Abstract
Despite the recent proliferation of legal online gambling in the Unites states, offshore gambling sites still remain prevalent, causing various problems in the U. S. Although numerous law violations occur in this domain, prior research has reported limited information about offshore gambling, mostly focusing on offshore gamblers’ characteristics and motivations. trang chủ thabet Using routine activities theory, this study attempted to understand environmental and theoretical factors that affect the use of offshore sites by focusing on offshore gambling-generating contexts that involve offshore sites and online casino reviews. Major findings show that the online visibility of offshore sites may be a key predictor of the use of the sites by U. S. players. In addition, online casino reviews providing a blacklist of online gambling sites served as informal guardians, helping players avoid unreliable offshore gambling sites that pose a risk to their customers. Policy implications were suggested based on the findings and provided insights toward effective online gambling regulatory efforts.
Keywords: Illegal online gambling, Offshore gambling, Cybercrime, Online casino reviews, Routine activities theory, Structure equation modeling
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Introduction
The U. S. has recently experienced the relaxation of gambling prohibitions (both offline and online). Internet gambling has historically been federally restricted in the U. S., yet its permits can be issued on the state level. Indeed, a growing number of states have recently legalized online gambling. Only a few states, including Nevada, Delaware, and New jersey, offered certain forms of legal online gambling before the first half of 2018; however, a proliferation of legal online sports betting across the states, caused by the repeal of the former federal ban on interstate sports betting in 2018, has expanded the legal online gambling market in many parts of the country. Legal online gambling is now available in more than twenty states in 2023 (“States that offer, ” n. d. ).
Despite the recent expansion of legal online gambling market in the U. S., the ‘black market’ of online gambling sites continue to benefit from American players. The American Gaming Association (AGA)’s report in 2019 showed that approximately $150 billion worth of wagers placed by Americans went to illegal sports betting operations each year (p. 7). Furthermore, its survey on U. S. sports bettors in 2020 reported that the number of U. S. players using offshore online sports betting sites increased 24% in states where sports betting is not yet legalized and even 3% in legal states from a year ago (American Gaming Association, 2020). These illegal online gambling sites do not hold a valid license issued by gambling authorities in the united states but can be accessible from the U. S. regardless of their base and legitimacy in other jurisdictions (Gainsbury et al., 2018). Most of these sites are known as offshore gambling sites that operate outside of the U. S., but tend to accept bets from customers who reside in the jurisdictions where their operating license is not valid (Gainsbury, Abarbanel, & Blaszczynski, 2019; Schmidt-Kessen et al., 2019).
Offshore gambling sites are a major concern for local governments (Gainsbury et al., 2013, 2019). As they are not subject to the regulations set by the U. S. gambling authorities, offshore sites are mostly free from any obligation imposed on operators licensed within U. S. borders. For instance, they are less likely than domestic/regulated ones to provide robust consumer protections or encourage responsible gambling practices (Gainsbury et al., 2019; Gainsbury, Parke &Suhonen, 2013). Also, they don’t need to abide by federal anti-money laundering compliance requirements and other financial obligations (e. g., local taxes and licensing fees) imposed by U. S. gambling authorities. At the same time, the fact that most offshore sites are based in “tax haven countries” allows them unfair competitive advantages over domestic operators; specifically, such financial evasion enables them to maintain their operation with lower costs, offer customers higher odds and better services, and provide more features as well as a wider variety of gaming options (Gainsbury et al., 2018, 2019). Therefore, the entrenchment of offshore gambling entities is a serious threat that poses a potential risk to players, compromises the value of domestic, legal, taxpaying gaming entities, and harms the local economy.