I imagine that with the flourishing gambling industry in the world of cryptocurrencies and as can be seen in this forum, there are those who think that setting up a casino is relatively easy.
You probably already know this by now, from this experience, but to everyone else, I will tell you from my own experience, Do Not Attempt To Launch A Casino By Yourself!
Casinos must be ran similar to responsible companies. Contrary to popular thinking, casinos have thin margins of profit, because their entire revenue depends on people losing the games in the long run!
So, if enough users do not use the site, or the crypto prices suddenly crash (it can be mitigated somewhat by converting the cold wallet storage to USDT, or USD in a bank, but the hot wallet must always be replenished at all times), you will run out of cash to pay users.
Also, crypto casinos in particular get abused by multi-accounters with no mercy, so if you cannot afford sophisticated, state-of-the-art blockchain fraud detection then you will be robbed by your own users.
In summary, if any of the below are not true:
1) You have incorporated the casino to avoid personal liability of debt payments
2) You have institutional lenders willing to loan your casino money (wealthy individuals do not count)
3) You have already installed blockchain fraud and DDoS/malware protection for your backend
4) You have enough reserves in hand to pay your staff and the hot wallet for at least 6 months in case of an emergency
Then DO NOT LAUNCH A CASINO for your own sanity' sake.
I do not believe that Royse777 had any negligent intentions when associating with the BitLucy owner, so I have opposed the flag (it would be better warranted on BitLucy the owner himself for not having enough funds to run a sustainable financial operation).
EDIT: Now that I think about it, I should probably suppliment the fake investor warning sticky thread in scam accusations to include warnings against this type of scam involving casinos.
Interesting. I would add some betting limit so that a Whale doesn't break the bank, although I don't know if they all do it by default.
The thing is that once launched, if you manage to operate avoiding the mentioned problems, online casinos are money making machines.
So, we could think that in the case of Bitlucy the owner had no idea of scam from the beginning, but that what happened was due to bad management and unprofessionalism? I remember that Royse777 mentioned the abuse of the no deposit bonus and that the events coincided with the recent drop in the price of Bitcoin.
Anyway, the owner is also liable for negligence.