The History Of Offshore Sportsbooks And Their Use In The United States

Offshore sportsbooks are sports-betting operators based outside the United States that serve international customers. They have been part of the American sports wagering story for decades, largely because they aligned with three forces that shaped how fans interact with games:

  • Technology (Telephones, Websites, Mobile Apps)
  • Oddsmaking
  • Regulation

International gambling sites remain an important chapter because they helped shape consumer expectations for online experiences such as live odds, broader menus, and mobile usability, while the United States gradually built a large, regulated, state-licensed marketplace after 2018.

Table of Contents

    What Is An “Offshore Sportsbook”

    In everyday usage, offshore sportsbooks indicate to an operator headquartered and regulated outside the US, often in jurisdictions that have long supported international commerce and services. “Offshore” describes where the business is based and overseen, not the sports it offers.

    Offshore operators typically serve a broad customer base spanning many countries and regions. Over the years, this global orientation encouraged sportsbooks to expand beyond US leagues into international soccer, tennis, motorsports, cricket, and more, often offering a broader market selection than bettors could find elsewhere at the time.

    As the internet matured, the best operators focused on clear house rules, reliable grading, responsive customer support, and increasingly sophisticated odds and risk management. Those traits, consistency, transparency, and speed, became the benchmark bettors used to evaluate any sportsbook, anywhere.

    Sports Betting Before The Internet

    Long before online betting, sports wagering already had remote elements. Bettors got lines from newspapers, radio, and later cable sports coverage. They placed wagers through telephone-based systems and agent networks, especially where regulated retail sportsbooks were not locally available. This era also influenced the legal framework that still appears in modern discussions.

    A central reference point is the Interstate Wire Act of 1961, which addresses certain betting-business communications transmitted via wire facilities in interstate or foreign commerce. While the communications technologies of the early 1960s were very different from today’s, the concept mattered: it established that the movement of betting information and transmissions across borders could be regulated.

    As betting evolved from phones and fax machines to websites and mobile apps, questions about how older statutes applied in modern contexts became part of the ongoing policy conversation.

    Meanwhile, Nevada’s regulated sportsbooks refined a professional model that influenced everyone: posted odds, standardized ticketing, published house rules, defined grading practices, and risk management designed to balance exposure. Even when bettors were not in Nevada, that sportsbook standard shaped expectations about fairness and operational competence.

    The 1990s: The Online Sportsbook Era Begins

    The 1990s were a pivotal decade for offshore sportsbooks. Two things happened at once - the commercial internet expanded quickly, and online payments and accounting systems became feasible for consumer services. Sportsbooks began experimenting with the web as a new distribution channel.

    A widely cited milestone is January 17, 1996, when Intertops announced it accepted what it described as the first online sports bet. Whether viewed as a symbolic first or simply an early example, the larger point stands: by the mid-1990s, real-money sports betting online was no longer theoretical.

    At the same time, several non-US jurisdictions became known for hosting gaming and sports-betting businesses geared toward international customers. Places such as Curaçao developed offshore online gaming frameworks in the 1990s, and Central American locations such as Costa Rica became associated with service-company structures used by international betting operators.

    These hubs mattered because they paired telecom capability with a business environment that supported cross-border services, something that became increasingly valuable as bettors wanted 24/7 access and broader betting menus.

    By the late 1990s, the basic offshore sportsbook experience was recognizable. Websites listed lines, let customers fund accounts, place wagers on major sports, track open bets, and view results. That seems obvious today, but at the time, it was a major step forward, bringing sportsbook-style functionality to anyone with a computer and a stable internet connection.

    The Early 2000s: Product Maturity And Feature Innovation

    In the early 2000s, offshore sportsbooks shifted from novelty to full-service platforms. This period saw rapid improvement across market coverage, technology, and professional operations.

    First, market coverage expanded. Offshore books broadened their menus beyond NFL and NBA sides and totals into props, futures, parlays, derivatives, and a growing range of international events. Bettors who followed European soccer, global combat sports, or niche competitions could often find options online sooner than through local channels.

    Second, technology accelerated the pace of wagering. Books invested in faster odds feeds, clearer interfaces, and better account tools. Live odds updates and in-play betting became increasingly common, reflecting how fans actually consume games. This era helped normalize the idea that wagering could be interactive rather than static.

    Third, operations became more sophisticated. Odds were increasingly shaped by analytics and sharper risk management. Sportsbooks built internal systems to monitor exposure, update limits, and manage correlated outcomes. They refined customer service and published more comprehensive house rules. Across the market, professionalism became a differentiator, and bettors tended to favor operators that were consistent, clear, and reliable.

    From a US consumer perspective, these improvements mattered because they created a digital sportsbook expectation: broad menus, quick updates, and a streamlined wagering flow that fit modern sports fandom.

    The US Backdrop: Why Offshore Options Stood Out

    Offshore sportsbooks became part of the US betting conversation largely because state-licensed, legal options were limited for a long stretch. A key factor was the Professional and Amateur Sports Protection Act (PASPA), enacted in 1992, which prohibited most states from authorizing sports betting. For decades, that meant legal sports betting access varied sharply by location, and many fans simply did not have a local regulated sportsbook as an option.

    In 2006, Congress passed the Unlawful Internet Gambling Enforcement Act (UIGEA). Rather than directly regulating the act of betting itself, UIGEA focused on payment processing, prohibiting gambling businesses from knowingly accepting certain payments in connection with unlawful internet gambling and directing federal regulators to implement rules for designated payment systems. This period encouraged the online betting ecosystem to modernize payments, clarify policies, and develop more robust financial workflows.

    The combined effect of these dynamics was that, for many Americans, offshore sportsbooks represented a widely discussed online wagering option during years when locally regulated choices were narrower. This was also when consumer expectations about online products were forming: fast interfaces, transparent account histories, and the convenience of betting from a computer rather than over the phone.

    The 2010s: Mobile Betting And Continued Legal Interpretation

    By the 2010s, smartphones had transformed the internet, and sportsbooks followed suit. The market became mobile-ready with apps and mobile-optimized sites offering faster logins, quicker bet slips, and more intuitive browsing. In-play betting grew significantly because mobile devices fit the rhythm of live sports, and bettors could follow a game and interact with markets without leaving the viewing experience.

    Meanwhile, debates over US legal interpretation continued in the background. The Department of Justice Office of Legal Counsel issued notable opinions in 2011 and again in 2018 discussing the scope of the Wire Act and its application in a modern communications environment.

    Regardless of where one lands in those debates, the broader historical point is that policy and technology were moving in parallel: products were modernizing rapidly, while legal frameworks built in earlier eras were being re-examined for contemporary relevance.

    Across the industry, this was also a period of improving consumer protections and operational standards, with stronger account security, clearer identity verification practices in regulated markets, and growing emphasis on responsible gaming tools. These trends later became cornerstones of the modern state-licensed US sportsbook model.

    2018 And After: The Expansion Of Regulated US Sports Betting

    The most important modern turning point in US sports betting history came on May 14, 2018, when the US Supreme Court decided Murphy v. NCAA. The Court held PASPA’s central restrictions unconstitutional, clearing the way for states to choose whether and how to legalize and regulate sports betting.

    That decision triggered a major shift. In the years following 2018, many states launched regulated sports betting markets, some retail-only, others online, and many with both. State regulation brought structured oversight, licensing requirements, consumer dispute pathways, and responsible gaming standards. For bettors, the market increasingly looked like other mainstream consumer industries: clear rules, tested platforms, and operators accountable to regulators.

    So where do offshore sportsbooks fit in the post-2018 world? They matter historically in three constructive ways.

    1. They helped define the online sportsbook experience. Features like broad betting menus, live odds, and in-play markets became normal online early and later became standard in regulated state apps.
    2. They accelerated product expectations. Competition in the online environment pushed sportsbooks to innovate in usability, pricing tools, and speed, benefits that carried over as regulated markets expanded.
    3. They provide context for a transitional period. Offshore sportsbooks illustrate that American consumer demand for convenient sports wagering existed well before most states offered regulated options, and that this demand influenced the pace of change after 2018.

    Why Offshore Sportsbooks Are Still Relevant In The USA

    Following the repeal of PASPA, the appeal of offshore sportsbooks should have waned, but they remain a large part of the overall sports betting picture in the United States. As of 2026, many experts estimate that the unregulated market is still significantly larger in total handle than the legal domestic market.

    Availability In Non-Legal States

    The most obvious reason is geography. Massive states like California and Texas still haven't legalized domestic online sports betting. For millions of residents in these states, offshore sites are the only accessible way to bet on sports from their own homes.

    Cryptocurrency Integration

    Offshore books were early adopters of Bitcoin and other cryptocurrencies, lessening the reliance on credit and debit cards. Today, crypto remains popular due to:

    • Speed: Near-instant deposits and withdrawals that bypass slow banking systems.
    • Privacy: Transactions that don't appear on traditional bank statements.
    • Higher Limits: Crypto often offers much higher transaction caps than credit cards or PayPal.

    Access To Niche Markets

    Regulated books are often limited by state regulators on what they can offer. Offshore books have more freedom to provide odds on:

    • Politics: Presidential elections and international political events.
    • Entertainment: Reality TV outcomes, awards shows (Oscars, Grammys), and even the weather.
    • Esports: A wider range of global tournaments that state regulators may not have approved yet.

    Higher Betting Limits

    For "whales" or professional bettors, domestic books can be frustrating. Regulated books often "limit" or "ban" winning players or cap bets at relatively low amounts. Offshore books are generally more tolerant of high-volume, high-stakes action.

    No "Geofencing" Issues

    Domestic apps use aggressive GPS tracking to ensure you are within state lines. These systems are notoriously glitchy, often blocking users who are near a border or on a shaky Wi-Fi connection. Offshore sites don't use geofencing, providing a more seamless login experience.

    Early Lines

    Professional bettors value getting "early" numbers before the market moves. Offshore books often post their lines for the next week's NFL games or upcoming MLB matchups hours or even days before domestic books, which often wait to follow the offshore market's lead.

    Privacy and Anonymity

    Regulated books require social security numbers and intense KYC (Know Your Customer) documentation for tax reporting. While offshore books still require verification, they often require less personal data, especially for crypto-only accounts, which appeals to privacy-conscious individuals.

    All-in-One Platforms

    Many offshore sites offer a "one-stop shop" experience. On a single site, a user can bet on the Super Bowl, play in a high-stakes poker tournament, and play live-dealer blackjack. In the regulated US market, these activities are often split across different apps or restricted by state law.

    What The Future Holds

    While the post-2018 landscape offers more domestic choices, the offshore market remains relevant through its global flexibility, superior privacy, and accessibility in non-legalized states. As the US market continues to mature, the legacy of offshore operators serves as both a historical foundation and a persistent alternative, highlighting the ongoing tension between consumer demand and state-level regulation.

    Beyond technology and market demand, the permanence of offshore sportsbooks is rooted in their geopolitical strategy. By operating in sovereign nations like Costa Rica, Panama, and Curaçao, these books operate in jurisdictions where online gaming is a protected, legalized pillar of the local economy.

    Unlike a US state that might abruptly hike taxes or change the legality of prop bets overnight, offshore hubs have spent decades refining laws specifically designed to host international betting. This geographic independence ensures that even as the US landscape fluctuates, these platforms offer a continuous, uninterrupted alternative for bettors who prioritize consistency over local regulation.