The Impact of the Offshore Betting Industry on Traditional Casinos
Despite grim projections, the brick-and-mortar gaming industry in the US has not only quickly recovered from the COVID-induced lockdowns and mandated health measures in 2020 and 2021, but it is doing better than ever. According to stats, the American casino market grew by 40% in 2021, and its top region, Nevada, monthly revenues have gone over the billion-dollar mark for more than a year. Those are some staggering figures, mainly since this sector in the US only grew by an annual compound rate of 5% from 2017 to 2020. Many experts credit the dramatic increase in interest in games of chance and sports betting to a growing number of people looking to try new post-pandemic experiences, a jump in disposable income in young adults, and these activities becoming less taboo around the globe.
However, despite yearly revenues in the casino industry traditionally surpassing $130 billion and many of its biggest US operators dipping their toes in the internet waters, the biggest threat to their bottom lines comes from offshore online wagering companies. These gambling entities have set up shops in countries like Costa Rica, Panama, Curacao, and the Isle of Man and offer betting services to people from all corners through the World Wide Web. For those unfamiliar with these platforms, such operations may seem shady. Nevertheless, they are not illegal, and most top-end brands, like those recommended by review hubs, such as Safest Betting Sites, have been in business since the mid-1990s. The fact that they supply these services to Americans may clash with some states’ regulations. But no authorities get overly bothered by it, leaving the door open for these operators to grab a significant chunk of the North American player pool from US brick-and-mortar venues. That is something that top-end brands like MGM Resorts International and Caesars Entertainment do not look too kindly on, as it affects their profit generation.
The Benefits of Offshore Betting Online
So why do people use foreign gambling sites instead of playing at ones operated by native operators or going to local gaming establishments? The primary reason is that offshore platforms are far more generous concerning gambling promotions. Their regulators need to be more laxer regarding the types of deals these companies can deliver to their user bases. Thus, it is common for an offshore betting app to list a multi-deposit welcome package that can give away thousands of dollars in free-play funds. One example is BetUS, a premium Costa Rican sportsbook and gaming hub with a sign-up bonus that can yield up to $3,125 in promo cash.
Another reason Americans especially gravitate towards foreign operators is that their brands have games traditionally unavailable in the US market. And they customarily also house titles from genres that US-based companies don’t bother with, like fish tables and virtual video poker. Furthermore, their betting limits are higher, and they facilitate crypto wagering, which is impossible via most platforms licensed and monitored by country-specific regulators.
The Drawbacks of Using Foreign Sportsbooks/Casinos
The chief negative downside of using internationally-overseen sports betting/casino websites is that when a dispute arises at these platforms between operator and user, it gets resolved by using the courts and laws in the territory from where said brand runs its operations, from the country from where it has attained its license. That can be super detrimental to gamblers if they face payout or various security-related issues with their account.
Foreign sites also still need to develop self-exclusions systems or ones at all. While they are likely to incorporate responsible gambling features, access to these is available through the support staff, and it may take some time before they take effect. At land-based casinos, pit bosses must monitor gamblers, stop intoxicated people from gambling, and forbid known problem bettors from stepping foot and playing on their gaming floors.
Trends in the Offshore Betting Industry – 2023
Offshore gambling websites are looking to implement cutting-edge tech that enhances the user experience. They have done so by infusing chatbots in their customer support options, bringing live streaming matches to their betting pages, real-time play-by-play, advanced anti-fraud safeguards, and adopting state-of-the-art blockchain gambling concepts.
Despite popular belief, offshore platforms feature Know Your Customer identity verification checks, and these procedures are now a thing at most well-known brands in this section of the industry. They stop money laundering and the financing of terrorist crimes.
To Sum Up
The appeal of putting down wagers on traditional casino games and sporting events online at websites and apps run by businesses headquartered in South American and Caribbean nations continues to grow. That is so because these options provide more variety, alluring promotions, and novel safety features. They have decent reputations they have built for many years with players worldwide. And in the opinion of most veteran internet gamblers, they are as credible as most US-regulated brands.
