Should Crypto Casinos Be Required to Publish Proof of Reserves?

[Dave1]

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?

[swogerino]

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?

Well it makes sense for new casinos though for me it should not be mandatory to do so, you simply cannot ask a business what is your complete capital. It would be nice if they sign messages from their wallets holding a lot of money as this would be reassuring for most gamblers that they would play worry free, again though not really mandatory in my opinion. Bankroll capital if exposed shows and gives credibility to the casino in their first steps of the business so despite not mandatory in my opinion it would do them benefit if they show it to players.

[Orpichukwu]

Licensing is not enough, but before they gain those licences, there is an average amount they also need to have in reserve before they can be granted that permission(Curaçao’s, about €100,000 and above, Melta MGA, €1m and above); even if it’s not made public, I believe such is usually verified.

But even if the casino comes out to show how much they have in reserve in public, who is going to verify that they actually own it unless the money is in a crypto wallet that can be tracked and verified?

[Ruttoshi]

Even the exchanges that we know customers keep funds is their custody hasn't been fair enough to allow people verify their proof of reserve. They only say they have and you know how much funds  customers entrust to these exchanges.

I don't see it necessarily for a casino to show any proof of reserve because you will end up gambling all your funds in the casino. Use a big and reputable casino that can afford to pay your wins no matter how big it is.

[Decimetre]

It would be a good reassuring evidence for players especially in the early days of the casino to make public their available reserve funds. This funds too should be deposited or partly controlled by the regulatory body in the initial stage until they have gained more capital over time. There are standards set for licencing but some of the standards can also get compromised during the process in order to obtain the licence. If the funds reserve is made public, it will also support the claims that the licence has been obtained legitimately.

Before a gambling licence is issued, many documents are forwarded including the bank statements of the person for at least the last two years https://lro.abj.gov.ng/lottery-licence/ and based on the non refundable fees paid to the regulatory body, it should be right to say that such gambling bodies has the ability to stand on their own and pay up wins. In a sane society where the right things are done, a licence to operate should be enough to convince the players assuming there's no compromise.

[Charles-Tim]

Having proof of reserves will be a good thing, but gambling sites are not exchanges and I have not seen anyone among them that have proof of reserves. Only what I know is that some gambling sites like Stake.com (Stake.us for people in United States) have high amount of money and I still trust the gambling site more than other crypto gambling sites.

This thread can not change them to have proof of reserves.

[Localhostspeed]

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 think they should but casinos are not like centralized exchanges where you can do custody of coins. The essence of custody is to convince people that their coins are safe in the hands of exchange that is why they are doing it since some people can't hold coins on their personal wallet. Casino on the other hand is a pure place to gamble, you give them money to gamble and if you win, you get your profit and the stake you put on what you bet on the casino.

I don't know if you pay attention to casino wallets, casino like Stake has their wallets address labels on popular like Ethereum chain and BSc chain, you can use them to track the wallet and see how they move funds but I don't think casino will proof of reserves. The physical casino didn't start it, I don't think the online ones will do oh due to the nature of how casino is. Business wise it is not safe for a casino to reveal their reserves and wallets for people.

[viljy]

Casinos can do this voluntarily in order to increase the level of trust and promote the brand, but I doubt that such a requirement can be legally adopted in any jurisdiction. And even if so, it will affect only a part of online casinos. It also seems to me that this is irrelevant for the vast majority of gamblers, because only a few of them win really huge amounts.

[Cointxz]

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.

[DrBeer]

I think the size of the "payout fund" and the payout guarantees would be more interesting. I understand that these figures will fluctuate quite a bit, but they would serve as good indicators and secondary signs of the casino’s popularity in the market and its active user base. If the casino is doing well, this would also serve as additional, high-quality advertising for it.

[Ishicryptic]

Licensing is not enough, but before they gain those licences, there is an average amount they also need to have in reserve before they can be granted that permission(Curaçao’s, about €100,000 and above, Melta MGA, €1m and above); even if it’s not made public, I believe such is usually verified.

But even if the casino comes out to show how much they have in reserve in public, who is going to verify that they actually own it unless the money is in a crypto wallet that can be tracked and verified?

I want to believe that licence issuers for casinos must have something like a proof of reserve as one of their requirements to issue licences to new casinos and what you explained shows that these known licensors have such requirements from casinos that are seeking their licences, if we gamblers sees these licence issuers as credible then we shouldn't worry about casino proof of reserves. But if a new casino can go the extra mile to make their reserve public it would give gamblers more trust that if they win substantial amount that the casino won't tell them stories before crediting them, the best thing to do about a new casino is to only deposit small amounts and gradually be increasing your bankroll as their trust ratings are increasing. I don't think that a casino showing the public their reserve funds would change anything if they want to scam a gambler, let us concentrate instead on the reputation of casinos.

[Junii]

Does it make sense?

Yeah for me it makes sense especially for new casinos what ever they say like we have 10million$ etcetera but that is not enough and a proper proof of verification should be needed . Also that fund should be seperated from the casino's operating money. I know no casino can keep enough cash to cover every possible jackpot but there should at least any insurance or financial backing. As the luck factor and house edge is also available which make it a little challenging for everyone to win a jackpot in a casino's but sometimes a player's luck can be exceptional  and a new casino should be financially prepared for that possibility.

[bakasabo]

Does it make sense?

It make sense, but casinos already have a mechanics that will allow them to be saved from going bankrupt because gambler bet a lot and won. They regulate bet size by setting limits. This saves them from not being able to repay winnings in full amount.

Proof of reserves is good idea, but it seems that it not going to work well for such business as gambling, because they always have money in turnover and that reserve will be the amount that changes always. It not always that gambler who has made a large win withdraws his winning immediately (or later lose them), so that is also a "point" against keeping a reserve when those money can be put in business.

[Synchronice]

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?

Actually, there should be a rule and this should be regulated. Crypto casinos should be required to provide Proof of Reserves and max winnings should also be flexible in a way that casino should guaranteed pay money to their customers. My point is that Proof of Reserves and maximum winnings should be linked, rather than treated as separate issues. Reserves also aren't sufficient. Casinos should provide Proof of Liabilities, i.e. how much they owe to players. When win is confirmed, the corresponding funds should be reserved for the player so the operator cannot subsequently claim it lacks liquidity.
Does anyone know any casino that follows this order? If there aren't any, I wonder if such a business model brings real edge on this competitive market. I'm afraid, it might be a waste of time, resources and potential profit since users won't highly focus on these features. We all know that people easily forget.

[arwin100]

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?

Yeah its good but does the casinos exist have guts to show that? Actually they state lots of reason just to ignore this kind of request. Because this will actually expose the financial capability of their platform.

If we notice that the casino pays in staggered basis once there's huge win occur that means they have small bankroll and I will provably avoid that casino. They are not good and most likely will turn scam if many players win huge from them.

I hope in future this will be included on future regulation done by government, so it can add transparency to the player and to know if the casino casino is solid or just another trash.

[Somegory]

It's not a bad idea especially for new casinos but is it really something that's missing on this gambling space? I don't really think so because I have experience with new online casinos, when they don't have money left they promise to pay.

Proof of reserve will affect them even more because once gamblers see what they have they will gladly leave the casino for another one that has better reserve, it's not going to help them.

A new casino will have to pay a lucky gambler slowly to keep their reputation intact, and few I've seen later grow into a bigger online casino, I believe that things are best left this way.

[salad daging]

It's rare for casinos to publish Proof of Reserves, but you can still look onchain in the Arhkam Explorer as some casino wallets already exist that have identification.

You can view this data from the platform:  https://gamstat.io/wallets
Select the casino you want to look for there displays a casino wallet that has large funds, it can be a Proof of Reserves reference.

[Dr.Bitcoin_Strange]

There's a procedure that regulated casinos normally undergoes before they are being given the licence to operate. Yea, some people might say license is not enough but let's not forget that their are different requirements that is supposed to be met by a new casino before they can acquire that license and one of those requirements which looks like a proof of reserve is that they will be asked to show their starting capital, financial statement or audited account, any proof that will show that they can be able to pay their max win will be required of them to show it. So, I don't really think they can skip undergoing that process unless that the authorities that is licensing them have started receiving bribes and skipping that important part.

However, I think it will still be nice if they show this proof of reserve to players, it can give some whale the confidence to play with huge amount in that casino, especially if it's a new casino.

[davis196]

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?

Do you want the authorities around the world to change the gambling legislation and make proof-of-reserve mandatory for all casinos worldwide?
I have doubts that such thing would ever happen, but you never know, since gambling laws and regulations are getting tightened in many jurisdictions. I personally don't care if a crypto or fiat casino shows "proof-of-reserves" or not. I have no expectations of winning big and I wouldn't mind if I ever hit a big win and the casino decides to pay me in several "installments". The casino having a "proof-of-reserve" doesn't necessarily mean, that it will pay out your profits. The gambling business is more about building trust and reputation than showing proofs of liquidity.

[Dunamisx]

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 don't think this is necessary before you can't decided on which gambling casino you want to use, once some operators discover this is the strong point we use in determining for which casino we are using, then can you try to manipulate what they have in reserve without showing a proof to it, such could be a written statement or what they display on their platform just to encourage for users to have confidence in them and register to gamble, there is more to all this when it comes to determining which gambling casinos we are going for.