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A group of 50 state attorneys general sent a letter to Attorney General Pam Bondi urging the Department of Justice (USDOJ) to target illegal offshore online casinos and sportsbooks.
“We urge the USDOJ to coordinate with our offices to pursue injunctive relief and website seizures under federal law; seize assets and domain names of illegal offshore gaming operators; and coordinate with financial institutions to block unlawful transactions and dismantle the financial infrastructure supporting these enterprises,” the attorneys general wrote in their letter.
The letter comes amid a growing movement over the past few years to push offshore operators out of states with legal sports betting and online casinos.
How a DOJ Crackdown Could Impact Offshore Online Casino Users
There’s no guarantee that Bondi will act on the attorneys general’s recommendations. But if she does, it could create significant chaos for illegal offshore operators and their customers. For example, if the DOJ freezes the assets and banking transactions of offshore operators like MyBookie or Bovada, it will likely happen without warning.
What does that mean for customers? Any funds in their accounts could become inaccessible, and withdrawals may be impossible.
Consumers have long faced risks when betting with offshore operators. The companies operate outside the laws and regulations of the states where they offer platforms. That means they can refuse to pay out a bet, and customers would have no legal recourse. Similarly, they may not pay out any funds if the DOJ freezes assets and financial transactions.
“These unlawful platforms expose residents—particularly young people and vulnerable adults—to fraudulent schemes and highly addictive gambling without any oversight or accountability,” the letter stated.
“Moreover, these operations undercut state-regulated markets and have been linked to money laundering, human trafficking, and other nefarious conduct.”
Will Offshore Online Casinos Survive a Federal Crackdown?
If Bondi moves forward with a crackdown, her office will likely issue a public announcement outlining the launch of an enforcement operation and the reasons behind it. From there, it’s difficult to predict when individual offshore sites might be taken down.
Any bettors who currently have money in offshore accounts would be wise to withdraw their funds and wager with legal US online casinos and sportsbooks. Doing so eliminates the risk of losing money to unregulated operators—or to federal asset seizures and transaction freezes.
There is no timeline for when the attorney general may take action. Federal authorities have long known about offshore online casinos and sportsbooks but have yet to launch a widespread enforcement effort. States have largely been left to fend for themselves in pushing out illegal sites. The most common tactic has been issuing cease-and-desist letters. For example, Massachusetts and West Virginia have both sent letters to Bovada.
Meanwhile, the attorneys general warned in their letter that states are losing out on substantial tax revenue due to illegal sites siphoning business from licensed operators.
“Recent estimates show that the volume of illegal online gaming exceeds more than $400 billion annually, leading to more than $4 billion in lost tax revenue for state governments,” the attorneys wrote. “Despite these staggering figures, enforcement has been scarce, only emboldening these illegal operators.”
