A united front of 50 U.S. attorneys general has formally requested the U.S. Department of Justice (DOJ) take immediate steps to confront the growing threat posed by illegal offshore gambling operations. In a joint letter sent to U.S. Attorney General Pam Bondi, the bipartisan group urged decisive federal intervention to address the unchecked expansion of unlicensed online gaming platforms that are operating outside of U.S. jurisdiction.
These offshore sites, the attorneys general argue, circumvent national regulations, fail to implement consumer safeguards, evade state taxes, and create a fertile ground for illicit activity. In their letter, the coalition emphasized that these platforms often operate in loosely regulated jurisdictions, putting American consumers—particularly minors and those vulnerable to gambling addiction—at risk due to the absence of protective standards.
Consumer Risks and Financial Impact
According to the coalition, the illegal offshore gambling market is a sprawling industry with estimated annual volumes exceeding $400 billion. The attorneys general cited American Gaming Association estimates suggesting this illicit activity could cost U.S. states around $4 billion in lost tax revenue each year.
The letter also noted that these operators often fail to offer tools for responsible gambling, provide no guarantees of fair play, and typically function without legal oversight. This makes it nearly impossible for law enforcement to intervene when issues arise.
As published on the National Association of Attorneys General website, the group warned that these unlicensed platforms not only pose risks to players but also erode the integrity of the legal, regulated markets in states where online gambling is permitted and taxed.
Legal Tools Proposed to Combat the Issue
To curb the spread of these unlawful operations, the coalition urged the DOJ to utilize a range of enforcement strategies. These include seeking injunctive relief under the Unlawful Internet Gambling Enforcement Act (UIGEA) to block public access to illegal sites and disrupt associated payment systems.
The group further requested that the DOJ seize domain names, servers, and financial assets tied to these operators, and increase collaboration with state gaming authorities, financial institutions, and payment processors like Visa and Mastercard to dismantle the financial infrastructure that enables offshore gaming to persist.
“The DOJ has the power to seize domain names, prevent illegal operators from accessing U.S. markets, and ensure that those who violate the law are held accountable,” the attorneys general wrote, reinforcing the need for swift and coordinated action.
Past Precedents and Growing Momentum
The letter also referenced a notable precedent: the 2011 DOJ crackdown on major offshore poker platforms—including PokerStars and Full Tilt Poker—during what became known as “Black Friday.” In that case, both criminal and civil enforcement actions led to the seizure of domain names and large-scale disruption of illegal gambling services.
The call to action follows a similar plea made in May 2023 by the Massachusetts Gaming Commission, which also urged federal authorities to take stronger measures against unregulated online gaming platforms.
Led by Attorneys General William Tong, Andrea Joy Campbell, Mike Hilgers, and Derek Brown, the letter reflects a growing national consensus that coordinated federal and state efforts are essential to protect American consumers.
Source:
“50 Attorneys General Call for DOJ Action Against Illegal Offshore Gambling”, news.worldcasinodirectory.com, Aug 6, 2025
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