Federal Prosecutors Call for Department of Justice to Halt Illicit Offshore Betting Companies
In a significant move, a bipartisan coalition of 50 attorneys general from various U.S. states and territories have joined forces to urge the U.S. Department of Justice (DOJ) for increased enforcement action against illegal offshore gambling companies that accept American customers. The coalition's primary focus is on shutting down foreign-based illegal online sports betting and gaming operations that operate without proper licensure, offer poor or no consumer protections, enable underage gambling, evade taxes, and contribute to money laundering and other crimes.
The joint letter, sent to U.S. Attorney General Pam Bondi in early August 2025, requests the DOJ to invoke its enforcement powers to shut down these illegal gaming operations, seize assets, and block financial transactions involving these illegal enterprises through payment networks like Visa and Mastercard. The illegal offshore gambling market is estimated to exceed $400 billion in annual volume, causing states to lose over $4 billion in tax revenue.
The attorneys general emphasize the need for robust federal action to protect consumers, uphold the rule of law, preserve public safety, and prevent consumer harm from unregulated gambling platforms. They cite the Unlawful Internet Gambling Enforcement Act (UIGEA) of 2006, which historically prohibits financial transactions connected to unlawful internet gambling, as a foundation for many enforcement mechanisms against illegal online gambling operators targeting U.S. customers.
The recent calls to action by the attorneys general and the DOJ reflect the continued application and enforcement challenges of UIGEA in conjunction with other state and federal laws to address the offshore gaming problem comprehensively. The coalition's appeal to block unlawful financial transactions aligns with UIGEA’s provisions that require financial institutions to prevent processing payments to illegal gambling sites.
In the past, several online gambling sites withdrew from the U.S. market due to the UIGEA. However, companies like PokerStars, Full Tilt Poker, UltimateBet, and Absolute Poker remained and grew to dominate the online poker landscape. On April 15, 2011, known as "Black Friday" in the online poker world, the DOJ seized websites, servers, and domain names of companies that sold counterfeit products, including online poker operators. PokerStars eventually arrived at a settlement with the DOJ, while Full Tilt Poker, UltimateBet, and Absolute disappeared, as did their customers' funds.
Notably, attorneys general from Kentucky, Montana, Texas, and Wisconsin did not join the coalition. Visa and Mastercard have signaled their willingness to investigate and address unlawful use of their networks for gambling transactions.
This coordinated push by state attorneys general represents a significant step towards combating illegal offshore gambling companies that threaten consumer protection and state revenues. The coalition's efforts underscore the ongoing challenge of enforcing UIGEA and other laws to protect American consumers and uphold the rule of law in the digital age.
- The coalition, comprising 50 attorneys general, have extended their call for action in the realm of politics, urging the Department of Justice (DOJ) to apply the Unlawful Internet Gambling Enforcement Act (UIGEA) of 2006 more stringently, targeting illegal offshore gambling agencies that operate in the sphere of general news and crime-and-justice.
- In line with UIGEA's provisions, the coalition seeks to block unlawful financial transactions involving popular payment networks like Visa and Mastercard, aiming to curb the $400 billion annual volume of the illegal offshore gambling market, thus protecting American consumers, and recuperating over $4 billion in lost state revenue.
