Offshore Account for US Corp with Gaming Income

[Martin Everson]

You created an untouchable setup for non-US banks unfortunately.

What foreign bank or EMI in‌ there right mind will touch a US gaming entity?

Problems:

1. Dealing with US is‍ high risk
2. Dealing with US Corporation is high risk
3. Dealing with USD is⁠ high risk
4. Dealing with gambling is high risk

It's bad enough looking for an⁤ account for gaming activity but add to that a US one 😳

You need to find⁣ US bank as if I was a non-US bank there is no way I would⁢ touch any US gambling company even if you came to my bank with references from︀ President Trump and the Pope.

 

[Sols]

Go to a bank in the state you are licensed. They probably won't touch you‌ unless you can show residence and operations in the US, so you better get started‍ on that visa/green card process, chop-chop.

Cyprus? Who told you that? The banks in Cyprus⁠ are refusing account opening for local kiosks that sell state-run lottery tickets.

 

[specialgame]

Thanks for the quick answers.

Well, there is no way for a visa⁤ / green card because I have businesses in my home country and a wife. Emigration⁣ is no option sadly.

A US Bank would work for us - that's not the⁢ problem. I just need to find a bank, that supports such income. I know, that︀ there has to be banks, because I'm not the only one on the market. I︁ just don't know the right ones or people who can introduce me. If there is︂ one, I would pay nearly any price at the moment to get an account. XD︃

 

[Martin Everson]

lol...rof/%rof/%rof/%

 

[Martin Everson]

Really?

Make your mind up mate conf/(%

Anyway good‌ luck.

 

[specialgame]

Appreciate your answers. Well, the operators told me the banks their affiliates are using. But‍ there is no way, that they let me open an account without a contact. I⁠ hoped, that someone here is in a similar situation.

 

[Martin Everson]

Sorry but does any of the above not make⁠ any sense to you? Banks are struggling to keep USD correspondence accounts outside US.

You can try paxumbank.com perhaps.

 

[specialgame]

No question, that it looks not good. I'm with you here.⁠ But I'm of course looking for options in my situation. The first three risk points⁤ doesn't apply to US banks I think, because they are obv. dealing with US corporations.⁣ So only the gambling thing is a problem if I'd use a US bank for⁢ the US Corp. Don't you think?

 

[Sols]

The problem is UIGEA and the general disdain banks have for gambling. I know the‌ gambling industry quite well and think its bad reputation among banks is outmoded and disproportionate.‍ But banks are banks.

Taking US gamblers is fine if you have a license for⁠ that state or jurisdiction. But to most banks, the risk of violating UIGEA is too⁤ great a risk compared to what the revenue they would make from your business unfortunately.⁣

Most gambling operators licensed and active in the US today are using US banks or,⁢ since many of them come from Europe and hold licenses in for example Malta, use︀ their existing banks.

What you have done is somehow obtain a US gambling license without︁ being resident or having operations there, and without having an EU licensed operation to fall︂ back on. That to me sounds like a mistake on the gambling regulator's side. You︃ shouldn't have got the license.

How are you processing payments? Can you use any of︄ your payment processors to hold funds and then settle into a parent company or subsidiary︅ instead?

 

[specialgame]

Well, I tried to explain, that we're not an operator. We're affiliates that refer players to the operators. In the US you need a︆ license for that. So there wouldn't be any license we could obtain from outside the︇ US because you need a license for every state you're into as an affiliate. So︈ we don't process payments. That's the really annoying part, because from my point of view︉ we're not really a risk company. We don't process funds, are not subject of any︊ age verification mechanisms or financial risks. We just operate websites and get commissions for that︋ from the operators.

In addition the license we have from the DGE in New Jersey︌ is primarly thought to be obtained by US Corporations.

 

[specialgame]

The gambling regulators didn't want to tell me, if they know banks, that would help‌ us. So yes, that might be a mistake on the regulators side.

On the other‍ hand: Banks from Las Vegas or Atlantic City should be familiar with these kind of⁠ bank accounts. At the moment I don't have responses from them.

 

[Sols]

I definitely missed that part that you are an affiliate. I saw the mention of‌ license and assumed you were the operator. My bad.

Are you an affiliate only for‍ US operators?
Do the operators require you to be licensed?
Must the licensee be a⁠ US company?

You might already know this, but I'm adding it for context...

Gambling affiliates⁤ in general have gone from being shady offshore companies to clean businesses with local companies⁣ and local bank accounts. Five to ten years ago, they were all Seychelles, BVI, and⁢ Mauritius IBCs with bank accounts in the Caribbean and Cyprus. Massive, rampant tax evasion.

However, following crackdown and general clean up of the affiliate markets, plus market consolidation (with only︀ a handful of big companies owning the vast majority of affiliate websites), most are now︁ not operating through offshore companies. The big ones are operated as companies where they are︂ based.

With UIGEA thrown into the mix, banks are hesitant to work with affiliates or︃ anything that has connections to US and gambling. People often get around it by presenting︄ themselves as digital marketing agencies but they run a risk of being caught being gambling︅ affiliates. You will have a very hard time convincing a bank in Europe, Mauritius, or︆ elsewhere to accept you.

Opening a corporate bank account in the US as a non-resident︇ alien is close to impossible. The banks in Nevada and New Jersey are definitely familiar︈ with gambling. Doesn't mean they will be interested in an affiliate. They get inundated with︉ requests from foreigners who have just opened an LLC and want a corporate account. It︊ might help if you show up in person with a very good business plan. But︋ I've read accounts of people going to the US and coming home empty-handed.

 

[specialgame]

No worries.‍ Regarding the questions: Yes, Yes, depends.

Problem is - license is expensive and took us⁠ months. If we'd go through this again with another company, it'd be a complete mess.⁤ In addition there is no guarantee, that companies outside the US are getting licenses. The⁣ prices are to be paid nevertheless.

"With UIGEA thrown into the mix, banks are hesitant⁢ to work with affiliates or anything that has connections to US and gambling. People often︀ get around it by presenting themselves as digital marketing agencies but they run a risk︁ of being caught being gambling affiliates. You will have a very hard time convincing a︂ bank in Europe, Mauritius, or elsewhere to accept you."

That completely describes our situation. With︃ these "lies" we're able to have EMI accounts. But we don't want to risk them︄ by getting payments from operators on these accounts. That's why we're looking for legit accounts︅ for that.

Regarding the bank opening in the US itself we'd have the chance to︆ use a US resident for that (friend). But we're unsure how to get that person︇ out of that account after opening it.

 

[Sols]

Is your friend a US citizen or green card holder? It's important he's not on‌ some temp work or student visa.

Depending on what type of company you are (C‍ corp or LLC), you can appoint your US resident friend as a director or manager⁠ – someone empowered to enter into agreements for the company. Works best if it's a⁤ C corp, but should be doable for LLC. If they are a citizen or green⁣ card holder, they will have a much greater chance of success with banks.

If the⁢ account is opened with at least two signatories (the US person and you) and the︀ instructions to the bank are that signatories can sign on their own, it would then︁ be a relatively simple process to remove the person from the company after some time.︂ Have them resign voluntarily. I wouldn't do it immediately; give it a couple of months.︃ Just make sure you trust them and have made arrangements to reduce their powers in︄ the company.

Not guaranteed to work of course, but that's one possible avenue worth exploring.︅

 

[specialgame]

It's a C Corp and he should at least be a green card holder if‌ not a citizen. Thank you Sols, that's good info.

 

[Sols]

BTW, consider how adding another director/officer affects the license. You might need to inform the‌ licensing authority. It's a fairly simple process for gambling operators, so shouldn't be a huge‍ hassle for an affiliate.

 

[Elve]

The US operators do not use ewallet type Neteller, skrill etc for the deposits and‌ withdrawals of their clients? The commissions of affiliates can not be recovered in an e-wallet‍ in the name of your company?

Or the only way to receive the money is⁠ by bank transfer?

 

[specialgame]

No, US operators can't pay to eWallets.⁤ It has to be a bank account.