VPN and crypto casinos: the wrong idea

Is it a good idea to play crypto casinos using a VPN in Belgium? Absolutely not, it’s against the law and what’s more, you run the risk of never seeing your crypto-currency again. Our editorial board takes a look at this vast deception for you.

In a LinkedIn post, crypto casino expert and veteran Oliver Cook asks a question that caught our eye:

‘Why do so many people still think that players in regulated markets like the UK, Germany, Sweden, etc. can use crypto casinos?’

In Belgium, we made the same observation, few players seem to realise that crypto casinos are banned on our territory. For them, using a VPN to access them is only there to maintain anonymity and not to get around the Gaming Commission‘s strict rules. 

The formidable trap of VPN deposits

On his LinkedIn account, Oliver Cook doesn’t hesitate to post a trenchant opinion. This veteran of the crypto casino industry has decided to break the omerta on a massively widespread fraudulent practice. Players residing in strictly regulated jurisdictions, such as Belgium, mistakenly believe they can circumvent local laws by using a simple virtual private network (VPN) to sign up to platforms operating from tax havens.

The mechanics are well-oiled. The cryptocurrency deposit phase runs smoothly. The offshore casino welcomes the funds with open arms without asking the slightest question about the identity or actual geographical origin of the customer. 

The real wall comes at the withdrawal stage. Identity verification (KYC) suddenly becomes mandatory. The platform then demands official documents. The final straw comes immediately with the outright cancellation of the payment, justified by a breach of the General Terms and Conditions of Use (GTCU). Exotic licences from Curaçao, Anjouan or Belize formally prohibit access to players from regulated major markets.

The toxic complicity of evaluation sites

Oliver Cook points the finger at an entire ecosystem built on misinformation. Players fall into this giant trap because of aggressive promotion orchestrated by unscrupulous affiliate networks. Lists touting the ‘best casinos without KYC’ are flooding search engines.

What is most worrying is the apparent validation of these illegal platforms by supposedly neutral review sites. Portals such as Trustpilot, Casino Guru and AskGamblers give glowing ratings to operators who have no intention of paying out winnings to players from restricted countries.

This mass of false reviews reassures users and encourages them to invest their cryptocurrencies in a financial black hole. The promises of stratospheric rates of return to the player (RTP) and inordinate bonuses are nothing more than a mirage designed to capture deposits that will never emerge from the offshore ecosystem.

The situation as seen from Belgium: a permanent danger for our players

In Belgium, the law is strict and the Gaming Commission has already answered the question posed by certain operators about crypto-currencies in its 2022 annual report.

Extract from the annual report:

– Payment by crypto-currency

Several operators have contacted the GC to request confirmation that they are indeed authorised to accept payments in digital currencies (crypto-currencies) when loading online gaming accounts.

It warned them of the risks involved in these payment methods, in the light of the fight against money laundering and the financing of terrorism.

Given their anonymous, uncontrolled and volatile nature, crypto-currencies can be used by organised crime. The possibility of using a legal platform to pay for games of chance provides an attractive context for criminals, who may see it as a tempting opportunity to easily launder the proceeds of illicit assets.

Consequently, the GC has reminded gaming operators that they are subject to an additional duty of vigilance as entities subject to the Money Laundering Act.

Although the Gaming Commission did not write word for word that crypto-currencies are prohibited, it did emphasise the anonymous, uncontrolled and volatile nature of crypto-currencies. This makes them incompatible with the law on money laundering that gaming operators must comply with and with the law on deposit limits.

Players are looking to get round the law, but at what cost?

Faced with these constraints designed to protect consumers from addiction and over-indebtedness, many Belgian gamblers are giving in to the lure of offshore casinos.

We regularly see the damage caused by this flight into illegality. A Belgian player who succeeds in breaking the bank on a slot machine hosted in Costa Rica has absolutely no guarantee of seeing the colour of his money.

As soon as the illegal casino identifies a real Belgian IP address or national identity document during the withdrawal procedure, the funds will be confiscated. The cheated player will not be able to take any legal action as the GC has no jurisdiction over these illegal operators.

Some off-shore casinos go so far as to close the player’s account completely for breaching the site’s T&Cs, and the crypto-currencies deposited in the account could well be lost forever.

Legal gambling as the only financial bulwark

Faced with this industry of deception, regulation no longer appears to be a constraint, but a genuine financial insurance policy. It is vital to understand the fundamental difference in the way winnings are treated between the two worlds.

Evaluation criteria	Legal Belgian casino (Licences A+, B+, F+)	Offshore crypto casino (No GC licence)
Withdrawal security	Legal guarantee of payment of winnings.	Frequent blocking via the conditions of use.
Recourse in the event of a dispute	Mediation and complaints possible via the GC.	No legal recourse.
Player protection	EPIS control and deposit limits.	No protection, increased risk of addiction.
Transparency of rules	Conditions validated by the Belgian government.	Rules can be changed unilaterally by the casino.

Legal operators with a Belgian licence have no choice but to honour legitimate payments or risk losing their precious passport and incurring heavy criminal penalties. Refusing to pay a player’s winnings is therefore a risk they will never take.

For players, the Belgian legal framework guarantees a fair gaming environment where the rules are known in advance and respected by all parties. Choosing a GC-approved platform remains the only rational decision for any gambling enthusiast who refuses to see their cryptocurrencies evaporate in favour of ghost operators.