WASHINGTON, D.C. – A coalition of State Attorneys General has asked the U.S. Department of Justice (USDOJ) to take stronger enforcement actions against illegal offshore gaming operations, citing threats to consumer protection, state revenues, and the rule of law.
In a letter to U.S. Attorney General Pamela Bondi, the group described the rapid growth of illicit online sports betting and gaming, largely operated by foreign-based companies without proper licensure. The letter states that such platforms often lack consumer safeguards, fail to verify users’ ages, ignore state boundaries, and evade both federal and state taxes.
The Attorneys General warned that these operations particularly endanger young people and vulnerable adults, expose residents to fraud and addictive gambling, and undermine state-regulated markets. They also linked the enterprises to money laundering, human trafficking, and other criminal activities.
Citing a 2022 report from the American Gaming Association, the letter noted that illegal online gaming is estimated to exceed $400 billion annually, resulting in more than $4 billion in lost state tax revenue. The Attorneys General said federal enforcement has been limited since 2013, which has emboldened illegal operators.
The letter urges the USDOJ to use existing legal tools under federal law to disrupt these enterprises. This includes pursuing injunctive relief and website seizures under the Unlawful Internet Gambling Enforcement Act, seizing assets under federal gambling statutes, and coordinating with financial institutions to block unlawful transactions.
The Attorneys General pointed to past federal actions, including the 2011 seizure of websites selling counterfeit goods and the 2024 takedown of domains connected to a Russian cybercrime network, as examples of successful enforcement strategies that could be applied to illegal gambling.
The letter also noted that Visa and Mastercard have indicated willingness to investigate and address the use of their networks for unlawful gambling transactions, and called for a joint enforcement strategy to cut off these companies’ access to the U.S. financial system.
The bipartisan letter was signed by Attorneys General from 54 states and territories, including Nebraska, Connecticut, Massachusetts, Utah, Alabama, Alaska, American Samoa, Arizona, Arkansas, California, Colorado, Delaware, the 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, the Northern Mariana Islands, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, the U.S. Virgin Islands, Vermont, Virginia, Washington, West Virginia, and Wyoming.
The Attorneys General concluded by stating they are ready to collaborate with the USDOJ “to protect our residents and uphold the laws of our country and of our States.”
