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A new gambling-policy commentary argues that many bettors do not know whether they are using a licensed sportsbook or an offshore operator — a gap that matters in states such as California, where online sports betting remains under debate.
According to the article published by _State Affairs_, legal sports betting now exists in 39 states plus Washington, D.C. It says the core policy question for states still considering legalization is not whether betting is happening, but whether it happens on platforms regulators can oversee and courts can compel.
Licensed sportsbooks and offshore sites offer very different protections
The article draws a sharp distinction between state-regulated sportsbooks and offshore operators.
It says licensed operators generally verify age and identity at registration using state ID and bank data, while offshore sites may require only an email and a checkbox. It also says every licensed operator must honor a state self-exclusion list, while offshore operators do not.
The piece further argues that licensed sportsbooks are accountable to named state regulators and state data-privacy laws. Offshore operators, by contrast, are described as outside any meaningful U.S. accountability.
Joe Maloney, CEO of the Sports Betting Alliance, said licensed operators must verify age and identity, protect customer data, monitor for suspicious activity, and provide responsible gaming tools, while illegal operators operate outside the law.
Why the issue matters in California
California is among the states the article identifies as still considering whether to legalize online sports betting, alongside Texas and Georgia. For California readers, the practical takeaway is that the current debate is also about where existing betting activity takes place.
The commentary says illegal and unregulated operators concentrate spending in states where no legal market exists, especially California and Texas. It also says roughly half of the online casino ad impressions Americans see come from offshore operators not licensed in the U.S.
Another point raised in the article is payment policy. It says licensed sportsbooks generally do not accept credit-card deposits because of state rules or self-regulation, while offshore operators do.
What players should watch
The article does not point to a specific California bill or timetable, but it frames the next policy choice clearly: a regulated market with enforceable rules, or an unregulated parallel market. It also warns that high taxes and tight caps can push consumers back toward unprotected operators.
For California players, that means future legalization debates are likely to focus not just on whether sports betting should be allowed, but on what consumer protections a legal market would require.
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Source: As reported by pro.stateaffairs.com.
