Federal Battle Against Offshore Gambling Operators Ensues

Clearly, online gambling has become a mainstream fixture in the lives of Americans. From shore to shore, both online casinos and sportsbooks have become very popular and acceptable forms of online adult entertainment. When Americans start to show an interest in something that involves gambling, it's incumbent on the federal government to monitor such activities in support of the best interests of American society.

This responsibility to protect might well explain why the federal government has started clamping down on offshore gambling sites. While it's technically not illegal for Americans to use such sites, there is legitimate cause for concern.

The Risks Associated with Offshore Gambling

One might reasonably ask what difference it makes if an American uses an American-based licensed casino or sportsbook as opposed to an offshore operation. From a strictly gambling standpoint, there is liottle to no difference since offshore casinos and sportsbooks offer similar access. Where things differ is risk.

When an American uses an American-based online gambling operator, they are afforded certain protections against fraud and rogue activities. If something goes awry, they have recourse in the form of protection by regulators that can step in and help resolve issues. Those protections do not exist when American gamblers using offshore gambling sites.

When an American online gambler uses an offshore site, they are given no protection against fraudulent or rogue activities. Those protections are reserved for individuals who actually live within the applicable regulator's jurisdiction. Not having protection by regulators simply opens the door to risks that are seldom worth taking.

Without the ability to protect American gamblers abroad, the federal government is limited in what it can do. In July, federal regulators issued a critical advisory to Americans using offshore gambling resources. They expressed escalating concerns over issues related to fraud and identity theft.

With their hands effectively tied because of international laws, U.S. regulators are limited in the ways they can protect American gamblers. The one thing they are doing is taking steps to make it nearly impossible for offshore operators to get access to U.S. gamblers. How are they working in this directive?

The most effective way for the federal government to battle offshore gambling operators is to attack access to financial resources. Regulators can do that by restricting U.S. residents from using the federal wire system to fund their offshore gambling activities. That prevents offshore operators from accepting bank transfers, commercial wires from companies like Western Union, and debit/credit cards that have been issued by U.S. banks. If gamblers can't find ways to fund their gambling accounts, they can't gamble.

Addressing America's Online Casino Issue

While 40+ states have legalized online sports betting, the story is very different for online casino (iGaming) enthusiasts. Currently, online casino gambling is only legal in seven states. That leaves casino gamblers in 43 states faced with the choice between not playing online casino games of chance or risking the offshore option. It's an issue that needs work.

It's worth mentioning that casino gambling in most states is controlled by Indian Tribes due to prior treaties. These Tribes are not fond of sharing much-needed revenue with outsiders. Until a reasonable solution to this issue is put forth, there is reason to believe Americans will keep trying to use offshore casinos, risk and all.