A new study conducted by the Bristol Hub for Gambling Harms Research at the University of Bristol, UK, reveals an increasing trend of gambling operators seeking offshore jurisdictions to evade stringent regulations found in well-established markets. Small island nations and territories, such as Curaçao, the Philippines, and the Isle of Man, are becoming favorable options for these operators due to their more relaxed regulatory environments.
This shift to offshore gambling areas is driven by the promise of lower costs and faster licensing processes. Unlike traditional regulatory frameworks, many of these emerging jurisdictions operate with minimal oversight, potentially facilitating illicit activities such as money laundering and match-fixing. Such lax environments pose significant risks for players, the study indicates.
Anjouan, an autonomous island in the Comoros with a population of 277,500, has emerged as a leading offshore gambling hub. By May 2025, Anjouan Licensing Services had granted 825 active internet gaming licenses. The jurisdiction attracts operators by offering a no-tax policy on gross gaming revenue and a swift licensing process, typically completed within two to three weeks. Similarly, Timor-Leste and the Commonwealth of the Northern Mariana Islands have introduced legislation in 2025 to accommodate internet gaming operations aimed at international markets.
However, the study emphasizes the limited options for dispute resolution in these new jurisdictions, often leaving players without recourse. Unlike established regulators such as the Malta Gaming Authority, most offshore regimes do not require independent alternative dispute resolution (ADR) providers, which can leave players at a disadvantage when issues arise.
Moreover, concerns about transparency in beneficial ownership plague these emerging markets. While some jurisdictions demand full disclosure of ultimate beneficial owners, others, like Anjouan, have minimal due diligence requirements, complicating the tracing of company ownership structures.
The rise of offshore gaming correlates with an increase in player complaints. The dispute resolution service Casino Guru reports a sharp 90% increase in unresolved complaints involving operators licensed in Anjouan in 2024, totaling 148 cases. Common issues include blocked accounts, delayed payments, and problems related to self-exclusion.
Šimon Vincze, head of sustainable and safer gambling at Casino Guru, highlights the considerable risks associated with playing through offshore operators. The terms are often crafted unfavorably for players, sometimes including clauses that justify the confiscation of funds, thereby offering little assurance of fair treatment.
This trend raises significant concerns about player protection and the integrity of the gambling industry. While operators benefit from reduced costs and expedited licensing, players face uncertain recourse in disputes and potentially unfair practices. The lack of regulatory oversight invites a host of issues that could undermine trust and safety in online gambling.
On the other hand, proponents argue that offshore jurisdictions offer much-needed flexibility and innovation in a heavily regulated industry. Operators contend that high taxes and stringent regulations in established markets stifle growth and limit their ability to offer competitive odds and bonuses to players. For these operators, offshore jurisdictions provide a viable alternative to maintain profitability and sustain business operations in a global market.
Despite these advantages, the ease with which operators can move to offshore jurisdictions may exacerbate existing issues within the gambling industry. The absence of rigorous regulatory oversight can lead to practices that undermine consumer protection and fair play. Moreover, the potential for regulatory arbitrage could encourage a race to the bottom, where jurisdictions compete by offering increasingly lax regulations.
A balanced approach could involve international cooperation to establish a baseline of regulatory standards that all jurisdictions must adhere to, ensuring player protection and industry integrity without stiflying innovation. Until such measures are implemented, players and regulators alike must navigate the complex landscape of offshore gambling, weighing the benefits of deregulation against the risks it poses to the industry and its consumers.
In conclusion, while the lure of offshore jurisdictions is undeniable for gambling operators seeking relief from stringent regulations, the potential consequences for players and the integrity of the industry cannot be ignored. The move towards these new gambling hubs underscores the ongoing tension between regulatory oversight and the desire for operational freedom within the global gambling industry.
Garry Sputnim is a seasoned journalist and storyteller with over a decade of experience in the trenches of global news. With a keen eye for uncovering stories that resonate, Alex has reported from over 30 countries, bringing light to untold narratives and the human faces behind the headlines. Specializing in investigative journalism, Garry has a knack for technology and social justice issues, weaving compelling narratives that bridge tech and humanity. Outside the newsroom, Garry is an avid rock climber and podcast host, exploring stories of resilience and innovation.
