What’s the Difference Between Offshore Casinos and Casinos Licensed in the US

Written by:
Guest
Published on:
Sep/20/2024

If you live in a state where online gambling is prohibited, offshore Casinos may just be the answer for you.

Offshore Casinos are licensed outside of the U.S, but they accept players from most U.S states.

But are they safe? And what else sets them apart? Keep reading.. we’ll explain everything. But first, here’s a table to give you a quick overview:

Feature

U.S.-Licensed Casinos

Offshore Casinos

Legal Status

Fully legal and regulated in states where online gambling is permitted. They must follow U.S. federal and state laws.

Licensed outside the U.S. but accepts players from most U.S. states. Legality can vary based on your location and state laws.

Regulation

Strictly overseen by U.S. state gaming commissions and regulatory bodies, ensuring fair play and ethical operations.

Regulated by the laws of their own countries, which might not be as strict or well-enforced as U.S. regulations.

Safety & Security

High-level security measures protect your personal and financial information. Legal recourse is available within the U.S. if issues arise.

Security can vary widely. Some are reputable and prioritize player safety, while others may lack robust protections. Resolving disputes can be complicated due to jurisdiction differences.

Fair Play

Games are regularly audited by independent third parties. They use certified Random Number Generators to ensure games aren't rigged.

Oversight varies. While many use RNGs and are audited, the level of scrutiny might not match U.S. standards. It's important to research and choose reputable sites.

Payment Methods

Accepts standard U.S. payment options like credit cards, bank transfers, and popular e-wallets. Transactions are usually smooth and straightforward.

Offers a wider range of payment options, including cryptocurrencies like Bitcoin. Transactions might take longer and could incur additional fees. Some banks may block these transactions.

Tax Implications

Winnings are reported to the IRS and are subject to U.S. taxes. You're required to declare gambling income when filing your taxes.

Winnings are still taxable under U.S. law, but casinos typically don't report to the IRS. It's up to you to declare them to avoid legal issues.

Accessibility

Available only in states where online gambling is legalized. They use geo-location technology to comply with state laws.

Generally accept players from various U.S. states, regardless of local laws. While this wider accessibility might seem convenient, it could conflict with state regulations.

Customer Support

Tailored to U.S. players with support available during convenient hours via phone, email, and live chat.

Quality and availability can vary. Time zone differences might affect response times, and support may not always be in English or during your preferred hours.

Responsible Gambling

Required to offer self-exclusion programs, deposit limits, and resources for players who might need help. Onshore casinos actively promote responsible gambling.

Not always mandated to provide responsible gambling tools. Availability and effectiveness can differ between different casinos.

Are Offshore Casinos Actually Legal?

Offshore casinos operate in a gray area, but they are certainly not illegal. Here are the differences:

U.S.-Licensed Casinos

When you play at a Casino licensed in the U.S., you're engaging with an operator that's closely regulated by state and federal laws. These Casinos have to follow strict guidelines set by regulatory bodies like state gaming commissions. This means they're held accountable for fair play, security, and ethical operations.

Offshore Casinos

Offshore Casinos are based outside the United States, often in countries like Costa Rica, Panama, or Curacao. They operate under the laws of their own jurisdictions, usually not as stringent or as well-enforced as those in the U.S.

Which U.S States Allow Gambling?

State

US-Licensed Online Casinos

US-Licensed Sports Betting

Offshore Casinos

Arizona

No

Yes

Yes

Alabama

No

No

Yes

Alaska

No

No

Yes

California

No

No

Yes

Georgia

No

No

Yes

Hawaii

No

No

Yes

Idaho

No

No

Yes

Minnesota

No

No

Yes

Missouri

No

No

Yes

Oklahoma

No

No

Yes

South Carolina

No

No

Yes

Texas

No

No

Yes

Utah

No

No

Yes

Arkansas

No

Yes

Yes

Colorado

No

Yes

Yes

Connecticut

Yes

Yes

Yes

Delaware

Yes

Yes (limited in-person)

Yes

Florida

No

Yes

Yes

Illinois

No

Yes

Yes

Indiana

No

Yes

Yes

Iowa

No

Yes

Yes

Kansas

No

Yes

Yes

Kentucky

No

Yes

Yes

Louisiana

No

Yes

Yes

Maine

No

Yes

Yes

Maryland

No

Yes

Yes

Massachusetts

No

Yes

Yes

Michigan

Yes

Yes

Yes

Mississippi

No

Retail only

Yes

Montana

No

Retail only

Yes

Nebraska

No

Retail only

Yes

Nevada

Yes (only poker)

Yes

Yes

New Hampshire

No

Yes

Yes

New Jersey

Yes

Yes

Yes

New York

No

Yes

Yes

North Carolina

No

Yes

Yes

North Dakota

No

Retail only

Yes

Ohio

No

Yes

Yes

Oregon

No

Yes

Yes

Pennsylvania

Yes

Yes

Yes

South Carolina

No

No

Yes

South Dakota

No

Retail only

Yes

Tennessee

No

Yes (online only)

Yes

Vermont

No

Yes

Yes

Virginia

No

Yes

Yes

Washington

No

Retail only

Yes

Washington, D.C.

No

Yes

Yes

West Virginia

Yes

Yes

Yes

Wisconsin

No

Retail only

Yes

Wyoming

No

Yes

Yes

Safety and Security

U.S.-Licensed Casinos

Your personal and financial information is protected by very strong security measures. These Casinos use advanced encryption technologies to keep your data safe. Plus, if any issues arise, you have legal recourse within the U.S.

Offshore Casinos

The level of security can vary widely. Some offshore Casinos are reputable and prioritize player safety, but others might not have the same protections in place. And since they're outside U.S. jurisdiction, it can be a real headache to try to resolve any disputes. So make sure to due your due diligence.

Fair Play and Game Integrity

U.S.-Licensed Casinos

U.S. Casinos undergo regular audits by independent third parties to ensure games aren't rigged or tampered with in any way. They use certified random number generators to keep gameplay honest.

Offshore Casinos

Sure, many offshore Casinos also use RNGs and are audited, but keep in mind that the level of oversight might not be as rigorous. Make sure you carefully research and choose reputable offshore sites if you decide to go that route. You can rest assured that all casinos featured on Gambling911 are safe and legit.

Payment Methods

U.S.-Licensed Casinos

Depositing and withdrawing money is super easy when it comes to U.S casinos. All casinos that are licensed within the U.S. offer payment methods that comply with federal banking regulations. A few examples are credit cards, bank transfers, and popular e-wallets like PayPal and Skrill.

Offshore Casinos

When it comes to payment methods, we actually prefer offshore Casinos. Most offshore Casinos take cryptocurrencies like Bitcoin, Ethereum, etc. This usually means instant withdrawals and minimal fees.

Making the Right Choice

So, how do you decide between an offshore Casino and a U.S.-licensed one? Consider what's most important to you:

  • Legal Protection and Regulation: If you value strict oversight and legal safeguards, U.S.-licensed Casinos are the safer bet.
  • Game Variety and Payment Options: If you're after a broader selection of games or alternative payment methods like cryptocurrencies, go for offshore Casinos.
  • Location Constraints: If you're in a state where online gambling isn't legalized, offshore Casinos seem to be the solution, at least for now.

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By  B.E. Delmer

Britney is an engineer by trade who became fascinated by the online casino industry with a special focus on random generated odds.  She opted to join the Gambling911.com family in 2023 and quickly rose to become our Chief Casino Industry Correspondent.  She is from Toronto.

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