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.

 

[menzu]

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]

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]

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]

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

 

[Vor]

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 of︀ virtual goods you may have a shot.

That being said them considering it gaming isn't︁ the total end of the world but it would put you in a position most︂ 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 will︄ see it also. Banks today are extremely risk adverse which means you may not be︅ legally required to get a gaming license but may end up needing one to get︆ through a compliance department.

I suppose the worst case is you may need to get︇ 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 now︉ a days I have a feeling your gonna get rejections left and right without a︊ license. Required by law or not.

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

 

[HoneyBoo]

Try SafeCharge

 

[menzu]

Try SafeCharge

 

[Lore72]

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

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

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

Nuvei | Payment Technology Partner | Canada ?

Contacted them about a️ week ago with no response yet.

 

[Vor]

Ya I think the best approach is︀ to somehow attempt to convince a bank/processor you are a marketplace of virtual items type︁ 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 or︃ crypto? I'm assuming your selling the skins off on a 3rd party platform?

 

[Lore72]

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.

 

[menzu]

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]

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

 

[Cryptohodler]

Could you share a link to your website ?