A coalition of 50 U.S. attorneys general has united to urge the U.S. Department of Justice (DOJ) to take decisive action against the growing presence of illegal offshore gambling platforms. These platforms operate outside the scope of U.S. laws, bypassing regulations meant to protect consumers, evade taxes, and undermine state-regulated gaming markets.
In a letter directed to U.S. Attorney General Pam Bondi, the bipartisan group of attorneys general called for more robust federal action to combat unlawful online sports betting and gaming operations. The coalition’s primary concern is that these illegal offshore platforms—often based in jurisdictions with lax or nonexistent gaming laws—pose significant risks to consumers. These platforms fail to adhere to consumer protection standards, putting vulnerable individuals, particularly minors and those prone to gambling addiction, at risk.
The Impact of Illegal Offshore Gambling
The coalition’s letter highlights the far-reaching consequences of the illegal offshore gambling market, which, according to estimates from the American Gaming Association, exceeds $400 billion in annual volume. The state attorneys general argue that this growth deprives U.S. states of billions in tax revenue. It also fosters an environment where illicit activities such as money laundering and fraud can thrive.
As stated on the National Association of Attorneys General website, these offshore operations often lack the safeguards present in regulated markets. For example, they do not provide the necessary protections to ensure fair play or responsible gambling practices. Moreover, they typically operate without appropriate licenses, making it difficult for law enforcement to hold them accountable. The coalition emphasized that these illegal gambling sites not only affect U.S. citizens but also harm the integrity of the legal, regulated markets in states that have chosen to regulate online gambling.
The coalition’s letter urges the DOJ to use every available tool to address these concerns. The attorneys general are asking the DOJ to pursue injunctive relief under the Unlawful Internet Gambling Enforcement Act (UIGEA) to block access to these illicit platforms. This would involve preventing U.S. residents from accessing illegal gambling websites and using associated payment systems. Additionally, they are requesting that the DOJ seize assets, such as servers, domains, and financial proceeds, from the illegal operators. The coalition further calls on the DOJ to collaborate with state regulators, financial institutions, and payment processors to sever the financial infrastructure supporting these illegal gambling operations.
These measures are part of a broader strategy to protect consumers and ensure that the U.S. financial system is not used to facilitate illegal gambling activities. The letter stresses the importance of a coordinated effort across federal and state lines to halt these operations and bring those responsible to justice.
Looking Back: A Precedent for Action
The attorneys general point to the DOJ’s actions during “Black Friday” in 2011, when the department seized the domain names of several prominent offshore poker sites, including PokerStars and Full Tilt Poker. The AGs argue that the same legal tools used in this case could be applied to tackle illegal offshore gaming platforms operating today. These actions were taken under both criminal and civil law, and the coalition believes that similar efforts are necessary now to curb the rise of unlicensed gambling platforms.
“The DOJ has the power to seize domain names, prevent illegal operators from accessing U.S. markets, and ensure that those who violate the law are held accountable,” the letter states. The attorneys general assert that such measures will not only protect consumers but also safeguard the economic interests of states that have regulated online gambling.
The letter also calls for greater collaboration between the DOJ, state authorities, financial institutions, and payment processors. Many major payment networks, including Visa and Mastercard, have expressed a willingness to assist in preventing the illegal use of their platforms for gambling. This cooperation is essential to disrupt the financial support system that enables offshore gambling operations to continue operating.
By working together, the coalition believes that the DOJ can mount a comprehensive and effective response to the issue of illegal offshore gambling. The attorneys general are hopeful that their coordinated effort will prompt a swift response from federal authorities, who can take action before the problem grows further out of control.
