In November 1996, the Bank of England warned UK investors against a web-based offshore banking operation called The European Union Bank located in the Caribbean, stating they were at risk from offshore firms which trade over the Internet. The NASD can investigate possible fraud and manipulation cases but they stress they are not censors. To view any offerings and to become an investor, one must complete an online questionnaire. Approved investors will be given user names and passwords to allow them to view the offerings, of which there is no mention on the home page. These barriers have been put in place so as not to contravene Securities Act Regulations.
Most countries have laws against gambling generally or against private gambling.
A number of sites, either offshore or in a jurisdiction which does not prohibit gambling, now advertise that they take bets via the Internet with payment by credit card or electronic cash. The question is whether the player commits an offence under the player's home laws by placing a bet abroad. A lot of companies are setting up gambling operations in offshore havens such as Antigua, Belize and Monaco. This is regarded as a test case with Minnesota Attorney General claiming that it is consumer fraud as the service states improperly that it is legal. Granite Gate filed a motion to dismiss for lack of personal jurisdiction in September 1995.