Online casino

Prove the source of wealth in an online casino

Casinos will ask for information about their players if necessary, but is it normal for them to ask for proof of source of funds? The answer is yes. Proof of source of funds in an online casino is important due to a number of laws, guidelines, and player and gaming site security.

Many new casino players may be surprised at how closely guarded casinos are inside and out. The laws and regulations governing the gaming industry are specifically aimed at protecting the rights of players. Proof of wealth in online casinos is one of many practices that are literally designed to ensure that gambling is fair and legal.

Whether you’re playing at a domestic monopoly or a licensed overseas online casino, the need to prove the source of your wealth is something established customers will almost certainly face at some point. It can also be very fast for those who, for example, win massively on a casino game or drastically change their gambling behavior in a short time.

SOW and SOF are abbreviations for wealth checks and should not be avoided. You will inevitably come across them on gambling sites.

Prove the source of your wealth

  • This will happen sooner or later in all online casinos if you play a lot.

  • Based on international laws and guidelines.

  • It’s easy – just send the requested documents.

  • Cannot be ignored unless you want your account closed.

  • Demonstrates that the casino operates within the law.

Why does the casino require proof of source of funds?

The risk of money laundering in gambling has been recognized internationally as being of significant magnitude. In theory, the activities of casinos can be exploited to disguise the origin of illegally acquired funds. For this reason, gaming companies are required by international law to play an active role in eradicating and preventing all forms of abuse.

Licensed online casinos are under the control of the licensing authority and there are of course no arbitrary controls. The Money Laundering Act requires companies operating in a number of sectors to carry out an assessment of the risks of abuse and to identify their customers. This approach is particularly important in the gambling industry, which is strictly controlled and regulated.

If a player is a political figure, lives in a high-risk country, or if their gambling habits change significantly in a short period of time, online casinos will need to ask the customer for proof of the source of their wealth. In order to ensure that the money deposited by the player is really his, it is sometimes necessary to ask for supporting documents.

In the prevention of money laundering, terrorist financing and underage gambling, the Gambling Licensing Authority acts in accordance with the guidance provided by pan-European laws and several directives.

The integrity of secure online casinos is therefore linked not only to the control of money laundering laws and the Gaming Licensing Authority of each country, but also to the European Commission, the Council of the European Union and, for example, the Financial Action Task Force on Money Laundering and Terrorist Financing (FATF).

Example: Finnish casino markets

Laws and guidelines also require players to be able to prove the origin of their deposits when asked, even at foreign online casinos. The largest and most common operators in Finland, for example, hold a gaming license from the Maltese MGA or the Estonian EMTA. When you play at these casinos (kasino ilman rekisteröitymistä in Finnish) and the amount of money in the account reaches a certain point, a situation arises where security and anti-money laundering measures are applied.

The online casino must identify the customer when the winnings claimed by the player reach the threshold of €2,000. Only after identification of the customer and verification of his identity, ie after verification of certain documents, winnings of this size can be legally transferred to the player. Identity verification is also required whenever there is reason to suspect that something wrong is happening with account funds and their use.

Source of funds verification measures – Source of Wealth (SOW) and Source of Funds (SOF) – are always taken on a case-by-case basis. Casinos reserve the right to perform background checks on their players at any time. Naturally, the speed at which casinos respond can vary. The limits and circumstances that practically force a reaction are set out in the Money Laundering Act.

Why is this question about the source of funds not normally asked at the time of the first deposit? Because any money laundering activity requires not only a deposit, but also a full withdrawal. Additionally, getting started would be a very cumbersome process if the entire casino security palette had to be slapped in front of the player from the start.

How is the source of funds verified?

Proving the source of funds in an online casino begins with a request from the gambling site. The player then has 30 days to provide the casino with the requested documents. This time limit applies to all gaming sites, regardless of their gaming license.

Proof of wealth or income in an online casino is provided by submitting casino receipts or other proof of the source of wealth, for example in the form of screenshots. This can be, for example, a receipt for winnings from casino games.

Bank statements relating to property and, for example, house purchases, can also be used to prove the source of wealth. There are of course other means and payslips and employment contracts can be used in addition to stock trading. All documents must show your name next to the information.

Verification of source of wealth – documents:

  • Payslip or employment contract

  • Proof of casino winnings (slots, table games, live casino, lottery, betting)

  • Proof of sale of shares

  • Will (inheritance)

How does SOW/SOF differ from KYC?

Proving source of funds has similar features to verification of a gambling account. Verification of a gambling account refers to a security check, which is usually carried out immediately after a cumulative deposit of €2,000 was carried out in online casinos.

This verification is also known as the Know Your Customer (KYC) process. In the KYC process, traditional online casinos that require registration ask the player to confirm their identity, home address, and payment method.

The KYC process is an effective way to eliminate criminal activity and protect the player. SOW and SOF, or proof of wealth, are a logical extension of security aspects. Nor are they particularly complicated processes. When a casino sends a Source of Funds Verification request, it is important to remember that it is ultimately about adhering to the principles of safe, reliable and responsible gambling. There is no rule of thumb when it comes to the amount of money in play, as casinos will carry out checks when they deem it necessary.