State AGs say offshore gambling sites cost U.S. communities over $4 billion in lost tax revenue annually

-
State AGs say offshore gambling sites cost U.S. communities over $4 billion in lost tax revenue annually
-
AGs call foreign gambling platforms a threat to consumers and public safety
-
Coalition demands DOJ use seizure powers, financial blockades, and domain takedowns
In a rare display of bipartisan unity, all 50 U.S. state and territorial attorneys general have joined forces to demand a federal crackdown on illegal offshore gambling operations, which they warn are siphoning billions from local economies and exposing vulnerable populations to serious harm.
Illegal offshore gambling platforms are siphoning billions of dollars away from American communities, exploiting vulnerable consumers, and fueling transnational crime. That ends now, saidMissouri Attorney GeneralAndrew Bailey.
In a formal letter to U.S. Attorney General Pam Bondi, the attorneys general urged the Department of Justice (DOJ) to take immediate and decisive action against the foreign-based gambling enterprises that continue to flout U.S. law. The coalition cited rampant violations of age verification, consumer protection, and tax compliance laws.
A $400 billion shadow industry
The letter warns that the illegal online gaming industry now exceeds $400 billion annually, resulting in an estimated $4 billion in lost tax revenue for U.S. state governments. These unlicensed sites, often run from jurisdictions with little oversight, undermine the legal gaming market and are linked to serious crimes including money laundering, human trafficking, and organized criminal networks.
These operations deliberately sidestep U.S. law, the letter states, functioning without licenses, avoiding taxes, and offering no safeguards to protect minors or problem gamblers.
To combat the spread of these platforms, the AGs called on the DOJ to deploy multiple enforcement tools, including:
-
Seizing domain names under the Unlawful Internet Gambling Enforcement Act
-
Confiscating assets and servers via powers granted under 18 U.S.C. 1955(d)
-
Partnering with banks and payment processors to block illicit financial transactions
The AGs cited previous DOJ actions including the 2011 Black Friday online poker crackdown and the 2024 takedown of a Russian cybercrime network as models for an aggressive federal response.
The rule of law must prevail
With both economic stakes and consumer protections on the line, the letter marks an urgent appeal for coordinated enforcement, signaling that the states are no longer willing to tolerate a digital Wild West of illegal gambling. The DOJ has not yet issued a public response.
Posted: 2025-08-06 18:39:22