Offshore vs Regulated US Sportsbooks
With individual states legalizing sports betting, you suddenly have more options of where to place your bets. Which is right for you will depend on personalized factors, but we’ll run down the pros and cons each side has to offer and you can make your choice…or (gasp) use both. We will break down the PROS and CONS of Offshore vs Regulated Sportsbooks for you.
With the Supreme Court knocking down the federal law that outlawed sports betting on a federal level, US states were granted the authority to choose their own path on whether or not to allow sports betting and to what extent.
I am not a lawyer and nothing here should be construed as legal advice. I will share my opinion and views based on my 2 decades of sports betting experience, both on and offshore.
With the federal law being struck down, placing sports bets with any provider is completely legal for the player. States are individually legalizing and licensing providers (while charging them huge fees and taxes on revenues which is why there aren’t many bonuses). States can create laws that make placing wagers with unlicensed sportsbooks illegal for the player, but this is virtually unenforceable and would be a complete waste of time.
Here is a complete list of players who were charged with placing sports bets online when it was federally illegal to do so….
USA Regulated Sports Betting
- Easy deposit/withdrawal via credit and
- Locally regulated, so increased protection of funds
- Wagering history automatically reported to the government/IRS
- Less wagering options per game
- Less events offered
- Less favorable odds (payout)
- Invasive registration process
- up-front taxing per wager placed in addition to taxation on all winnings
- No option to use crypto
- Limited options of providers
- Some states require in-person wagering
- Some states charge more tax for online wagers
- Minimal bonuses and promotions
Offshore Sports Betting
- Easy deposit/withdrawal options via cryptocurrencies. Most sites support Bitcoin and several crypto alt coins
- Nearly instant deposits/withdrawals with no fees when using crypto
- No tax withholding
- More wagering options per game
- More sports and events offered
- More casino games offered
- Larger bonus offers and promotions
- Can be difficult to deposit via cash/credit options
- Cash withdrawals carry high fees and take more time
- If not doing research, could risk joining a scam site that isn’t regulated
- Not regulated by US states, so regulation determined by originating country. Laws vary
- Player is responsible for documenting wins/losses and reporting in tax returns. (Regulated options are automatically reported to the IRS)
Offshore Pros Outweigh Regulated Cons
There are legitimate reasons to choose state regulated options over offshore ones, but you can see that the offshore sportsbooks will add more to your bottom line – provided you do due diligence and select a service that offers great stability and a track record of serving their customers well. You’ll find such sites recommended here.
If you’re not interested in comparing sites and you don’t mind winning less, then a regulated sports betting site is best for you. You can send your money via PayPal or credit card and get payments in the same manner. The trade off is less winnings for the same wagers and less privacy.
You Can Choose Both
There may come a day where offshore sportsbooks and state-regulated operators are more equal, but we’re nowhere near that as of yet. Players are better served by continuing to go offshore and bet with cryptocurrencies than to do 100% of their business with locally licensed options.