A bipartisan coalition of 50 attorneys general have come together to urge the US Department of Justice to take decisive action against illegal online gambling.
With sports betting now legal in 40 US jurisdictions, alongside legal online gaming in seven US states, the coalition is calling on US attorney general Pam Bondi to act against unlicensed offshore operators and protect the regulated gambling market in the United States.
In a letter to Bondi dated August 5, the coalition cites estimates which suggest that illegal online gaming may exceed $400 billion in annual volume in the US, resulting in more than $4 billion in lost tax revenue for states.
The coalition says that unlicensed platforms pose significant risks to consumers, particularly young people and vulnerable populations, and undermine the integrity of state-regulated gaming markets.
It calls on the DOJ to work with state AGs and major payment processors to implement a national enforcement and compliance strategy to cut off access to the US financial system.
“Both Visa and Mastercard have already signalled their willingness to investigate and address unlawful use of their networks for gambling transactions,” says the coalition. “We should capitalize on this willingness to shut down illegal offshore gaming operations.”
The letter suggests that the DOJ pursue injunctive relief and website seizures under federal law; seize assets and domain names of illegal offshore gaming operators; and coordinate with financial institutions to block unlawful transactions and dismantle the financial infrastructure supporting these enterprises.
The letter is co-sponsored by the attorneys general of Connecticut, Massachusetts, Nebraska, and Utah.
The coalition also includes the attorneys general of 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, and Wyoming.
“While we as States do all we can to protect our citizens, such unlawful enterprises undermine the rule of law, threaten consumer protection, and deprive our States of significant tax revenues and economic benefits,” say the signatories to the letter.
“We seek the USDOJ’s cooperation in ensuring these companies are brought to justice to the fullest extent available under state and federal law, both criminal and civil, for any potential violations.”