Offshore Betting Sites – Are They Safe to Use?

Posted by Harry Kane on Friday, February 9, 2024

Across the globe, there exists a complex legislative structure that surrounds iGaming and remote betting. This is especially true in the US, where each state has its own legislative agenda and there remain few laws that outlaw the use of offshore betting sites.

Even in mature and heavily regulated markets such as the UK, it’s possible to access offshore casinos and betting sites that aren’t licensed by the UKGC. But why are offshore licenses so appealing to operators, and is it safe to wager with this type of betting brand?

Why Do Offshore Licenses Appeal to Brands?

As their descriptive moniker suggests, offshore casinos and sportsbooks are based in locations ‘off the shores’ of the markets in which they operate. For example, sites may secure licensing from a reputable but second-tier authority like the Panama Gaming Commission or the Curacao eGaming Licensing Authority, before targeting markets in the US, Europe and UK.

UK bettors may also be able to access sites that are licensed by the Malta Gaming Authority or the Gibraltar Gambling Commissioner, regardless of whether they hold accreditation from the UKGC. But what makes offshore operation so appealing, and what are the benefits for global betting brands?

• – Operate Legally in Multiple Markets: In parts of the US and New Zealand markets, there’s no formally regulated market, while restrictions may be placed on domestic operators. In this case, there’s rarely a law that prohibits the use of offshore sportsbooks, so gaining accreditation in Curacao, Panama or Malta makes a wealth of global markets suddenly accessible. So, offshore can target multiple international markets while minimising operational costs and adhering to a single set of regulations.
• – Access Lower Tax Levies and Thresholds: Offshore licenses are often granted in jurisdictions with a laxer approach to regulation and taxation. In Malta, for example, gaming brands are taxed at a basic rate of 5% (in addition to the Compliance Contribution). This is highly attractive as it avoids the higher rates of tax applied in the UK and some US states, while offshore brands may also avoid VAT charges and levies on individual wagers.
• – Some Offshore Licenses are Easier to Obtain: Similarly, you’ll find that some offshore licenses (such as those available in Curacao and Panama) are easier to obtain than others. Applying for a license from these bodies is also typically cheaper when compared to regulators like the UKGC, while the processing times tend to be much quicker and less complex. This is a huge boon in what’s proving to be a challenging macroeconomic climate.
• – Avoid the Restrictions Imposed by Gamstop (and Similar Initiatives): In the UK, betting brands have been mandated to comply with Gamstop regulations since March 2020. This means that signing up to Gamstop and offering objective self-exclusion is now a condition of licensing by the UKGC. The same restriction isn’t imposed on offshore brands, who can market their sports betting markets and casino verticals without having to participate in the Gamstop scheme.
• – Offer a Wide Range of Games and Betting Markets: Not all gambling verticals or products have been created equal, especially in terms of how they’re treated by regulators. Because offshore brands are able to operate within a more relaxed regulatory framework, they can usually offer a much broader selection of verticals and options such as fantasy and esports betting.

What are the Advantages of Playing at Offshore Casinos and Sportsbooks?

Many of these advantages also benefit players, who can access a much broader range of markets and games online. There are other benefits to wagering at this kind of site, however, alongside a number of potential drawbacks that need to be considered. Here’s a summary of the main advantages and why they’re important.

Access Cryptocurrencies

While offshore sites are often prohibited from utilising ewallets like PayPal and Neteller, these platforms tend to offer a diverse selection of cryptocurrencies. These will include first, second and third generation tokens (including Bitcoin, Ethereum and Litecoin), while they’ll also minimise transactions fees and may trigger instant payouts in some instances.

Leverage Increased Bonuses

Thanks to the availability of crypto tokens, offshore casinos and sportsbooks are often able to provide more lucrative welcome and reload bonuses. For example, if an offshore site offers a 100% deposit match up to the value of 1 Bitcoin (BTC) token, this could unlock a maximum bonus value of more than $72,000 at the time of writing.

Avoid Certain Restrictions

Offshore sites are answerable to less guidelines and restrictions, and this benefit is passed directly onto players. In addition to avoiding the rules and regulations surrounding Gamstop, for example, you’ll be able to use Visa and Mastercard credit cards to complete deposits (this banking method is banned in the UK and Australia). When playing at offshore sites with Telegram integration, you can also register by providing just an email and subsequently safeguard your personal data.

What to Look for in an Offshore Betting Site?

Before we go, we’re going to appraise the key factors and selling points that you should look for in an offshore betting site. This way, you can ensure that you select safe and secure operators, while also leveraging the key benefits associated with offshore casinos, sportsbooks and gambling brands.

Is the Site Licensed?

This is arguably the most important consideration, as licensing helps to ensure that an offshore site is reputable and safe to play at. Sportsbooks must be licensed by a recognized regulator such as the Curacao eGaming Licensing Authority, as this compels them to adhere to specific rules and enables you to escalate complaints through an independent channel. You should be able to find licensing details on the site’s homepage, while this should ideally hyperlink to a third-party resource for verification.

Does the Site Have SSL Encryption?

Reputable sites should also boast 128-bit SSL encryption as a minimum standard, as this helps to safeguard your personal information and financial transactions. To check this, simply click on the URL of your chosen betting site, and encrypted sites will start with ‘https’ rather than ‘http’. The ‘s’ in the former stands for ‘secure’ and confirms that the URL has an SSL certificate.

Does the Site Offer Responsible Gambling Tools?

Regulated and reputable sites are often required to make responsible gambling tools available to customers. This even applies to second tier regulatory bodies, who offer these tools to help individuals manage their bankroll and seek out support when required. The most common tools include customisable deposit limits and time outs, while even those that aren’t part of Gamstop may offer some form of self-exclusion program.