What is closed-loop policy?
Definition and example from our casino glossary.
Definition
A closed-loop policy requires withdrawals to be paid back to the same method used for deposits, as far as that method allows.
Most licensed casinos operate a closed loop: money must leave by the route it arrived. If you deposited by card and by e-wallet, withdrawals are typically returned to each up to the amount deposited with it, and any surplus is paid to a method that supports withdrawals, often a bank transfer. The rule mainly serves anti-money-laundering goals, because it prevents an account being used to move funds from one channel to another, and it also limits fraud. In practice it causes confusion when a deposit method cannot receive payouts, as with vouchers or some mobile payments, or when a card has expired. In those cases the casino will ask for alternative details and proof of ownership. Keeping to one or two payment methods in your own name makes withdrawals simpler and faster.