The US Department of Justice (DOJ) said it remains committed to investigating illegal offshore sports betting and online casino activities.
The DOJ’s response comes after seven states formed a coalition in May urging the agency to prioritize fighting illegal, offshore online gambling.
DOJ working with FBI to combat illegal gambling
In the letter addressed to Kirk Hendrick, Chairman of the Nevada Gaming Control Board, the DOJ wrote:
“The Department has undertaken, and continues to pursue, investigations into illegal gaming. The Federal Bureau of Investigation (FBI) is the investigative arm of the department tasked with vetting allegations of violations of federal gaming laws.”
U.S. Department of Justice correspondence responds to request by state gaming regulators regarding illegal offshore wagering. The Nevada Gaming Control Board appreciates the U.S. DOJ addressing perils of illegal, offshore sportsbooks and online casinos. pic.twitter.com/AoIhXVE0hj
— Nevada Gaming Control Board (@NevadaGCB) August 29, 2023
The DOJ continued by saying it takes illegal gambling “seriously” and continues to investigate and prosecute unlawful Internet gambling.
Legal online casino games are limited to six states. Those include:
- New Jersey
- Pennsylvania
- Delaware
- West Virginia
- Connecticut
- Michigan
As for online sports betting, it is legal in roughly 30 states, plus Washington, DC.
Regulators demand a crackdown on illegal gambling
According to the American Gaming Association (AGA), over $500 billion is gambled illegally through unregulated gambling websites yearly. As a result, states are missing out on roughly $13 billion in tax revenue.
In April, Michigan Gaming Control Board (MGCB) Executive Director Henry Williams wrote to Attorney General Merrick Garland about the threats from offshore operators. In the letter, Williams wrote:
“In Michigan, strict laws and rules govern internet gaming and sports betting and provide consumer protections, promote confidence and ensure fair and honest gaming. We are willing to help the US Department of Justice in any way we can as it pursues enforcement of US laws against offshore illegal gaming enterprises that take advantage of our citizens.”
Williams highlighted several dangers posed by illegal sports betting and online casino sites, including:
- No age verification requirements to protect minors
- Lack of investment in responsible gaming programs
- No controls to prevent money laundering
- No guarantees of fair payouts for customers
- Loss of state tax revenue that funds essential initiatives like education
Megan Bennett, an intergovernmental liaison at the DOJ, said the department will use necessary resources to combat illegal gambling issues.
“The Department appreciates the adverse impact illegal gaming has on individuals and communities and will continue to use all available tools to detect, investigate, and prosecute such illegal activity.”