Massachusetts orders offshore sportsbooks to halt operations with cease-and-desist letters

Massachusetts is intensifying efforts to protect its regulated gaming market, issuing cease-and-desist letters to two offshore sportsbooks accused of offering unlicensed gambling services within the state. 

Attorney General Andrea Campbell’s office announced that BetOnline.ag and SportsBetting.ag, both headquartered in Panama City, Panama, were ordered to immediately stop accepting bets from Massachusetts residents or face significant penalties.

According to the attorney general, the two platforms have been operating without approval from the Massachusetts Gaming Commission, offering an array of gambling products, including casino-style games and betting on U.S. major league sports and horse races. The letters warned that failure to comply could result in injunctive relief, restitution, civil fines of up to $5,000 per violation, and costs associated with any investigation and litigation.

“It is illegal in Massachusetts to engage in commercial gambling except where expressly authorized by the Commonwealth,” the letter stated. The attorney general’s office also criticized the operators for marketing tactics that used imagery of the U.S.-based teams and athletes, which it said misleadingly portrayed them as American-regulated sportsbooks.

The action highlights Massachusetts’ reliance on cease-and-desist measures to clamp down on offshore gambling platforms that serve local bettors without oversight. Similar approaches have been effective elsewhere as more states expand legal betting markets, aiming to displace black-market operators by establishing regulated alternatives.

While cease-and-desist orders have proven useful against offshore sportsbooks, their reach is more limited when it comes to federally regulated entities. In April, New Jersey’s attempt to issue a cease-and-desist order to prediction market operator Kalshi was met with a preliminary restraining order.

Massachusetts’ crackdown comes as the state’s legal gaming sector continues to grow. The state closed 2024 with a sports betting handle of $7.4 billion, ranking eighth nationwide and reflecting a 48.4% increase from the previous year. Legislators are now exploring the possibility of expanding into online casinos. 

Last week, the Joint Committee on Consumer Protection and Professional Licensure held a hearing on two bills, Senate Bill 235 and House Bill 332, that would establish Massachusetts as the country’s eighth iGaming market. DraftKings government affairs manager David Prestwood told lawmakers the move could generate roughly $275 million in new annual tax revenue.

Meanwhile, AG Campbell has also made gambling harm prevention a focus of her office. Last year, she launched the Youth Sports Betting Safety Coalition, a partnership aimed at raising awareness of the risks of youth gambling and the laws surrounding it.

The cease-and-desist effort was led by Assistant Attorney General Louisa Castrucci of the office’s Gaming Enforcement Division, which receives partial funding from the Massachusetts Gaming Commission.