The biggest risk that comes with offshore crypto gambling sites is that they could shut down without warning. When this happens, you lose all of your hard-earned money.
For this reason, it’s important that you understand the dangers of offshore Bitcoin gambling sites. So keep reading to learn more.
5 Dangers of Offshore Crypto Gambling Sites
Lots of problems can arise from gambling at offshore Bitcoin gambling sites. Here is a list of online gamblers’ common complaints about offshore Bitcoin gambling sites, from small annoyances to big warning signs.
- Bad Method for Processing Deposit Payment
The UIGEA forbids US-based banks and other financial institutions from processing transactions for offshore Bitcoin gambling sites. For this reason, online gambling payments are made via offshore gambling sites.
Most transactions done through this means will be processed successfully. However, this method has a downside: the uncertainty of when your credit card payment will be processed.
Although the use of Bitcoin in online gambling is becoming rampant, people who use this form of payment are affected by the price swings. Creating a wallet and converting fiat currency into Bitcoin is another daunting aspect of using Bitcoin. This can also contribute to discouraging many potential users.
- Withdrawal Delays
The ability to quickly withdraw cash from your gambling account can’t be overstated. You may encounter delays with withdrawals at crypto gambling sites. This is certainly an issue, as you can’t collect your cash when needed. Save yourself from stress and avoid putting money down anywhere with a habit of paying late.
- Voiding Bonuses
Often, bonuses at offshore Bitcoin gambling sites aren’t paid out. Management that overturns offers like large bonuses accepted in good faith that everything is fine isn’t doing their job correctly.
- Withdrawal Costs That Are Too High to Be Practical
A minimum withdrawal of $1,000 might lock your funds if you’re a low-stake punter. While many sites will allow free monthly withdrawals, others will not.
Beware of hidden withdrawal charges of $50 or more. These fees could quickly eat into your profits.
- Problems with Permits and Laws
Countries like the United States have extreme regulations regarding the gambling sector. Unfortunately, such regulations don’t apply to offshore Bitcoin gambling sites.
It’s possible that you have dealt with crypto gambling sites that aren’t subject to the same regulations. So, watch out for offshore gambling sites, as they can go rogue at any point in time.
- Safeguarding against Disputes and Unsavory Businesses
Non-UK residents don’t have the same level of protection that the UK Gaming Commission (UKGC) provides UK residents when problems develop with UK gambling sites. If you decide to gamble on offshore Bitcoin gambling sites, you should be prepared for the risks.
Responsible Bodies Overseeing Offshore Casinos
Offshore Bitcoin gambling sites are subject to minimal oversight from authorities. While every location is licensed, there is little chance that a licensing jurisdiction will become involved in a dispute. Offshore crypto gambling sites can obtain gambling licenses from a variety of jurisdictions.
Here are a few of the most common:
- Kahnawake: Kahnawake is a Native American reserve in Canada that has been issuing gambling licenses for decades. The Morris Mohawk tribe runs this independent nation. Kahnawake is home to many servers that provide the backbone for North American gaming sites.
- Barbuda and Antigua: This country initiated a case against the United States at the World Trade Organization. They laid a complaint that the US government was unjustly restricting trade by delaying deposits and withdrawals from their legitimate gambling sites.
- Curacao: Previously known as the Netherlands Antilles, Curacao is now just known as a sovereign republic in the Caribbean. They have been issuing licenses for gambling sites, poker rooms, and many more.
History reveals that stories of past scandals at offshore gambling sites originated from sites that were licensed in this jurisdiction.
- Panama: Since the beginning of mobile gambling , the Panamanian tax haven has been home to the biggest offshore sports gambling companies.
- Costa Rica: News about Costa Rica certifying various offshore gambling sites has gone far and beyond. However, there is no central authority responsible for licensing in this country. These claims are made by businesses operating in this jurisdiction.
Spotting the Difference Between Offshore and Locally Licensed Crypto Gambling Sites
At first glance, offshore crypto gambling sites and local ones look the same. Currently, only people living in New Jersey or Pennsylvania can access legal crypto gambling sites. Most of the time, traditional gambling places like casinos and racetracks give licenses to these online gambling sites.
A website’s badge from a licensing authority, such as New Jersey’s Division of Gambling Enforcement (NJDGE), will be prominently displayed. At legitimate gambling sites, there will also be a way to “self-exclude” yourself and limit how much you can deposit.
You can get a hold of a state-recognized mailing address as well. At all legal gambling sites, players can make deposits in a number of easy ways, such as with major credit cards or PayPal.
Many crypto gambling sites that are based outside of the United States use well-known logos and designs to make it look like they can be trusted. Specifically, the difference between them can be traced back to the regulatory bodies in charge of issuing licenses. You’ll find information about their licensing at the bottom of their webpage.
Another highly indicative characteristic of an offshore crypto gambling site is the availability of specific deposit methods. It’s a red flag when a crypto gambling site offers only a few payment methods, like Bitcoin.
Doing your research is the first step in locating trustworthy crypto gambling sites. You’ll find that there are lots of tools that can aid you in accomplishing this task. So, before placing any bets, familiarize yourself with the site’s terms and conditions.
Another factor worth considering is how well they care for their customers. If you have any questions about the site you’re considering using, don’t hesitate to contact its customer care department. This can be used as a measure of how well they handle customers’ concerns by looking at how quickly they respond.