VPN usage has increased significantly in recent years, as cybercrime continues to grow in scope and complexity. Internet users commonly rely on this technology to maintain their privacy and protect themselves from malicious third parties who snoop on public networks.
Many people also use virtual private networks to bypass geographic restrictions and access online content that is otherwise unavailable in their region.
The service masks the user’s real IP address through an encrypted connection, making it appear as if they are browsing from a different country.
Virtual private networks are very popular among online gamblers because they allow users to access casino and sports betting sites that are restricted in their countries for regulatory reasons.
But is using a VPN for online gambling legal, and what are the repercussions for those who get caught? Read on as we explore this topic in detail.
Common Reasons for Using VPN for Online Gambling
1Overview
Virtual private networks enable internet users to hide their locations by connecting to encrypted servers in other countries.
Someone physically located in Los Angeles, for example, might connect to a server in London, making it seem as if they are browsing a site from the British capital.
Online gamblers typically use a VPN for two reasons: to access restricted casinos, sportsbooks, or poker platforms, and to opt in for multiple bonuses.
2Accessing Restricted Gambling Sites
Gambling sites must hold licenses to operate in a given jurisdiction. Properly regulated gaming operators typically restrict players who are based in prohibited countries, territories, or states from accessing their products to avoid legal issues. They accomplish this through geoblocking, a technology that prevents internet users in certain locations from accessing specific online content.
New Jersey-licensed sites are available only to online gamblers who are physically located within the Garden State. The same applies in Great Britain, where licensees of the UK Gambling Commission (UKGC) can take bets solely from British players.
Players in regulated and well-developed markets generally have a wide selection of licensed gambling sites. The situation is different for those who live in countries that heavily restrict or completely prohibit online gambling.
In the latter case, local internet service providers may be instructed to block all unauthorized gaming sites. Players from such jurisdictions often employ virtual private networks to bypass these restrictions and access their preferred online casinos despite the ban.
3Abusing Online Casino Bonuses
Bonus abuse is the second most common reason online casino players turn to virtual private networks. Gambling operators offer enticing bonuses to encourage players to sign up, keep them engaged, and retain them as customers. However, a variety of terms and conditions exist to prevent eager gamblers from abusing these offers.
For instance, each new customer may claim no more than one welcome bonus per account, household, and IP address. Those who break this rule face an unpleasant surprise when their bonuses are confiscated and their accounts are closed.
Some players go as far as to hide their location through a VPN so they can take advantage of the same bonus multiple times by creating several accounts from different jurisdictions. Getting caught is inevitable because every new account must pass mandatory verification.
4Dealing with Blocked Accounts
Online casino accounts can be closed for several reasons, including bonus abuse, cheating, collusion, using specialized software to gain an unfair advantage, and various other violations of the terms and conditions.
Gambling operators quickly block cheaters from accessing their accounts. It is not uncommon for these players to create new accounts by masking their IP addresses with virtual private networks. They often choose a server located in their country of residence. Some VPN services even allow users to pick servers in specific cities, making it easier for such players to register new accounts.
5Circumventing Software Provider Restrictions
Most modern online casinos partner with multiple game providers, and some operators host eighty or more software studios on their roster. That said, the games of certain suppliers are unavailable for real-money play in specific countries and territories because of licensing restrictions.
A gambling software company must typically obtain a license from local regulators before it can distribute its products to customers in a given market. The major live dealer supplier Evolution Gaming, which operates in many regulated markets, is a good example. For instance, the company’s products are available to Canadian customers in Ontario, British Columbia, Quebec, Alberta, and Atlantic Canada.
Players outside these provinces cannot access Evolution’s live dealer games even if online gambling is otherwise available to them. The only way to reach the supplier’s live portfolio is to establish a virtual private network and connect to a server in a permitted province.
6Circumventing Voluntary Self-Exclusion
This is arguably the worst reason to use a virtual private network when gambling online, and it could lead you down a slippery slope to financial ruin. Regulated operators take responsible gambling seriously and provide multiple tools to protect their customers from gambling-related harm.
Players may take temporary breaks and regain access to their accounts after their preferred cool-off period ends. Permanent self-exclusion is also an option for those who feel their gambling behavior has become problematic.
Self-excluded gamblers sometimes experience a change of heart. In an attempt to continue gambling, these players may try to bypass their voluntary exclusion by creating new accounts at the same online casinos they originally restricted themselves from.
Because multi-accounting also violates the terms and conditions, such gamblers often rely on virtual private networks to hide their IPs and avoid detection. We at SuperCasinoSites are firm proponents of responsible gambling and strongly urge you to refrain from these practices if you have self-excluded.
Why Do Online Gambling Operators Prohibit VPN Use?
It is obvious that most online casino operators disallow virtual private networks, even though using such services is not illegal per se. So why the big fuss? The answer again lies in gambling regulations.
All licensed gambling companies must adhere to strict Know Your Customer (KYC) policies in line with the requirements of their regulators. Each registered player must therefore undergo mandatory verification to confirm their age, identity, location, and source of funds.
Although the procedure can be cumbersome, online casinos must complete it to avoid potential legal and regulatory trouble. Customers must provide identification documents, proof of address, and proof of payment method to pass the check and withdraw their winnings.
Verification becomes impossible if a person uses VPN services to mask their location because the country and address on their government-issued ID will not match. Most online casinos disallow VPN usage for several main reasons:
- To block access by players who reside in restricted countries
- To curb multi-accounting and potential bonus abuse
- To prevent irresponsible gaming and stop problem players from regaining access to gambling services
- To thwart fraud, money laundering, and terrorist financing
It becomes clear that online casinos prohibit virtual private networks mainly because they want to avoid getting into hot water with their regulators.
Regulatory failures, such as providing underage or restricted players with access to gambling, are heavily penalized with massive fines, license suspension, or even license revocation.
Few, if any, regulated companies would willingly allow or overlook VPN use at the risk of losing their operating permits and tarnishing their reputation.
When Is Using VPN Illegal?
Connecting to virtual private networks for general purposes is legal in most countries, although the specific regulations vary from one country to the next. In most democratic nations, citizens may legally use a VPN while browsing the internet to protect themselves against potential hacking attempts and other cybercrimes.
Illegal Usage of VPN
Countries with Bans or Restrictions on VPN UseClosing Remarks
Verified players who are traveling abroad should contact the support team of their gambling sites to ask whether they can access their accounts from the country they are visiting. Concealing your real location with a VPN to pretend you are in your country of residence while abroad is rarely a good idea, as demonstrated by the case of Gordon Vayo and PokerStars.
The same applies to attempting to register at online casinos from a restricted country. The operator will inevitably catch you, freeze your account, and confiscate your winnings. Remember, anything that is already illegal remains illegal, whether or not a person is using a virtual private network. We recommend refraining from using a VPN to access online casinos if the laws in your jurisdiction prohibit remote gambling.