Why Online Casinos Confiscate Winnings
✓ Written and Reviewed by Jay Sterling
Few things are more frustrating than winning at an online casino, only to have your winnings confiscated. I’ve seen this happen to players who thought they’d done everything right, and I’ve also seen cases where the casino was absolutely within its rights to void winnings. The reality is that while some confiscations are legitimate enforcement of published rules, others fall into a gray area that can feel deeply unfair.
Understanding why casinos confiscate winnings—and knowing the difference between legitimate enforcement and questionable practices—can help you protect yourself and know when you have grounds to fight back.
The Most Common Reasons for Confiscated Winnings
Bonus Terms Violations
This is probably the single most common reason winnings get confiscated, and it catches many players off guard. When you accept a bonus, you’re agreeing to specific terms that restrict how you can use it. Violating these terms—even unintentionally—can result in the casino voiding your winnings.
Wagering requirements are the most obvious rule. If you try to withdraw before meeting the required playthrough amount, your bonus winnings will be forfeited. But there are other, less obvious violations that trip players up.
Maximum bet limits while using bonus funds are a major issue. Many bonuses prohibit betting more than a certain amount per spin or hand—often around five dollars. Even a single bet above this limit can void your entire balance, including any winnings. The casino’s software doesn’t always prevent you from placing these bets, so it’s your responsibility to know and follow the rules.
Restricted games are another common pitfall. Some games either don’t count toward wagering requirements or are completely prohibited while using bonus funds. If you play a restricted game with bonus money, your winnings can be confiscated even if you later switch to allowed games.
The frustrating part is that these rules are often buried deep in the terms and conditions, and they don’t always warn you when you’re about to violate them.
Multiple Accounts or Duplicate Accounts in a Household
Creating more than one account at the same casino is strictly prohibited, and it’s one of the fastest ways to have your winnings confiscated. Casinos use this rule to prevent bonus abuse—someone could theoretically create multiple accounts to claim the welcome bonus repeatedly.
The problem is that this rule can affect innocent players too. If you share a household with someone who also gambles at the same casino, you might both be flagged for having duplicate accounts even though you’re different people. Some casinos are reasonable about this if you can prove you’re separate individuals, but others enforce a strict one-account-per-household policy.
Forgotten old accounts can also cause issues. If you created an account years ago, forgot about it, and signed up again with a different email, the casino may treat this as deliberate multi-accounting and confiscate your winnings.
KYC Verification Failures or Inconsistent Identity Details
If you can’t successfully verify your identity, or if the details you provided don’t match your documents, the casino can refuse to pay out your winnings. This isn’t always nefarious—casinos are legally required to verify players, and if they can’t confirm you are who you say you are, they can’t send you money.
Common issues include using a nickname instead of your legal name, entering an old address, or providing documents that don’t clearly match your account information. Even small discrepancies can cause problems.
In some cases, players provide documents that appear altered or fraudulent, which leads to immediate confiscation. If the casino suspects you’re using false identity documents, they won’t pay you and may report you to authorities.
Payment Method Mismatch
Trying to withdraw to a payment method that doesn’t belong to you is a serious violation. Casinos require that the name on your payment method matches the name on your account. If you deposit with your credit card but try to withdraw to someone else’s bank account, this looks like fraud or money laundering.
Even using a family member’s card to deposit can cause issues. Some players use a spouse’s or parent’s payment method without realizing this violates the terms. When it comes time to withdraw, the casino may confiscate winnings because the deposit didn’t come from an account in the player’s own name.
VPN Usage or Restricted Country Access
Using a VPN to access an online casino from a restricted jurisdiction is grounds for immediate confiscation. Licensed casinos are prohibited from accepting players from certain countries, and if you use a VPN to bypass these restrictions, you’re violating both the casino’s terms and potentially their licensing agreement.
Even if you’re using a VPN for privacy rather than to access the casino from a restricted country, the casino may interpret this as an attempt to hide your location. Some casinos explicitly prohibit VPN use in their terms, and using one can void your winnings.
Chargebacks or Disputed Deposits
If you’ve ever disputed a deposit with your bank or credit card company, the casino will almost certainly freeze your account and confiscate any winnings. Chargebacks are considered fraudulent by casinos, and they take them very seriously.
From the casino’s perspective, accepting a chargeback means they’ve provided you with gambling credits that you’ve used, but then you’ve clawed back the money through your bank. Even if you had a legitimate reason for the chargeback, the casino may refuse to pay out any future winnings and may ban your account permanently.
Suspected Fraud or Stolen Payment Methods
If the casino suspects you’re using stolen credit cards, fraudulent payment methods, or someone else’s financial information, they’ll confiscate your winnings immediately. This can happen even if you’re not actually committing fraud—certain patterns can trigger fraud detection systems.
For example, if you deposit from a newly issued card, use a billing address that doesn’t match your account address, or show unusual transaction patterns, the casino may flag your account for investigation. If they can’t verify that the payment method legitimately belongs to you, they may void your winnings as a precaution.
Suspicious Betting Patterns
Casinos monitor gameplay for patterns that suggest bonus abuse or advantage play. This includes behaviors like only betting on low-risk outcomes, using systems designed to clear bonuses with minimal risk, or playing in ways that exploit vulnerabilities.
Arbitrage betting—where you place bets on opposite outcomes across different platforms—can also trigger confiscations if detected. While this isn’t gambling in the traditional sense, casinos may view this as exploiting their platform.
If the online casino’s fraud team determines that you’re not gambling for entertainment but rather exploiting their systems, they may confiscate all of your winnings.
Breached Terms and Conditions
Beyond bonus terms, online casinos have general terms and conditions that cover a wide range of prohibited behaviors. Common violations include underage gambling, using a self-excluded account, allowing someone else to use your account, or engaging in collusion with other players.
Self-exclusion violations are particularly serious. If you’ve self-excluded from a casino due to problem gambling and then create a new account or use someone else’s account to gamble, any winnings will be confiscated. This is both a legal requirement and a responsible gambling measure.
Age verification failures will also result in confiscation. If the casino determines you were underage, they’ll void all winnings and may report the incident to authorities.
Third-Party Deposits or Withdrawals
Any transaction that involves someone else’s money is a major red flag. If you deposit using someone else’s account and then try to withdraw to your own account, this looks like money laundering. Similarly, if you try to withdraw to a third party’s account, the casino will block the transaction and potentially confiscate your winnings.
This rule exists to prevent fraud and money laundering, but it can affect innocent players who share finances with family members. Always ensure that deposits and withdrawals involve only your own payment methods.
Incomplete Verification Before Withdrawal
Some casinos require full KYC verification before allowing any withdrawals. If you try to withdraw without completing this process, or if you provide incomplete or unclear documentation, the casino may hold your funds and eventually confiscate them if verification remains incomplete.
This is particularly common with source of funds requests for large withdrawals. If you can’t adequately document where your deposit money came from, the casino may refuse to pay out your winnings under anti-money laundering regulations.
Legitimate Enforcement vs Red Flags
Not all confiscations are scams, but some certainly fall into questionable territory.
Legitimate enforcement includes clear violations of published terms that were easily accessible when you signed up, consistent application of rules across all players, reasonable communication explaining exactly which rule was violated, and the opportunity to provide an explanation if you believe the confiscation was in error.
If you violated a stated rule—like betting above the max allowed amount on a bonus or creating multiple accounts—the casino is within its rights to confiscate your winnings.
Red flags include terms that are buried in fine print or written in deliberately confusing language, sudden rule changes after you’ve won, confiscation without a clear explanation of which rule was violated, refusal to provide evidence or documentation supporting their decision, and inconsistent enforcement where some players are penalized while others aren’t.
If a casino repeatedly requests verification documents, rejects valid documents without explanation, or keeps changing the reason for the confiscation, these are signs of stalling tactics rather than legitimate enforcement.
How to Reduce the Risk of Confiscation
Read bonus terms thoroughly before accepting any offer. Look specifically for maximum bet limits, restricted games, and wagering requirements. If the terms seem unclear or overly complicated, skip the bonus.
Avoid VPNs when gambling online. Unless you have a legitimate reason to use one and you’ve confirmed with the casino that it’s allowed, stick to your regular connection.
Verify your account early. Don’t wait until you want to withdraw. Upload your documents as soon as you create your account so there are no surprises later.
Keep payment methods consistent. Use the same deposit and withdrawal method, and ensure everything is in your own name.
Save everything. Take screenshots of your account balance, bonus terms, deposit confirmations, and any communication. If a dispute arises, you’ll need these docs.
Communicate clearly with support. If you’re unsure about a rule, ask player support before proceeding. Get their response in writing (via email or chat transcript).
Know your limits. If you’re playing with a bonus, double-check the maximum bet limit before every session. Set reminders if necessary.
What to Do If Your Winnings Are Confiscated
If a casino confiscates your winnings, don’t panic. Follow these steps to give yourself the best chance of recovering your money or at least understanding what happened.
Request a detailed written explanation. Contact player support and ask for a specific explanation of which rule you violated. Get this in writing—chat transcripts or emails are ideal.
Gather your evidence. Compile screenshots of your account, deposit and withdrawal history, bonus terms as they appeared when you accepted them, and all communications with the casino.
Compare their reasoning to their published terms. Pull up the casino’s terms and conditions and bonus terms. Does their explanation match what’s actually written? Are the terms clear and accessible, or buried in fine print?
Respond calmly and professionally. Escalate through the casino’s complaint process. Provide your evidence and explain why you believe the confiscation was unfair. Stay polite but firm—emotional or aggressive communication will hurt your case.
Identify the casino’s licensing jurisdiction. Licensed casinos are regulated by authorities like the UKGC, Malta Gaming Authority, or Curacao eGaming. If the casino refuses to resolve the issue, you can file a formal complaint with their regulator.
Use dispute resolution services. Some jurisdictions offer dispute resolution services for player complaints. Research what’s available for your online casino’s license.
Know when to walk away. If you genuinely violated a clear rule, accept the outcome and learn from it. If the casino is being unreasonable but you’ve exhausted all options, sometimes the best course of action is to move on and choose a better casino.
Final Thoughts
Most confiscations happen because players unknowingly violate bonus terms or other rules. While this can feel unfair, especially when the terms are unclear or buried in fine print, licensed casinos are generally within their rights to enforce their published rules.
That said, not all confiscations are legitimate. If a casino is changing rules after the fact, refusing to provide clear explanations, or applying rules inconsistently, you may be dealing with a questionable operator.
The best protection is knowledge. Read the terms carefully, verify your account early, keep detailed records, and understand your rights. If a confiscation happens, approach it methodically with documentation and calm persistence. And if you find yourself repeatedly frustrated with a particular casino’s practices, take your business elsewhere.