Why iGaming Operator Can Ask Proof Of Funds

If you are into online gambling, you may know that most casinos will ask you to provide proof of funds. For example, when you play on EU based online casinos available for UK players, it will be almost impossible to avoid this procedure. What this means is that you need to send them files and documents that will prove where you got the money. It can be from your job so you will need to provide related papers. It can be a gift, so you will have to provide proof of that as well. But why do the casinos do this? Well, there are several reasons.

Massive Deposit

When you deposit a huge amount of money, a casino will ask you to prove where the money has come from. This is normal. Now, we can see that some casinos will ask this when you deposit £2000 only. Other casinos will ask the proof when you deposit much higher amounts, around £10.000. There is no way we can generalize this. Each online casino is different.

But, most casinos will ask this when you deposit a higher amount than usual. It is also possible that the casino doesn’t ask this from you when you deposit a high deposit for the first time. When you deposit it the next time, proof of funds may be needed. In addition, if a casino notices some massive changes in the amount of money you deposit or when you are doing this, this requirement will become active. This means that the casino believes that your account may be in the possession of another person or something else, illegal happened to you. They may believe that now you are doing something illegal! One way or another, this is a huge issue and it is nice knowing that casinos stand beside us and care about their customers. 

When You Win Big

Well, this is a bit annoying. Some casinos will offer you a lot of bonuses and great games you will want to play. After some time you can win big time. The next step would be to withdraw your winnings to your bank account. When you try to do this, the casino will ask from you to provide proof of funds and perform annoying verification. It is annoying and can be a problem for you.

This is a precaution from the side of a casino but a rare one. Most casinos don’t have this requirement. Those operators will ask you to provide proof when you start gambling or when you deposit funds. That proof will be used even if you win millions later on. The truth is that we still don’t know all the reasons why online casinos ask for proof of funds in this case scenario. It is possible that they don’t want to pay the winnings to people who used illegal money to play the games. 

Prevent Money Laundering

Probably, this is the most important reason. A casino will ask to provide proof of funds because they want to make money laundering impossible. The majority of providers work with different organisations and use corresponding software to detect all illegal operations. If you must provide documentation that proves how you got the money, you cannot use illegal ways to get the money and ‘’wash’’ it using online gambling. Without this, you would deposit massive funds and withdraw them afterwards. It will look like you won’t have the money at the casino, period. See, if you can’t prove where the money has come from, it is possible that you have earned that money illegally. 

You can see that many people have been using online gambling to launder their money. It is an effective business for this purpose and proof of funds will make it impossible. There is no need to tell you that this will be mandatory at most casinos hence money laundering using iGaming operators is not possible. 

Suspicious Activity Within Your Account

Here we have one of the reasons that are very common but also a bit difficult to explain. Suspicious activity can be applied to all accounts you have on the web. You probably got an email from a social media platform at some point telling you that your account is involved in suspicious activity. Here the situation is the same but more severe.

For instance, it is possible that you have used the account for multiple purposes. You can make strange deposits or ask for strange withdrawals. There are countless options. But at the end of the day, if your account is involved in anything that violates the terms and conditions of an online casino or the activity changes dramatically over a short period of time, the online casino will treat that as suspicious activity. In short, words, when activity suddenly changes, it is called suspicious activity. The proof of funds is used in this case scenario to make sure that there are no illegal actions on your end. Once you send the needed documents, you will be back on the track and you will be able to gamble once again. 

The Final Word

Online casinos may ask for proof of funds at any given moment. It is used for your and their safety and it is more common than you may believe. Companies that want to have some public promotions do follow all the rules, otherwise, they can be fined, lose some sponsors, or even have a problem with their licence. For you, this may be annoying or complicated but once you have sent the needed files, all of that will end and you won’t have to send the files again. You can even contact the support of an online casino and ask them about this requirement and can you complete it as soon as possible.