6 reasons casinos can legally refuse to pay out winnings

You probably know the great feeling of winning while playing your favourite game. However, did you know that sometimes casinos can legally refuse to pay out your winnings?

Even if it sounds unfair, there are specific situations where companies are within their rights to withhold that money.

Before players take matters to court or attempt to fight the casino’s ruling, it'd be good to first assess the situation. Only when playing at legal online casinos could something possibly be done, which is why it’s important to avoid illegal operators.

Common legal reasons casinos can refuse to pay out

Get familiar with the following examples, as they will help you avoid unpleasant surprises and protect your money.

1. Violation of casino rules

Like any other gaming venture, intensively controlled activities such as casinos have both laws and procedures in place to safeguard the house and the players. Every player, irrespective of winnings, needs to follow the casino's protocols.

A casino, for example, can decide not to pay any winnings if it suspects the player of any form of negligence, including breach of wager, manipulation of betting through the use of loopholes, and disguising restricted bets.

2. Suspected fraud

If the casino suspects that you are a cheater, fraudster or simply suspects that somehow you use any gadget capable of affecting the game, they have the right to block your winnings. The casino can address anything from card marking to collusion and the use of bots in online casinos.

3. Identification and verification issues

Casinos, especially online ones, require you to verify your identity (according to anti-money laundering laws) and ensure you are of legal age. Authorised online casinos usually verify a player through Know Your Customer (KYC) verification procedures.

You will be asked to present a valid passport or driving license, the latest utility bill, and, in some cases, proof of a bank account. It could feel frustrating, but it's those checks that are a good sign that you are playing with a legitimate operator.

Besides, most of them are completed within 24 to 72 hours.

4. Bonus abuse

Many casinos offer welcome bonuses to attract new players, though all offers come with strict rules. If you try to abuse the bonus terms (like opening multiple accounts), the casino can refuse to pay your winnings.

When you receive a welcome bonus, you often have to wager that amount multiple times before you can cash out winnings. These wagering requirements generally range between 20x and 50x the bonus.

Always read the bonus terms and conditions before accepting it to avoid any issues like these.

5. Underage gambling

If a player is found to be under the legal gambling age, the casino will refuse to pay out any winnings. This is not only legal, but mandatory.

Allowing underage gambling is illegal in all countries, and should the winnings be paid out before verification, the casino reserves the right to reclaim the funds.

6. Maximum withdrawal limits

Some casinos have varying monthly and daily withdrawal limits, and these will be significantly different, depending on whether you are part of the VIP club and the casino's policy.

If you need withdrawals explained, here's an example. Should you win a large jackpot, don't anticipate seeing it all immediately. Large sums are usually paid in instalments over several months, as they use it as a cash management tool for casinos.

This is perfectly legal, provided that it's clearly stated in their terms and conditions.

What can you do if a casino refuses to pay out?

You can always contact the casino for an explanation. There are a few other things you can do if your winnings are withheld. Here are a few examples:

• Request a clear explanation.
• Review the terms and conditions.
• Provide your correct documentation.
• Contact the relevant regulatory authority.
• Seek legal advice.

However, one must bear in mind that casinos operate subject to the rules of a legal framework focused on countering fraud and corruption. Still, the idea that they can potentially withhold winnings is not particularly appealing.