Crypto casinos boom as users sidestep bans via VPNs

Crypto casinos boom as users sidestep bans via VPNs (Representative Image)

Offshore crypto casinos are booming, attracting billions of unregulated wagers as players utilise VPNs and loopholes to access sites that have been prohibited in the vast majority of nations. Through research by anti-online-crime organisation Yield Sec, the websites earned a record $81.4 billion in gross gaming revenue (GGR) in 2023—five times more than the year before, the Financial Times reported.

Platforms such as Stake, Rollbit, and Roobet are technically prohibited in markets like the US, UK, EU, and China, but are still available through geo-blocking bypasses. In defiance of legislation, players consistently utilise VPNs, mirror links, and influencer guides to bet on crypto sites that have their operations based out of liberal bases like Curaçao and Malta.

Stake alone has handled over 300 billion bets since its introduction and reported a GGR of $4.7 billion for last year. The site also reports that over half of transactions now take place in fiat currencies, moving further away from the "crypto casino" tag. Nevertheless, the Financial Times managed to open an account on Stake from London through a VPN and start gambling before any proof-of-address or affordability checks were required.

Experts warn that crypto gambling is attracting underage and problem users, thanks to the lack of strict “know your customer” (KYC) protocols and spending controls. Former gamblers and campaigners say platforms offer an illusion of better odds and “fairer” games, bolstered by influencer marketing and false claims. Influencers often promote these casinos on social media, handing out codes and guides to bypass restrictions.

Though betting on unregulated sites is not always illegal for individual bettors in the UK or US, operators offering access to residents could be violating the law. However, enforcement continues to prove elusive. UK regulators, for example, have sent almost 300 cease-and-desist orders since April 2024 to crypto-associated sites, but customers still find ways around.

Certain crypto gambling sites even acquire indirect legitimacy by means of "white label" licensing agreements. These enable offshore sites to ride on the coat tails of UK-licensed sites, with little or no supervision. Stake, for instance, once operated a non-crypto UK-facing site via TGP Europe, which shut its site after being under investigation by regulators.

Roobet and Rollbit, both linked with Premier League football clubs, remain active under such arrangements. The UK Gambling Commission has in recent times issued a warning to clubs against signing off on unlicensed sponsors as well as compelling them to exert due diligence upon partner affiliations.

Campaigners are quoted saying such arrangements enable crypto casinos to tap global crowds without facing the hurdles of regulatory checks. "It would be quite simple just to ban white labels," asserted Matt Zarb-Cousin, a longtime gambling control supporter.

For the time being, crypto casinos exist in a loosely regulated environment, presenting twin threats—financial loss through gambling and increased volatility through digital currencies. As customers pursue profits and operators pursue market share, regulators are increasingly under pressure to act on what critics call the "wild west" of online gambling.