While the largest online poker sites in the world were forced out of the United States in 2011, several smaller ones still service the U.S. market.
These unregulated sites claim to operate in a legal gray area but pose a risk to online poker players that are too trusting with their bankrolls.
Below are five reasons you should not play on unregulated online poker sites.
1. Your Funds are Not Guaranteed
When you play at an "offshore" online poker site, you have zero guarantees that your funds will be available when you're ready to withdraw them.
Sure, the sites claim that the funds are secure and some sites may be "licensed" by offshore regulators, but what happens if the site decides to shut its doors and take off with your money?
The answer is that you will have to move forward without your bankroll. You have zero recourse against offshore sites. Look at Lock Poker, Absolute Poker, Ultimate Bet and even Full Tilt Poker prior to its sale to PokerStars.
All folded and never repaid players. PokerStars had to bail out Full Tilt and there are still a significant number of players still unpaid.
2. Zero Tax Revenue for Local and State Governments
Online poker sites that operate overseas pay zero taxes on revenue to the U.S. government.
This means that millions of dollars of potential tax revenues are going to other countries rather than helping U.S. citizens.
Regulated online poker provides tax revenue to states that can be used for a myriad of social programs and to keep state infrastructures operating.
3. Most Funding and Withdrawal Transactions Illegal Under U.S. Law
Remember, the Unlawful Internet Gambling Enforcement Act (UIGEA) makes it illegal for banks to process online gambling transactions unless permitted by state law.
Many offshore sites use third-party processors or other underhanded methods to skirt U.S. laws and get your money on and off the site.
Don't believe us? Request a check and see what the memo reveals about the source of your gambling withdrawal.
4. Zero Controls to Prevent Collusion or Bot Play
Many online poker sites virtually ignore the real threat of online poker bots and collusion among players.
One network, Bodog, has recently been in the news over a report by an independent organization that determined the company takes little action against online poker bots and collusion.
When you play on an unregulated site you have no idea whether you're against a single player, a bot or a group that's collectively competing for your stack.
5. Lawmakers Get the Message that You Don't Care About Regulation
When you play on unregulated online poker sites you send a clear message to lawmakers that you don't care about playing in a regulated market.
Every dollar you spend on an offshore site is a vote for unregulated markets and tells lawmakers that they should spend their time on other matters that citizens really care about.
If you want to play regulated online poker, stay away from offshore sites and take an active role in helping online poker become legal in your state.