Is BetUS a legitimate, legal sportsbook for sports betting?
Author:
Zach Lutz
Published:
Oct 30, 2024
,
05:21 p.m.
ET
From state-regulated sportsbooks to unregulated offshore operators like BetUS, the rise of online sports betting has undeniably brought a wide range of options to U.S. bettors,. Founded in 1994 and operating out of Curaçao, BetUS has garnered popularity with its U.S. audience, marketing itself as one of many options for those looking to wager on sports. However despite its legit-sounding name, its offshore status raises questions about its legitimacy, safety and legality.
In this article, we break down the BetUS legal status, the recent crackdown on offshore sportsbooks and why they can be risky.
Is BetUS a legal, legitimate gaming operator?
To operate legally in the U.S., sportsbooks must adhere to regulations set by each state’s gaming authority. Currently, BetUS is unregulated in the U.S. and holds a license only from Curaçao rather than any American state. This means that although BetUS has invested in building an image and frequently uses American sports personalities and handicappers in its marketing, it does not comply with the same consumer protections and legal standards as U.S.-based regulated sportsbooks.
The legality of using BetUS hinges on its offshore status. Despite their popularity, offshore sportsbooks like BetUS and Bovada operate outside U.S. regulatory reach, bypassing the state-by-state licensing protocols and taxes. They avoid the rigorous standards imposed on American sportsbooks, such as responsible gaming measures and secure transaction protocols, which exist to protect bettors from fraud and ensure fair play.
Why are offshore sportsbooks so popular?
Offshore sportsbooks are often more accessible than their regulated counterparts for bettors in states where sports betting isn’t legalized. They offer a broad array of betting markets, such as entertainment and non-sports-related bets, and many provide a credit-based betting model rather than requiring upfront deposits. This flexibility may appeal to users who are looking for options beyond what U.S. sportsbooks can offer, or to those who reside in states without legalized sports betting, like California or Texas.
These sportsbooks also tend to advertise heavily in the U.S. market, often using reputable sports figures and analysts in their content and promotions. This – along with a legitimate-sounding name like BetUS – can give the impression of legitimacy, despite its offshore and unregulated status. But being popular does not equate to being secure, and bettors should be aware of the risks involved.
States cracking down on offshore sportsbooks
As U.S. bettors continue to use offshore platforms, states have stepped up their efforts to crack down on these unregulated sportsbooks. A coalition of seven states – Colorado, Nevada, New Jersey, Michigan, Illinois, Louisiana and Mississippi – called on the U.S. Department of Justice to make enforcing restrictions on offshore sportsbooks a priority. In May 2024, the Michigan Gaming Control Board (MGCB) issued a cease-and-desist letter to Bovada’s parent company, Harp Media, for violating Michigan gaming laws. Connecticut followed with its own cease-and-desist order, adding pressure on these unregulated operators to halt their U.S.-based operations.
As of October 2024, the number of states that have taken action against Bovada has reached 15:
Colorado
Connecticut
Delaware
District of Columbia
Kansas
Louisiana
Maryland
Massachusetts
Michigan
Nevada
New Jersey
New York
Ohio
Pennsylvania
West Virginia
These states aim to curtail offshore sportsbooks’ reach in order to protect consumers and reclaim lost tax revenue.
In a notable recent move, Tennessee’s Sports Wagering Council fined Bovada after confirming that Tennessee residents could still place bets on the platform, which lacked a state-issued license. Tennessee also recommended that Bovada users withdraw their funds to minimize potential risks. This growing state-led crackdown highlights the seriousness with which regulators view offshore sportsbooks’ influence in the U.S. market.
Dangers and risks of offshore sportsbooks like BetUS
Limited Financial Protections: Offshore sportsbooks do not have the same financial safeguards as regulated U.S. operators. Bettors using these sites are at risk of delayed or even denied payouts, as there is no regulatory body to ensure that offshore operators honor winning bets.
Lack of Licensing and Oversight: Without adherence to U.S. gaming laws, these sportsbooks often operate without accountability. In cases of fraud, bettors have no recourse.
Minimal Player Protections: Offshore books are not required to offer self-exclusion or other responsible gaming tools. In the absence of these safeguards, at-risk players are more vulnerable to developing gambling-related issues, which can lead to significant financial and emotional consequences.
Tax Evasion Risks: Winnings from offshore sportsbooks are untaxed, which can lead to legal and financial complications if discovered by tax authorities.
Identity Theft and Fraud: Due to limited security measures, these platforms expose users to potential identity theft and fraud, putting their financial information at risk.
Credit Betting Models: Offshore sportsbooks sometimes allow bettors to wager on credit rather than requiring deposits upfront. While appealing, this can lead to unexpected levels of debt if bettors don’t track their spending or lose more than they anticipated.
Gambling Addiction Treatment for BetUS bettors
The increasing prevalence of both regulated and unregulated sportsbooks has contributed to a rise in gambling addiction cases. Offshore sportsbooks pose particular risks, as they lack the protections that regulated platforms provide. For individuals struggling with gambling addiction due to offshore or regulated betting, Birches Health offers comprehensive, specialized care.
Birches Health provides virtual treatment options tailored to individuals dealing with gambling addiction, including support for those impacted by sports betting. Teletherapy sessions are available for both individuals and families, often covered by insurance and with minimal out-of-pocket costs. If you or someone you know is struggling with gambling addiction, contact Birches Health to learn more about the recovery programs available.
You can also reach out directly at 833-483-3838 or email hello@bircheshealth.com to begin the journey to recovery.
