Uncovering the Facts about Gambling on Cruise Ships
The most exciting aspect of sailing on a cruise ship over international waters is that gambling isn't subject to the same regulations as on land.
Piqued by this fact? We thought you would be.
Let's delve into the intricacies of gambling rules on the high seas, starting with the most fundamental and gold-standard rule.
This rule states that the vessel is considered an extension of the country it flies under. However, there's a catch: when the ship ventures into the territorial waters of another country...
Laws Surrounding Gambling At Sea
Maritime law, which governs everything related to seafaring, determines the gambling laws on the seas. These laws depend on the nation the ship is registered with.
While this may sound straightforward, there are some exceptions. When a ship is docked or close to the coast of a country, it becomes subject to that country's laws.
For instance, if you're cruising in US waters, activities are regulated by federal and state laws.
Furthermore, under maritime law, international waters become territorial waters when the ship is within three to 12 miles of the coastline. If your cruise ship approaches within 12 miles of the US coast, the onboard casino will be closed for business.
Consequently, if you're in a country where gambling is banned on land, but you had plans to spend a lot of time in a casino, you may want to opt for a cruise itinerary with more days at sea.
Distance Needed to Gamble Legally at Sea
The required distance to gamble legally varies according to the country you've just left.
In the United States, where casinos are limited by state, ships must be a minimum of 12 miles offshore before the first bet is placed.
Britain has a laxer approach towards gambling. While cruise ships do need a premises license if they offer commercial gambling, if the ship is "on a journey into or from international waters," no license is required at all.
You're free to gamble in UK waters without any issues.
Countries Where Land-Based Gambling Is Banned (But You Can Gamble at Sea)
Here are the countries where land-based gambling is banned or heavily controlled, but you can gamble on a cruise ship when you're over 12 miles offshore:
- Afghanistan
- Algeria
- American Samoa
- Bangladesh
- Barbados
- Bhutan
- Brazil
- Brunei
- Cayman Islands
- China
- Cuba
- Ecuador
- Guam
- Guatemala (operates on a contradictory, semi-legal basis)
- Indonesia
- Iran
- Iraq
- Israel
- Jordan
- Kuwait
- Libya
- Maldives
- Mauritania
- Norway
- Oman
- Pakistan
- Palau
- Qatar
- Saudi Arabia
- Somalia
- South Sudan
- Syria
- Taiwan
- Thailand
- Turkey
- Tuvalu
- United Arab Emirates
- Uzbekistan
- Yemen
This list is not exhaustive because gambling laws change frequently.
Keep an Eye on These Countries
Always research local gambling laws before you gamble, but keep an eye out for changes in the following countries:
- North Korea and Cambodia: Gambling is illegal for their citizens but legal for foreign visitors, resulting in a casino-tourism boom. However, there's a significant difference in how native and foreign casino workers are treated.
- Japan: Land-based gambling is illegal for its citizens yet legal for foreign visitors, with plans in place to limit native participation without banning it entirely. Japan hopes to limit addiction and crime levels by restricting native participation.
While Japan is preparing to open land-based gambling venues, it might take many years for these to become a reality due to delays caused by COVID-19 and other factors.
The country plans to become a global gambling hub, but Japanese citizens can only visit these resorts 10 times a month and must pay £45 for admission each time.
Japan's ambitious plans demonstrate that it can take a country several years after legalizing gambling before the necessary infrastructure is built.
For example, Bermuda legalized gambling in 2014 but has yet to open any casinos due to multiple delays. Plans have been approved for four casinos to be integrated into Bermuda's existing hotels and resorts. The first casino, at the St Regis Hotel in St George's, has had its opening date pushed back multiple times and remains unopened.
While betting on land has caused difficulties for Bermuda, online betting has presented challenges for many countries that have prohibited gambling. This is due to the fact that these nations are having trouble stopping their citizens from participating in online gambling.
In Israel, offshore online casinos can bypass the government's harsh anti-gambling laws and offer gambling to the country's people because the government's website-blocking technique is not 100% successful.
As a result, many Israelis can gamble illegally in the comfort of their own homes.
Those Israelis who are not interested in online betting can still gamble through the range of cruise ships with casinos that dock in major Israeli ports, allowing players to spin the roulette wheel in international waters.
Gambling regulations can change quickly, as demonstrated by recent revisions made in Japan and Bermuda.
Therefore, if you're planning a trip on a boat, it's a good idea to keep up to date on the countries you'll be visiting, just in case.
Legal Gambling Ages on Cruise Ships
This applies to ships that travel internationally and the waters in which they are sailing.
If you are complying with US law or are on vessels that stop in US ports, you must be at least 21 years old to gamble.
However, depending on the nation under whose flag the ship is sailing, the age restriction may be lowered to 18, as it is in the UK.
Even then, you might still be at the discretion of the cruise line, as some require passengers aged between 18 and 21 to be accompanied by a passenger over 21 if they want to gamble and drink.
If you're unsure, always check before you make your reservation.
Taxes on Gambling Wins on a Cruise Ship
The taxes you pay on your winnings can depend on whether the casino operators on board the ship deem the amount you won to be significant enough to report to the relevant authorities.
If someone wins over $1,200 in a single payout or has won at a table game with odds of 300/1 or more, the house is required to provide them with an IRS Form W-2G, which they can then use to pay their taxes.
For winnings that fall below these thresholds, the player will not be given any forms but should self-report their winnings using IRS Form 1040.
This applies to winnings from gambling games such as blackjack, bingo, and slot machines.
However, you'll only need to do this if the casino operators are based in a country that taxes their gambling winners.
The UK does not, and hasn't done so since 2001, so you can keep your winnings if you're in its waters.
Who Regulates Casinos on Cruise Ships?
The world's largest cruise industry trade association, Cruise Lines International Association (CLIA), enforces certain regulations and policies pertaining to equipment, rules of play, internal audits, internal control procedures for cash counting, and customer service.
Generally, CLIA follows the regulatory standards and rules of play used by control boards, licensed jurisdictions, and established casinos in Nevada and New Jersey in the US, or England in the UK.
As the size of casinos on cruise ships has grown, regulation and policies have become more important.
In fact, a report by the Gaming Technologies Association revealed that some cruise ships have over 300 electronic gaming machines.
To give you an idea, during 2019, a fleet of 17 Royal Caribbean International cruise liners had nearly 4,000 electronic gambling machines – three times as many as Caesars Palace in Las Vegas!
With such a large amount of gambling potential available, you may encounter some problems.
But who do you contact if you have a gambling dispute on board a ship?
It's unlikely you'll find a representative or agent in the middle of your trip, so your best bet is to first raise your issue with the onboard casino manager. If it can't be resolved, you'll usually be directed to the 'hotel' manager or director.
In extremely rare cases, when a dispute cannot be resolved onboard, the policy is to direct patrons to the contact information for the main office or casino operator on land.
Gambling Vacations in 2022 and Beyond
A cruise is one of the best ways to enjoy a gambling vacation.
Picture luxury hotels that sail from one exotic location to the next, offering all-inclusive packages and never-ending buffets, kitschy but entertaining stage acts, a new location every day or two, and of course, a casino. Now you're informed about gambling on cruise ships and the laws at sea, you can start planning your next excursion!
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