Fifty attorneys general asked the Department of Justice to help states curb the “rampant spread” of illegal online casino and sports betting sites in a letter sent Monday.
“Our States have heard reports concerning growth in the illicit offshore gambling markets that could be harming our citizens,” reads the letter. “While we as States do all we can to protect our citizens, such unlawful enterprises undermine the rule of law, threaten consumer protection, and deprive our States of significant tax revenues and economic benefits.
“We seek the USDOJ’s cooperation in ensuring these companies are brought to justice to the fullest extent available under state and federal law, both criminal and civil, for any potential violations.”
The letter cites an American Gaming Association report from November 2022 that estimated around $400 billion in illegal online casino and sports betting handle annually, translating to nearly $5 billion in lost tax revenue.
Three ways to end illegal online casino, betting
The letter called DOJ enforcement actions against illegal online casinos and sportsbooks “extremely limited” since 2013. The letter noted the DOJ’s actions on Black Friday in 2011 and in April 2024 when it seized domains connected to a Russian cybercrime network.
The attorneys general offered three efforts on which the DOJ could coordinate with their offices:
- Go for injunctive relief and website seizures using federal law.
- Seize assets and domains of illegal offshore gaming operators, many of which have been reached with cease-and-desist letters from some of the undersigned AGs or state regulatory agencies.
- Work with financial institutions to block illegal gambling transactions.
“We stand ready to collaborate with the USDOJ to protect our residents and uphold the laws of our country and of our States,” the end of the letter reads.
Which AGs did not cosign?
There are 50 signatures attached to the letter, but not every US state signed off on the effort.
Washington DC and three American territories, American Samoa, Northern Mariana Islands and US Virgin Islands, also signed the letter.
That left out four states and two territories:
- Guam
- Kentucky
- Montana
- Puerto Rico
- Texas
- Wisconsin
The letter was co-sponsored by four attorneys general:
- William Tong, Connecticut
- Andrea Joy Campbell, Massachusetts
- Mike Hilgers, Nebraska
- Derek Brown, Utah
