Online Casinos: Regulated Vs Unregulated?
Online Casinos: Regulated vs Unregulated?
As you probably already know, the gambling laws in the US are all over the shop. Even though Federal governments don’t deem gambling to be illegal, they still have some laws like the UIGEA and the Federal Wire Act. States do have the clout to authorize all forms of internet gambling, and yet many do nothing. Delaware, New Jersey and Michigan are just a few who are becoming more pro-active in the legalization of online casinos. Because of this inaction, most of the US is served by “unregulated” online casinos. Though the term “unregulated” sounds like banditry or lawlessness, it’s not exactly the case. So the question is, which is best for the customer, regulated or unregulated online casinos?
What’s Considered an Unregulated Casino?
You’ll hear this term bandied about a lot within the world of online gambling. But what does it really mean? Well, simply put, it means that the casino is operating in a jurisdiction without either approval or a license with which to do so. In reality, these casinos are operating in states where law makers don’t have a definitive stance on internet gambling. For a peaceful existence, you’ll find that these same casinos tend to avoid the following states:
Those that declare online gambling illegal.
States that claim they don’t have a stance on the matter yet have taken legal action against offshore casinos (e.g. Kentucky).
Those states that have regulated online casino markets and explicitly ban unlicensed operators (e.g. New Jersey).
It’s a drag that most states haven’t yet regulated online gambling. In fact the vast majority of Americans have no access to play legally in licensed online casinos and simply have no access to sites to win the jackpot. This would normally translate to having no means of playing casino games online. But where there’s a will, there’s a way. And online casinos based “offshore”, have stepped in to fill this lucrative gap in the market place.
What’s Considered an Offshore Casino?
Though the term “offshore” appears to be interchangeable with the term “unregulated”, they are two different things altogether. Just because an online casino is described as offshore, doesn’t necessarily follow that it’s unregulated. It’s more to do with the entities operating location as in where they are physically based. For example, many of the online casinos serving the US of A are in Antigua, Curacao, Belize or Costa Rica. These countries encourage online casino entities to set up shop in their countries exchange for a licensing fee and taxes. These same sites would prefer to be based in the US, but current laws forbid it. Every state appears to have a definition of what constitutes an online gambling operator. Which means that the chances of a US based gambling business is pretty much zilch.
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And that’s why, all these companies serving US based customers, situate themselves out of the US. In this way, they can escape US laws and rules by simply being based in a completely different jurisdiction.
Are Online Casinos in Places Like Belize Really Unregulated?
The thing is that not all unregulated jurisdictions are created equal. Some carry out better due diligence than others. Some just want your cash and will happily dish out an operating license to anyone and their dog. For those countries we already mentioned, reputation isn’t going to be stellar. Curacao is another jurisdiction which falls into the same category, only differs in that you can’t be based there and still serve the US. All of these countries don’t get too involved with controlling their licenses.
They are happy to sit back and collect the license fees and taxes. So if you decide to base your online casino presence there, you can expect an easy ride, without bother or regulation tying your hands.
Online Casinos: Don’t Believe the Hot Air
This hand-off approach is very appealing for many operators. On the one hand, as an online business, you want a simple and quiet life, free from regulations and too many rules. And for these jurisdictions, they just want the same thing, as it ensures a nice chunk of cash from licensing and fees. On first inspection, casinos based in these countries don’t inspire too much confidence. It takes time for them to build up a decent reputation. And they can only do this by offering online gamblers a great service and fair games. You also have to keep in mind that these licenses are not necessarily cheap. Often they’ll be spending between 4 and 6 figures just to obtain the license.
On the whole, these fees are beyond the reach of mere mortals. And in this sense, it does act as a barrier against the shadiest players. After all, no one wants to lose those sorts of figures. An operator still needs to pony up these huge fees in order to be in business. And these fees are large enough to act as a deterrent towards dodgy businesses.
Why Do Gamblers Choose Unregulated Gaming Sites?
There’s always a lot of background chatter with regards to unregulated vs regulated. But the proof of the pudding is in the eating. Each entity from either camp must still pay out for licensing fees and taxes, where ever they choose to base themselves. Ad though many may claim that unregulated operators should be avoided at all cost, we tend to look upon them with a more sympathetic eye. For a start many of these unregulated casinos have now been operating for many years. You have to remember that many players are themselves in unregulated markets. For example most US jackpot poker players have little option when it comes to the jurisdiction of the online casinos they play at. Offshore gaming might be tempting for many.
Sometimes you’ll see a bonkers welcome bonus from an offshore casino entity. Like up to and beyond a $10,000 sign-up bonus. And you may well ask yourself how on earth is this possible? If you take a peek at their terms of service, it’ll quickly become apparent that it’s not exactly possible. often there’s little chance of cashing out. But, these tend to be outliers within the online casino operator space.
Players Haven’t Experienced Any Troubles with Unregulated Sites
Tough the stipulations for obtaining a license might be more lax, it doesn’t follow that the business is bad or scammy. And that’s because, nearly all businesses are in the business of growing and creating long term profits. If a company takes the low road and cheats and scams, then it’s not going to be around for very long. These unregulated casinos still treat their customers with the same respect they’d get from a regulated site. And that’s why the vast majority of players have never had any problems with unregulated online casinos.
Online Casinos: Is It Safe to Play at Unregulated Casinos?
If you stick with the bigger boys, who already have a good existing name within the online gambling community, then you’ll be just fine and dandy. If you come across a Bitcoin casino that started a few days ago, then common sense would tell you that maybe you shouldn’t play there. You see, unregulated doesn’t mean unreliable. There are a great many reputable and well-meaning online casino businesses operating from offshore. We suggest that you always check the online casino reviews before going forwards and signing up and depositing funds. Also compare sites with jackpots to see which might be better for you.
Conclusion: Regulated vs Unregulated?
Don’t confuse the terms “offshore” and “unregulated” with “unreliable”. They just have decided to go with a more relaxed jurisdiction, which is also going to be much cheaper when it comes to obtaining an operating license. Even in an unregulated market, there are still hoops these online casinos have to jump through. The bottom line is really about whether your deposit funds are guaranteed should the casino get into financial difficulties.
So if you want to be absolutely certain that you’re safe, then go ahead and only play jackpot games on regulated sites. You’ll see that their licenses come from places like the UK Gambling Commission. But if, for whatever reason, you’re not able to play on a regulated casino, then don’t go breaking your head about the prospect of playing casino games on an unregulated site. Do some form of due-diligence. Read the Terms and Conditions. Many will be perfectly fine and you’ll experience zero problems. After all, regulated or not, all these companies are in the same business, and that’s making money. And be sure to check out the best jackpot casino reviews.
