Coalition of 50 Attorneys General Sign Letter Urging DOJ to Crack Down on Illegal Gambling Sites

^{Pam Bondi is being urged by a bipartisan coalition of 50 attorneys general across the United States to help crack down on offshore gambling operators. (Photo: Blueee / Alamy)}

A bipartisan group of 50 Attorneys General representing nearly all states and territories in the United States sent a letter to US Attorney General Pam Bondi on Aug. 4 asking the Department of Justice (DOJ) to help crack down on illegal online gambling operations across the country.

The letter was co-led by the Attorneys General of Connecticut, Massachusetts, Nebraska, and Utah.

Consumer Protection, Tax Revenues Cited as Issues

In the letter, the coalition argues that offshore gambling operations are harming their citizens, and that the federal government could provide critical help in curbing that activity.

“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 reads. “We seek the USDOJ’s cooperation in ensuring these companies are brought to justice to the fullest extent available under state and federal law, both criminal and civil, for any potential violations.”

The letter seems most concerned with major overseas sites that accept American players, as it mentions operations “largely run by massive, foreign-based companies.” 

“Recent estimates show that the volume of illegal online gaming exceeds more than $400 billion annually, leading to more than $4 billion in lost tax revenue for state governments,” the letter says. “Despite these staggering figures, enforcement has been scarce, only emboldening these illegal operators.”

The letter offers a handful of suggestions for ways in which the DOJ could assist states in cracking down on illegal gaming operators. They include coordinating with financial institutions like including Visa and MasterCard to block transactions with the unlicensed sites, seizing the assets and domain names of illegal offshore gaming operators, and pursuing injunctive relief under federal law. The Attorneys General point out that this has been done before, most notably when the DOJ moved against poker sites on “Black Friday” in 2011.

AGA Has Pushed for Crackdown on Unregulated Operators

Pennsylvania Attorney General Dave Sunday argued that unlicensed sites are largely predatory and asked gamblers in his state to stick to sites holding licenses from local regulators.

“Illegal offshore gaming and gambling companies circumvent all state and federal laws with one mission – to increase players and maximize profits – exposing children and other vulnerable Pennsylvanians to gambling without protections offers by legitimate outlets,” Sunday said in a statement.

“Gambling and gaming remains legal in Pennsylvania, and online gamblers should look for the official Pennsylvania Gaming Control Board logo on licensed operators’ websites to ensure their gaming and gambling experience is safe and regulated.”

The letter follows multiple calls from the American Gaming Association (AGA) in recent years asking for the DOJ to crack down on illegal gambling operations across the country. But while Monday’s letter was focused mostly on offshore sites, the AGA has also asked the federal government to crack down on other types of unlicensed gaming.

That includes sweepstakes casinos, which use a dual-currency system in order to attempt to conform to sweepstakes laws rather than gambling regulations. Many states have cracked down on these sites, with the AGA recently releasing a study suggesting most players see sweepstakes casinos as gambling sites. The AGA has also targeted so-called skill games that have become popular in several states, including Pennsylvania.