State Officials Call on DOJ to Crack Down on Offshore Gambling

In a coordinated appeal, 50 attorneys general from across the United States have urged the Department of Justice (DOJ) to intensify enforcement efforts against illegal offshore gaming operators. The bipartisan group, representing more than two dozen states, submitted a formal letter calling on Attorney General Pam Bondi to prioritize action against online gambling platforms operating outside U.S. legal frameworks.

The letter raises concerns about the lack of consumer protections, potential ties to organized crime, and significant losses in tax revenue. Because these offshore operators do not hold U.S. licenses, they are not subject to domestic regulatory oversight, which leaves players vulnerable to fraud and other risks. Additionally, they are not required to contribute to state tax systems or fund responsible gaming programs.

According to the coalition, the scale of illegal offshore gambling may exceed $400 billion annually. This, they estimate, equates to roughly $4 billion in lost tax revenue—funds that could otherwise support public services and regulatory enforcement.

The attorneys general warn that these platforms can be vehicles for money laundering, fraud, and other forms of illicit activity. They have called on the DOJ to use existing powers under the Unlawful Internet Gambling Enforcement Act to block access to these sites, seize assets, and pursue injunctive relief where appropriate.

 

These illegal offshore operators exploit vulnerable players, evade state laws, and pose serious risks through ties to criminal activity and money laundering.

Outlook

The letter was co-sponsored by Attorneys General William Tong (Connecticut), Andrea Joy Campbell (Massachusetts), Mike Hilgers (Nebraska), and Derek Brown (Utah). Their appeal echoes earlier efforts to spotlight this issue, including a May 2023 letter from members of the Massachusetts Gaming Commission to U.S. Attorney General Merrick Garland, which also sought stronger federal intervention.

While many U.S. states have implemented legalized and regulated online gambling systems, the rise of offshore platforms continues to challenge regulatory authorities and sidestep consumer protection laws. The attorneys general argue that without federal action, the integrity of the U.S. gaming market and the safety of its participants will remain at risk.