Special Edition: Why US Punters Are Placing Their Bets Elsewhere

An Investigation into the $500+ Billion US Market

Gambling in the US is booming. But the boom taking place isn’t quite as you may think. Our investigation shows that many US gamblers are placing their bets outside of the US, and the numbers are mindblowing.

This trend isn’t confined to the US. It’s taking place across the world, too.

In this special edition newsletter, we’ll explore why millions of players actively choose platforms outside of the U.S in search of “better betting experience.”

The Numbers Tell the Story

Recent research paints a startling picture of just how substantial this shift has become:

A report by the American Gaming Association estimates that American’s wager $511 billion annually.

Of that, only $173 billion is wagered through US-based operators. The 338 billion left over? It is gambled with offshore crypto casinos.

The AGA's surveys found that around 49% of sports bettors and 48% of online casino players had used crypto casinos and sportsbooks within the past year.

The isn’t just the case in the US. Reports also state that this trend is high amongst players in the UK, and Canada too.

But why? Well, on further investigation, the reasons become clear.

The Experience Gap: Why Players Are Leaving

Through analysis of online forums and documented user complaints, five key frustrations consistently drive players away from regulated gambling platforms:

#1: Identity Verification Hurdles

Licensed operators require extensive personal information during KYC procedures. Legal name, address, SSN digits, and government ID uploads. Forum discussions reveal widespread complaints about this process being used to delay or deny legitimate payouts.

It’s reported that many US-based casinos claim that documents are illegible or demand additional verification only when players attempt to withdraw winnings.

#2: Account Limitations for Winners

Licensed sportsbooks commonly limit or restrict accounts of successful players. Sports bettors voice frustration at being effectively punished for winning consistently or employing skilled strategies like beating the closing line.

Research from Citizens/Juice Reel shows this drives higher-value wagers offshore, with average bet sizes significantly larger ($56 on offshore sites versus $44 on regulated platforms).

#3: Slow Withdrawals and Payment Restrictions

While regulated sites offer secure banking options, withdrawals often take days to process.

This is a stark contrast to the near-instant payouts available through crypto casinos. Specific withdrawal limits vary by method (DraftKings allows $100,000 via online banking but only $25,000 via debit cards), creating additional friction when players want access to their money.

#4: Confusing Bonus Terms

Players consistently complain about complex wagering requirements on bonuses, which can range from 1x to 25x or higher. Additional restrictions such as game contribution rates (table games often counting just 5-20%), short expiration windows, and maximum bet limits while using bonus funds lead many to feel the promotions are deliberately designed to be difficult to convert into withdrawable cash.

#5: Limited Game Selection

State regulations restrict licensed casinos to offering games only from providers who have obtained state-specific licenses. This results in significantly smaller game libraries compared to offshore sites.

Players seeking specific games or greater variety often turn to offshore options that offer thousands rather than hundreds of titles.

The Crypto Advantage

While these friction points explain why players are leaving regulated sites, crypto helps explain where they're going.

The rise of crypto appear to be a fundamental enabler for the modern offshore gambling market targeting the US. By operating largely outside the traditional financial system, crypto facilitates the circumvention of the regulations that restrict the gambling experience.

Offshore crypto casinos build their appeal by directly addressing the perceived shortcomings of the regulated US market:

#1: Anonymity & Reduced Friction: Many offshore crypto casinos market "No KYC" policies, often requiring only an email address or a connection to a crypto wallet to sign up and begin playing.

#2: Transaction Speed: Crypto transactions, particularly withdrawals, are often processed much faster, sometimes near-instantly or within minutes/hours, compared to the multi-day waits common with traditional banking methods.

#3: Higher Limits & Betting Freedom: Offshore platforms frequently advertise much higher betting limits, or even "no limits," compared to their regulated counterparts.

This is particularly attractive to high-stakes players ("whales") and, crucially, to sports bettors who have been limited or restricted by licensed US sportsbooks for being too successful.

#4: Lucrative Bonuses: Offshore casinos are renowned for promoting substantially larger welcome bonuses and ongoing promotions than typically found on US sites.

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#5: Wider Game Libraries: Crypto casinos can partner with a vast array of international game developers whose titles are unavailable on US platforms.

As a result, our supporter, Rakebit boasts significantly larger game libraries, sometimes featuring thousands of slots, diverse table game variations, extensive live dealer suites, and unique game types like "crash games" that are less common on licensed sites.

#6: Provably Fair Games: A feature unique to some crypto-centric casinos is the use of "provably fair" technology.

This allows players to independently verify the randomness and fairness of game outcomes using cryptographic algorithms and blockchain records. This offers a level of transparency not typically available in traditional online casinos.

The Market Has Spoken: Where Players Feel Valued

The numbers tell a compelling story: when Americans wager over $500 billion annually through these alternative channels, they send an unmistakable message about where they feel more valued as players.

Looking objectively at the evidence, it's easy to understand why this shift continues:

For us at The Whale, we understand the frustrations of players, as we have experienced it ourselves.

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*If you’re based in the US, you’ll need to use a VPN to access this service.