Interesting to see a lot of discussion about offshore sportsbooks and the media attention given to these businesses. I’ll start by saying that the challenge with the legal regulated market competing with offshore books is that offshore books might:
1. Offer credit

2/
2. Accept credit cards
3. Offer better pricing
4. Accept larger bets
5. Offer wagers that regulated market don’t
6. Appear legal to players

Some of these constraints for the legal market to compete come from our own laws and ability to enforce them.

3/. The biggest disadvantage of offshore markets are that there is ultimately no guarantee your funds are protected as a player. We have evidence of this from Black Friday when the major poker sites were shut down. I know many people who never recovered that money.

4/ Also, an offshore book will tell you they are legal. And that’s accurate in that they are probably lawfully operating in the country they are based. That doesn’t mean the country does a stringent background review like US jurisdictions.

5/. And it also doesn’t mean that they aren’t operating in violation of state or federal laws in the US if they accept US customer wagers. Generally, a bet or wager occurs in the jurisdiction where it is made, as well as where accepted. So, how can they operate if violating law

6/ Well, it’s not easy to enforce US federal and state laws in foreign countries. The FBI or Las Vegas Metro can’t just easily go into another country and arrest people who are operating a business from that country. Now, if they come into our country, that risk is there ...

7/ See past cases like Peter Dicks. These violations can be federal like the Wire Act (bets or wagers on sports across state or international lines ... so US players to another country) or Illegal Gambling Businesses Act (violates state law). State laws will prohibit

8/. sports wagering unless a license issued by that state is held. Although most states don’t have laws against the player placing a bet, some do (like Nevada ... NRS 465.093), but enforcement is difficult and basically non-existent. Might not get a gaming license though ...

9/. I thought @DustinGouker did a great job on why we should amend federal tax laws and the Wire Act. Totally agree. This will help with legal markets competing. And we want them to compete because they pay taxes and have employees in the states and are regulated for fairness

10/ and are required to protect player funds. And will help with monitoring betting integrity (for fairness in wagering and sports). Wire Act should she not apply between jurisdictions where legal. This will allow legal books to layoff wagers to accept larger wagers.

11/ Also, try to enforce the excise tax against offshore books. The law imposes 2% of handle on illegal wagers. Add tax evasion. Still might have enforcement challenges, but why not tack it on.

12/ Finally, continue to have the conversation about regulated versus offshore so that people (and media) can understand the differences. It is also important to listen to players and why they believe their needs are better served by offshore market.