitute the liquidity.
The more gamblers there are, the more liquidity flows in.

To me, it's not really any big deal for a casino to publish their proof of reserve funds, because a gambler must first have it in their heart that the house edge is against them and that means if a thousand players bring their funds to gamble,  there is a high probability that out of 10 trials per person, each of the gamblers that make up the thousand only get to win Between 1- 4 times.

Even when you win big most times, you unknowingly already spent up to the amount required to get the big win mostly for slot players and it might just be other players paying you who have also like you, bought the bonus or fulfilled the bonus or multiplier requirements but lost anyways.

That's why I agree that these days proof of reserve by casinos is mostly shown in the kind of license they have, the amount they have spent on expensive and quality marketing campaign and advertising, the user interface designs and the arsenal and variety of top games in their collection.

[Nwada001]

Does it make sense?

Yes, it does, since new casinos are emerging every now and then. I always require them to leave a minimum winning amount to match what they have in their reserve to pay winnings, but since we have seen cases of a casino taking times to complete payment, I believe it should be necessary to publicly declare what they hold, and players will know what they are chasing, but with such, there will be a lot of eyes on that wallet.

[gracreavix]

Proof of reserves is not enough to prove liquidity. Funds can move afterwards. That's not enough to prove a casino can withstand paying hugely. How much the casino can pay out at a time. Should be known too. What is more important is full transparency from casinos. But I think a huge percentage are not transparent. Don't know whether license cover all those things. Even if those funds are there, casinos shouldn't run out of sponsors.

[red4slash]

That would be pretty good if it did happen but in this case who could verify that it is true. In order to open a casino in some countries they must have funding requirements that can be verified by the relevant government and this will probably be reasonable only for a site this may certainly be a little difficult.

Even if they show us in the form of pictures or adrress it will be a little difficult to verify whether the claim is true or not.
This would probably be a good situation if the country were aware enough of gambling control but what if they were standing in a country whose gambling rules are loose enough to allow this to also be a loophole for manipulation.

[Odogwu-Blockchain]

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?

Proof of reserve is not proof of reputation because casinos can flaunt a big balance but still fail to pay wins as they should.

Some casinos can only show proof of reserve to influence players into depositing in the platform, like using it as a bait to lure in many players while the amount shown as reserve might proven to be fake. It does happen, even on most decentralized finance platforms, they show fake Total Value Locked (TVL) on their site making investors thinking highly of them.

So proof of reserve isn't a guarantee evidence of having to pay every big win by players, it's just a way of marketing though.

[Floxynice]

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.


Does it make sense?

It makes sense but the problem is how we can push them to implement it?

Even with lots of unfavorable rules on the casino we still play especially on the vague part terms that they reserved the right to not disclose their full findings once your account was punished from their own investigation.

I do like casino being transparent with their reserves if they can publish it. IIRC, some new casino already doing it to established trust.

It will be difficult to get unlicensed and unregulated casinos to implement this, but for licenced casinos, this can form part of their licencing and regulatory requirements, to keep a certain amount of money in their reserves or periodically publish proof-of-reserves to the public as the case may be. This will be followed up with close monitoring by the regulators of gambling in the country.

I really love the idea. With this, gamblers  will not be in doubt about the genuineness of a newly launched casino. A proof-of-reserves will indeed give gamblers reasons to use a particular casino. This will not only be beneficial to the gamblers, but also to the casinos because of the added transparency.

[rbynxx]

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?

So now it's kind of an exchange thing? Well, not bad but if they want to do that, I think it should really be done since day 1 of the operation so that people are aware and know that this casino is a reputed business. I think the government or those that approves licences are the one implementing this rule before they could get it but if they want to do that it should also be publicly available in the blockchain. Yeah it kind of make some sense. We are betting our money to them to really expect we can be paid in return if there's some winning.

[alastantiger]

This is a very nice idea that will give gamblers confidence jn using the casino. But I doubt cainos will willing share this information to the public unless they are mandated by law. On the other hand, even if casinos decide to share this information publicly, it does not stop casinos operated by scammers to steal people money through crooked means. I think the reputation of the casino is more important than providing proof of reserve.

if cryptocurrency casinos begin to publish their proof of fund it will go a long way in building trust among the gamblers and people wouldn't be doubting the casino that they have the money to payout their winners. Lot of casinos miss the chance to take money from gamblers because of this they miss out and since we have many casino that don't make a profit that's why them showing gamblers that they can pay them will entice them more. I would not make use of a new casinos because they can scam at anytime but if they have a proof of fund then I can trust them and make use of them without thinking twice.

[o48o]

Proof of reserves is not enough to prove liquidity. Funds can move afterwards. That's not enough to prove a casino can withstand paying hugely. How much the casino can pay out at a time. Should be known too. What is more important is full transparency from casinos. But I think a huge percentage are not transparent. Don't know whether license cover all those things. Even if those funds are there, casinos shouldn't run out of sponsors.

Afterwards? We could literally see that in real time when wallet transactions are transparent information.

But this seems like a problem for smaller casinos, as many wallets of big casinos are pretty much flagged already and those alone hold more then enough for big wins. And nothing is better advertisement for a casino then announcing a big payout. Only smaller scammy casinos would be holding out on paying those soon as possible.

[Yabani]

I don't know if casinos disclose their reserves, but if I were going to gamble, I would choose large casinos.
For instance, many people keep their crypto assets on exchanges rather than in wallets.
They prefer major exchanges for this reason, as these platforms possess strong reserves, even if they don't publicly disclose them.

[coin-investor]

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.

Even if they claim to have huge reserves, if they don't want to pay you, then they will not; the reserves will just end up as a marketing stunt to lure gamblers to choose their platform.

It will still go down to reputation and their history of paying small and huge amounts. If you want guaranteed payment, choose a big casino with a strong reputation and a history of paying their winners legit winnings and, of course, make sure you follow their terms to avoid loopholes in your winnings.