Summary
- As domestic regulations tighten, operators are choosing to move their operations offshore.
- National governments are highly motivated to safeguard players by ensuring they remain within their borders.
A recent survey by the Bristol Hub for Gambling Harms Research at the University of Bristol has revealed a compelling new development. Not only are players heading to offshore platforms, but a significant number of operators are also making the transition.
New offshore destinations attract operators amid the toughening of domestic criteria
The survey, Mapping the Offshore Gambling Regulators, highlights a compelling trend: as domestic regulations become more rigorous and demand stricter adherence to consumer protection laws, many gambling companies are choosing to relocate to offshore jurisdictions. This shift comes at a significant moment, as Yolo Group, a major player in the gambling industry, has announced it will abandon its operations in grey markets to focus entirely on complying with domestic regulators. The study indicates that the creation of new regulatory frameworks is on the rise, spurred by reforms in well-known licensing locales like the Philippines, the Isle of Man, and most notably, Curaçao. The authors pointedly describe some of the newer jurisdictional licenses and their managing bodies as pseudo-regulators. Currently, about 20 such jurisdictions are offering online gaming licenses.
Pseudo licensing and camouflage for the operators
The researchers contend that this strategy is a way to disguise the illegal foundation of the business. Take the case of Anjouan, an autonomous island in the Comoros, which astonishingly granted 825 gambling licenses to online operators in a single month, May 2025, without imposing any taxes on the gambling revenue. This makes it especially attractive to those in the industry. As new offshore hubs like Anjouan rise to prominence, countries will feel an even greater urge to keep their citizens engaged locally, discouraging them from exploring unreliable websites abroad.
