Snapshot: why “grey areas” matter in 2025
Crypto casino revenue rocketed to roughly $81.4bn GGR in 2024, with many customers reaching offshore sites via VPNs despite local bans. That surge has drawn coordinated responses from regulators and payments watchdogs worldwide.
At the same time, the EU’s Travel Rule for crypto transfers took effect on 30 December 2024, forcing licensed providers in Europe to collect and transmit sender/receiver data on crypto transfers. This changes how compliant casinos, custodians and payment partners can move funds.
Australia is actively blocking illegal gambling domains at the ISP level, publishing a running list of sites it orders to be blocked.
What a “regulatory grey area” looks like
Grey-area operations typically accept customers from places where they do not hold a local licence, lean on crypto-only payments, apply light or reactive KYC, and market via affiliates or influencers that originate traffic from restricted countries. The activity may not be outright illegal where the operator is based, but it can breach laws or consumer protections where the player resides. Recent reporting links the rapid growth of the sector to tactics like VPN usage and white-label arrangements.
The common playbook some offshore crypto casinos use
1) Piggyback licensing and white-labels
Some brands run under another company’s umbrella licence (a “white label”), obscuring who really owns and controls the site. UK regulators have increased enforcement against problem white-label setups; in May 2025 one white-label operator exited the British market after regulatory action and a multi-million-pound penalty.
The Gambling Commission also reports a sharp jump in cease-and-desist and disruption notices against illegal online operators and advertisers, underscoring the scale of the black-market problem targeted at UK consumers.
2) VPN workarounds promoted by third parties vs. casino terms
Blogs and VPN marketing pages openly publish step-by-step “how to access X casino with a VPN” posts for restricted regions. That content exists—but casinos’ own terms typically ban it. Stake’s terms explicitly list attempts to manipulate your location via VPN or proxy as a breach, with the site reserving the right to void bets and withhold funds. Players risk account closure and loss of funds if they follow third-party VPN guides.
3) Crypto rails where fiat is restricted
Some regulated markets restrict crypto deposits entirely. Ontario’s standards state that cryptocurrency is not legal tender and shall not be accepted for internet gaming, so licensed operators there cannot take crypto. Brazil’s 2024–2025 rollout likewise imposed strict payment controls on fixed-odds operators and banned deposit methods such as cryptocurrencies. Grey-area sites often target customers in those same markets from offshore.
4) Ad-tech and affiliate arbitrage
Investigations and industry coverage note that illicit or unlicensed sites lean on affiliates, influencers and fast-spinning mirror domains to keep traffic flowing even when regulators clamp down or block URLs. UK authorities have issued hundreds of cease-and-desist notices and expanded link-takedowns to disrupt that pipeline.
5) Sweepstakes pivots in the U.S.
To reach U.S. audiences without an online-casino licence, some brands operate separate sweepstakes platforms that use virtual coins and prize redemptions. These products are promoted as operating legally in many states, though they are not the same as real-money online casinos and are governed by contest laws.
The counter-moves: what regulators changed recently
EU Travel Rule now in force
The EU’s Regulation (EU) 2023/1113 and the EBA’s binding guidelines apply from 30 December 2024, setting out what sender/recipient information must accompany crypto-asset transfers and how providers should handle missing data. This pushes European-facing casinos and their crypto partners to strengthen KYC/AML and data exchange.
Multiple legal and compliance summaries emphasise that CASP-to-CASP transfers in the EU have no de-minimis threshold under the Travel Rule, while transfers touching self-hosted wallets trigger additional checks above €1,000.
UK promotions crackdown
The Gambling Commission announced new promo rules to curb harmful bonuses, banning mixed-product incentives and capping wagering requirements when the rules take effect. This shows how standards are tightening for licensed UK sites while unlicensed crypto casinos try to lure players with aggressive offers.
Australia’s escalated ISP blocks
ACMA continues to order Australian ISPs to block illegal offshore gambling sites and publishes updates as new sites are added. That public list highlights the churn of domains and the regulator’s ongoing enforcement.
Licensing frameworks evolving in “classic” offshore hubs
Curaçao’s new regime is replacing sub-licensing with a central authority and stricter controls; provisional Green Seal licences were recently extended to 24 December 2025 while applications are processed. Malta’s regulator, meanwhile, doesn’t offer a separate “crypto casino licence”; instead, operators need prior approval under its 2023 DLT Policy to use crypto or chain-based components.
Red-flag checklist for players
• A licence that isn’t valid where you live, or no clear licensing details at all
• Terms that prohibit VPNs or proxies, yet affiliates actively push VPN tutorials
• Crypto-only cashier with no responsible-gambling tools or weak withdrawal checks
• No mention of Travel Rule/AML controls for EU-facing products
• Over-the-top bonus offers that would breach promo rules in strictly regulated markets
• Rapidly changing mirror domains or frequent re-brands to avoid blocks
Safer alternatives and practical steps
• Verify the operator’s licence with the regulator in your country or state.
• Avoid VPNs; they can violate site terms and jeopardize balances and withdrawals.
• If you are in a market that bans crypto deposits for licensed operators, assume any site advertising them locally is unlicensed for your jurisdiction.
• If you choose a sweepstakes product, understand it is not a real-money casino and check your state’s contest rules.
FAQs
Is using a VPN to reach a crypto casino safe?
Many casinos explicitly ban VPNs in their terms; breaching this can lead to voided bets and confiscated funds. Authorities in some countries also block unlicensed sites at the ISP level.
Are crypto casinos licensed anywhere?
Yes—some operate with licences from jurisdictions like Malta or Curaçao, but that licence may not authorise them to target your country. Malta requires prior approval for licensed operators to use crypto/DLT components, and Curaçao is tightening its regime under the new authority.
What changed in the EU in 2025?
Crypto transfer information-sharing rules apply across the EU under Regulation (EU) 2023/1113, guided by the EBA’s Travel Rule Guidelines from 30 December 2024. That affects how compliant operators and payment partners move player funds.
