769

submitted 1 year ago by zoe@infosec.pub to c/memes@lemmy.ml

58 comments fedilink hide all child comments

https://twitter.com/GamblingMemez/status/1699147167233888467?s=20

you are viewing a single comment's thread
view the rest of the comments

[-] urist@lemmy.blahaj.zone 38 points 1 year ago

Casinos have to comply with Know Your Customer laws like banks. This is to stop money laundering.

There are great reasons to dislike casinos, this is not one of them. Also, online casinos are probably shady AF, why are you using one?

[-] csolisr@communities.azkware.net 16 points 1 year ago

I mean, if it's because of legal reasons, wouldn't they request KYC paperwork before depositing the first bet instead of after? You know, since handling dirty money is still a crime even if the money is locked in the casino

[-] urist@lemmy.blahaj.zone 13 points 1 year ago* (last edited 1 year ago)

Only if the deposit is over the threshold for KYC laws. (If the threshold is $X, and you get $X in chips, you will need KYC stuff collected from you).

Otherwise no:

Patron A goes to the table and receives $50 in chips. No information is exchanged. No chips are cashed out at the cashier because Patron A lost it all at blackjack. No KYC.

Patron B goes to the table and receives $50 in chips. He does well at the tables and makes several good bets that means he's ahead $X dollars. Since he won this in several bets, there is no taxable event, but trying to cash out $X in chips is a currency exchange and means the casino now needs to gather KYC information on him.

Most people (99%) gamble like patron A. Patron B is inconvenienced because of Patron C:

Patron C stuffs $X dollars into a slot machine and cashes out without gambling. Patron C now has $X in slot tickets, which he attempts to exchange at the cashier window. His goal is to claim his $X came from gambling winnings and not wherever it actually came from. The cashier has to collect KYC info on him, and the goal is to make a paper trail so the casino can comply with state/federal law.

Patron C has a lot of other creative things he can try to do to get around these laws (see structuring)

Since most people are going to fall in category A, the casino wants to make the barrier for gambling very very low. They will only ask what is absolutely necessary at the moment. This is why those websites don't ask for scans of your license or blood-type or whatever when you sign up, because they don't need to if they're just taking your $50. I haven't used a gambling website but if they're US based they have to follow US law.

[-] AngryCommieKender@lemmy.world 2 points 1 year ago

I was gonna ask about "Patron C," as it's a well known secret among the unlicensed weed growers in California that casinos are a reasonably easy and cheap method of cleaning illegally obtained money, such as selling tons of weed that wasn't licensed to grow. It's such a well known "secret" that even us licensed growers know about it.

[-] Pika@sh.itjust.works 15 points 1 year ago

I understand this but, since they are storing your money in the first place, they would need to request this information to deposit in order to remain within those laws as well I believe

[-] urist@lemmy.blahaj.zone 1 points 1 year ago* (last edited 1 year ago)

Also true, however, there are times you cash out more than you deposit (sometimes people win). Edit: there are thresholds of amount of money you need to start moving around before the casino will pester you for more info, because most people don’t need to bother because they don’t meet those thresholds.