Online gaming embezzlement – General info
Online gaming operators have the obligation by law to cash out any or all of your balance at any time. Only restricted by the payment processor limit, reasonable security check or play through requirement for deposits or bonuses.
Online gaming companies are not allowed to use player deposits for operating or private expenses. Account balances are neither a credit to the operator nor a business share!
If you go to a brick and mortar casino and exchange money for chips, what are your rights? It is very simple! The cashier has to exchange your chips at any time, as long as you are not accused for cheating. Right?
It is the criminal offense of embezzlement, if an operator unjustifiably withhold account balances! And this totally independent of whether the operator has still the cash on hand or not. The key point is to not give back what is owed in a timely manner. Temporarily delayed or non-payouts caused by a certain payment processor do not count to this category.
To make false and misleading statements about withdrawal time frames is furthermore the criminal offense of fraud!
Try to think as a business man: Would a profitable run business intentionally slow down or stop withdrawal requests? Would you knowingly cause a bank run and loss of customers and revenue, while you have the money on hand? Usually not! And this confirms that habitually delayed or non-payouts are clearly a sign of simply not having the cash available.
This is very concerning, because the amount of requested withdrawals is usually only up to 10% of all account balances. So if an online gaming operator is not able to process the current withdrawal requests in a timely manner, he has less than 10% of all account balances available in cash!
Online gaming embezzlement
- Is an act withholding assets for the purpose of conversion (theft) of such assets, by one or more persons to whom the assets were entrusted, either to be held or to be used for specific purposes.
- Is a type of financial fraud: I.e. a lawyer might embezzle funds from the trust accounts of his or her clients; a financial advisor might embezzle the funds of investors; and a husband or a wife might embezzle funds from a bank account jointly held with the spouse.
- Is usually a premeditated crime performed methodically, with the embezzler taking precautions to conceal his or her activities of the criminal conversion of the property of another person, because the embezzlement is occurring without the knowledge or the consent of the affected person.
- When successful, embezzlements continue for years or (even decades) without detection. It is often only when a relatively large proportion of the funds are needed at one time.