#12: Regulated vs. Offshore Online Gambling Markets

One aspect of online gambling that carries a lot of misunderstanding and false reporting of data is the nuances of user behaviour between regulated (onshore) and offshore markets.

In February, it was widely reported that $5.37bn of bets were placed on Super Bowl LVIII, of which only $1.4bn were with regulated operators, and the rest were offshore.

It is anyone’s guess how true this was. The American Gaming Association’s research disagrees with the significant trend towards offshore betting.

So it’s clear that there’s a huge need to build a clearer picture of the dynamics between offshore/onshore gambling, particularly the behaviour of those who prefer to gamble offshore.

At the end of last year, as part of my routine in building new approaches, metrics, and dashboards for Blask, I conducted 80,000 surveys of onshore and offshore gamblers across Europe. This survey highlighted significant behavioural differences between both groups of players.

So in this essay, I’m going to explore ten key aspects the differentiate the behaviour of these two groups, based on the analysis I did of the data.

#1 Bonuses and Promotions

Onshore Players: Tend to be cautious and selective with bonuses, often wary of the stringent wagering requirements. For example, in regulated markets like the UK, operators must comply with strict rules on bonus advertising and terms, ensuring clarity and fairness. This leads onshore players to prefer straightforward bonuses that are easy to understand and redeem.

Offshore Players: Are highly attracted to large, enticing bonuses with minimal restrictions. Offshore sites, such as those based in Curacao, often offer substantial welcome bonuses with fewer strings attached, attracting players looking for immediate and significant rewards.

#2: Deposit Size

Onshore Players: Typically make smaller, more frequent deposits. In markets like Sweden, stringent deposit limits and responsible gambling measures encourage players to manage their budgets carefully. Tools that allow setting deposit limits are widely used, reflecting a more cautious approach to gambling.

Offshore Players: Often make larger, less frequent deposits. High rollers are particularly drawn to offshore sites where there are fewer restrictions on deposit sizes. These players are willing to risk larger amounts for the potential of bigger wins, a behaviour facilitated by the lack of stringent regulatory controls.

#3: Session Times

Onshore Players: Show a preference for shorter, more controlled gambling sessions. In jurisdictions such as Spain, mandatory breaks and session time limits are enforced to help prevent addiction. These measures are appreciated by players who are conscious of their gambling habits.

Offshore Players: Tend to engage in longer, more intense gambling sessions. Without enforced breaks, offshore players can play for extended periods, driven by the thrill of the game and the potential for larger wins. This behaviour is typical in environments where responsible gambling measures are less emphasised.

#4: Game Selection

Onshore Players: Prefer a curated selection of games that are certified for fairness and security. For instance, the UK Gambling Commission ensures that all games offered in the market are thoroughly tested, leading players to trust and stick with well-known and certified games.

Offshore Players: Seek a wide variety of games, including those not available in regulated markets. Offshore operators often provide a broader range of games, including unconventional and new offerings, which appeal to players looking for diversity and new experiences. A lot of times, there’s no certification, but nobody really cares.

#5: Payment Methods

Onshore Players: Prefer traditional and secure payment methods such as credit/debit cards and bank transfers. They value the safety and reliability of these options, even though the range might be limited. The use of local banking methods is common in regulated markets.

Offshore Players: Are more open to using a broader array of payment methods, including crypto. Offshore sites cater to players seeking anonymity and more flexible transaction methods, which are less common in regulated environments. Which are most of the time hidden from players taxes, families, etc

#6: Regulatory Compliance

Onshore Players: Value the security and consumer protection provided by regulatory compliance. They feel reassured by the presence of regulatory bodies like the Malta Gaming Authority, which ensures fair play and reliable payouts.

Offshore Players: Are less concerned with regulatory oversight, often prioritising the potential for higher rewards and greater freedom in their gambling activities over guaranteed security. The allure of potentially higher returns outweighs the risks for many offshore players. Curacao? In the minds of many players, it is not a proper license, and they are okay with it. 

#7: Customer Support

Onshore Players: Expect high-quality customer support, available in their local language and capable of resolving issues efficiently. They value responsive and professional service, which is a standard in regulated markets like Germany.

Offshore Players: Are often willing to accept lower standards of customer support or no support at all. They may tolerate longer response times and potential language barriers if it means accessing a wider range of games and promotions.

#8: User Experience

Onshore Players: Appreciate a user experience tailored to their local preferences, including culturally relevant themes and language-specific content. These players favor platforms that provide a seamless and familiar gambling environment, and most platforms are very similar, especially if built by the same platform provider. However, due to stringent regulations and higher operational costs, onshore platforms often have less flexibility to innovate and enhance the user experience.

Offshore Players: Are drawn to the novelty and excitement of offshore sites, which offer a far more advanced user experience. Offshore operators save significantly on taxes and regulatory compliance costs, allowing them to invest more heavily in superior UX and user journeys. This financial advantage translates into more sophisticated interfaces, better graphics, and more intuitive navigation, which are preferred by players. As a result, while onshore players are accustomed to a stable but less dynamic UX, offshore players enjoy cutting-edge, immersive gambling experiences that continually evolve.

#9: Advertising and Marketing

Onshore Players: Respond well to advertising that emphasises responsible gambling and transparency. They prefer promotions that are clear about the terms and conditions, avoiding those that seem overly aggressive or misleading. Marketing in regulated markets often focuses on the safe and secure nature of the gambling experience, highlighting consumer protections and the reliability of payouts. Common channels include traditional media, such as TV and radio ads, and digital platforms like social media and search engines, where ads must comply with strict guidelines ensuring they are not misleading and do not target vulnerable populations.

Offshore Players: Are more responsive to aggressive marketing tactics and bold promotional offers. Offshore operators often use a wide array of marketing channels that include online streamers, affiliate marketing, and direct email campaigns. Streamers on platforms like Twitch and Kick play a significant role, as they showcase real-time gambling experiences, often with substantial winnings, creating a sense of excitement and immediacy that attracts viewers. These streamers sometimes have affiliations with offshore sites, which allows for more dynamic and engaging content that onshore operators might not be able to match due to regulatory constraints.

#10: Responsible Gambling Measures

Onshore Players: Actively engage with responsible gambling tools, such as self-exclusion programs, spending limits, and session reminders. They value the support these tools provide in maintaining a healthy gambling habit. For instance, in the Netherlands, the widely used CRUKS system facilitates self-exclusion, allowing players to voluntarily exclude themselves from gambling activities to prevent problematic behaviour.

Offshore Players: Frequently neglect or overlook responsible gambling measures, prioritising immediate gratification over long-term well-being. They are less inclined to utilise tools designed to limit their play or manage their spending, which increases the risk of developing gambling problems. The absence of stringent regulations and the emphasis on immediate rewards contribute to this behaviour.

Conclusion

My analysis of 80,000 surveys from onshore and offshore players in Europe revealed distinct behavioural patterns that reflect their different priorities and risk tolerances.

But it’s just the start of us shining a brighter light on the nuances of the offshore market, and in future we’ll be able to make more accurate, insightful predictions to show the true size of the offshore market. 

In the meantime, the differences I’ve shown above can help develop strategies that better cater to players who want to bet within regulated markets and stop them from moving offshore.