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For any Casino that is under the law of any jurisdiction, or being regulated by authorities of any jurisdiction, I can say that I believe its a sham when any of such casinos tell us that user's data are encrypted, I do not believe it at all.
But even if truly, users data is encrypted as they claim, the encryption may likely be against scammers and hackers, not against the authorities, for I know that casinos will remove any encryption when it is requested for by the authorities.
Firstly, it's not gambling sites who keep the data, it's third party companies like Shufti Pro, Onfido and others. Secondly, if you don't believe that data is encrypted, when well-respected companies claim so, you might as well do not believe that the earth is round, that slots by respected slot providers aren't rigged and stuff like that. It's so hard to live in this state of mind, mate. Change.
And yes, if authorities have a proper warrant, the the encryption will be removed. But that's a good thing, don't you think? They have to fight money laundering. It's for our own good.
I have a very different concept of what money laundering is about, because using a casino or casinos to launder money is not very convenient for those who do it, they prefer to use other types of platforms, tools, and many others. other things, some prefer to transfer physical money, or simply use mixers, but a casino is not the solution for many, as far as I am concerned, the security systems implemented by governments, implemented by some organizations will never protect us, they say Yes, but it will never be like that.