50 AGs Urge US Department of Justice to Take Down Offshore Gambling

Missouri Attorney General Andrew Bailey, along with attorneys general from 49 other states and territories, urged US Attorney General Pam Bondi and the Department of Justice (DOJ) to promptly and decisively address the widespread proliferation of illegal offshore online gambling operations across the country.

Attorneys General Address Letter to the Department of Justice

In a combined letter, the 50 attorneys general specifically call on the DOJ to pursue injunctive relief and seize domain names under the Unlawful Internet Gambling Enforcement Act. Additionally, they request the DOJ exercise its authority under 18 U.S.C. § 1955(d) to confiscate assets, servers, and profits tied to these unlawful gambling operations. Additionally, the attorneys general are asking the DOJ to collaborate with financial institutions and payment processors to block illegal transactions and dismantle the financial networks supporting these criminal enterprises.

Attorney General Bailey stated that illegal offshore gambling platforms are diverting billions of dollars from American communities, taking advantage of vulnerable consumers, and contributing to transnational crime. He emphasized that these foreign-based operations operate completely outside the law and that they lack licensing, consumer protections, age verification, and tax compliance. Bailey called for decisive action, urging the Department of Justice to utilize every available tool to shut these operations down.

The letter concluded with the AGs urging the US Department of Justice to prioritize enforcement efforts against illegal offshore gambling operations, and they also expressed their readiness to work collaboratively with the DOJ to protect residents and uphold both federal and state laws.

What Problems Can Offshore Gambling Companies Create?

Unregulated offshore gambling sites, primarily run by foreign-owned entities, present a significant threat to vulnerable populations and the stability of state economies. Operating beyond the reach of US jurisdiction, these companies often disregard state licensing requirements and offer no meaningful consumer protections. They often fail to verify users’ ages, exposing minors to harmful and predatory gambling practices. Furthermore, they circumvent state laws and boundaries, operating in open defiance of established legal frameworks.

Because these platforms are based overseas, they avoid paying both state and federal taxes, resulting in substantial financial losses for American communities. Recent estimates indicate that illegal online gambling generates over $400 billion annually, contributing to more than $4 billion in lost tax revenue for state governments. In addition to the economic impact, these illicit operations undermine lawful, state-regulated gaming industries and have been linked to serious criminal activities such as money laundering, human trafficking, and organized crime.