As of late, the subjects of unsafe crypto transactions and unlicensed casinos have begun intersecting. This relationship poses a massive threat to unsuspecting users both in terms of personal data compromise and embezzlement.
In this scheme, unlicensed casinos use cryptocurrency to facilitate illegal money transfers and the anonymity of crypto to avoid detection from authorities.
In addition, these casinos lack the regulations to function properly and don’t ensure fairness and safety for their players.
Further in the article, we will examine the issue of unlicensed casinos and the danger they pose to the gambling industry and, most importantly, to the players.
What are Unlicensed Casinos?
Unlicensed casinos are also known as illegal casinos because they operate without a proper license given after passing a thorough inspection. Only an appropriate institution that regulates gambling, as the UKGC is in the UK, decides whether the platforms are safe and fair for players.
Usually, a fair game of chance includes what the experts in this field call an “RNG,” a Random Number Generator. This type of software scrambles the numbers or symbols in such a chaotic way that it produces a number as close to true randomness as possible. This is the fair promise of the gamble.
Safety is ensured by eliminating certain features that make the game too addictive. For example, the UKGC decided to ban the auto-play buttons from online slots as additional protection against gambling addiction.
However, unlicensed casinos don’t respect these standards, so players of unlicensed casinos may be more at risk in multiple aspects.
Unlicensed Casinos Damage All Sides
There are other side effects of the popularization of unlicensed casinos. For example, while licensed casinos pay taxes according to revenue and other factors, unlicensed casinos ignore this obligation.
This not only gives them access to funds that should return to the community, but it also happens while they offer no fairness and safety guarantees to their platform users.
For example, licensed casinos in the UK are required to include a self-exclusion tool alternative on their platform for players who want to take a break from gambling.
Unlicensed casinos not having the self-exclusion alternative can cause irreparable damage. Especially when they are growing their user base at alarming rates with promotions that licensed casinos cannot offer.
Cryptocurrency and Blockchain
Cryptocurrency is a volatile currency that uses cryptography for security and a decentralized system for transaction verification and record keeping. The most popular cryptocurrency is Bitcoin, but you might have heard of Ethereum, Litecoin, or Dash.
Blockchain technology is the pillar that enables the creation and use of cryptocurrency. This pillar is composed of multiple pieces called blockchains.
These digital ledgers are shared among a network of computers and contain a certain number of transactions. Once each block is added, the information contained within is considered impossible to change.
This virtual transactional spate is promoted as safe and secure, especially for cross-border transactions that can arrive instantaneously. However, this does not mean scammers cannot crack your crypto wallet and deplete your account.
The Widespread Use of Crypto in Illegal Activities
We must emphasize that cryptocurrency transfers don’t come with legal protections. Therefore, if the coin you invested in proves to be a scam, the legal system cannot reimburse you for any amount.
A recent report shows that more than 200.000 people have claimed to have been scammed with cryptocurrencies between the whole of 2021 and the first quarter of 2022. However, the real number is estimated to be around 300.000 in Europe alone.
- How does it work? Scammers can use stolen ID cards and bank card information to unlock your crypto wallet and steal your funds.
- How do they access your ID and/or bank account? Unlicensed casinos don’t prize security as much as licensed casinos do. Therefore, your information is vulnerable to people who can use it to steal your money.
The Company Behind
The data we shared above was collected from KingCasinoBonus’ report regarding the number of crypto scams. In this report, anyone who tricks a user in any way to obtain information that leads to financial profit for themselves is a scammer, and the deed itself is a scam.
As KingCasinoBonus experts declared, “The numbers highlighted in our report show that the problem is growing much faster than we thought.”
Ionut Marin, the CEO of Dopamine Gaming, the company that owns KingCasinoBonus, offered his thoughts on the matter, “As I see it, unlicensed casinos will always exist in some form or another.
So, to ensure the safety of people, especially children, we must do everything we can to inform users about the dangers of these platforms. Of course, the responsible authorities are also expected to do a better job. “
When asked about KingCasinoBonus’ initiative to inform gamblers, Ionut Marin said, “Through our guides and articles, we want to ensure that players are well-informed about the dangers of gambling addiction. At the same time, we give players the advantage of learning to tell illegal and licensed casinos apart.”
What Can You Do?
- Before registering on an online casino, check its license and RNG certificate for veracity.
- Contact the appropriate authorities if you identify suspicious activity, lack of license, unfair games, or other irregularities.
- Do not engage with suspicious platforms, and do not promote engagement with those platforms.
- Inform yourself as well as you can about cryptocurrency. Digital coins can be very volatile and thus very risky!
