Nevada's Attorney General Advocates for Stronger Measures to Combat the Unregulated Online Gambling Industry Offshore
Struggling Tourism and Casino Industry in Nevada: UIGEA Enforcement Efforts
Nevada, a state renowned for its casino and tourism industries, is currently facing a 11.3% decrease in visitor numbers compared to the same period in 2024 [1]. This economic slump has led to various measures being taken by local businesses and the state government to boost tourism.
Local hotels and resorts have suspended resort fees and offered special promotions for locals to attract more visitors [2]. Several businesses in the industry have enacted contingencies, such as pausing new hiring, rethinking investment projects, and waiting for a recovery [3].
However, there are concerns that travelers may be avoiding the United States due to the fear of being deported to El Salvador [7] and some attribute the decline to President Donald Trump's political style [9]. The rate of illegal gambling in the United States, which has been suggested to reach 40% in some studies [8], is not explicitly mentioned as a factor in this economic slump [10].
The offshore gambling market, believed to be in violation of the Unlawful Internet Gambling Enforcement Act (UIGEA) [6], is not mentioned as a cause for the economic slump in this paragraph [4]. Nevertheless, the American Gaming Association, a trade group that has previously suggested action against the offshore gambling market [6], has not been directly mentioned in this context [11].
In a bid to combat illegal offshore gambling, a coalition of U.S. attorneys general, including those from Nevada's neighboring states like California and Arizona, have called on the Department of Justice (DOJ) to pursue more aggressive action [2][3][5]. The coalition is asking the DOJ to utilize its authority under UIGEA to block access to illegal websites and payment processing mechanisms, seize assets, and increase coordination with states, financial institutions, and payment processors to dismantle the financial infrastructure supporting illegal gaming [2][3][5].
Despite the UIGEA's provisions, enforcement actions by the DOJ have been limited since 2013 [5]. This lack of action has emboldened illegal operators, contributing to an estimated $400 billion in annual volume and over $4 billion in lost tax revenue for states [5]. The growing concerns over the annual volume of illegal online gaming and the associated financial losses have led to increased calls for more concerted action against these operations [4][5].
While Nevada itself has not been prominently featured in recent advocacy efforts, the state benefits indirectly from any federal crackdown on illegal operations. Such enforcement helps protect Nevada's licensed gaming industry by preventing illegal offshore sites from siphoning revenue away from regulated markets.
In conclusion, the efforts to enforce UIGEA more effectively bode well for maintaining the integrity and competitiveness of Nevada's gaming industry. By addressing illegal offshore gambling, Nevada can better protect its regulated casino and tourism sectors, ensuring they remain vibrant contributors to the state's economy.
