CSGO Case opening website - Banking & payment processing advice request

[Lore72]

Myself and a few friends recently launched a small csgo case opening "casino" & were wondering if anyone had any advice on business banking/payment processing.

We formed the company in Cyprus 3 months ago
There are multiple directors in both US & UK
We are currently profiting about 200k euros per month.

We haven't been able to scale to the size we would like to be for various reasons but the main one being we haven't been able to spend money as we are unbanked & don't have a business card for expenses.

We currently only accept crypto & skins.

We tried to apply for Zen.com but were declined without reason.

Any advice or information would be greatly appreciated.

 

[HoneyBoo]

Can you share your website link ? Getting banked and access card processors is a question on how you market your service and regulatory requirements/restrictions.

 

[Lore72]

menzu said:
Can you share your website link ? Getting banked and access card processors is a question on how you market your service and regulatory requirements/restrictions.
Click to expand...

We accept customers worldwide with our main customers being from the US.

There are no licensing/restrictions for our business model as we don't allow our players to withdraw "real" currency, CSGO skins only.

Hope this helps

 

[Vor]

These CS:GO sites are doing money like this in 2022? Never would've guessed that. I had thought this industry was mostly dead after its boom era when I was a teenager. @Lore72 how long have you been running this for?

As far as getting banking/processing do you have a gaming license from any jurisdiction or are you operating totally unlicensed?

 

[Lore72]

Vor said:
These CS:GO sites are doing money like this in 2022? Never would've guessed that. I had thought this industry was mostly dead after its boom era when I was a teenager. @Lore72 how long have you been running this for?

As far as getting banking/processing do you have a gaming license from any jurisdiction or are you operating totally unlicensed?
Click to expand...

Yeah it's definitely still a large scene & id say the larger sites are making about 100x what we are doing.

No license is required as we don't allow real money withdrawals.

 

[void]

Vor said:
These CS:GO sites are doing money like this in 2022? Never would've guessed that. I had thought this industry was mostly dead after its boom era when I was a teenager. @Lore72 how long have you been running this for?

As far as getting banking/processing do you have a gaming license from any jurisdiction or are you operating totally unlicensed?
Click to expand...

massive business, selling silly stuff to kids who don't pay with their own money is a great idea, it will grow

 

[Vor]

Lore72 said:
Yeah it's definitely still a large scene & id say the larger sites are making about 100x what we are doing.

No license is required as we don't allow real money withdrawals.
Click to expand...

While a license is not required I'm going to say that likely you will run into a tricky time getting banking for this kind of a business because the compliance departments at 90% or financial institutions be it Banks, Processors, or EMIs is going to consider your industry gaming most probably(im assuming). If you can find one who instead considers it something like the selling or trade of virtual goods you may have a shot.

That being said them considering it gaming isn't the total end of the world but it would put you in a position most likely where you are running into banks constantly seeing you as an online casino enterpise.. hence your personal use even of the word "casino" this is the way compliance will see it also. Banks today are extremely risk adverse which means you may not be legally required to get a gaming license but may end up needing one to get through a compliance department.

I suppose the worst case is you may need to get some Caribbean license from say Curacao. I'm no gaming lawyer and I trust you 3000% know more about this industry than I do but with the way banks are now a days I have a feeling your gonna get rejections left and right without a license. Required by law or not.

void said:
massive business, selling silly stuff to kids who don't pay with their own money is a great idea, it will grow
Click to expand...

Yep. 15 something year old me lost $3000 of his summer money at the time playing on these CS:GO gambling sites lol.

 

[HoneyBoo]

Try SafeCharge

 

[Lore72]

Vor said:
While a license is not required I'm going to say that likely you will run into a tricky time getting banking for this kind of a business because the compliance departments at 90% or financial institutions be it Banks, Processors, or EMIs is going to consider your industry gaming most probably(im assuming). If you can find one who instead considers it something like the selling or trade of virtual goods you may have a shot.

That being said them considering it gaming isn't the total end of the world but it would put you in a position most likely where you are running into banks constantly seeing you as an online casino enterpise.. hence your personal use even of the word "casino" this is the way compliance will see it also. Banks today are extremely risk adverse which means you may not be legally required to get a gaming license but may end up needing one to get through a compliance department.

I suppose the worst case is you may need to get some Caribbean license from say Curacao. I'm no gaming lawyer and I trust you 3000% know more about this industry than I do but with the way banks are now a days I have a feeling your gonna get rejections left and right without a license. Required by law or not.


Yep. 15 something year old me lost $3000 of his summer money at the time playing on these CS:GO gambling sites lol.
Click to expand...

Yes i used the term "casino" loosely, our terms state we are not a gambling site.

I think you are onto something with trying to present ourselves more as a "marketplace with the trading of virtual goods".

We wouldn't want to be getting a license as we would be required to geoblock users & be more strict on KYC. This is the advantage of the niche otherwise we would just have made a crypto casino.

menzu said:
Try SafeCharge
Click to expand...

Nuvei | Payment Technology Partner | Canada ?

Contacted them about a week ago with no response yet.

 

[Vor]

Lore72 said:
Yes i used the term "casino" loosely, our terms state we are not a gambling site.

I think you are onto something with trying to present ourselves more as a "marketplace with the trading of virtual goods".

We wouldn't want to be getting a license as we would be required to geoblock users & be more strict on KYC. This is the advantage of the niche otherwise we would just have made a crypto casino.



Nuvei | Payment Technology Partner | Canada ?

Contacted them about a week ago with no response yet.
Click to expand...

Ya I think the best approach is to somehow attempt to convince a bank/processor you are a marketplace of virtual items type deal.. be careful with this though you do not wanna end up with frozen money. Your gonna need a somewhat adventerous bank or processor to take this on likely.

How are you getting the money you earn out of skins and into actual money or crypto? I'm assuming your selling the skins off on a 3rd party platform?

 

[Lore72]

Vor said:
Ya I think the best approach is to somehow attempt to convince a bank/processor you are a marketplace of virtual items type deal.. be careful with this though you do not wanna end up with frozen money. Your gonna need a somewhat adventerous bank or processor to take this on likely.

How are you getting the money you earn out of skins and into actual money or crypto? I'm assuming your selling the skins off on a 3rd party platform?
Click to expand...

We havn't got a large stock of skins as it's our only withdrawal method.

 

[HoneyBoo]

If you were a US company I would have loved reviewing your case and see if banking you could be an option (we can only onboard US entities).

For crypto, I am pretty sure you have a lot of options, including P2P marketplaces - if you need help with you can drop a message.

 

[Sols]

Lore72 said:
There are no licensing/restrictions for our business model as we don't allow our players to withdraw "real" currency, CSGO skins only.
Click to expand...

The legal definition of gambling varies by jurisdiction and you're right that winning virtual goods instead of money can be a factor which makes a business not a gambling activity. However, there are market places where skins can be sold for money. This leaves you open to some jurisdictions claiming that you offer gambling (because the winnings can easily be turned into money) and come after you. It also makes you an attractive serivce for money launderers.

If you want to grow, you will likely need some form of licensing in order to satisfy financial service providers that you are taking measured, adequate steps to prevent fraud, money laundering, and not offering your service to minors.

Toggle signature
This is the probably the answer to your question.

 

[Cryptohodler]

Lore72 said:
Myself and a few friends recently launched a small csgo case opening "casino" & were wondering if anyone had any advice on business banking/payment processing.

We formed the company in Cyprus 3 months ago
There are multiple directors in both US & UK
We are currently profiting about 200k euros per month.

We haven't been able to scale to the size we would like to be for various reasons but the main one being we haven't been able to spend money as we are unbanked & don't have a business card for expenses.

We currently only accept crypto & skins.

We tried to apply for Zen.com but were declined without reason.

Any advice or information would be greatly appreciated.
Click to expand...

Could you share a link to your website ?