50 State Attorneys General Urge DOJ to Crack Down on Illegal Offshore Gambling Sites
A massive bipartisan coalition of 50 state and territory attorneys general has sent a formal letter to the U.S. Department of Justice (DOJ), demanding “robust legal tools” to combat the “rampant spread” of illegal offshore gambling operations.
A “Rampant Spread” of Unlawful Enterprises
The letter, addressed to U.S. Attorney General Pam Bondi, lays out a damning case against the offshore gambling industry. The AGs argue that these illegal platforms operate without proper licensing, lack meaningful consumer protections, and evade both state and federal taxes.
“While we as States do all we can to protect our citizens, such unlawful enterprises undermine the rule of law, threaten consumer protection, and deprive our States of significant tax revenues and economic benefits,” the letter states.
The AGs highlight the severe risks to consumers, particularly young people, who are exposed to “fraudulent schemes and highly addictive gambling without any oversight or accountability.”
A Call for a Federal Hammer
The state AGs are calling on the DOJ to use its full federal power to attack the problem at its source. They are specifically requesting that the DOJ use its authority under the Unlawful Internet Gambling Enforcement Act (UIGEA) to seek injunctions that would “block access to illegal websites and payment processing mechanisms.”
Furthermore, they are urging the DOJ to aggressively seize the assets of these illegal operations, including their servers, domain names, and financial proceeds.
The letter points to the successful “Black Friday” seizures of online poker domains in 2011 as a precedent for the type of decisive action they are now demanding.
A $400 Billion Problem
The scale of the illegal market is staggering. The AGs’ letter cites recent estimates that the volume of illegal online gaming exceeds “$400 billion annually, leading to more than $4 billion in lost tax revenue for state governments.”
They also note the well-documented links between these offshore sites and more nefarious criminal activities, including money laundering and human trafficking.
The letter points out that since 2013, federal enforcement actions against these sites have been “extremely limited.” The state AGs are now making it clear that they can no longer combat this global problem on their own and require a strong federal partner to disrupt the financial infrastructure that supports these illegal operations.
The sheer size of the coalition demonstrates a rare and unified consensus on a major national issue. “We stand ready to collaborate with the USDOJ to protect our residents and uphold the laws of our country and of our States,” the letter concludes.
The ball is now squarely in the DOJ’s court to decide whether it will heed this powerful, bipartisan call to action and renew its fight against the multi-billion dollar illegal offshore gambling industry.
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