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Why Do Online Casino Gambling Operators Prohibit VPN Use?

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It is blatantly obvious most online casino operators disallow virtual private networks despite the fact using such services is not illegal per se. So why the big fuss? The answer to this question again has to do with gambling regulations. All licensed gambling companies must pursue strict Know Your Customer (KYC) policies in line with the requirements of their regulators. Each registered player must thus undergo obligatory verification to confirm their age, identity, location, and source of funds.

As cumbersome as this procedure is at times, online casinos must always go through with it to prevent any potential legal and regulatory troubles. Customers must provide documents for identification, proof of address, and proof of payment method to successfully pass the test and withdraw their winnings.

Verification is obviously impossible if the person uses VPN services to mask their location because the country and address on their real government-issued ID will not match. VPN usage is disallowed by most online casinos for several primary reasons:

  • To hinder the access of players who reside in restricted countries
  • To curb multi-accounting and potential bonus abuse
  • To prevent irresponsible gaming and hinder problem players from regaining access to gambling services
  • To thwart fraud, money laundering, and terrorist financing

It becomes clear online casinos prohibit virtual private networks mostly because they want to avoid getting into hot water with their regulators.

Regulatory failings like 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 expense of losing their operating permits and having their reputation tarnished.

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