20 Types of Bitcoin Casino Scams: Exposing Warning Signs of Fraudulent & Shifty Practices in Crypto Gambling Sites

The growth in the use of cryptocurrencies for online casino gambling has delivered previously unavailable benefits for players. However, this sector shift has also brought unique risks and pitfalls that any player could fall foul of.

First and foremost in any list of concerns for crypto gamblers are the risks of scams and falling prey to scammers. It’s worth noting that while many of these scams are cryptocurrency-specific, some apply to all online casinos both fiat and crypto.

This guide explores 20 of the most common crypto casino scams you may be unfortunate to encounter, from Bitcoin casino fraud to blacklisted platforms using rigged games and manipulated outcomes. You’ll learn the shady practices employed by unreliable sites and equip yourself with strategies to help avoid becoming a victim.

Through the guide, we’ll identify essential research techniques, precautionary steps, and how to pinpoint legitimate crypto casinos that deliver trustworthy platforms.

Whether you’re a novice or an experienced gambler, this guide equips you with practical tools to spot scams, avoid traps, and enjoy a safer gambling experience.

Let’s start with a look at one of the issues that affects all casino players irrelevant of currency used – the risk of encountering rigging of games.

Rigged Games

The most common thing people are worried about when playing games of chance online is rigged games. That largely stems from the belief that online casinos do not face the same level of regulation as land-based venues, a line of thinking that is erroneous. Most people think that because brick-and-mortar establishments operate in the real world as regular businesses, they get overseen and regulated more. That is largely inaccurate.

For the most part, the same government bodies that license and monitor a country’s physical gaming sphere do the same for its online one. Thus, if you pick a licensed site, you should be fine for the most part. Nonetheless, non-regulated ones exist, and these do not work with independent auditors like GLI eCORGA, TST, and iTech Labs. Consequently, there is no way for casual gamblers to verify the legitimacy of the random number generators their games utilize. Reputable hubs clearly publish the RTP percentages for their games and place their licensing info in very accessible spots.

One of the main attractions of crypto casinos today, and since their inception, is the implementation of provably fair mechanisms that let users check the fairness of their enjoyed products. These systems rely on hash functions to generate random seeds, and the casinos can manipulate these numbers, creating biased outcomes. They may not reveal the server seed, one of two used (the other is the client one), to make it hard for gamblers to verify the fairness of casino games in real time. Others may implement faux systems that trick novices who do not know how to use them.

Everyone should check if a game’s hashed server seed has been provided before a round has begun and if they can use independent tools or scripts to verify fairness. Also, it is a wise idea to use your own client seed if such an option is provided. But the best way to learn about game fairness is to talk to veteran players who have used a hub for a long time and have these individuals vouch for it.

For the most part, licensed and popular brands will not dare feature rigged casino games since they already have the odds in their favor, and the risk of fines and loss of reputation is too great for them. Certainly, getting caught with rigged games means the casino will be facing losing significant player volumes and the operator won’t have to worry too much about payments any more.

Non-Payment of Winnings

This is the fear of most online gamblers and the bane of their existence, as it is not uncommon to sign up with a website that delays or refuses payouts. Shady platforms look to tire users with endless verification processes aimed at getting them to quit the withdrawal process. Nefarious sites also like to hit gamblers with account freezes after hitting a big win, citing dubious reasons why this has occurred, causing investigations that drag on while the underlying cause is clear to all – they just do not wish to pony up the prize attained.

We have even heard of cases where winnings have mysteriously vanished from players’ balances. That is why it is paramount that you read reviews on Trustpilot and, more importantly, on forums such as Bitcointalk. Remember that most complaints you will stumble upon regarding any given casino brand will be payment-related, and you will need to differentiate credible from non-credible ones. We say this because when it comes to payouts, the issue is often on the user’s end. To verify you are doing everything right, read the site terms carefully, as each platform can have distinctive rules. Also, ensure that you only use hubs that have unambiguous conditions.

If you have any problems concerning withdrawals with our reviewed sites, please report delayed or denied withdrawals to us, and we shall see if we can help. That help is always easier to give when you’re using a licensed platform, so be sure to check licensing validity before you deposit any coins.

Fake Licensing Claims

This happens all the time. You will find a crypto casino that looks legit, but when you go to check its licensing status, it says something like – we are a regulated and licensed website in good industry standing whose games have gotten checked for fairness. Yet, there is no mention of which regulator gave the platform its seal of approval or who verifies the validity of its implemented RNGs.

Operators like to use vagueness to give the appearance of credibility, especially to gamblers whose native language is not English and who are not familiar with how this industry works. They only see the word licensed and instantly trust that the platform is being regulated by someone.

Another thing that gaming/betting lovers have to look out for is wording such as – regulated and licensed in – enter a specific country’s name. A casino is registered by an organization, a governmental agency, or a body, a specific one designed for this purpose. Examples include the Curacao Gaming Control Board, the Malta Gaming Authority, and Panama’s Gaming Control Board. When an operator lists something akin to – registered and licensed – a country name, that usually refers to the fact that the company running the site operates as a registered business from a region that allows business entities to offer gambling services online but does not have a distinct monitoring body that imposes its specific rules and ensures they get followed.

Always look for a regulator badge that should link back to a site’s unique license page. Note that sometimes, Chrome extensions can block you from viewing this item. If you think a platform has a license but is missing a regulator badge, reopen the site in multiple browsers to see if it appears in other Web apps.

KYC Abuse

If you have been gambling for a long time, you know that identity verification processes known as KYC (Know Your Customer) have been rather standard in recent years. Those new to this arena have likely accepted them as something inevitable and see it as nothing out of the ordinary to supply sensitive documents to casino operators.

Still, one must be wary of who he gives copies of photo IDs, bank statements, and so on. That is super private info, and scammers can use this data for identity theft, or they may sell it to third parties. Some criminals go so far as to set up casino sites and get people to fork over confidential details so they can exploit these for profit. Hence, it is critical that you only share with websites that comply with data protection laws like the European Union’s GDPR and with ones that implement quality encryption and info safeguard procedures.

Keep in mind that all reputable sites should explicitly state how they handle your information in their privacy policy or general terms and conditions pages.

Ponzi Schemes

A Ponzi scheme is a type of fraud named after Charles Ponzi, an early 20th-century swindler, it pays out profits to those who come early into the scheme via the money put in by those who buy in later. These forms of fraud are not something we have seen in the crypto gaming domain ourselves, but we have heard players claim they have run into them and say they work by promising high cashback rates and listing aggressive affiliate programs with lucrative referral commissions that aim to build a pyramid-like structure, where money flows upwards.

We doubt that you will run into these, but stay vigilant by reading blogs like ponzitracker.com to get educated on this topic if you come across something that appears suspicious and you think it may be a scam of this sort.

Fake Provably Fair Claims

We already sort of went through this, but we chose to give it its own sub-heading and tell you a little more about how casinos can play tricks on you via provably fair gaming. One typical way is by listing a few genuinely provably fair games but advertising a lobby packed with loads of other unregulated third-party titles as a provably fair one. Just because you can check the randomness of a select few specific titles does not mean that all housed ones have this option.

Operators can make baseless claims about their game fairness, and if no one calls them on this, and if they have no license, these can get marketed for as long as the site is active, looking to take advantage of newbie gamblers’ unfamiliarity with blockchain technology.

Please research the hashing algorithm utilized by your considered casino, looking for SHA-256 and HMAC ones. Trusted systems use secure ones like these and are skeptical of vague claims like – the implementation of proprietary encryption. Cross-check results using independent tools/scripts, and if things seem iffy at first sight, run tests with micro bets to test the fairness systems in place before putting down sizeable coin wagers. Trustworthy hubs have pages dedicated to their provably fair algorithms, explaining how they work. We would also suggest that you stay clear from operators that highlight non-standard phrases like AI randomness or blockchain fairness. If they do not know the sector lingo, they likely are not reputable.

Unrealistic Bonuses

We have talked about this subject matter loads at BTCGOSU. Bonus transparency has been discussed here at great length. So, we will not waste too much time covering the same ground here. We will only tell you that casinos that advertise massive bonuses are usually not legit. If you see 500% matches, that is a red flag because operators craft promo offers, so these boost engagement but do not put them in danger of losing much to players gaming with bonus funds.

We have also discussed unrealistic bonus terms, like impossible-to-meet wagering requirements or ones listing short rollover competition. If you see a deal with a wagering requirement above x40, but it offers only a match up to $100, and it has a three-day stipulation completion deadline, then this is a promotion that you should stay clear of. Use EV (expected value) calculators to verify the real attractiveness of a promo, look into its profit probability, and evaluate the bonus terms for feasibility yourself.

Phishing Scams

What is phishing? It is a cyber tactic that aims to deceive people through practices  like site or email spoofing, presenting fakes that cons individuals into believing they are talking to or accessing a real service when they are transacting/conversing with a scammer.

Phishing casinos look like the real deal, and fake casino emailers pretend to work at your registered gaming hub to steal your credentials, private keys, or funds by tricking you into supplying personal information. Always double-check the email address that is requesting something strange, and look to evaluate websites’ authenticity using SSL certificates. You can also use phishing tools online, but sometimes, taking a good look at the domain name to check the authenticity of a casino URL does the trick.

Withdrawal Fees Scams

Know that some crypto gambling entities look to make money from other methods aside from raking in the coins that the house edge of offered games and their sports odds margins bring. They also hope to get a little extra dough by charging excessive withdrawal fees, often disclosing these after someone removes their winnings. These are ones that get imposed on top of usual network fees and can be substantial enough that they sizably eat into modest prizes.

Clone Sites

Here is something similar to phishing. Nonetheless, clone sites do not always aim to steal data; they simply may want to get a piece of someone else’s player pool and profit from the efforts an established operator has put into branding by conning gamblers into believing they are playing at a popular casino when they are using a clone that supplies less favorable bonus and payment terms. These platforms mimic the appearance of legitimate casinos to deceive, and tools like Whois can be used to verify if they are the real deal or not for those who cannot instantly tell, as Whois and similar services report on website ownership and security.

Pump-and-Dump & Token Schemes

What are pump-and-dump scams? These are schemes where frauds create hype using lies to manufacture a buying frenzy. Because of this, the price of an asset jumps, and investors dump their holdings when it soars, causing other investors to lose money.

Within the crypto casino realm, this occurs with sites that have created a proprietary token that is the backbone of that platform’s ecosystem and can be used for staking rewards, where holders get a share of the hub’s revenues.

In theory, casinos or criminals can launch fraudulent tokens associated with a given brand, creating hype via influence endorsements or clever marketing to stimulate demand and then pump and dump. The most common tricks linked with these frauds are limited-time bonuses for buying or using tokens. As a rule of thumb, after the collapse, the site and perpetrators vanish, or they shut down the site, noting technical issues before disappearing, and usually, they rebrand and do the same thing again under a different name.

So, if you are going to buy casino tokens, analyze their tokenomics and do not get duped by promised high yields. Do some research on pump-and-dump patterns before investing. Please verify token legitimacy with the help of CoinMarketCap or through blockchain explorers.

Account Freezing

Account freezes, claiming security concerns or bonus abuse are suspicious and the most routine way for gaming platforms to refuse to pay out and confiscate balances. If they have no license or one from a super lax body, then they can do this at their discretion, without much pushback, which is why it is essential to only play at regulated sites that have defined dispute resolution procedures and whose regulators respond to user claims of mistreatment.

We recommend you check reviews for any reports of unfair account freezes before joining a crypto-gambling website and report this to us, other quality review hubs, and your casino’s licensor if such a thing happens to you. This is an easy tool for dubious operators to refuse cashouts and steal money.

Hidden Terms and Conditions

Always check the fine print. In the general terms and conditions, you can locate unfavorable rules like x5 general deposit rollover conditions, low max win caps, unjustifiable situations in which a site can refuse your withdrawal, and cases that give a platform power to act on its discretion alone. Furthermore, scam casinos often include ambiguous or deceptive terms, intentionally not explaining the rules under which they provide their service so they can later impose rules that benefit them, leaving users with no recourse or legal claim.

Fake Testimonials

These are flooding the Web, with many scammers instantly fabricating reviews or testimonials for their scam services, hoping to create a false impression of credibility for them. On the surface, these reviews often appear credible, but telltale signs of their aim at misdirection are if they are overly positive and general. The latter refers to a lack of genuine detail. To avoid getting hoaxed by these, it is best to cross-reference reviews on Trustpilot, for example, using something like Reddit, where fake testimonials get flagged by community members who detail their experience with a given service.

Malware-Embedded Games

We have almost no experience with this because games usually come from reputable providers who host them on their services. Some of our readers claim that this is a thing, and we know for sure that in the UK, in the mid-2010s, there was a scandal involving some top online sportsbooks installing spyware on users’ computers. However, this was allegedly to stop arbitrage betting. Still, it’s scary.

Maybe it is incidents like that have put fear in some of our gamblers that casino apps can embed their devices with keyloggers or malware that monitors clipboard activity with malware designed to steal sensitive data. So, this can happen, and to prevent it, have anti-malware software installed on your device, and only use casinos known for their cybersecurity measures.

No-Deposit Scams

What do we mean by no-deposit scams? These are promos that get marketed as ones requiring that you make no deposit, usually supplying free spins without registration, but once you win something, you get hit with the ole bait-and-switch, and instead of getting your promised paid out, you get mandated to complete a second section of your bonus, and maybe even get required to make a deposit.  Your reward may also be subjected to hidden conditions that make it unfeasible, like a high wagering requirement.

Again, top-end brand BC.Game and mBit Casino take great pride in their bonus transparency and openness about the deposit requirements tied into their promotions. Even when using such platforms, please do your best to evaluate the feasibility of no-deposit offers that even the main sector players list, as frequently, these offers are too good to be true.

Geo-Blocking Exploits

If you know something about geo-blocking and have explored this field, then you have likely heard of tools like GeoComply and MaxMind that help verify compliance with jurisdictional restrictions. Unfortunately, we do not know how handy these are when casino geo-blocking restrictions come into play, as these are reliant on countries’ distinct gambling laws. So, in the context of geo-blocking exploits, casino scams from this category usually refer to websites that target gamblers from countries where gambling is prohibited. One would assume that this only leaves these parties exposed to legal risk, but that is not always so. It may also leave users open to legal dangers, depending on the territory they come from and their laws.

In search of extra profits, crypto casinos can go beyond what their regulators allow and create loads of issues for their users by accepting ones from parts of the globe they shouldn’t allow people to sign up to get their service. That is why everyone must understand the legal implications of online gambling from within their borders before engaging in this activity. VPN use at specific sites, those platforms’ stances on this must also be grasped before fake IPs get used, as that can lead to fund confiscations if not allowed.

Responsible Gambling Misrepresentation

Responsible gambling gets highly promoted by all regulators, and it is a topic these bodies make their licensed operator educate their users on while also forcing them to provide tools for responsible gambling tools and warn of the potential harm this pastime brings. Even with such a focus on this, some casinos like to advertise themselves as following through with these but fail to implement reality checks, spending/gambling limit functions, and self-exclusion is only provided after contacting the support staff and users begging the platform team to implement such a ban.

Taking advantage of people with impulse control problems is pretty low, which is why you should test out every brand’s responsible gambling tools and read about people’s experiences with these before using a specific casino, even if you do not have a gambling addiction problem. You never know if you may develop one in the future, enticed by external factors to gamble more than what you can afford to be without.

What Are Some Uncommon Crypto Casino Scams?

While the scams listed above are common, less frequent but equally dangerous schemes to watch out for are:

• Fake Casino Surveys – Fraudulent questionnaires that masquerade as quizzes whose goal is for you to relinquish data that can then get used for illegal activities. They can pop in your inbox. Be aware of this.
• Social Engineering Scams – These also have a data collection aim and are more personalized attempts, using direct messages on social networks or by email. In these, for the most part, criminals pretend to be someone from a trusted casino, trying to help you out. They may even have a fake LinkedIn profile built up to simulate credibility and add a veil of legitimacy to the scheme they are running.
• Delayed Blockchain Transactions – we have seen some casinos purposefully drag out processing times, hoping to get users to cancel their withdrawals and gamble away their prize due to them being impatient regarding receiving them

How Best to Avoid Getting Caught by a Scam

To ensure you are playing at a legitimate casino, we recommend that you:

• Research Thoroughly – Always try to read our reviews or use forums like Bitcointalk to vet the casinos you are thinking about joining.
• Verify Licenses – Do not only look for the licensor’s badge in the website footer but also click it and read the text provided, checking to see if the supplied license is still valid and when it expires.
• Secure Your Funds/Account – Utilize 2FA on everything. Review login records and use hardware wallets if you can as well, as much as you can.
• Test – Never start big with unproven sites or ones that you are using for the first time. Always begin with minimal deposits to assess reliability.
• Review All Terms – Scrutinize for red flags in the general conditions and the bonus ones.

By staying informed, you are staying vigilant, which lets you enjoy crypto gambling to the max, safely, and you minimize your risk of falling victim to scams.