You’ve all heard the hype about Bitcoin and how it’s anonymous and free from bank regulations and the feds right? And of course if you’re reading this you probably have heard all about online casinos using Bitcoin as a way to deposit and withdrawal from your casino account without all the hassle of wire fees and waiting for your check to arrive via courier.
Well one thing you may not know is that as anonymous as Bitcoin may seem it is far from anonymous when playing at a quality online casino. Just because most online casinos allow players to sign-up, deposit in BTC, and then play, doesn’t mean when it comes time to withdrawal that you won’t be asked for ID docs including your drivers license, utility bill, and possibly other documents proving to the casino who you really are.
Keep in mind that most online casinos do not check for proof or KYC (Know Your Customer) when signing up and depositing. This may give players a false sense of anonymity especially when depositing and playing using Bitcoin. Since most people familiar with BTC associate it with anonymity, players at online casinos might take it for granted that when it comes time to cashout their winnings that it’s as simple as giving the casino your wallet address and waiting an hour or so until your big payday arrives.
Unfortunately this is not the case when playing and withdrawing from a good quality online casino (you know, the ones that don’t scam their players). All online casinos that are licensed and trustworthy will ask players for their ID documents when it comes time to withdrawal regardless if you are playing with Bitcoin or not.
Take this guy for example…
We received a complaint from a player at Bitstarz Casino claiming the casino ripped him off for 4BTC (about $16,000 USD at the time of this article). He stated in his complaint that he put his screen name as his real name because he was under the impression that depositing and withdrawing in Bitcoin was anonymous but all the other info in his account such as his phone number and email were correct. He said the casino (Bitstarz) told him that he had broken the casinos terms and conditions which clearly state…
3.2.11 You may only use your own personal credit/debit card or other payment method to fund your Account. The name appearing on the credit cards, or registered on the payment accounts used for deposits or payouts must correspond to the name registered on your Account.
4.1.4 All information that You provide to Bitstarz.com during the term of validity of this agreement is true, complete, and correct, and that You shall immediately notify Bitstarz.com of any change of such information;
We did however contact Bitstarz just to get some clarification on this. I personally seem to remember that one of the Bitcoin Casinos I played at early on when BTC just came out was anonymous, but evidently it wasn’t Bitstarz because this is the reply I received…
Bitstarz never had in terms that we would allow anonymous players. In our T&C we can always ask for documents. So, If something is suspicious, we ask for KYC.
We decided to contact all of the Bitcoin Online Casinos on our approved casino listings and they all said exactly the same thing.
All players need to send in docs when they want to cashout, its a one time thing and once on file they dont need to send anything else. I have never heard of a casino that doesnt do this
This one is from Intertops Casino and Sportsbook…
Thank you very much for your kind e-mail.
In order for players to request a withdrawal, we must have verification documents on file, even by using BTC, unfortunately.
And lastly we received a very detailed response from the amazing support at Casino Extreme…
Hello Rick ,
Hope you are well ,
We do ask for full verification prior to first withdrawal and that’s something we have been doing in last 4 years ,especially for BTC users to protect ourselves from bonus abuse ,under age play and most importantly it is required from our Licensor ( Curacao eGaming) . Otherwise ,we would have no case if someone complained through them for any of the above reason .
Bitcoin is anonymous in a way where you cannot trace the transactions ,but at the end all those transactions land to the E-wallets such as Blockchain ,Coinbase ,Cubits …etc . If you look at their signup form ,they all ask for a valid verification and every info must be 100 % accurate .
So, are Bitcoin Online Casinos really anonymous? Nope. At least not the good ones. There are however reports of online casinos that claim to be anonymous if you are playing in BTC but if you happen upon one of these online casinos we would highly recommend you AVOID these like the plague and stick with the ones that do check to see if you who you say you are you are. That keeps everyone honest including both the players and the casinos.