Where banks and gambling overlap, things can get a little murky. Banks monitor online casino transactions to circumvent the expensive consequences of fraud and money laundering.
But with so many varying regulations, a flagged transaction can leave players confused, scrambling, and potentially in legal trouble.
That’s why it’s crucial to know what to do. In this guide, I will cover the reasons why banks flag casino deposits, stories about real gamblers who have lived through it, and helpful tips to prevent getting yourself into the same situations.
Why Do Banks Flag Casino Deposits?
Banks flag casino deposits because gambling transactions fall under high-risk categories. These transactions are often linked to concerns about fraud, chargebacks, or even money laundering.
At the end of the day, banks will do everything they can to minimize risk and protect themselves, so it’s not uncommon for casino deposits to get flagged. On top of that, gambling is illegal in some US states.
If you’re depositing at an offshore casino, things get a bit more complex. Many offshore sites have adapted by using alternative company names, making the transaction look like it’s from a random retail merchant.
However, your bank can still detect suspicious patterns, like frequent deposits to unknown merchants or large, irregular amounts. These transactions can trigger flags or even block the payment.
What Happens When Your Casino Deposit Gets Flagged?
If a bank flags your transaction, it’s often the start of an investigation, whether to protect you or look for fraud. They will likely freeze your account, putting pending and outgoing transactions on hold. Following that, you can probably expect a phone call.
They’ll want to confirm you made the transaction and might ask for further information or documentation.
Real Stories of Banks Flagging Players’ Casino Deposits
Ever wonder what really happens when a bank flags a casino deposit? You’re not alone. I dug through online forums and found real stories from players who’ve had their transactions blocked, delayed, or flagged—sometimes without warning.
Story #1: “A Word of Warning With Gambling and Banks”
When this player’s credit card didn’t work one day, they called the bank and found out their account was flagged for significant misuse and was set to shut down in 60 days.
Too much money had been going to the casino and coming back in, triggering an investigation for money laundering.
Much to their dismay, the player also learned they might have a CIFAS (Credit Information File Advisory Service) Category 6 fraud marker against their name, potentially preventing them from getting any credit, car insurance, or mortgage for up to six years.
In the end, the player’s advice was simple—be more responsible with gambling transactions.
Source: GamCare
Story #2: “Legal Lottery Transaction Blocked”
This player downloaded the official Illinois lottery app, thinking that since it’s perfectly legal, they would be able to buy a ticket. However, Citibank denied every attempt at a transaction.
When they called to find out what was going on, they learned that all forms of gambling are prohibited with that bank, and the only way to play the lottery online would be to open an account elsewhere.
Source: Reddit
Story #3: “Hold on Account for Suspicion of Online Gaming”
After this player had been spending time in online poker rooms, he got a call from a manager at US Bank. They let him know that the bank has a policy of shutting down any account involved in online gambling and that his transactions were suspicious.
The bank put a hold on his account until they could investigate the issue further. Sadly, the player did not made an update on how it ended.
Source: TwoPlusTwo Forum
Story #4: “In Trouble for Depositing Casino Winnings”
This player was an active gambler, regularly putting $5,000 in casino winnings into their bank account twice a week. However, this landed them in hot water.
Banks report any deposit over $10,000 to the government under suspicion of money laundering.
Since they were breaking their deposits into smaller increments, the bank accused them of structuring to avoid reporting, resulting in a cease and desist order.
Source: Reddit
How to Prevent Your Bank from Flagging Casino Deposits
While there are no guarantees your gambling transactions won’t get flagged, you can lower your risk by taking these precautions:
- Instead of using your bank card, try alternative casino payment methods like crypto, prepaid cards, or E-wallets.
- Avoid making numerous deposits of the same amount in a short amount of time, like four $20 deposits in 30 minutes.
- Don’t break up your large deposits into smaller ones, as that can look like structuring, which is more suspicious than normal transactions.
- Some banks are fine with casino transactions, so consider using a gambling-friendly bank.
- Never gamble with a business or joint account, as it can have more serious consequences.
What to Do If Your Bank Flags a Deposit
If your bank flags your casino deposit, don’t panic. It happens all the time, and you will likely be fine. Just follow the steps below to make everything go as smoothly as possible.
Check Your Notifications
Take a deep breath and check your emails, texts, or app notifications. Your bank might have already sent something explaining why they flagged your transaction.
Contact Your Bank
Call your bank and talk to an agent, as they will need confirmation that you made the deposit. If the bank is ok with gambling transactions, that might just be the end of the whole issue.
Assess the Situation
What are your bank’s restrictions? If they do not permit casino transactions, you’ll need to find out what that means for you. Ask if your account is on hold, if the block is temporary, or if the block is permanent.
Document Everything
Make sure you get the banker’s name and take notes on everything said during the phone conversation in case you need it later.
Follow The Bank’s Instructions
If they tell you no more transactions at gambling sites, take them seriously. A first-time offense is not a big deal, but multiple offenses might land you in financial and legal trouble.
FAQ
Check out the most commonly asked questions about banks flagging casino deposits below.
Why do banks flag gambling transactions?
Banks flag gambling transactions because they are at high risk for fraud and money laundering.
Why some banks block gambling transactions, but others don’t?
Many banks have opted to allow gambling transactions because of the growing legality, the desire to keep their customers, and the use of advanced risk management systems. Other banks don’t allow gambling transactions because they simply don’t wish to take on the liability or moral implications.
Can I get in trouble for depositing at online casinos?
It is possible to get in trouble for depositing at online casinos. It depends on whether it’s legal where you live and if it’s permissible by your bank.
What payment methods avoid bank flags?
Payment methods like E-wallets, cryptocurrencies, and prepaid cards avoid bank flags since they are not directly linked to your bank account.
Can I ask my bank to allow gambling transactions?
Sure, you can ask your bank to allow your gambling transactions. However, you may not get permission if your bank does not already allow them.
