Scam Casinos and the Practices They Use

We have recently seen an increasing number of cases involving sites we like to refer to as 'scam casinos.' These sites pretend to operate a normal online casino site but make money in a different way – by letting players win and demanding various payments and fees they pretend are required to "unlock" their winnings and be able to withdraw them.

After the player proceeds to comply with scam casinos' requests, they never receive their winnings. The thing is, these winnings are manipulated or fully fabricated, and their only purpose is to get the player to send some kind of payment to the casino.

Practices used by scam casinos

The reasons for requesting these payments given to players by scam casinos range widely. Here are some of the most common ones:

• Transaction fees or insurance
• Payment method verification
• Increasing the player's VIP level
• Taxes

We will go over these practices below, but keep in mind that these are just examples. Scam casinos can be very creative, finding new ways to mislead players. Additionally, they often use multiple practices at the same time or one after another.

Transaction fees or insurance

Once players accumulate winnings in their account and request a withdrawal, some scam casinos require them to deposit a percentage of the withdrawal amount in advance. They claim this is a transaction fee necessary to process the withdrawal.

Of course, once the player deposits the money, they will not receive their winnings as promised by the casino. Instead, scam casinos often make up new reasons for requesting additional payments or fees.

EXAMPLE

In this case submitted through our Complaint Resolution Center, the casino requested a $50 deposit to process the player's withdrawal.

Afterwards, they requested another $80 deposit to allow the player to withdraw $8,000 from their account. Later, once the player accumulated over $27,000 in their casino account, they requested another fee of $277 (1% of the withdrawal amount).

This case is similar, but the casino claims they need the player to make a deposit as an insurance to protect their funds.

Payments to verify payment method

Another common excuse has to do with verifying a payment method. This practice is also used by non-scam online casinos in case the player wishes to withdraw funds using a payment method they have not previously used to make a deposit.

Unfortunately, as this practice is used by both reputable gambling sites and scam casinos, it can be difficult for players to distinguish one from the other. The common difference is that reputable casinos usually only request a minimum deposit, whereas scam casinos tend to request higher deposits.

Deposits to increase the player's VIP level

In some online casinos, players can increase their withdrawal limit or unlock some features by reaching a higher level in the casino's loyalty scheme. Some scam casinos use this as a reason for getting players to deposit funds into their account, claiming it will help them reach a higher VIP level and allow them to withdraw their balance.

EXAMPLE

In this case, the scam casino claimed the player's account was locked due to verification issues. To unlock the account and balance, the player was instructed to deposit funds into their account to reach a higher VIP level and regain access to their funds.

Payments for taxation purposes

Finding a different excuse to request a deposit, we have seen scam casinos demanding a deposit to "pay the tax" worth a certain percentage of their balance.

EXAMPLE

In this case, the casino claimed that, according to the rules of their company, the player needed to make a deposit worth 10% of their balance to pay the tax needed to unlock their funds for withdrawal.