Unacceptable jurisdictions urged to shut down illegitimate offshore gambling operations
The illegal online gaming industry, estimated to be worth over $400 billion annually, has become a significant concern for U.S. communities. This unregulated market is causing more than $4 billion in lost tax revenue for state governments each year, according to a joint appeal by all 50 U.S. state and territorial attorneys general.
These offshore operators function without U.S. licenses or regulation, offering no consumer safeguards. They fail to verify user age, thus exposing vulnerable populations like children to predatory gambling.
The platforms also undermine legitimate state-regulated gambling markets and have been linked to money laundering, human trafficking, and organized crime.
In an effort to address this issue, state attorneys general—including Missouri AG Andrew Bailey—have urged the U.S. Department of Justice (DOJ) to deploy the Unlawful Internet Gambling Enforcement Act (UIGEA) and federal seizure authority. They propose the DOJ should pursue injunctions, seize illegal assets, and collaborate with financial institutions to disrupt payment processing for illegal gambling.
The American Gaming Association reports offshore gambling growth of 22% since 2022, with states missing out on about $1.5 billion in tax revenue recently. This indicates the continued expansion of illegal offshore markets.
In summary, the impact on U.S. communities involves billions lost in tax revenue, consumer safety violations, and criminal activity ties. The unified calls by state attorneys general for immediate federal crackdown measures aim to protect consumers and restore lawful market integrity.
The unregulated casino-and-gambling sector, facilitated by offshore operators, deprives state governments of substantial finance through tax evasion, amounting to approximately $4 billion each year. The growth of offshore gambling, as reported by the American Gaming Association, is causing states to miss out on significant revenue, currently estimated at around $1.5 billion in uncollected taxes.
