Hello, community! As you know, there are not only licensed casinos but offshore ones as well. You can’t really call them black-hat offers, since they do have some kind of license after all.
However, promoting such casinos can lead to criminal liability even in places where gambling is generally legal. And despite that, players are increasingly choosing offshore platforms over ‘official’ ones. Why is that? Let’s explore it in today’s overview.
But first, a reminder that we’ve previously explained what social casinos are and whether it’s worth driving traffic to them. We recommend checking it out!
Key Takeaways
- Players are increasingly choosing offshore casinos because of strict restrictions on licensed platforms, such as deposit limits and limited payment methods.
- In Ukraine, more and more users are turning to illegal casinos, with 80% of respondents confirming that they have played on such platforms.
- Offshore casinos offer a wider selection of games and the option to deposit via cryptocurrency or e-wallets, which Ukrainian licensed platforms do not allow.
- Although offshore casinos are growing in popularity, promoting them can have negative consequences, including criminal liability.
- Understanding why players choose offshore casinos can inform advertising strategies, but it is important to consider the risks and restrictions.
Are players really moving to offshore casinos?
There’s no need to drag this out: yes, more and more users are choosing offshore casinos. The Netherlands is often cited as an example. Until 2024, nearly 95% of gamblers there chose legal platforms, but that percentage subsequently began to decline.
The reason is simple: limits and bureaucracy. Authorities require players to prove they can afford to spend a certain amount of money at a casino. Otherwise, they cannot make a deposit.
The situation in Ukraine is similar. Back in May, reports said that the illegal gambling segment’s share in Ukraine had risen from 52.1% to 56.7%. And around 80% of surveyed users confirmed that they had played at illegal casinos. At least, that’s what NV Business reports, citing research by the international company Kantar.
Why is this happening?
We’ve already partly answered that question. In many cases, the biggest issue is the tightening of restrictions. The state believes it can curb people’s desire to gamble through legislation. But the situation here is much like prohibition of alcohol.
Ukraine is a particularly striking example. Despite generally positive developments in gambling over recent years, increasingly strict restrictions have also been introduced here. There was even talk of an almost complete ban on gambling for military personnel. Obviously, that won’t make them stop playing. They’ll simply go to an offshore operator.
More broadly, KRAIL, and now PlayCity, have plenty of strict restrictions. First of all, the minimum age for gambling here is 21, not 18. You can only top up your balance with a bank card, and specifically a debit card. No cryptocurrency or e-wallets. Given the share of cryptocurrency owners in Ukraine, it’s clear that restricting how users can deposit money is a major mistake.
At the same time, these restrictions are understandable. After all, they stem from anti-money-laundering laws and similar regulations.
Even the game catalog at legal casinos is sometimes much smaller than at offshore ones. That’s because some providers may not meet the requirements of certain licenses. As a result, their slots cannot be offered in particular cases. And that’s another scenario in which a platform loses a potential player.
Why do we need to understand this trend?
It’s actually quite simple. If we understand what’s driving the trend, it becomes easier to use that knowledge in advertising. For example, we can use certain triggers to generate more profit. But it’s important to remember that anyone doing this acts entirely at their own risk. Everything here is for informational purposes only, not a call to action.
So how can you profit from offshore casinos? Consider the underlying reason — the pain point that drives a user to choose a casino licensed in Curaçao rather than, say, one licensed under KRAIL. It’s important to understand that we’re talking about fairly hardcore gamblers who know a bit more about casinos than just sign-up bonuses and a couple of mainstream slots.
For Ukrainian players, the pain point may be that Ukrainian licensed platforms don’t accept deposits in electronic money — only bank cards. For players from other European countries, different triggers may come into play. For example, the absence of limits or a wider choice of slots.
But in all these scenarios, remember that advertising offshore operators will almost always be prohibited. The penalties for promoting such platforms will vary. Nevertheless, the consequences for affiliate marketers will invariably be negative.
Conclusion
So, the popularity of offshore casinos is largely driven by the strict restrictions imposed on licensed platforms. Limits, restricted deposit methods and a smaller game selection push some players to look for alternatives.
However, it’s worth remembering that promoting offshore operators can have negative consequences for affiliate marketers, including criminal liability. That’s why it’s important not only to recognize these trends but also to understand the risks.
What other reasons might explain why players are increasingly choosing offshore platforms? Share your thoughts in our Telegram community, where we’re always looking for ways to scale profits!
Best regards, Your Geek!
Frequently Asked Questions
Most often, it’s because licensed platforms have strict restrictions: limits, fewer ways to deposit funds and a smaller selection of slots.
Ukrainian licensed platforms accept deposits only from bank cards. Some players, however, would prefer to use cryptocurrency or e-wallets.
No. Promoting such platforms may be prohibited and can have negative consequences for affiliate marketers, including criminal liability.
