Attorneys General Call on Department of Justice To Address Illegal Offshore Gaming

• A bipartisan coalition of 50 attorneys general called on the U.S. Department of Justice to take action against illegal offshore gaming
• The coalition urged U.S. Attorney General Pam Bondi to prioritize enforcement efforts targeting unlawful online sports betting and gaming platforms
• Illegal online gaming may exceed $400 billion in annual volume

A coalition of 50 attorneys general called on the U.S. Department of Justice to take action against illegal offshore gaming platforms.

The coalition, in a letter address to U.S. Attorney General Pam Bondi, urged the Department of Justice to prioritize enforcement efforts targeting unlawful online sports betting and gaming platforms that operate outside of the rules and regulations of U.S. law.

“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. Despite these staggering figures, enforcement has been scarce, only emboldening these illegal operators,” the coalition wrote in its letter to Bondi.

Significant Threat to U.S. Customers

The coalition noted that these illegal operators post significant risks to consumers, particularly younger people and vulnerable populations, and can undermine the integrity of state-regulated gaming markets.

The American Gaming Association recently made a similar argument about offshore markets when discussing Ohio Gov. Mike DeWine’s (R) request to prohibit prop betting in the Buckeye State. By potentially eliminating the prop market, Ohio sports betting users will still place prop bets, but will do so with unlicensed operators.

By completely eliminating Ohio’s prop betting market, Joe Maloney, SVP of Strategic Communications for the American Gaming Association (AGA), said the state will also be eliminating the legal operators’ ability to monitor the market for suspicious activity, which recently led to Major League Baseball instituting a sports betting investigation of two Cleveland Guardians pitchers.

“Prohibition doesn’t stop betting—it stops oversight. Illegal operators won’t honor bans, won’t partner with leagues, and won’t protect players or fans,” Maloney said.

The attorneys general noted the offshore markets fail to implement meaningful consumer protections, evade state regulations and tax obligations, and frequently operate without proper licensure.

More Enforcement Necessary

To address concerns, the coalition urged the department of justice to do the following:

• Pursue injunctive relief under the Unlawful Internet Gambling Enforcement Act to block access to illegal websites and associated payment systems
• Seize assets—including servers, domains, and financial proceeds—used in connection with unlawful gaming operations
• Collaborate with state authorities, financial institutions, and payment processors to disrupt the financial infrastructure supporting illegal gambling

The coalition’s letter is co-sponsored by Attorneys General William Tong (Connecticut), Andrea Joy Campbell (Massachusetts), Mike Hilgers (Nebraska), and Derek Brown (Utah).

Attorneys general of the following states and territories have joined the bipartisan coalition:

• Alabama
• Alaska
• American Samoa
• Arizona
• Arkansas
• California
• Colorado
• Delaware
• District of Columbia
• Florida
• Georgia
• Hawaii
• Idaho
• Illinois
• Indiana
• Iowa
• Kansas
• Louisiana
• Maine
• Maryland
• Michigan
• Minnesota
• Mississippi
• Missouri
• Nevada
• New Hampshire
• New Jersey
• New Mexico
• New York
• North Carolina
• North Dakota
• Northern Mariana Islands
• Ohio
• Oklahoma
• Oregon
• Pennsylvania
• Rhode Island
• South Carolina
• South Dakota
• Tennessee
• Vermont
• Virginia
• U.S. Virgin Islands
• Washington
• West Virginia
• Wyoming.