All 50 US state attorneys general call for sweeping federal action against illegal offshore gambling

In a rare showcase of unity, all 50 U.S. state attorneys general have called on the U.S. Department of Justice to take stronger enforcement action against illegal offshore gambling platforms.

The bipartisan coalition, led by attorneys general from Nebraska, Connecticut, Massachusetts, and Utah, submitted a formal letter to U.S. Attorney General Pamela Bondi on August 5, asking the federal government to pursue injunctions, asset seizures, and other tools against unregulated online gaming operators targeting U.S. consumers.

The letter, coordinated through the National Association of Attorneys General, highlights what state officials describe as a growing crisis involving foreign-based gambling websites operating without licenses or oversight. These platforms, the attorneys general argue, pose significant dangers to consumers, particularly young and vulnerable users, while siphoning billions in untaxed revenue from state-regulated markets.

“Our States have heard reports concerning growth in the illicit offshore gambling markets that could be harming our citizens,” the attorneys general wrote. “Such unlawful enterprises undermine the rule of law, threaten consumer protection, and deprive our States of significant tax revenues and economic benefits.”

Although states like New Jersey and Michigan have established successful regulated online gambling markets, only seven states currently license online casinos. In contrast, the letter notes that residents in the other 43 states have access to numerous offshore platforms that operate in violation of both federal and state laws.

The coalition stated that these illegal operations routinely ignore age verification protocols, violate state boundaries, and evade both federal and state taxes. Some platforms have also been linked to financial crimes, including money laundering and other illicit activity.

Recent estimates from the American Gaming Association suggest that illegal online gambling in the U.S. may generate more than $400 billion annually, resulting in over $4 billion in lost tax revenue for states. Despite these figures, the attorneys general say federal enforcement actions have been limited.

Citing federal tools such as the Unlawful Internet Gambling Enforcement Act (UIGEA) and anti-gambling provisions under Title 18 of the U.S. Code, the attorneys general urged the DOJ to pursue court-ordered website and payment blocking, asset seizures, and collaboration with payment processors to dismantle financial infrastructure supporting the illicit market.

They pointed to prior federal actions, such as the 2011 “Black Friday” crackdown on online poker operators and more recent DOJ domain seizures linked to cybercrime, as precedent for similar enforcement against offshore gambling sites.

“Because the websites owned by unlawful offshore operations violate federal law, USDOJ can and should seize the websites and domain names of operators and retain any proceeds recovered as part of the seizure,” the letter states.

U.S. casinos have also reported being impersonated in digital ads and platforms, with offshore operators illegally using their names and branding to mislead players. Properties from Mississippi to Massachusetts have issued warnings to the public about these fraudulent associations.

Visa and Mastercard have expressed willingness to investigate unlawful gambling transactions on their networks, and the attorneys general encouraged the DOJ to partner with financial institutions in building a national enforcement strategy.

Congress also stressed the urgency of this issue in its fiscal year 2024 appropriations directive, the letter notes.

In closing, the attorneys general offered full cooperation with the DOJ in joint enforcement efforts. “We stand ready to collaborate with the USDOJ to protect our residents and uphold the laws of our country and of our States,” they wrote.