The rise of online sports betting in the United States has led to an explosion of choices for bettors. This ranges from state-regulated sportsbooks to foreign-based offshore operators. This has led to many Americans questioning: Are offshore sportsbooks legal in the US?


There's no simple answer to this question. It's nuanced, which makes it crucial to understand the legal landscape before placing a bet. So, whether you're drawn in by flashy promos or the convenience of an offshore platform, knowing what's legal and what's risky is now essential. It could end up saving you serious trouble down the line.


Understanding the legal framework


Before diving into the world of offshore sportsbooks, it's important to understand the complex legal framework that governs sports betting in the United States. Federal laws don't target the bettor. There are no US federal laws that explicitly make it illegal for individual bettors to place wagers with offshore sportsbooks. Instead, laws like the Unlawful Internet Gambling Enforcement Act (UIGEA) and the Federal Wire Act focus on operators and the financial systems used to fund gambling activity.


  • UIGEA (2006): This law prohibits US banks and payment processors from facilitating transactions related to unlawful online gambling, but it doesn't criminalize individual betting activity.
  • Federal Wire Act (1961): Originally intended to stop organized crime. This act bans the transmission of sports betting information across state lines. Its impact today largely targets operators and not end-users.
  • PASPA (1992-2018): This law prohibited states from regulating sports betting, but it was overturned by the Supreme Court in 2018. The repeal opened the door for legal sports betting markets at the same level.

In short, the federal government doesn't typically pursue charges against US residents who place bets with offshore sportsbooks. But that doesn't mean it's safe or wise.


A legal grey area with offshore sportsbooks


Offshore sportsbooks are companies that operate outside the US jurisdiction. They are often headquartered in countries like Costa Rica, Panama, or Antigua. These platforms are not licensed or regulated by any US state, which introduces several complications:

  • No legal protection: Bettors have no recourse if an offshore book refuses to pay out or suddenly shuts down.
  • No oversight: Unlike regulated sportsbooks in the US, these offshore operators are not subject to independent audits or consumer protection laws.
  • Financial risks: Depositing or withdrawing funds may involve shady workarounds like cryptocurrency or unreliable processors. This could lead to frozen bank accounts or blocked transactions.

Many bettors are lured in by better odds, early lines or aggressive sportsbook promos that are offered by offshore books. But these perks often mask the underlying lack of stability or accountability. This is why it's so important to read the casino's and promotion's terms and conditions.


Regulated sportsbooks are safer alternatives


Since the repeal of PASPA in 2018, over 35 states have legalized some form of sports betting. And even more are on the way. A regulated sportsbook can offer:

  • Consumer protections
  • Transparent terms
  • Licensed financial processes
  • Dispute resolution avenues

They also provide generous but legitimate sportsbook promos. This includes risk-free bets, deposit matches and odds boosts that comply with advertising standards. It's also important to practice responsible gambling by setting limits and knowing when to stop, regardless of where you're placing your bets.


Think of sportsbook promos as a welcome bonus with guardrails. They’re designed to add extra value without the shady fine print you might find at offshore books. Whether it’s a boosted line on your favorite team or a deposit match that gives you more bankroll to play with, regulated operators keep it above board so you can enjoy the perks without worrying about hidden traps.


So if you're in a legal betting state, there's no reason to gamble with an offshore book. The US-regulated options are safer, faster and more reliable.


Why offshore betting is still popular


Despite the risks, millions of Americans still bet with offshore sportsbooks. This is because:

  • Legal betting isn't available everywhere: As of 2025, over a dozen states have yet to legalize sports betting. Bettors in places like California and Texas often turn to offshore options out of necessity.
  • Promotions and bonuses: Offshore books will often offer huge welcome bonuses, loyalty rewards and special odds boosts. These sportsbook promos are frequently more aggressive than what's allowed in regulated US markets.
  • Perceived anonymity: Some bettors believe offshore platforms allow for greater privacy, especially when using cryptocurrency. However, this anonymity often comes at the expense of safety and legal recourse.
  • Legal habits: Before 2018, offshore betting was the only option for most US residents. Many long-time sports bettors have simply stuck with what they know.

Enforcement and crackdowns


While individual bettors are rarely targeted, authorities have taken action against offshore sportsbooks and their affiliates:

  • The Department of Justice has shut down major offshore operators in the past, including BetED and Legends Sports.
  • The American Gaming Association (AGA) has been very vocal about the dangers of illegal gambling and continues to lobby for stricter enforcement.
  • Several states have issued cease-and-desist letters to offshore platforms marketing to US residents without a license.

More recently, payment processors working with these offshore sites have also come under scrutiny. This has made it increasingly difficult for users to deposit or withdraw funds.


Tax obligations still apply


Whether you're betting on a US-licensed site or with an offshore sportsbook, your winnings are still taxable. The IRS expects all gambling income to be reported, even if the sportsbook doesn't issue a W-2G form. Failing to report these earnings can lead to penalties or audits.


Offshore sportsbooks typically don't report your winnings to the IRS, but that doesn't make your tax obligations disappear. US law is clear: you owe taxes on all gambling income, period.