The American Gaming Association (AGA) and attorneys general from 46 states are intensifying efforts to combat illegal offshore gambling operations and the fast-growing sweepstakes casino industry. The combined push is rooted in new research and a rare show of bipartisan unity aimed at protecting consumers and regulated markets.
Sweepstakes Gambling Under Renewed Scrutiny
In a recent webinar hosted by the Indian Gaming Association (IGA), AGA Vice President of Government Relations Tres York discussed findings from a new survey, which revealed that 90% of users reject the notion that sweepstakes platforms are simply entertainment.
York explained that these operations lack regulatory oversight and responsible gaming protections, exposing consumers to financial risk. The data shows that 69% of sweepstakes users consider the platforms as real-money gambling sites, while 80% report spending money monthly—nearly half doing so weekly. Notably, usage rates are double in states without bans on sweepstakes casinos.
Victor Rocha, IGA tradeshow conference chair, emphasized the urgency: “With unlicensed operators evading regulation and responsible-gaming safeguards, lawmakers are beginning to act and this report is shifting the national conversation.”
Rocha dismissed claims made by sweepstakes operators: “They were prepared to sneak into the industry, but weren’t prepared to stay,” he said. “All of their arguments have been very weak. They don’t have a leg to stand on.”
AGs Push DOJ to Take Federal Action
A key development came with a letter sent to U.S. Attorney General Pam Bondi, signed by 46 attorneys general, calling for decisive federal action against offshore gambling sites. These platforms not only avoid taxation and regulation but also expose minors and vulnerable populations to financial harm. The AGA estimates states lose $4 billion annually in tax revenue due to these illegal operations.
“It felt like the beginning of another Black Friday event,” Rocha said, referencing the 2011 DOJ crackdown on unlicensed online poker sites.
York noted that this coordinated letter was the result of several weeks of collaboration. “While it’s been incredible to see what state gaming regulators and state attorney generals have been doing… the federal government is really where the jurisdiction and resources are for that type of thing,” he said.
York pointed out that state-level enforcement is limited, whereas federal authorities possess the means to dismantle these operations through asset seizures, indictments, and domain takedowns. “The United States government can seize the web domains of these offshore websites and shut them down,” he said.
He added that financial networks—credit card companies, banks, and processors—also play a key role. “Those financial institutions can be looked at to seize the assets from individual players and anyone who may be indicted. You can actually shut these guys down.”
Offshore Ads Flood U.S. Markets
According to York, unregulated operators continue to flood digital spaces with advertising—especially in states like California and Texas, where online casinos are banned. “It’s mind boggling that half of all the online ads that consumers are exposed to are for offshore or sweepstakes casinos,” he said.
Rocha closed the session by urging further collaboration: “The response from Indian Country is still very anemic. It’s very loud, but I don’t see a lot of weight behind it yet.”
Source:
“AGA and state AGs combat sweepstakes and offshore gambling sites”, cdcgaming.com, Aug 9, 2025
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