Short answer: placing a bet at an offshore sportsbook is not a federal crime for you as a bettor. Federal gambling law targets the people running the book, not the person making the wager. One state — Washington — makes it a felony for the bettor. Everywhere else, the legal risk sits with the operator, and your real risk is financial, not criminal.
That answer needs unpacking, because almost every page on this topic blurs three separate questions into one vague "grey area." They are not the same question, and they have different answers.
Last reviewed: September 2026. This page explains how the law is written and enforced. It is not legal advice — see Before you rely on this at the bottom.
The three questions people are actually asking
| Question | Answer | Who carries the risk |
|---|---|---|
| Is it legal for an offshore sportsbook to take US bets? | No. Operators accepting US wagers without a state licence are violating federal and state law. | The operator |
| Is it illegal for me to place the bet? | Not under federal law. Under state law, only Washington clearly criminalises the bettor. | You, in one state |
| Will my bank block the deposit? | Often, yes. That is UIGEA working as designed. | Your payment, not your freedom |
Most articles answer question one and let you think it was question two.
What the federal laws actually say
Four statutes come up in every discussion of this topic. Read what each one targets:
The Wire Act (1961)
Passed to go after organised-crime bookmakers using telephone wires, it criminalises using wire communications to transmit bets or betting information in the business of betting or wagering. That phrase is the whole ballgame: the statute reaches people who run a betting business. A recreational bettor placing a wager is not "engaged in the business of betting or wagering."
We could find no reported federal prosecution of an individual US bettor under the Wire Act for placing a sports bet online. Federal cases in this area have targeted operators, payment processors and bookmaking rings. Not confirmed
UIGEA (2006)
The Unlawful Internet Gambling Enforcement Act did not make online betting illegal. It made it illegal for banks and payment processors to knowingly move money for unlawful internet gambling. It regulates the financial plumbing.
This is why your Visa gets declined at an offshore cashier while nobody knocks on your door. UIGEA is the reason crypto became the default deposit method in this market — not because bettors wanted it, but because card networks stopped cooperating.
PASPA (1992) and its repeal (2018)
The Professional and Amateur Sports Protection Act blocked states from authorising sports betting. In Murphy v. NCAA (May 2018) the Supreme Court struck it down as unconstitutional commandeering of state governments. PASPA never applied to bettors at all — it applied to state legislatures.
Its repeal is the single most important fact in this market: it opened the door to the regulated US sportsbooks that now compete with offshore books in 30 states.
Illegal Gambling Business Act (1970)
Targets gambling businesses meeting specific thresholds — five or more people involved, operating more than thirty days or grossing over $2,000 in a day. Again: businesses, not customers.
The pattern is consistent. Federal gambling law is written against operators, processors and organisers. Congress has had sixty-plus years to write a statute aimed at the individual bettor and has not done so.
State law is where bettors can actually get charged
Federal law is the easy part. States vary, and a handful have statutes broad enough to reach the person placing the bet.
Washington: the one to take seriously
RCW 9.46.240 reads:
"Whoever knowingly transmits or receives gambling information by telephone, telegraph, radio, semaphore, the internet, a telecommunications transmission system, or similar means […] shall be guilty of a class C felony."
A class C felony in Washington carries up to five years and a $10,000 fine. The statute names the internet explicitly and, unlike the federal statutes above, contains no "in the business of betting" qualifier — which is why it is read as reaching the individual bettor. Whether a court would apply it that way to a recreational bettor has not, to our knowledge, been tested. Not confirmed It exempts gambling authorised under Washington law — tribal sportsbooks and the retail betting permitted under RCW 9.46.0364 and 9.46.0368.
Washington has not, to our knowledge, prosecuted a recreational online bettor under this section. Not confirmed But the statute is on the books, it is unambiguous, and "they probably won't" is a thin thing to bet a felony on.
Everywhere else
Most states either:
- criminalise operating an unlicensed book and say nothing about the customer, or
- have general anti-gambling statutes written before the internet that prosecutors do not apply to online bettors, or
- have legalised and regulated online sports betting entirely.
Not confirmed
The 2026 picture: why offshore books still exist
As of 2026, 30 states plus Washington DC and Puerto Rico have legal online sports betting. 38 states have legal sports betting in some form, retail included.
Eleven states have none at all: Alabama, Alaska, California, Georgia, Hawaii, Idaho, Minnesota, Oklahoma, South Carolina, Texas and Utah.
Those eleven include the two largest states in the country. California alone is roughly 39 million people with no legal online option. That gap — not better odds, not bigger bonuses — is the reason offshore sportsbooks still have a US customer base eight years after PASPA fell.
The rest of the offshore market is people in regulated states who want something their local book won't give them: an account that doesn't limit winning bettors, higher limits, props their state bans, or betting on a sport the regulator excluded.
What is actually changing right now
Through 2026 state regulators have been going after offshore operators directly, and it is working. Bovada — the largest offshore brand in the US market — has been steadily withdrawing:
| State | Regulator action | Date |
|---|---|---|
| Kansas | Kansas Racing and Gaming Commission cease-and-desist | 8 July 2026 |
| Louisiana | Louisiana Gaming Control Board C&D to parent company Harp Media B.V. | 6 August 2026 |
| Pennsylvania | Pennsylvania Gaming Control Board notice | late August 2026 |
The pattern each time: the regulator sends a cease-and-desist, the operator does not formally respond, and the state quietly appears on the restricted list. Bovada now blocks users in roughly fourteen jurisdictions including Nevada, New Jersey, New York, Maryland, Delaware, Michigan, Colorado, West Virginia, Connecticut, Ohio and DC. Not confirmed
Note what regulators are not doing: they are not charging bettors. Every action in this wave has been aimed at the company.
If you are in a state that just got restricted, see Bovada alternatives.
The risks that should actually worry you
Criminal exposure is the risk people ask about. It is not the risk that materialises. These are:
No regulator to complain to. If a regulated US book voids your bet wrongly, you file with the state gaming commission and they have to answer. If an offshore book does it, your appeal is an email to a support agent in Costa Rica or Curaçao. There is no appeal above that.
Limits and account closure. Offshore books limit and close winning accounts, same as regulated books — but with no obligation to explain and no disclosure rules.
Payment friction. Card deposits get declined. Crypto works but moves the currency risk onto you. Cheque withdrawals from offshore books run 10–15 business days. Not independently measured
Balance risk. If an offshore operator withdraws from your state, exits the market, or simply fails, there is no segregated-funds requirement and no deposit insurance. Your balance is an unsecured claim against a company in a jurisdiction you cannot practically sue in.
Tax. US taxpayers owe federal income tax on gambling winnings regardless of where the book is located or whether it issues a W-2G. Offshore books do not report to the IRS. That is not a loophole; it means the reporting obligation is entirely yours. Not confirmed
How to reduce your exposure
If you are going to bet offshore anyway, these reduce the damage:
- Check your own state's statute first, not a blog's summary — including this one. If you are in Washington, understand what RCW 9.46.240 says before you decide.
- Keep no more money on the site than you can afford to lose to the site itself, separate from losing it on bets. Withdraw regularly.
- Prefer books that have been paying out for a decade over new brands with the biggest bonus. Longevity is the only real proxy for solvency in an unregulated market.
- Screenshot everything — bet slips, bonus terms at the time you accepted them, support chats. You have no regulator, so your records are your only leverage.
- Keep your own tax records. No one is sending you a form.
- Use the regulated option if you have one. In 30 states you do, and it comes with a regulator, segregated funds and a complaints process. Offshore only makes sense when the legal market genuinely cannot serve you.
Frequently asked questions
Can I go to jail for betting on an offshore sportsbook?+
Not under federal law — federal gambling statutes target operators and payment processors, not bettors. In Washington state, RCW 9.46.240 makes knowingly transmitting or receiving gambling information over the internet a class C felony, which on its face reaches the bettor. In other states the exposure is theoretical rather than enforced.
Are offshore sportsbooks legal?+
For the operator, no — accepting US wagers without a state licence violates US law. For you as a customer, placing the bet is not a federal offence. The two questions get conflated constantly.
Why does my bank decline offshore deposits?+
UIGEA (2006) prohibits financial institutions from knowingly processing transactions for unlawful internet gambling. The decline is the law working as written. It is a payment block, not an accusation against you.
Has any US bettor been prosecuted for using an offshore sportsbook?+
We could find no reported federal prosecution of an individual recreational bettor for placing sports wagers online. Federal cases in this space have targeted operators, payment processors and bookmaking rings. Not confirmed
Is offshore betting legal in California or Texas?+
Neither state has legal online sports betting, and neither criminalises the individual online bettor in the way Washington does. That combination is why both are among the largest offshore markets in the country. Not confirmed
Do I have to pay taxes on offshore winnings?+
Yes. US taxpayers owe tax on gambling winnings regardless of where the operator is based. Offshore books do not issue W-2Gs or report to the IRS, so the record-keeping is your responsibility.
Before you rely on this
This page explains how US gambling statutes are written and how they have been enforced. It is journalism, not legal advice, and it cannot account for your state, your circumstances or changes made after the review date above. Gambling laws are amended frequently and enforcement priorities shift. If you need to know where you stand, ask a lawyer licensed in your state.
If betting has stopped being entertainment, the National Council on Problem Gambling helpline is 1-800-522-4700, free and confidential, 24/7.
Written by Dominic Field, iGaming Writer. Last updated September 2026. We re-check this page monthly and log changes in the revision note below.