Attorneys General Push DOJ to Target Offshore Gambling Operators

A bipartisan coalition representing attorneys general from all 50 U.S. states has formally petitioned the Department of Justice (DOJ) to take urgent and comprehensive action against illegal offshore gambling operations. In a letter addressed to U.S. Attorney General Pam Bondi, the group expressed deep concern over the unchecked growth of these illicit platforms, which they claim pose serious risks to consumers, violate federal law, and undermine state-regulated gambling frameworks.

The appeal centers on the increasing accessibility of unlicensed online casinos and sportsbooks that operate from jurisdictions with weak or nonexistent oversight. These sites, the attorneys general warn, circumvent U.S. regulatory systems, evade taxation, and offer no meaningful protections to players, including safeguards for problem gambling and prevention of underage access.

Consumer Harm and Economic Threats

Citing figures from the American Gaming Association, the coalition estimates the illegal offshore market in the U.S. generates over $400 billion in annual activity. This not only deprives states of substantial tax revenue but also opens the door to criminal conduct such as money laundering and fraud.

According to the National Association of Attorneys General, these offshore platforms frequently lack the regulatory features found in legal U.S. markets—such as licensing requirements, responsible gaming tools, and player dispute mechanisms. Without these protections, players are left vulnerable to exploitation, while licensed domestic operators face unfair competition.

The coalition emphasized that such illegal operators destabilize the integrity of legalized online gambling efforts across numerous states and called on the DOJ to take decisive steps to remove these threats.

Tools the DOJ Can Use

In their letter, the attorneys general called on the DOJ to use all available legal tools to disrupt these operations. Specifically, they requested:

• Enforcement under the Unlawful Internet Gambling Enforcement Act (UIGEA) to block access to offshore gambling websites.
   
• Seizure of assets belonging to these platforms, including domain names, servers, and financial proceeds.
   
• Collaboration with state regulators, payment processors, and financial institutions to cut off the funding channels that enable these sites to operate.
   

The coalition stressed that working with major payment networks such as Visa and Mastercard—many of which have indicated support—will be essential to dismantling the infrastructure supporting unlicensed gambling activity.

Citing the 2011 'Black Friday' Precedent

As a precedent, the attorneys general pointed to the DOJ’s enforcement actions during “Black Friday” in 2011, when several offshore poker sites, including PokerStars and Full Tilt Poker, were taken offline. The federal government at the time seized domains and prosecuted the operators for violating gambling and financial laws.

“The DOJ has the power to seize domain names, prevent illegal operators from accessing U.S. markets, and ensure that those who violate the law are held accountable,” the letter reads.

By urging a similar approach today, the coalition hopes to not only limit access to illegal gambling options but also uphold the integrity of U.S.-regulated markets and protect players from exploitative practices.

The attorneys general concluded with a call for cross-agency and cross-jurisdictional cooperation to tackle the issue holistically, asserting that only a coordinated national effort can prevent the offshore market from continuing to expand unchecked.

Source:50 Attorneys General Call for DOJ Action Against Illegal Offshore Gambling, World Casino Directory, August 6, 2025.