A lot has been said about legal loopholes when it comes to online gambling, especially in crypto casinos. But it doesn’t make that topic easier today.
If you look at gambling and iGaming forums and threads, people specifically ask for sites, that are accessible out of non-gambling states, meaning states where online gambling is prohibited to access online casinos which alongside do not require using a VPN (which is the common way around that - what doesn’t make it automatically legal). On top of that, users often ask which of these casinos don’t require KYC (Know your Customer) as a form of verification.
These 4 factors are intertwined and make the (legal) landscape so complicated:
Getting Around All of This Legally Sounds Impossible
There is more than enough evidence of people on e.g. reddit or discord who tell that they are using crypto casinos and have been gambling online for years out of states where it is clearly prohibited.
Usually, if you try to access such a site in a U.S. state where online gambling is illegal, a classic scenario would be that you simply can’t open the webpage with your browser and it’s displaying a message like: this page is not accessible in the state of XYZ.
We made the test with some of the dominantly mentioned websites out of a state where iGaming isn’t legal - and we also didn’t use a VPN.
Why Are Pages Still Accessible And Visible, Despite Non-Gambling Laws
The first system looks for certain keywords in your search query, the internet address (URL) itself, or it has a collection of websites that can’t be accessed and that is frequently updated by legal authorities.
Like X (formerly twitter) or other social media platforms like TikTok are banned in entire countries.
The second system reads your IP-address based on where it’s coming from (the region displays something comparable to an area code when using cell phones). Especially bigger companies, bigger websites restrict their content based on regions/ countries or based on available/ non-available subscription models.
Some of the mentioned casinos are accessible in a restricted state but still require a full submission of residential address through a legal document (Driver’s License, State ID etc.) With that they can protect themselves from unwanted out of state gamblers.
Another way of ‘enforcing’ these laws is by what you can read in the disclaimer of the page. It often discloses that you may be accessing the page out of a non-online-gambling state, then goes on to provide a clear list of the ones the page is banned in. The legal disclaimer will also state that even if you’re able to play, all your winnings are voided. They reserve the right to freeze your account and stash your funds at any time.
One last questionable mechanism, in that complicated web of legal and illegal strategies, is that the player has to at least provide a bank statement or a pay slip to verify themselves:
This has been another whole topic for threads among the iGaming community. Is it legal? How dangerous is this? Are these online casinos allowed to request that?
What are they doing with your data?
While, at this time we are unsure, there are speculations regarding this. Look out for any updates. When in doubt, never upload specific banking information.