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999-slots.net
Sep 01, 2025
For whom the bell tolls: Offshore operators threaten legal market growth
Misconception of a Dying Offshore Market: Many believed that strict regulations would eliminate unlicensed operators, but in reality, offshore markets continue to operate and capture significant portions of the gambling spend. Consumers, especially high spenders, prioritize offers and convenience over legality or regulation. Consumer Behavior and Market Dynamics: Consumers are driven by the best [...]
- Misconception of a Dying Offshore Market: Many believed that strict regulations would eliminate unlicensed operators, but in reality, offshore markets continue to operate and capture significant portions of the gambling spend. Consumers, especially high spenders, prioritize offers and convenience over legality or regulation.
- Consumer Behavior and Market Dynamics: Consumers are driven by the best offers, not necessarily the safety or legality of operators. Offshore sites often have more flexibility to provide attractive promotions and gaming options, making them highly appealing.
- Global Resistance to Overregulation: Countries like the Philippines, the Netherlands, and the US are recognizing the impact of offshore operators. For example, in the Netherlands, despite high channelization rates, around 50% of gambling spend still occurs offshore. Similarly, in the US, the offshore market accounts for roughly one-third of all wagering.
- Challenges in Regulation: Overregulation, bureaucratic hurdles, high taxes, and communication gaps between regulators and industry stakeholders contribute to the persistence of offshore gambling. Excessive red tape discourages operators from entering or expanding in regulated markets.
- Market Incentives: Offshore markets are inherently more attractive because they offer more flexibility, fewer restrictions, and lower costs for consumers. This reality undermines regulatory efforts and challenges the legitimacy of licensed operators.
- Moving Forward: To effectively compete with offshore operators, regulated markets must be dynamic, innovative, and consumer-centric. Simply imposing stricter rules or lip service to responsible gambling is insufficient. Instead, markets need to enhance their attractiveness and ease of access to retain players.
- Conclusion: Unless regulators and industry stakeholders recognize that offshore markets are winning due to their appeal, efforts may be in vain. Creating a more attractive, flexible, and consumer-friendly legal market is essential to shift the balance and protect consumers effectively.
