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Attorney General's Team up on Call for Measures Against Offshore Gambling

Sports Writer

Publish Date: Aug 09, 2025

Fact checked by: Sara Jane Gamelli

In the latest news, nearly 80 percent of states have legalized some form of online betting, but that doesn’t mean illegal offshore operators have vanished. That’s why 50 attorneys general have formed a united front to urge the United States Department of Justice to take action against illegal gaming operations.

A letter from the National Association of Attorneys General contains the signatures of all 50 U.S. state attorney generals. The measure is clear:

In a rare display of nationwide unity, a bipartisan coalition of 50 state attorneys general is calling for federal action against a massive and growing threat: illegal offshore gambling websites.

U.S. Department of Justice

The group sent a joint letter to the U.S. Attorney General, urging the Department of Justice (DOJ) to prioritize enforcement against these unlawful online sportsbooks, sweepstakes casinos, and casinos. These platforms operate outside the bounds of U.S. law, creating significant risks for American consumers and undermining state-regulated gaming markets.

What are Offshore Operators?

So how do these illegal operators work? These companies intentionally set up their headquarters in foreign jurisdictions with weak regulations, like small island nations. From there, they can operate with near impunity, specifically targeting U.S. customers while ignoring federal and state laws. They often use cryptocurrencies and other complex payment systems to move money outside the regulated banking system, making them difficult to track.

The danger for consumers is immense. Since these sites are completely unregulated, there is no one to hold them accountable. If they decide not to pay out your winnings, you have no legal recourse. Your personal and financial data is vulnerable to being stolen or sold. Furthermore, these platforms lack any of the responsible gaming protections, like deposit limits or self-exclusion lists, that are required of legal U.S. operators, preying on vulnerable individuals without consequence.

Threat of Offshore Gaming Operators is Costing Billions

The attorneys general highlighted the serious societal harm linked to these illegal operations, including their role in funding fraud, money laundering, and other criminal enterprises. The scale of the problem is staggering.

Estimates suggest that illegal online gaming sites handle more than $400 billion in wagers annually. This results in a direct loss of over $4 billion in tax revenue for states. That's money that could be funding schools, infrastructure, and public safety but is instead flowing to illicit overseas companies.

Coalition of AG's Provides Clear Plan for Action

The coalition didn't just point out the problem. They provided the DOJ with a clear and concise plan to combat it. They urged federal authorities to use existing laws, like the Unlawful Internet Gambling Enforcement Act, to aggressively pursue these illegal operations.

The plan calls on the DOJ to seek court orders to block access to these illegal websites and disrupt their payment networks. It also pushes for the seizure of assets, including website domains, servers, and the financial proceeds generated from unlawful gambling. Finally, the attorneys general stressed the need for close collaboration between federal authorities, states, and financial institutions to cut off the money that fuels these criminal platforms.

This united front sends a powerful message that states are ready to partner with the federal government to protect American consumers and ensure the integrity of the legal gaming marketplace.

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