The Facts: Offshore Online Betting from Indiana

Inside Indiana: Is it Illegal to Bet on Sports at Offshore Website?

For more than two decades prior to Indiana’s regulation of mobile sports betting, online gambling was still a thing. Millions of people from all over the world were gambling over the internet. When the Unlawful Internet Gambling Enforcement Act (UIGEA) was passed in 2006, it changed how accessible those websites were. Most overseas operators fled the US market. Others stuck around. But having access to offshore online betting sites, and the legality of accessing them, are two very different things.

Each state has its own perception of whether international gambling sites are legal, illegal, or somewhere in between – the effectuate ‘grey area’ of the law. The question is, how does Indiana feel about it, and are players at risk of breaking the law if they do it?

Is it Illegal to Bet on Sports at Offshore Websites from Indiana?

The short answer – Yes. It is illegal to gamble at offshore websites from Indiana.

There are a few reasons why online gambling is not permitted through international operators. First and foremost, Indiana is one of just three US states that went the extra mile to expressly prohibit unauthorized internet gambling.

It is illegal to operate any sort of gambling that is not licensed by the state. Thus, unlicensed operators are illegal. It’s not a jurisdictional thing, either. So long as the person doing the gambling is located in Indiana, the operator is committing a crime, and the gambling they offer is thus declared “unlawful gambling”.

Section 35-45-5-2 of the Indiana Code states:

IC 35-45-5-2 Unlawful gambling

(a) A person who knowingly or intentionally engages in gambling commits unlawful gambling.

(b) Except as provided in subsection (c), unlawful gambling is a Class B misdemeanor.

(c) An operator who knowingly or intentionally uses the Internet to engage in unlawful gambling:

        (1) in Indiana; or

        (2) with a person located in Indiana;

commits a Level 6 felony.

Interpreting the Law

This means that a person who engages in unlawful gambling (i.e. gambling at an offshore website) is guilty of a Class B misdemeanor, and the operator of that gambling site is guilty of a Level 6 felony. The penalty for a Class B misdemeanor is up to $1,000 in fines and up to 180 days in jail.

It’s not just the state government that’s working to keep offshore gambling sites operating on their own side of the ocean. The federal government’s passage of the UIGEA made it illegal for payment processing companies to facilitate transfers between US citizens and offshore gambling accounts. Visa, MasterCard, Amex, Discover – all of these companies are at risk of breaking federal law if they approve a deposit to an international gambling site from an American customer.

Players, themselves, are at no risk of penalty form the literature of the UIGEA, but its ripple effects can be felt far and wide. Any website willing to accept players from Indiana is breaking the law. Those operators will, eventually, feel that sting, and likewise, anyone who chooses to do business with such an operator will be effected.

The Bright Side: Hoosiers Don’t Need Offshore Gambling Sites

As you’re probably already aware, Hoosiers are no longer pressed to rely on the acceptance of overseas gambling operations. The state of Indiana began passing regulations to legalize certain forms of online gambling a few years back.

It started with the regulation of Daily Fantasy Sports (DFS) in 2006, and progressed to the legalization of traditional sports betting in May of 2019. The Indiana Gaming Commission (IGC) began issuing sportsbook licenses a few months later, granting the first Indiana mobile sportsbooks the right to launch as early as October of that year.

Learn More: Online Gambling Laws of Indiana

Are Indiana Mobile Sportsbooks Better Than Offshore Sites?

The answer to that is an unequivocal, “Yes”. While it is possible to participate in offshore online betting from Indiana, and it is perfectly likely that you’ll never get in trouble for it, the safety of your finances and security of your personal information is not worth the risk of doing so.

Unmatched Reputability

No matter how reputable an international operator seems to be – no matter how long they’ve been online without a single incident to speak of – they are breaking the law by accepting players from this state. And at any time, should that operator decide not to honor its commitments, or pay its players, there’s not a single thing you’ll be able to do about it.

Local Player Protections

Betting with a hometown online sportsbook that carries the regulatory authorization of the IGC means you have options. If anything goes wrong, or if you have any suspicion of fraudulent activity, you have somewhere to turn to for help. You can bet with these websites, having all the confidence that your deposits will reach their destination, your withdrawals will arrive, and your sensitive information will be safe throughout it all. If prying eyes do manage to retrieve your banking details, you’ll have legal protection to safeguard your funds.

Immense Variety of Bets

Indiana sports bettors have access to every type of bet they could ask for. Moneylines, spreads, total, parlays, pleasers, teasers, and countless live in-play betting props are available on virtually every sporting event. Plus, Hoosiers have access to a large variety of betting operators, so if one sportsbooks doesn’t have what you’re looking for, odds are another one does.

Supporting the Local Economy

Another factor that makes gambling with local sportsbooks more appealing – or at least it should – is that all the revenue that goes into these operators (that is, all the money bettors lose to Indiana sportsbooks), is pumping right back into the state. Gambling taxes make up a significant portion of the state’s budget. They help to fund everything from education and healthcare, to local infrastructure and community projects. When you bet on sports at offshore websites, you’re only contributing to the economy of some other country or remote island. It’s far bettor to invest in our own local economy.

Learn More: Licensed Online Sportsbooks of Indiana