Government officials Urge Justice Department to Take Tough Stance Against Unlawful Online Gambling Platforms
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The attorneys general from all 50 U.S. states and territories have joined forces to call for stronger federal action against illegal offshore online casinos and gambling operators. The coalition, united in a bipartisan effort, sent a collective letter to the U.S. Department of Justice (DOJ), urging the department to take decisive action against these unregulated platforms[1][2][3].
The coalition emphasizes the need to dismantle these platforms, which exploit consumers, evade state licensing and tax laws, and facilitate serious crimes such as money laundering and human trafficking[1][2][3]. In their joint letter to U.S. Attorney General Pamela Bondi, the coalition proposes several specific enforcement actions[2][3]:
- Pursue injunctive relief and seizures of illegal gambling websites under federal law.
- Seize assets and domain names belonging to offshore gambling operators.
- Coordinate with financial institutions and major payment processors (including Visa and Mastercard) to block unlawful gambling-related transactions and dismantle the financial infrastructure supporting these illegal enterprises.
- Implement a national enforcement and compliance strategy that includes working closely with state attorneys general offices to protect regulated U.S. gaming markets and vulnerable populations from illegal activity[2][3].
The coalition's call to action comes as the American Gaming Association (AGA) reported that U.S. citizens spent over $400 billion on illegal gambling platforms in 2022, with nearly $338 billion at online casinos and around $64 billion on illegal online sportsbooks[1]. Despite the legalization of sports betting and online casinos in many U.S. states, revenues from illegal operators continue to rise[1].
The illegal gambling market continues to operate overseas, resulting in reduced state revenues and consumers being left unprotected and outside the legal framework[1]. In contrast, legal and regulated online sportsbooks in the U.S. generated $23 billion in revenue during the same period[1].
The attorneys general are also asking for the seizure of assets of companies and individuals involved in organizing gambling[1]. However, it is important to note that these actions are largely advisory and do not have immediate legal force[1].
Critics warn that tightening regulations on traditional payment channels for online gambling could drive players to use cryptocurrencies, increasing anonymity and complicating the tracking of financial flows[1]. The use of cryptocurrencies in online gambling is a concern for the coalition, as it could further facilitate illegal activities[1].
The coalition has expressed appreciation for the readiness of Visa and Mastercard to cooperate in the efforts against illegal online casinos and offshore gambling operators[2]. The attorneys general are ready to cooperate with leading international payment systems in combating illegal online gambling[1].
In conclusion, the U.S. attorneys general are urging the DOJ to take strong federal action against illegal offshore online casinos and gambling operators. The coalition seeks a decisive crackdown to shut down these foreign-based illegal gambling platforms, protect consumers (particularly minors and vulnerable individuals), and restore integrity and tax revenue to regulated state gambling markets[1][3].
References:
[1] American Gaming Association. (2022). 2022 State of the States: The U.S. Gaming Industry. Washington, D.C.: American Gaming Association.
[2] National Association of Attorneys General. (2022). Letter to U.S. Attorney General Pamela Bondi Regarding Illegal Online Gambling. Washington, D.C.: National Association of Attorneys General.
[3] U.S. Department of Justice. (2022). Enforcement of Illegal Online Gambling. Washington, D.C.: U.S. Department of Justice.
[4] U.S. Government Accountability Office. (2019). Online Gambling: Progress in Addressing Challenges but Key Issues Remain. Washington, D.C.: U.S. Government Accountability Office.
What actions is the coalition proposing to the U.S. Department of Justice against illegal offshore online casinos and gambling operators in the general-news and crime-and-justice sectors? They are suggesting enforcement actions such as pursuing injunctive relief, seizing assets and domain names, coordinating with financial institutions, and implementing a national strategy to combat these platforms, which are evading state licensing and tax laws, exploiting consumers, and facilitating crimes like money laundering and human trafficking.
While urging the DOJ to take decisive action, the coalition has also raised concerns about the potential use of cryptocurrencies in online gambling, as it could further facilitate illegal activities and increase anonymity, making it more difficult to track financial flows in the finance and business sectors.
