Quote from: MonsterV on June 30, 2022, 09:01:08 PM

Since the money comes from Crypto, I've never understood what that has to do with money laundering. If someone deposits $100,000 into an account and they place a bet and win it, they can cash out. then there is no money laundering aspect, is there?

Money laundering is not about converting bitcoin or other crypto to fiat. It's more about exchanging bitcoin/crypto gained illegaly (tainted) with clean coins for which the source can be traced and proved (source of funds).
Imposing a wagering requirement on deposits before being able to withdraw them can reduce such activity but won't solve the problem completely. For example, someone who has $100k worth of bitcoin won't mind completing the wagering requirement and risking to lose x% of that money as long as he will get clean coins. This is one of the reasons why most casinos have this kyc policy.