Key Moments:
- VPN adoption is rising across the gambling industry as players seek to bypass regulatory friction.
- Stricter KYC and AML rules have made licensed platforms less user-friendly, pushing demand toward offshore operators.
- Experts note that territorial regulation increasingly clashes with the borderless nature of digital gaming.
Growing Prevalence of VPN Usage in Gambling
Virtual private networks, once used mainly by tech professionals, are now common across the online gambling sector. Players, operators, and affiliates often encounter VPNs when accessing platforms, engaging in cross-border activity, or navigating different regulatory systems. As a result, VPN use reflects shifting consumer habits and changing industry dynamics.
Impact of Tighter Regulations on User Experience
Regulated markets now require more stringent KYC and anti-money laundering checks. Consequently, users must provide more documents, undergo deeper identity verification, and face ongoing monitoring. Although these measures aim to protect consumers, they also make licensed gambling more complex and time-consuming.
Despite stricter rules, demand for gaming remains strong. Instead, some players now use VPNs to bypass geographic limits and unequal access rules.
VPNs as a Response to Regulatory Pressure
Many experts view the rise in VPN use as a direct response to regulatory friction. Cross-border activity continues to test the limits of region-based enforcement, raising questions about compliance, player safety, and the long-term viability of regulated markets.
Casino consultant Radostin Hristov told SiGMA News that VPN activity is more than a technical issue. He argues that when regulated sites slow down and demand more documentation, players do not stop gambling. Instead, they move offshore, using VPNs to access alternatives. He recommends risk-based approaches to keep regulated channels attractive rather than relying solely on technical barriers.
Challenges for Operators and Regulators
Hristov says VPN use is now “a response to friction and trust, not just location spoofing.” In other words, players see verification as intrusive and seek faster offshore options. Therefore, privacy and convenience have become baseline expectations.
Operators and compliance teams now face tougher challenges. VPNs complicate KYC and AML systems and make location verification unreliable. As a result, geography-based risk models weaken, account integrity becomes harder to confirm, and operational costs rise due to manual checks. Moreover, player protection tools like limits and exclusions lose effectiveness when location data is unreliable.
Regulatory Disconnect and Market Sustainability
Hristov highlights a growing gap between territory-based regulation and digital consumer behavior. Players can quickly compare platforms, switch providers, and optimize their experience. VPNs make switching easier, and increased friction will likely cause more “leakage.” Thus, regulated markets risk losing credibility if they cannot remain competitive.
Outlook for Regulation and Market Evolution
Looking ahead to 2026 and beyond, Hristov expects enforcement to tighten further. However, regulators will also move beyond simple IP blocking. Instead, they will focus on intent, product design, marketing, and localization. At the same time, legitimate operators will improve risk-based journeys, applying strict checks only to high-risk users. Ultimately, the regulated market will evolve based on how well it balances strong controls with a smooth customer experience.
- Author
Daniel Williams
