Online Casinos to Avoid – Dangers Posed by Offshore Betting Brands

The global online market was valued at an impressive $308.52 billion last year. It will subsequently achieve a valuation of $328.48 billion by the end of 2025, before expanding at a CAGR of 6.47% and peaking at $542.41 billion in 2033. The US marketplace is currently worth around $16.56 billion, having begun to experience exponential growth since the federal law prohibiting sports betting was struck down in May 2018.

Of course, the best real money online casinos in the US are formally licensed and globally recognized, including iconic brands like BetMGM, DraftKings and Caesars. However, a huge selection of offshore sportsbooks are also accessible to players in the US, many of which are licensed by less reputable regulators who operate in jurisdictions such as Curacao. But is this inherently dangerous, and what are the online casinos to avoid?

• What is an Offshore Casino – and Why Should You Care?
• Are Offshore Casinos Legal? – Breaking Down a Complex and Changeable Legislative Landscape
• The Risk Posed by Offshore Casinos – Identifying the Casino Sites to Avoid
• Understanding Unregulated Online Casinos and Licensed Offshore Brands
• The Last Word – Distinguishing Between Different Types of Casino Brand

What is an Offshore Casino – and Why Should You Care?

If you engage in so-called “offshore betting”, you’re placing wagers with overseas operators from your location within the US. An offshore casino or sportsbook is one that’s licensed in a jurisdiction outside of the US, typically by relatively relaxed regulators in regions like Curacao, Panama and Bermuda.

These regulators don’t operate the same type of stringent framework found in the US and similarly developed markets across the globe. Because of this, they’re often able to offer more lucrative promotions and noticeably competitive odds, but this is somewhat offset by a relative lack of consumer protection and oversight.

We’re going to touch on the legality of offshore casinos in the next part of this guide, but it’s important to note that you have considerably less protection as a player when wagering with an overseas brand. This is because offshore brands operate outside of individual state regulatory bodies, making it almost impossible for you to uphold complaints or pursue withheld withdrawals and lost deposits.

Are Offshore Casinos Legal? – Breaking Down a Complex and Changeable Legislative Landscape

It’s interesting to note that a large number of unregulated online casinos and offshore sportsbooks are still accessible in the US, despite the widespread legalization of sports betting and gambling during the last six years. This is due largely to a vague and complex legislative landscape, which enables players to freely access offshore sites from their desktop or mobile device.

More specifically, there’s no express law or piece of legislation that prohibits players from betting at an offshore casino. Many state gambling laws don’t explicitly ban offshore sites from operating in the US either, with most legislation outdated and not updated to reflect the rise of online betting. This is why offshore brands are accessible in several US states, including those that have both legalized online gambling and those that have not.

However, some offshore sites are prohibited from operating in certain states, primarily those that have recently updated their legislation or introduced comprehensive new bills. In this case, brands may be prosecuted if they target US players within their borders, although once again, individual customers won’t be criminalized in this instance.

So, although it’s not illegal to bet with an offshore brand, it’s not technically legal for operators to target certain states either. This creates a regulatory black hole that’s often exploited by rogue and untrustworthy brands, creating a slew of casinos to avoid in the US marketplace. This is the main reason why you should always be wary when encountering an offshore betting brand.

The Risk Posed by Offshore Casinos – Identifying the Casino Sites to Avoid

In addition to the prevalence of rogue offshore casinos, there are additional factors to consider when you encounter an overseas brand. Many of these factors can be traced back to the lack of a stringent regulatory framework, which may allow for more questionable or predatory practices. Here’s a summary of the primary risks posed by offshore casinos:

The Relative Lack of Consumer Protections

Without stringent regulatory frameworks or oversights, unregulated online casinos aren’t compelled to offer the same level of consumer protection as onshore brands. This can mean many things, whether the brand fails to secure your deposited funds, lacks a comprehensive data protection policy or fails to secure their site with 128-bit SSL encryption.

These factors can cause your funds to be lost or misappropriated, either maliciously or through error. The lack of data regulation may also put your sensitive financial information at risk, heightening the risk of identity or cyber theft. More broadly speaking, a lack of mandated or adequate customer protections can make offshore brands casino sites to avoid.

There’s No Way of Escalating Complaints

On a similar note, there’s absolutely no way of escalating a complaint with an offshore casino brand. Although regulators like Curacao have recently initiated a consultation period on its proposed alternative dispute resolution (ADR) policy, this has yet to be rolled out formally. It has also been introduced in response to the huge number of complaints generated through the regulator’s affiliated sites.

It should also be noted that Curacao is the best and most reputable of all offshore regulators. Agencies in Panama and Bermuda operate even less oversight and control, making it incredibly difficult to resolve complaints or claim winnings that have been held unfairly. The process is even more complex if you’re based in the US, and you won’t be able to turn to official state authorities to answer your queries.

Offshore Sites May Close at Any Moment

In jurisdictions where offshore casinos are restricted or unable to operate lawfully, state regulators and legislators can pursue operators who breach their regulations. This includes established and powerful state regulators with significant power, including those in New Jersey, New York and Michigan.

So, although you’re highly unlikely to be sanctioned for playing at an offshore casino as an individual, state regulators could force your brand of choice to close down. This may mean that they close the site or restrict access while still holding on to your deposited funds (including any winnings that you’ve accrued but not withdrawn). This is a significant risk when wagering at the best casino sites to avoid.

Understanding Unregulated Online Casinos and Licensed Offshore Brands

At this stage, it should be noted that not all offshore casino brands have been created equal. Although all operate in a blurred legal grey area, some are at least licensed and have been operating for years in international markets across the globe. Then there are online casinos to avoid, which have no licensing credentials and have been established for the express purpose of leveraging the legal confusion to their advantage.

The question that remains, of course, is how can you distinguish between more reputable offshore brands and those that are simply rogue operators? The good news is that there are numerous ways in which you can tell between these different types of site, helping you to avoid the worst offending and most dangerous casinos. Here are some factors to keep in mind:

Licensed vs Unlicensed Sites

The most established and trusted offshore casino brands boast genuine licensing credentials. These may be with Curacao or a similar offshore body, but they enable operators to target numerous international markets. These sites will also display their licensing credentials on their website, while hyperlinking their account to a verifiable, third-party source.

Conversely, rogue operators will typically lack any kind of licensing credentials and are therefore devoid of any accountability or regulatory framework. This puts you in an even more dangerous position, as the entire casino may have been established simply as a vehicle to steal your hard-earned funds.

The Lack of Site Encryption

Although offshore regulators like Curacao may lack the robust legislative framework of onshore alternatives, they still compel their licensees to adhere to basic rules. As a result of this, the majority of the most established and visible offshore brands will offer basic 128-bit SSL encryption, which can be verified simply clicking in the left-hand corner of the URL bar when the site is loaded.

However, rogue sites that operate outside of a regulator are unlikely to bother securing their website with 128-bit SSL encryption. This means that your sensitive financial data will be at greater risk, when it’s stored on the site and during the process of completing individual deposits and withdrawals.

Predatory Casino Terms and Conditions

In truth, even licensed offshore casino brands are able to offer larger bonus packages that come with slightly more predatory terms and conditions. These can include higher wagering requirements and shorter timeframes in which they have to be fulfilled, alongside a lack of responsible gambling tools and protections.

When it comes to completely unlicensed offshore brands, however, wagering requirements will increase exponentially and become even more predatory. Such sites will also accept less secure and reputable payment options, which may encourage you to wager irresponsibly or using large lines of credit.

The Last Word – Distinguishing Between Different Types of Casino Brand

As you can see, there are different types of casino brand. The best are reputable and familiar onshore operators, who are licensed to trade in specific US states and answerable to an onshore regulatory body. In the US marketplace, sites like DraftKings, BetMGM and Caesars best represent this type of brand.

At the other end of the spectrum are unlicensed offshore casinos, which operate without any oversight and are classified as rogue operators in most instances. Most licensed offshore brands tread the ground between these two extremes, as while they’re at least answerable to a regulatory body, they lack the consumer protections and safeguards required to guarantee a genuinely safe gambling experience.