Craig Wright: Most Crypto Casinos Launder Money

Bitcoin creator Dr. Craig S. Wright became the second guest of Hashing it Out with Becky Liggero, a new CoinGeek series that features professionals and experts in blockchain technology and the online gaming industry. In the episode, Dr. Wright talked about how Bitcoin was created with the gambling industry in mind, making it the perfect foundation for online casinos and other gaming platforms.

Dr. Wright has a long history working with the gambling industry. In 1998, the current nChain chief scientist was asked by Lasseters to launch its licensed online casino by providing advice on regulatory requirements and security systems. Since then, Dr. Wright worked with Centrebet while he was an audotor at BDO, Playboy Gaming, MGM and Bodog. Dr. Wright also developed an online poker application based on Bitcoin after its launch in 2008. These experiences and expertise were all part of him when he wrote the Bitcoin white paper; and he himself admitted that “part of what I was doing with BDO overlaps with the concept of Bitcoin.”

With these deep ties in the gambling industry, it should not be a wonder how online gambling on blockchain becomes the ideal match. After having restored the original Bitcoin protocol and uncapping its blockchain’s data blocks, Bitcoin SV (BSV) has become the actualization of the Bitcoin white paper, making all others fade in comparison when it comes to technical capabilities and protocol stability.

“When you’re trying to get someone to put a few dollars in, it may not sound like much, but it’s a lot more to trust and a lot more overhead than it is getting random one-cent amounts and the audit and controls around the larger systems in credit cards are a lot more difficult [than BSV]…. So all of this can be constructed in a way that is utterly secure and without a lot of cost, without having to set up expensive infrastructure, high-end firewalls, or any other aspect of this. Just one secure website will do it,” Dr. Wright explained.

By building online casino platforms on the BSV blockchain, developers can take advantage of its capacity to handle big data and the low cost per transaction—with the current average cost per transaction only at 0.0032 USD. However, one thing Dr. Wright wants to make clear is that online casinos are different from the crypto casinos rising in popularity nowadays that allow betting using various cryptocurrencies. Aside from most of them being unlicensed and allowing minors to play, operators most likely use the platform to launder money.

“Most of these at the moment are all about laundering. So they are mixers. They put their money in, try to get away from tax or other obligations, take their money out. [In the] long term, that’s going to be a big problem because if you have mixed funds, then you’re going to lose your funds,” Dr. Wright cautioned.

This is vastly different from online gambling on blockchain as it is a pseudonymous system—not anonymous like what BTC and other digital currencies are advertising—that allows for all transactions to be recorded immutably and chronologically. It is also a public blockchain that provides transparency, security and integrity of data.

“When you pay it can all be recorded, it can be a complete audit trail, simplifying the reporting obligations of the casino and also giving you peace of mind because if something goes wrong, you now have proof of what went wrong,” Dr. Wright said.

Leave a Reply