Getting solid information about the offshore betting market is not easy.
An industry advisor told LSR, “These guys are not going to talk to you. If they are reported in media, they fear that there will be raids.
The offshore sports betting market is not fully understood by anyone. E.estimates from the American Gambling Association, Eilers & Krejcik, and H2 gambling capital put it in between $ 50 billion and $ 200 billion for annual bets.
What has happened to this figure since autumn? PASPA in 2018? Has the explosive growth of regulated US sports betting Hurt offshore rivals?
Back to black
A look at the headlines of recent years might suggest this. Bovada moved out new York this year, presumably so as not to annoy the prosecutors. Colleagues offshore Bookmaker and BetOnline withdrew from New Jersey as early as 2019, a year after the state legalized sports betting.
Elsewhere, 5 dimes Close the store completely to try to go ashore. This could be an indicator that there is a greater decline.
Search data and multiple sources that have knowledge of the offshore market prove otherwise.
There is a rising trend in offshore sports betting.
Benjie Cherniak, Investor and former managing director of Don Best, said he got the impression that business is booming.
“WWhen PASPA was lifted there was concern about how long they had but business has never been better, ”said Cherniak.
The statistics seem to be correct that on. Google Search data for the year to date shows that is Bovada most wanted brand among the US books at a 19% Share. Draft kings is a relatively distant second at 11%, with FanDuel at 9%.
Google Dashboard: Share of US brands in search results for 2021
Likewise, Similar web Data shows an upward trend for Bovada over the past six months compared to FanDuel. There is also an upward trend for offshore books like sportbets.ag and BetOnline.
Some of it is noise. These numbers are poor quality click bait traffic according to sources. But there is real growth in the offshore world too.
“The offshore market has taken off like a rocket since PASPA, ”said one Caribbean-based bookmaker who asked not to be named.
Customer confusion between legal and illegal
Brand confusion is part of the problem.
“The most important thing is that customers are still struggling to tell which bookmaker is licensed and which is not,” said Manuel Stan, relationship U.S. Senior Vice President.
Penn CEO Jay Snowden said something similar last year.
Snowden said to analysts that “a lot of people just don’t know”.
Offshore causes the problem
Some of this is a deliberate deception from offshore books. The media play an important role as well.
To use one Example from a regulated state, The Denver Post has a page titled “Best Gaming Apps for Real Money Gambling” that links to Bovada and Offshore Casinos.
Stan said that the media does not do enough to distinguish between the good and the bad.
Noting that sports betting is already a part of mainstream coverage is important. MLB hosts sports betting shows on MLB.com. There are many official betting partners of the NFL for the 2021 seasons.
But to 60% of US customers do not have access to legal betting opportunities. They resort to sports betting wherever they can.
Offshore sports betting product gap
Another problem is the product itself. There are markets available for fun stuff, such as push-up competitions. They may also be able to offer credit bets with lower vig or higher limits.
“’I’ve heard from VIP managers that their players still have 80% of their bankroll abroad due to a local trash product and restrictive bets, ”According to the Caribbean bookmaker,
Despite limitations, US books try to fill the gap in product offerings. offer 50 +% Taxes to New York, for example, could lead to worse opportunities for the consumer.
In general, however, a regulatory state will affect offshores.
Google Trends data in Pennsylvania shows that FanDuel is attracting 96% of search queries compared to BetOnline. In California, it’s much closer to a 50/50 split between the two.
However, offshores aren’t disappearing from regulated states. As Cherniak explained:
“If an offshore company has 1,000 customers in Illinois, will it lose half of them if it is regulated? We don’t see this. Many of these customers have opened regulated account, but many others keep their existing offshore accounts.
Sports betting is becoming mainstream
In addition, sports fans in states like Texas see sports betting content everywhere.
They can only bet offshore. Online casinos are similarly affected. They are banned in many states, and illegal operators generate a lot of money.
The money will continue traveling abroad until this happens.
What is the future of offshore sports betting?
The offshore market seems stronger than ever. Even if US regulations are implemented, the offshore industry is unlikely to disappear anytime soon.
Most mature sports betting markets have a black marketplace that is still active in some capacity.
Cherniak said, “If I look in five to ten year’s time, I can’t see that offshore will disappear.” “You benefit indirectly from the regulated advertising expenditure and the cultural change in attitudes towards sports betting. “
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