States Ask DOJ to Act on Offshore Gambling Operators

A large group of state attorneys general is calling on the federal government to finally step in and help tackle the flood of illegal offshore gambling across the U.S. In a letter sent Monday to U.S. Attorney General Pam Bondi, 50 attorneys general urged the Department of Justice to crack down on offshore sportsbooks and casino operators that continue to do business without licenses or oversight.

Good to know

• The coalition includes AGs from 46 states plus four U.S. territories and the District of Columbia.
• They want federal cooperation to seize offshore gambling sites, domains, and related assets.
• Illegal online gambling is estimated at over $400 billion annually, costing states over $4 billion in lost tax revenue.
• Major sites like Bovada have already pulled out of several states under local enforcement pressure.
• Past calls for DOJ help—including from the American Gaming Association—have gone unanswered.

In their joint letter, the attorneys general say they’ve done what they can at the state level, but the scale and reach of illegal online gambling platforms demand broader federal involvement.

“While we as States do all we can to protect our citizens, such unlawful enterprises undermine the rule of law, threaten consumer protection, and deprive our States of significant tax revenues and economic benefits,” the letter says.

The AGs are asking the DOJ to go after these operations using civil and criminal tools, including injunctions, domain name seizures, and asset freezes. They’re also pushing for more coordination with banks and payment processors to cut off offshore operators from the U.S. financial system.

Offshore Operators Keep Gaining Ground

The AG coalition points to a rising tide of illegal gambling activity, much of it online and beyond the reach of individual state regulators. They estimate offshore operators generate over $400 billion in annual bets, costing states around $4 billion in taxes every year.

Despite those numbers, enforcement has been minimal.

“Despite these staggering figures, enforcement has been scarce, only emboldening these illegal operators,” the letter states.

The AGs also note that these platforms—such as Bovada—often ignore laws about age verification, geo-restrictions, and responsible gambling protections. Some operations have even been tied to serious crimes like money laundering and human trafficking.

“These offshore entities routinely operate without proper licensure, offer limited or non-existent consumer protections, fail to verify user age, ignore state boundaries, and evade taxation obligations potentially to both the Internal Revenue Service and our States,” the coalition writes.

Why It Matters Now

Calls for federal help aren’t new. The American Gaming Association previously asked the DOJ for assistance under President Joe Biden, but got no response. In the meantime, offshore platforms continue to pull business away from regulated sportsbooks in the U.S., creating an uneven playing field.

Even as some offshore sites pull back from certain states, enforcement efforts remain inconsistent. Without federal backing, states are left to fight a fragmented battle that allows unauthorized operators to thrive in less policed areas.

Adding to the problem, regulated sportsbooks now face challenges from not just offshore books but also sweepstakes casinos and prediction markets operating in legal grey zones.

The letter urges the DOJ to finally step in and coordinate a national enforcement strategy.

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