Offshore vs Regulated iGaming Licences: Which Is Better in 2025?

[LicenseGentlemen]

Some operators prefer offshore licences for lower costs and fewer restrictions, while others go for strictly regulated jurisdictions to build credibility.​

Offshore (Curaçao, Anjouan, Kahnawake) → Fast & affordable
Regulated (Malta, Isle of Man, UKGC) → High trust but expensive

Which approach works best in the long run? Let’s debate the pros and cons!

 

[GlobalProxy]

Some operators prefer offshore licences for lower costs and fewer restrictions, while others go for strictly regulated jurisdictions to build credibility.​

Offshore (Curaçao, Anjouan, Kahnawake) → Fast & affordable
Regulated (Malta, Isle of Man, UKGC) → High trust but expensive

Which approach works best in the long run? Let’s debate the pros and cons!

Both approaches have their pros and cons, and it really depends on the business model. Offshore licenses (Curaçao, Kahnawake, Anjouan) are great for startups or operators who want to enter the market quickly with lower upfront costs. The regulatory requirements are often lighter, making it easier to launch and operate. However, they come with challenges, such as limited access to banking services, potential reputational risks, and stricter advertising restrictions in certain countries.


Regulated jurisdictions (Malta, Isle of Man, UKGC) offer credibility and better access to banking and payment providers. Many players and partners trust a platform more when it’s licensed under a well-known regulator. But the downside is the cost—both in terms of licensing fees and compliance requirements, which can be complex and time-consuming.


It also depends on the target audience. If the focus is on markets where offshore licenses are widely accepted, it can be a cost-effective solution. But for long-term sustainability and market expansion, a regulated license might be the safer bet. Have you seen a trend in 2025 where operators are shifting more towards one model over the other?

 

[LicenseGentlemen]

Both approaches have their pros and cons, and it really depends on the business model. Offshore licenses (Curaçao, Kahnawake, Anjouan) are great for startups or operators who want to enter the market quickly with lower upfront costs. The regulatory requirements are often lighter, making it easier to launch and operate. However, they come with challenges, such as limited access to banking services, potential reputational risks, and stricter advertising restrictions in certain countries.


Regulated jurisdictions (Malta, Isle of Man, UKGC) offer credibility and better access to banking and payment providers. Many players and partners trust a platform more when it’s licensed under a well-known regulator. But the downside is the cost—both in terms of licensing fees and compliance requirements, which can be complex and time-consuming.


It also depends on the target audience. If the focus is on markets where offshore licenses are widely accepted, it can be a cost-effective solution. But for long-term sustainability and market expansion, a regulated license might be the safer bet. Have you seen a trend in 2025 where operators are shifting more towards one model over the other?

I’d say your breakdown is spot on—both offshore and regulated jurisdictions have their distinct advantages and trade-offs. The choice really depends on the operator’s priorities: speed to market vs. long-term credibility.
One trend we’re seeing in 2024-2025 is a hybrid approach where operators start with an offshore licence (like Anjouan or Curaçao) to launch quickly and test their business model. Then, as they scale, they move towards regulated jurisdictions like Malta or Isle of Man to access better banking and payment solutions.
However, the biggest shift right now is in banking restrictions. Offshore licences still provide a faster entry point, but operators often face issues with high-risk PSPs, frozen accounts, or limited banking options. That’s why more serious operators are securing dual licensing—maintaining an offshore licence for flexibility while acquiring a second, more recognised licence to future-proof their operations.
Have you noticed an increase in PSPs restricting transactions for offshore-licensed platforms, or do you think there’s still room for well-structured offshore models to thrive?

 

[GlobalProxy]

I’d say your breakdown is spot on—both offshore and regulated jurisdictions have their distinct advantages and trade-offs. The choice really depends on the operator’s priorities: speed to market vs. long-term credibility.
One trend we’re seeing in 2024-2025 is a hybrid approach where operators start with an offshore licence (like Anjouan or Curaçao) to launch quickly and test their business model. Then, as they scale, they move towards regulated jurisdictions like Malta or Isle of Man to access better banking and payment solutions.
However, the biggest shift right now is in banking restrictions. Offshore licences still provide a faster entry point, but operators often face issues with high-risk PSPs, frozen accounts, or limited banking options. That’s why more serious operators are securing dual licensing—maintaining an offshore licence for flexibility while acquiring a second, more recognised licence to future-proof their operations.
Have you noticed an increase in PSPs restricting transactions for offshore-licensed platforms, or do you think there’s still room for well-structured offshore models to thrive?

That’s a great point. The hybrid approach makes a lot of sense, especially for startups that need quick market entry before transitioning to a fully regulated model. Offshore licensing still offers flexibility, but the increasing scrutiny from PSPs and financial institutions is becoming a major challenge.

We’ve definitely seen a shift where high-risk PSPs are tightening restrictions, freezing offshore operator accounts, or demanding extensive due diligence before processing payments. Some operators are now looking at alternative banking solutions, including crypto-friendly financial institutions, to mitigate these issues.

Another growing trend is the use of residential or mobile proxies to ensure payment gateways and compliance teams don’t automatically flag transactions as high-risk. This method is becoming more popular as it allows operators to maintain more stable financial operations despite stricter regulations.

Do you think regulated jurisdictions will eventually impose similar banking restrictions on new entrants, or will offshore models continue to evolve despite these barriers?