Should Crypto Casinos Be Required to Publish Proof of Reserves?

[DPHOR]

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?

Of course this actually makes Sense if you ask me because there are some casino or gambling site that may want to start small without enough money in reserved and when there is a big win or several winning then they ran into shortage of money were they would start paying out the winning in a way they wouldn't make better use of their money.
I think, such address should be made public on their gambling site so that gamblers could know what they have in reserved should were there is a big win they could have It paid out in full.

[Onyeeze]

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.

if a casino should be asked to post what they have all the amount of money they have in their possession, before someone will Gamble with them, that can decide to fake the figure of amount they have, and many people will not question them because what ever they showed you is what you believe on and they come collaborate with a bank manager to give them a figure of amount to publish to their players in order to make them to be satisfied or to believe that there are capable of paying any amount of money someone win, so those method of they use to apply for us especially a trickish way method that can also apply such thing in order to deceive their client

[MAAManda]

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 have also heard of cases like that, but they didn't happen on crypto casino platforms, they occurred on casino platforms that only supported our local language. That sounds pitiful for a platform that actually lacks sufficient funds to pay its users.

Does it make sense?

In the crypto industry, we can't simply take a platform's word for it, instead of trusting blindly, we must verify the information ourselves. However, that isn't actually necessary. AFAIK, casino platform always wins, they simply take a small amount from the user (House Edge concept), while the user's money returns to the user (Return To Player concept). So, it's not an issue for a platform not to have PoR, if they can provide it, our level of trust in the platforms that do provide PoR information can be higher.

[Cantsay]

It makes sense for a lot of new sites to have it in place.

There are several ways in which this is going to help; the first is the fact that it would help people know the capability of the site and also for high rollers to know if it can handle them or not.

It would also help to build trust; they would need a way to also prove that the funds are actually real and not a doctored. i think I saw a  case where one company tried to forge the total funds that they have in reserve, but they were later discovered and that led to the ruin of their reputation.

[romero121]

This will be good for the users to verify the information and the trust over the platform will increase. By the same time scam platforms will suddenly use it as a way to promote the platforms with the reserve proof of fund. This will be an issue and people easily fall for it. From various posts it is clear that every casino need to submit the proof of reserve for licensing. So, it is always good to check the licensing which can be considered the trust factor of the platform.

[fullfitlarry]

Make sense but I don't think that this could be the norm in the future. They can argue that they don't want to show it publicly due to that they might be an attack vector from scammers. Lessons here for gamblers is that if the casino is new then maybe we should wait till it gain reputation and be a brand name here in the community if we have trust issues on new casinos.

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.

[Darker45]

The reason why proof of reserves of crypto exchanges is somehow pointless is that it doesn't show the liability. It shows how much they have but doesn't show how much they owe to their users.

I'm afraid this is more or less similar with crypto casinos. If we know how much funds a casino has, what does it say about its ability to pay all the existing bets should they win? Does a proof of reserve of a casino tell us about how much funds users have in their wallets?

[$crypto$]

But making their whole bankroll for public can be dangerous to the casino, it will attract more hack attempts on the platform which will increase the cost of operating the casino.

The reason why casinos do not publish their bankrolls, can be a more important security reason especially now that hackers are smarter to infiltrate from anywhere, no matter how strong the casino's security system is afraid of gaps and it is being misused.

I've had casinos that display their bankrolls still it doesn't get the full trust of the community and lose to the same casinos that never display the bankrolls, the players sometimes don't care about this.

[lovesmayfamilis]

Of course this actually makes Sense if you ask me because there are some casino or gambling site that may want to start small without enough money in reserved and when there is a big win or several winning then they ran into shortage of money were they would start paying out the winning in a way they wouldn't make better use of their money.
I think, such address should be made public on their gambling site so that gamblers could know what they have in reserved should were there is a big win they could have It paid out in full.

But what should casinos do if their reserves regularly acquire "floating" numbers? Should they regularly show their profit or loss? It doesn't seem quite logical to me.

You are judging from the player's side, demanding transparency, but casino owners pursue their goals one way or another, and not everyone is ready to show their wallet, knowing that there are others who may find such information more interesting in terms of fraud. As a businessman, would you agree to advertise your profits regularly?

 Therefore, by signing gambling agreements, the player accepts the rules or does not accept them. The rest of the obligations must be fulfilled by the casino, and the player always has the right to choose the places where it is preferable for him to play.

if a casino should be asked to post what they have all the amount of money they have in their possession, before someone will Gamble with them, that can decide to fake the figure of amount they have, and many people will not question them because what ever they showed you is what you believe on and they come collaborate with a bank manager to give them a figure of amount to publish to their players in order to make them to be satisfied or to believe that there are capable of paying any amount of money someone win, so those method of they use to apply for us especially a trickish way method that can also apply such thing in order to deceive their client

I doubt that a casino with a large number of players will do this. Ultimately, how can you determine whether the number you're shown is correct? All you can do is trust and accept all the risks involved in casino games.

[Nrcewker]

Does it make sense?

Yes, it makes sense. If you are a new casino and want to attract serious gamblers then you definitely have to prove the casino’s bankroll. In this way, you not only win the gamblers’ trust, but also give them assurance that their winnings will be paid.

Casinos also need to keep in mind that the maximum win should be kept at 1% of the total bankroll to ensure a smooth gambling experience. Some shady casinos often try to avoid showing their bankrolls but what we can do is simply avoid those casinos.

Moreover big casinos now have major angel investors funding their bankrolls. If they can prove that they have sufficient financial backing without showing the actual bankroll numbers, this could also help gamblers gain trust in the casino.

[MiF]

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?

Of course this actually makes Sense if you ask me because there are some casino or gambling site that may want to start small without enough money in reserved and when there is a big win or several winning then they ran into shortage of money were they would start paying out the winning in a way they wouldn't make better use of their money.
I think, such address should be made public on their gambling site so that gamblers could know what they have in reserved should were there is a big win they could have It paid out in full.

Proof of Reserves might be beneficial, particularly with newer crypto casinos that do not have a large bankroll. Players must have some means to determine if a casino will be able to make big payouts. But presenting a reserve address or balance alone may not suffice as it is possible to move or borrow funds for a short period of time to create a false impression. A proper. Regularly updated and independently verifiable proof would be much more useful. It might help to build player confidence. But also make it more challenging for underfunded casinos to conceal their finances.

[ArabBTC]

If there is a legislature that would compel casinos to post prove of their reserves it would be a fantastic idea considering the fact that huge amount of money is coming into casino and betting currently, i remember some years back when banks operated without fixed reserves, most banks closed up easily making away with people’s huge deposits in their bank but ever since they made it mandatory for banks to have a fixed deposit as reserve a lot of unnecessary closure of banks have stopped, having reserves would even regulate the number of casinos because two or more casinos might be forced to merge together just to meet up with the fixed reserve amount.

I am 100% sure that some casinos won’t have enough money to pay if a bettor wins a very huge sum, especially new casinos but wether new or old shouldn’t be an excuse, no casino should be exempted, every casino should have a fixed reserve with the bank incase someone wins a huge sum, the reserve should be in a fix deposit with the regulatory bank in that particular country otherwise one day someone could win a large sum and the casino would just vanish, the casinos can also vanish with people online deposit because there are certain persons like me that leave huge amounts in our online platforms for easy access when we feel like gambling.

[SPIDERMAN008]

Make sense but I don't think that this could be the norm in the future. They can argue that they don't want to show it publicly due to that they might be an attack vector from scammers. Lessons here for gamblers is that if the casino is new then maybe we should wait till it gain reputation and be a brand name here in the community if we have trust issues on new casinos.

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.

I agree with you. Casino companies will never tell you how much fund they have in reserve. And if the reserve is low, gamblers will not feel safe betting. And just as casino companies keep user information secret, they also try to keep their real information secret. And how strong casino companies are depends on how quickly they make withdrawals and how safe they keep user accounts. And the more facilities they provide to gain trust, the more users they will have. People will trust that particular casino site and bet and recommend it to others. So to understand how strong a casino site is, knowing how much fund reserve they have is not so important. It is more logical how many facilities they provide to users.

[ZeroVinsonN]

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?

It makes sense for new casinos, it's a very good way to get people to trust them, because there is always the possibility that someone will win a huge amount of money within the very start of the casino and they need to prove that they can pay, it's actually a way to even get people to gamble with them, if I know that they can pay me then I would have any fear about gambling with them.

[Dogedegen]

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?

No, this does not make sense and it would infringe on the rights of private companies. It only makes sense for companies who actually are focused on handling the money of the customers, such as the exchanges because a collapse could be devastating. A casino is not meant for users to have balances because there is also no trading, so if someone gets caught up in some kind of failure of a casino like this then it is the responsibility of the person because they made an error. When it comes to exchanges and financial companies, people who trade can't simply keep taking funds on and off the exchange all the time. This is very inefficient, it takes time and opens them up for many errors because they are handling large amounts of money. Also this gives them a delay when they want to trade so it reduces their ability to trade effectively, so it is quite justified that traders always keep some balances on exchanges. But for gamblers this is not justified.

Just play at a very reputable casino and the chance that this will happen to you personally is somewhere very close to zero. You should instead focus on actual problems and picking the right casino, and not things like this.

[Findingnemo]

~
I doubt that a casino with a large number of players will do this. Ultimately, how can you determine whether the number you're shown is correct? All you can do is trust and accept all the risks involved in casino games.

Ultimately we have to trust them or don't, we can't expect them to show everyone around their total bankroll which is an invasion to the casino's privacy and also attracts more attacks on their hot wallets. And having such will add unnecessary confusion, like some of them will intentionally try to fake the numbers just to pretend they are on the top so it's better this way.

[The Founding Titan]

It will be more to their advantage if they do, the truth is that the more people trust a casino the more they are likely to gamble with them and if a new casino can prove that they can pay winnings then people will be more likely to want to gamble with them than not, with the way new casino are crashing, with some of them even being scams and we've seen recently in this forum it stands to reason that people will easier gamble with a casino that they know can pay then one they aren't sure about.

[Outhue]

It's not a must for a winner to get paid completely instantly, if the reserve isn't good enough it shouldn't be a reason not to continue your gambling activities on such casino, this will be the last of my worries because I don't just choose online casinos, even if they are new they must have some credibility in this space.

I have one friend who won some money online and the first Statement that came out of his mouth is the casino can never pay him this much money, it was around $12,000 and this was a long time ago, 2017 or 2018 I told him to chill it out, but he was surprised that the completed the payout in just a week, when I asked him why he doubted he said someone close to him was paid in half of his win and the casino stopped paying after.

[DubemIfedigbo001]

Some fraudulent casinos might start finding faults in users' bets because they don't have enough to pay out wins. Publishing proof of reserves will help gamblers know financially healthy casinos.

What if those funds published were just proxy? Like they don't have the funds and they align with another company which gives them a well funded address to publish. Now the funds can remain there for a while to keep convincing the public they really have it, while in reality it doesn't belong to them. There are many ways rogue casinos can deceive the public if this becomes a criteria. Of course they can implement victimizing their clients because they don't actually have the money to pay out bigger wins, while the public wouldn't think so, since their published address still holds very significant funds.

[Fortify]

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?

The thing is there are already thousands of casinos out there with varying size, but none of the biggest even do this so that should tell you that it's not something gamblers are overly concerned about. These casinos have existed for years, over a decade in some cases, with all the evidence needed in these very forums that they're trustworthy. In fact proof of reserves is not even relevant to casinos, it is bookmakers who need to demonstrate their ability to take the other side of bets and pay out up to whatever limit is necessary - they're more likely the ones who might not be able to cover high odds bets. It takes a lot of start up capital and energy to get a casino up to scale and most people tend to avoid them anyway.