Will you get your money if a casino goes bankrupt?
Will you get your money if a casino goes bankrupt?
What happens to your money if an online casino goes bankrupt? Most operators are not public companies, so they are not required to publish regular reports.best netent casinos So no one knows what's hiding in their financial statements and how they're really doing. Only public companies, i.e. those whose shares are listed on the stock market, are obliged to report publicly. They have audited financial statements and other documents. By analyzing them, it is possible to understand what strategy the company follows, as well as to predict trouble or upturn. For example, 888 Holdings, which owns several gambling brands including 888casino, sells its shares on the London Stock Exchange (LSE). You can find a lot of different information on it, including financial statements. And it's all available to anyone interested. Here we go to the LSE website, find 888 Holdings and we can look in detail at their revenues, assets, debts.top online casinos canada But private operators don't provide such reports, and no one will know that they are in trouble or on the verge of bankruptcy. The issue of fund security Public casino operators are few. They are usually private companies, and if bankruptcy is declared, it is likely to come as a surprise to everyone. What will happen to your money in this case? It all depends on what measures the casino has taken to protect its customers' funds. Funds protection is usually not mentioned as an important factor when choosing a casino, and it doesn't even matter in some cases. As long as the game is played for change that you don't value, you may not even think about how much your money in the casino is protected. But if there are more substantial amounts going into the account, which you would be offended to lose not in the game, but just for fun, then this issue has to come up. The issue here is not that the casino has one, two or even three licenses, that it uses quality, reliable software. All of this has no effect on the casino's policy regarding the security of punters' funds. Rules of regulators Jurisdictions such as Curacao are not known for their impeccable reputation and special zeal in protecting punters' interests. Therefore, there are no requirements for operators to protect customer funds. The rules of such casinos usually do not even stipulate this point. I think in most cases when you ask how secure your money is you will get approximately this answer from Curacao licensed casinos: insecurity of customer money does not mean that the casino is a fraud. Curacao simply does not require them to do anything of the kind, and the casinos themselves do not need it. The position of the UK Gambling Commission can be highlighted in this regard. Its license is considered to be one of the most trustworthy for a reason. Regulator obliges its licensees to indicate the level of punters' money protection. To do this, there are three levels: Basic, Medium and High. It is said that the regulator does not confirm the accuracy of such casino statements, but can check whether these statements are true. Under UK law, the punters' money must be kept in a separate bank account, separate from the casino's money. This ensures that funds belonging to punters are not used for the needs of the operator, for example to pay debts or expenses. However, this does not guarantee protection in case of bankruptcy. If you see a UKGC license, you will always find in the terms and conditions of the licence how much protection the punters' money has. Basic - means that there is no additional protection of punters' money and in case of bankruptcy of the casino, punters' money will be treated as part of the business. That is, in fact, you will not be able to take them away, they will be distributed among the creditors. Medium - the operator has taken measures (such as funds insurance) to ensure that punters get their money if the company goes bankrupt. That is, the money will be considered part of the business, but the insurance company will pay punters their money if the casino goes bankrupt. High - The punters' money is in a separate account and is not legally considered part of the casino's business. The account is controlled by an independent person or external auditor (an auditor who does not work for the casino). That is, the punters' money will return to them every penny in any case. For example, Videopokies notes that they have a Medium level of protection of punters' funds. Although there is no hint of bankruptcy of this giant, customers will be happy to know that their money is protected, even if not 100%. Remember, if the casino doesn't take care of protecting your money by placing it in a separate account and clearly stating that it is not part of the business, creditors will take your funds if the operator goes bankrupt. Casumo Casino is a role model, an ideal option for punters. The operator offers full protection of punters' funds in the event of its insolvency. The punters' funds are kept in a separate bank account, and in the case of insolvency of the casino, no one can claim for collection of debts at the expense of the punters' funds. That is, Casumo has made it so that the punters' money is untouchable and not part of their business. It is the punters' money to which the creditors of the operator can not get. It is a 100% money security guarantee. Everything about this operator is clear and thoughtful. The only pity is that it is not quite convenient for the Russian-speaking audience - there is no Russian language, no Russian payment systems. On this topic Pokies with a cash bonus upon registration If you can not find the relevant items in the rules and conditions of the casino, please contact support. Let them give a link to the sections where these points are stipulated. White list of jurisdictions from UK Gambling Commission UK allows operators not only with a UKGC license. They have a special white list of jurisdictions whose gambling licenses are also accepted in the UK. These are the European Economic Area, Alderney, Gibraltar, Isle of Man, Antigua and Barbuda and Tasmania. To get on the whitelist, jurisdictions are checked for compliance with British regulations. That means operators must also keep punters' money in a separate bank account and state in their terms and conditions what risks their customers' funds are exposed to if the operator becomes insolvent. Why is it so important to keep punters' money in a separate account? If the casino's money and the punters' money are not segregated, then the operator could abuse it, such as taking someone else's money for his expenses. There was one horribly scandalous story in 2011 with one of the largest online poker rooms, Full Tilt. The company's owners and board had been ripping off punters for four years, paying themselves huge salaries from their deposits. In total, they stole $444 million from their punters. Customers' money was not separated from the operator's money, so it wasn't difficult for the owners to get into this big pocket. And the theft of such a plan can remain unnoticed for a long time. Players do not require all as one conclusion. The money is in their accounts, someone withdraws and someone deposits it, and one does not feel any difference. Maybe it would have lasted until today, but the owners of Full Tilt were sued in the U.S. on suspicion of fraud and embezzlement of punters' money. The site was shut down, everyone wanted their money back and it was gone. A lot of punters suffered then, they had to wait years to get their money back. This was only possible due to the fact that all obligations to the punters for Full Tilt were fulfilled by PokerStars, which bought out the poker room, which otherwise would have become bankrupt. Risk of bankruptcy Small operators usually have a small turnover of money. So even one big punter with a big win can shake the casino so much that it will be on the verge of bankruptcy. So there are risks, especially with poor management. The bigger the casino, the less likely it is to declare bankruptcy. Unless, of course, the owners embezzle the punters' money. What does bankruptcy mean? Bankruptcy is a situation where the amount of a company's debts exceeds the amount of its assets. In bankruptcy, an independent party is usually appointed to manage the processes that follow bankruptcy. All assets are sold off and the money is distributed to creditors. If the punters' funds are considered part of the casino's business, then they too will go to pay off the debts.
