Attorneys general (AG) from 46 US states and four jurisdictions have called on the US Department of Justice (DoJ) to help thwart the rise of illegal gambling.
In a joint letter addressed to Attorney General Pamela Bondi, the National Association of Attorneys General (NAAG) stressed the need to tackle the “rampant spread” of offshore gambling.
The letter notes black-market operators “undermine the rule of law, threaten consumer protection and deprive states of significant tax revenues and economic benefits”.
Among the 46 US state attorneys general to sign it, the letter includes California’s Rob Bonta, New York’s Letitia James and Pennsylvania’s Dave Sunday.
Texas, Kentucky, Montana and Wisconsin’s AGs did not sign the letter. Washington DC, American Samoa, the US Virgin Islands and the Northern Mariana Islands took the number of signatories to 50.
While the NAAG said it was doing its utmost to protect citizens, it has called on the federal government to provide further support.
In turn, the bipartisan multistate coalition is seeking the “fullest extent available” of civil and criminal proceedings under both state and federal law.
The joint letter outlines the ways in which a thriving black market can hurt each state’s regulated arena, with operators in the illegal sector rarely offering any form of player protection or age verification measures.
The fact offshore operators are able to circumvent tax obligations and ignore state boundaries was also identified as a source of frustration by the coalition.
“These unlawful platforms expose residents, particularly young people and vulnerable adults, to fraudulent schemes and highly addictive gambling without any oversight or accountability,” it read.
“Moreover, these operations undercut state-regulated markets and have been linked to money laundering, human trafficking and other nefarious conduct.”
NAAG members cite recent research from the American Gaming Association that claims more than $400bn is wagered on the black market in the US each year, which in turn sparks a $4bn loss in tax revenue for state governments.
After describing the enforcement actions taken by the DoJ since 2013 regarding this issue as “extremely limited”, the NAAG said more “robust” action needed to be taken.
The letter identifies the Unlawful Internet Gambling Enforcement Act as an example of when the DoJ can exercise its power and pursue injunctive relief to block access to illegal websites and payment processing mechanisms.
The DoJ also has the authority to seize assets such as servers, domains and proceeds of any gambling company found operating illegally.
The group pointed to the DoJ’s role on Black Friday in 2011, in which it seized the domains of the largest poker operators, including PokerStars and Full Tilt Poker, throwing the sector into disarray.
NAAG also highlighted the department’s role in seizing Russia-linked domains last year in a crackdown on a cybercrime network.
It was also noted that the DoJ should “capitalise on the willingness” of payment processors such as Visa and Mastercard to address the “unlawful use of their networks for gambling transactions”.
“We strongly encourage the US DoJ to prioritise enforcement against illegal offshore gaming operations. In its 2024 appropriations directive, Congress emphasised the importance of this issue,” the letter concluded.
“We stand ready to collaborate with the US DoJ to protect our residents and uphold the laws of our country and of our states.”
The post 50 attorneys general urge DoJ ramp up fight against illegal gambling first appeared on EGR Intel.
States and US jurisdictions unite in joint letter calling on Department of Justice to seize assets and coordinate with financial institutions to prevent offshore activity
The post 50 attorneys general urge DoJ ramp up fight against illegal gambling first appeared on EGR Intel.