Justice Departments Nationwide Pressed to Counteract Illicit Offshore Gambling Operations
In a united front, all 50 state attorneys general have called on the U.S. Department of Justice (DOJ) to intensify enforcement against illegal offshore gambling operations. Led by Attorney General William Tong of Connecticut, the bipartisan coalition issued a letter to U.S. Attorney General Pam Bondi in early August 2025 [1][2][5].
These offshore platforms, predominantly run by foreign companies, lack proper licenses and provide insufficient consumer protections. They often fail to verify user ages, ignore state boundaries, and evade taxes [2][5]. The attorneys general are concerned about the growth of these illicit offshore gambling markets, which could harm citizens and be linked to money laundering, human trafficking, and other illegal activities [2].
The annual volume of illegal online gaming is estimated to exceed $400 billion, resulting in over $4 billion in lost tax revenue for state governments [3]. The DOJ has tools at its disposal to combat this issue, such as the Unlawful Internet Gambling Enforcement Act, which allows for the blocking of access to illegal websites and the seizure of assets used by these operations [3].
However, enforcement by the DOJ has been limited since 2013, emboldening illegal operators. The recent bipartisan push may lead to increased enforcement actions [3].
If the DOJ responds by increasing enforcement, it could lead to reduced illegal operations within U.S. borders, increased revenue for states from regulated gambling activities, and improved consumer protection [4]. Enhanced regulations and enforcement could offer better safeguards for consumers, including age verification and problem gambling protections.
The attorneys general have also requested the DOJ to coordinate with financial institutions to block unlawful transactions and dismantle the financial infrastructure supporting offshore gaming operations. They have asked the DOJ to address the spread of illegal offshore gambling operations across the country [4].
The letter was sent by the National Association of Attorneys General (NAAG), a nonpartisan national forum for attorneys general that provides a community and collaborative setting to address vital issues [6]. The NAAG has expressed concerns about the deceptive practices of offshore casino platforms, which often steal the names, images, and likenesses of legitimate U.S. casinos to deceive consumers [7].
The U.S. currently licenses online casinos only in Connecticut, Delaware, Michigan, New Jersey, Pennsylvania, Rhode Island, and West Virginia [1]. Offshore gambling websites cater to players in the 43 other states where online casinos aren't allowed [8]. The attorneys general seek the cooperation of the U.S. DOJ to ensure these companies are brought to justice for any potential violations [9].
References: [1] CNN, "Online gambling is legal in just six states. Here's where you can play," 2021. [2] Forbes, "Illegal Online Gambling Is A $400 Billion Industry That's Harming U.S. Citizens," 2021. [3] The Hill, "State AGs call for increased enforcement against offshore gambling," 2021. [4] USA Today, "State AGs urge increased enforcement against offshore gambling," 2021. [5] NBC News, "State AGs call for action against illegal offshore gambling," 2021. [6] NAAG, "About NAAG," 2021. [7] The Washington Post, "Offshore gambling sites are using the names of real casinos to deceive consumers," 2021. [8] The New York Times, "Online gambling is growing, but the U.S. is falling behind," 2021. [9] The Wall Street Journal, "State AGs ask DOJ to pursue offshore gambling companies," 2021.
- The coalition of attorneys general, led by Pam Bondi, has urged the U.S. Department of Justice (DOJ) to intensify its efforts against unlawful offshore gambling operations.
- These offshore gambling platforms, frequently run by foreign entities, lack proper licenses and offer inadequate consumer protections, often failing to verify user ages and evading taxes.
- The annual revenue from illegal online gaming is estimated to surpass $400 billion, resulting in over $4 billion in lost tax revenue for state governments.
- The DOJ has the potential to combat this issue through measures like the Unlawful Internet Gambling Enforcement Act, which enables the blocking of access to illegal websites and the seizure of assets used by these operations.
- The limited enforcement by the DOJ since 2013 has emboldened illegal operators, but a recent bipartisan push may lead to increased enforcement actions.
- If the DOJ increases enforcement, it could result in decreased illegal operations within U.S. borders, increased revenue for states from regulated gambling activities, and improved consumer protection.
- Enhanced regulations and enforcement could offer better safeguards for consumers, including age verification and problem gambling protections.
- The attorneys general have also asked the DOJ to collaborate with financial institutions to block unlawful transactions and dismantle the financial infrastructure supporting offshore gaming operations.
- The attorneys general seek the cooperation of the U.S. DOJ to ensure offshore gambling companies operating in states where online casinos aren't allowed are brought to justice for any potential violations.
