Today, Attorney General Derek Brown co-led a bipartisan multistate coalition of 50 attorneys general in urging the U.S. Department of Justice (DOJ) to assist in addressing the rampant spread of illegal offshore gaming across the country. The coalition stressed the need for action to combat harm to the rule of law, consumers, and the economy from an unprecedented growth in illicit online gambling.
The request to the DOJ was made in a letter sent by AG Brown and the coalition to U.S. Attorney General Pam Bondi.
“Illegal offshore gaming operations are a breeding ground for criminal behavior, such as money laundering and human trafficking. These companies routinely flaunt Utah laws and put Utah consumers at risk,” said AG Brown. “Together we can take action against these foreign-based operations that wreak havoc on our communities, foster gambling addictions, and harm Utah consumers.”
Illegal offshore gaming operations are largely operated by foreign-based companies that routinely operate without proper licensure, offer limited or non-existent consumer protections, fail to effectively verify the age of users, ignore state boundaries, and evade tax obligations.
In the letter,AG Brownand the coalition highlight the significant harm these illegal platforms cause to states and their residents, particularly to young people, vulnerable adults, and state economies. Specifically, the coalition noted that illegal gaming operations expose users to fraudulent schemes and encourage problem gambling without any oversight or accountability; undercut state-regulated markets; and have been linked to money laundering, human trafficking, and other illegal conduct.
In fact, the coalition highlights that illegal online gaming is estimated to exceed more than $400 billion in volume annually, leading to more than $4 billion in lost tax revenue for states.
As such, the coalition urges the DOJ to assist and coordinate with states in deploying robust legal tools and enforcement actions against illegal offshore gaming operations, especially as such actions by the DOJ have been extremely limited since 2013.
Particularly, the coalition urges the DOJ to help curb illegal offshore gaming operations by:
- Pursuing injunctive relief under the Unlawful Internet Gambling Enforcement Act to block access to illegal websites and payment processing mechanisms related to illicit gaming operations.
- Seizing assets – including servers, websites, domains, and proceeds – used by gaming operators that violate state and federal law.
- Coordinating with states, financial institutions, and payment processors to block unlawful transactions and dismantle financial infrastructure related to illegal gaming operations.
The letter in its entirety is attached.
