Players are driving billions in unregulated wagers by using VPNs and loopholes to reach restricted sites. This has fueled a boom in offshore crypto casinos. The Financial Times reported that these websites earned a record $81.4 billion in gross gaming revenue (GGR) in 2023, based on research by anti-online-crime group Yield Sec. This is five times more than the year before.
Platforms like Stake, Rollbit, and Roobet face technical restrictions in markets such as the US, UK, EU, and China. Yet, they are still available by geo-blocking bypasses. Players consistently use VPN, mirror links, and influencer guides to bet on crypto sites. These platforms often operate from liberal hubs like Curaçao and Malta. They do so in open defiance of gambling legislation.
Since its introduction and reported a GGR of $4.7 billion for 2024, Stake alone has handled over 300 billion bets. Moving further away from from the crypto casino tag, the site also reports that over half of transactions now take place in fiat currencies. Nonetheless, the Financial Times managed to open an account on Stake from London by VPN and start gambling before any proof-of-address of affordability checks were required.
Thanks to the lack of strict KYC or know your customer protocols and spending controls, experts warn that crypto gambling is attracting underage and problem users. Strengthened by influencer marketing, as well as false claims, former gamblers and campaigners say platforms offer an illusion of better odds and fairer games. Handing out codes and guides to bypass restrictions, influencers often promote these casinos on social media.
Operators offering access to residents could be violating the law. However, betting on unregulated sites is not always illegal for individual bettors in the United Kingdom or United States. Nevertheless, enforcement continues to prove elusive. For example, UK regulators have sent almost 300 cease-and-desist orders since April of the previous year to crypto-associated sites. However, customers still find ways around.
