Utah Attorney General Derek Brown co-led a bipartisan coalition calling on the U.S. Department of Justice to crack down on the rampant spread of illegal offshore gaming.
Joined by 50 state and territorial attorneys general, Brown co-led the bipartisan effort with the attorneys general of Connecticut, Massachusetts and Nebraska.
All 50 attorneys general signed a letter sent to U.S. Attorney General Pam Bondi, urging the DOJ to increase its efforts against widespread illegal offshore gaming, gambling and sports betting.
“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,” Brown said.
“Together we can take action against these foreign-based operations that wreak havoc on our communities, foster gambling addictions, and harm Utah consumers.”
Illegal gaming and sports betting sites are largely operated by foreign-owned entities and operate without proper licenses or regulations. Under limited regulation, these sites lack proper consumer protections, use inadequate age verification systems and avoid tax obligations.
These illegal gaming sites are also linked to human trafficking, money laundering and other illegal activities, the release stated.
“These unlawful platforms expose residents — particularly young people and vulnerable adults — to fraudulent schemes and highly addictive gambling without any oversight or accountability," claims the attorneys general coalition’s letter.
According to the letter, recent estimates found that every year, consumers spend more than $400 billion globally on illegal online gaming platforms — translating to more than $4 billion lost in tax revenue for state governments annually.
The coalition of attorneys general is urging the DOJ to address concerns regarding illegal offshore gaming through a series of suggestions such as coordinating with financial institutions to block illegal transactions made on these platforms and using federal authority to seize illegal gaming sites.
“USDOJ enforcement actions against illegal offshore gambling sites have been extremely limited. We seek USDOJ’s cooperation and coordination to deploy robust legal tools to curb these unlawful enterprises,” the letter states.
“We stand ready to collaborate with the USDOJ to protect our residents and uphold the laws of our country and of our States.”