May 5, 2023 3 min read

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US Gambling Regulators Want More Done Against Offshore Sites

Regulated sports and gambling markets in the United States want offshore operator to finally go

The pre-2018 era in sports betting was fraught and somewhat dominated by offshore operators. Since 2018, and the overruling of PASPA by SCOTUS, however, things have been changing rapidly. Today, more than 30 states and Washington DC regulate sports gambling, and offshore operators have been repeatedly targeted by authorities – but not nearly enough.

Offshore Websites Need to Be Targeted by DOJ

Some have had the decency to withdraw themselves, understanding that the regulated market will be beyond their reach if they continue to act as rogue operators. Now, though, the Michigan Gaming Control Board has become one of the regulators in the United States to call for a more determined response to remaining offshore gambling websites by the US Department of Justice.

The regulator’s executive director, Henry Williams, has called on state regulators and US AG Merrick Garland to finally address what he sees as a threat – offshore gambling websites which local regulators cannot fight against.

Urging others to join in, Michigan has collected signatures for a letter sent to Garland’s office from homologues in Illinois, Louisiana, Mississippi, Colorado, New Jersey, and Nevada. All of these states’ regulators understand the urgency of ensuring that offshore markets are beyond the reach of ordinary Americans who fall victim to predatory practices.

Nevada Gaming Control Board chairman Kirk D. Hendrick has outlined several reasons why a timely response is necessary. He enumerated some of the deficiencies that those websites brought around, including their lack of age verification requirements to protect underage individuals. Other issues stemmed from the lack of responsible gambling programs, or effective controls against money laundering.

State Regulators Talk Issues of Allowing Offshore Sites to Operate

Fairness of payouts and outcomes was also questionable and there was also the fact that such states lead to a loss in state tax that could have been levied from licensed operators instead. The American Gaming Association has long shared this opinion and even launched several campaigns to help tackle the issue.

Williams, in the meantime, said that the Michigan regulator adhered to robust industry standards and made sure that licensed operators were required. This was not the case with offshore counterparts, however.

“Offshore operators flaunt state regulations and offer products that do not protect the public, which greatly concerns me and my fellow state regulators,” Williams said. He has a point as even offshore regulators are often loath to hold registered operators to any significant standards for AML and consumer protection.

Journalist

Although Fiona doesn't have a long-spanning background within the gambling industry, she is an incredibly skilled journalist who has built a strong interest in the constantly growing iGaming network. The team at GamblingNews.com is glad to have her on our roster to help deliver the best stories as soon as they hit. Aside from writing, she loves to dabble in online casino games such as slots and roulette, both for her own enjoyment and also as research to better improve her understanding of the industry.

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