The American Gambling Conundrum: Betting Inland or Offshore?
Whether you choose to gamble with local bookies, choose to hop online and play poker, sports betting, or choose to play with an offshore company, there’s no doubt about it that gambling is one of American’s favorite past times. According to the State of the States 2019 AGA Survey, the commercial casino scene set a record year in 2017 surpassing the $40 billion mark with an increase of 3.4% over the year prior . However, inland betting isn’t the only market that is making billions of dollars in profit from American bettors, as many choose to bet offshore with websites that are licensed in the United Kingdom, Isle of Man, and Antigua to name a few. In this article, we will take a look at a comparison between why American bettors choose inland betting and offshore betting.
What Does Inland Betting Have to Offer?
- A Safe and Regulated Market. Those who bet inland are betting in a safer and more transparent market which ensures that the bettor has recourse if something goes awry. When gambling offshore, bettors are subject to unregulated business practices with zero-recourse, so if funds are withheld or stolen, nothing can be done except to move your account. Moving your account to another company may require a fee to do so.
- There are State-to-State Wagering Restrictions. Depending on what state you choose to gamble in, there may be wagering restrictions. For instance, some states only allow wagering while others only allow contests (sweepstakes), and others both.
- You Will be Taxed on Winnings. This is a major disadvantage to bettors who gamble on a regular basis as any winnings that are above the $5,000 threshold are taxed. The casino, where the funds are won, is required to withhold federal taxes from the amount. The withholding rate is approximately 24% which is a substantial amount.
- Betting on Sports is Limited. If you want to bet on sports, there are only three options available currently: West Virginia, Nevada, and New Jersey. However, this may change as recent rulings by the Supreme Court are legalizing sports betting in the United States.
- Bettors Avoid Sudden Online Casino Closures. Due to the fact that the market is regulated inland, online casinos are subject to specific requirements such as a partnership with land-based casinos and regulations around the safekeeping of customer funds. The use of these requirements establishes a healthier bottom line for these online casinos and are thus, less likely to close down suddenly.
What Does Offshore Betting Offer Americans?
- There Are No Taxes with Offshore Gambling. Unlike with inland betting, you are not obligated to report or pay taxes by the offshore gaming company that you play with. Offshore gambling websites often operate on a no0tax basis.
- There Are Very Few Wagering Restrictions. Offshore gambling websites will allow you to wager on a wide variety of games with one account, such as sports, casino, card, slots, and horse racing and odd markets like the Olympics, the Academy Awards, and the stock market.
- There Are Fewer Fees Associated with Gambling. Offshore gambling websites do not have buildings to upkeep, parking lots to maintain, or expensive machinery to replace. Instead, they want your wagers and therefore, will not charge you for placing them. There’s also no obligation by these sites to share your personal data with them.
- There Are More Perks in the Way of Bonuses. One of the biggest perks associated with online offshore gambling is the financial boosts that are provided in the way of bonuses, VIP options, and loyalty tiers.
- A welcome bonus is often some free spins or a deposit match bonus where new signs up can enjoy a 100% match bonus by depositing a certain amount of money. Although the casino will put a limitation on this, it is nice for those who want to up their chances at winning a jackpot or two.
- No deposit bonuses allow the player to sign up and play for free without using their own funds. You have to fund your account before you are able to withdraw these bonuses and there are wagering conditions that must be met first.
- VIP/Loyalty Tiers cater to high rollers who receive lucrative freebies like tickets to sports events and expensive gifts like electronics.
- Other bonuses include payment method bonuses, monthly reload bonuses and referral bonuses.