Dangers of Online Gambling with Offshore Wagering Sites

At press, our country is in the deepest throes of the sports betting calendar with Super Bowl LIX and NCAA March Madness fast approaching. This period recalls data from a year ago which found that 89% of American wagers on Super Bowl 2024 were made using unregulated sportsbooks. With some of the nation’s most populated states remaining absent on the U.S. map with legal sports betting this trend persists. Consequently, Kindbridge is beholden to offer another public-health service announcement denouncing the use of offshore wagering sites. While gambling harms among vulnerable populations are already well-documented with respect to the regulated market, the severity of the crisis is undecided in the socio-political spectrum. Where there is no debate, however, is with respect to the harms associated with offshore wagering sites. The potential dangers of online gambling with these operators are simply too great for anyone to consider. Please keep reading.

Overview of Dangers Associated in Gambling with Offshore Betting Sites as a Vulnerable American Citizen


PRACTICAL DANGERS OF GAMBLING WITH OFFSHORE WAGERING SITES

Before we address mental health concerns, it’s important to address risks that are far less nuanced. We know that some may take the offshore threat more seriously when there are no vagaries in the equation. The risks laid out below are well-known by those who have been involved in the offshore gambling industry, either as a stakeholder or customer/player.

a) No Legal Recourse for Failed Payouts and Withdrawals

Enter any offshore gambling site brandname into your Google search browser, then add the words “payout reviews” or “withdrawal reviews” to your search. You’ll find a large number of consumer complaints from players who have experienced long delays in payout/withdrawal requests, and in many cases, no payouts/withdrawals at all. While disgruntled customers and affiliates (who also get stiffed) are quick to leave disparaging reviews of these operators on Reddit forums and review portals, their recourse ends there. Offshore betting sites land outside of U.S. federal and state jurisdiction. There is nothing a customer can do to recoup winnings and account balances should an operator be unwilling or unable to settle.

b) No Protection Against Questionable T&C’s

Offshore casinos and sportsbooks also hide Terms & Conditions in the fine print. The most troubling T&C’s generally relate to the above-mentioned payouts and withdrawals. They make it extremely difficult to receive payouts and withdrawals on winnings and to close accounts because of their excessive rollover requirements. Exaggerated rollover requirements of offshore sites essentially exist to keep customers playing until the house wins. T&C’s also hide common offshore necessities to withdraw using crypto-currency, even if deposits were made using other forms of payment. It won’t matter if a player feels as if an offshore gambling site misrepresented itself in soliciting their business, because the operator falls outside of U.S. state and federal jurisdiction.

c) No Federal Protections for Cybersecurity

What happens if an offshore operator is negligent in protecting the personal and private data of a U.S. player? Nothing. Not only are they not beholden to our laws regarding requisite cybersecurity measures, U.S. citizens have no legal recourse to in claims court.

d) Personal Legal Risk

When you gamble on illegal offshore casinos and sports betting sites, you’re technically committing a crime. There are a variety of statutes that make it illegal not just to operate, but participate in financial transactions related to an unlicensed casino or sportsbook in the United States. Statutes include the Wire Act, the Illegal Gambling Business Act, the Travel Act, and the Unlawful Internet Gambling Enforcement Act. It’s true that these are rarely leveraged to target individual citizens, but the Feds have used the laws to takedown individuals from within several organized crime families. If they find it prudent, they may charge a citizen for participating in financial transactions with an unlicensed casino or sportsbook. This likelihood may increase when tax filings (or a lack thereof) are considered. More on the this below.

e) Personal Income Tax Risk

U.S. residents are required to declare all gambling winnings. illegally obtained or otherwise, on annual their income taxes. If you have not been claiming winnings with offshore wagering sites and are ever audited, not only could you face financial penalties from the IRS, you expose yourself to criminal prosecution from the Federal government (as per above).


MENTAL HEALTH DANGERS OF GAMBLING WITH OFFSHORE WAGERING SITES

Knowing all of the risks laid out above, why would any American continue to wager with offshore betting sites? One explanation is the compromised decision making ability that comes from problematic gambling behavior. Someone who struggles with mild, moderate, to severe problem gambling may look past practical reasons to abstain from offshore gambling to sustain their habit or compulsion. But we’re getting ahead of ourselves. Let’s have a look at the mental health dangers of gambling with unregulated operators.

a) No Adherence to Responsible Gaming Regulations in the USA

U.S. regulators have created and are tasked with upholding Responsible Gaming (RG) regulations that legal online casinos and sportsbooks are beholden to. Not only do they monitor for violations regarding business practices, they have instituted measures to help protect vulnerable players from gambling harms. This includes regulations pertaining to marketing communications that may prey upon those who are misled by how offers are presented. Meanwhile, none of this applies to offshore casinos and sportsbooks. Their promotions are riddled with fraudulent advertising verbiage which have now banned in the United States. These operators continue use expressions such as “No Risk Bet” or “Free Money” and the like.

b) No Cap on Problematic Gambling Products

While the late-2024 legalization of prediction markets have somewhat closed the gap between regulated and offshore entities, there are betting products that remain illegal in the United States. For example, operators in most U.S. states are not permitted to offer betting lines on entertainment events like the Academy Awards (Arizona, Indiana, Kansas, Louisiana, Massachusetts, Michigan and New Jersey do allow it). Among the reasons, is a call to mitigate the normalization of gambling in all aspects of American life. The most contentious, however, involves gambling integrations in video games where a significant player base is underage. Regulated U.S. gambling operators are not permitted to enter the genre, whereas offshore wagering sites have fully invested in the concept. Look to the rise of CSGO gambling addiction as a direct example of how offshore operators are targeting young and vulnerable youth.

c) No Investment in Tools to Monitor for Problem Gambling Among Players

In the January 2025 problem gambling news report, CDC gaming published industry leader predictions for year ahead. Kindbridge Behavioral Health’s own Daniel Umfleet led the group with the following:

“A critical development will be the adoption of advanced technology, such as AI, to detect problematic gambling behaviors early and offer intervention strategies.”

Artificial intelligence (AI) and machine learning integrations to identify at-risk players will occur within the platforms of regulated operators who have shown a willingness to make investments in such technologies. Conversely, the offshore market has not exhibited any intent or effort to invest in player health technologies.

d) No Partnerships with Problem Gambling Support Providers

Regulated operators including BetMGM (view details), DraftKings (view), and FanDuel (view) have all collaborated with Kindbridge to provide mental/behavioral health support for players who opted into self-exclusion. Programs of this nature are expected to grow in the years ahead as other regulated operators are motivated to come on board. Offshore wagering sites, however, have not made attempts to collaborate with mental health support providers for the sake of treating players who desire to self-exclude.


There’s no grey area regarding increased vulnerability to problem gambling found with the offshore gambling market. It poses a direct and immediate threat to the health of millions of Americans who use them for casino gaming and sports betting. Do you have a membership with one or more offshore sites and are having difficulty controlling your gambling behavior? They aren’t here for you, but we are. Reach out via your preferred contact below to get help.

Get Help for Problem Gambling

CALL +1 (877) 426-4258

OR

Email [email protected]

Dangers of Online Gambling with Offshore Wagering Sites