OKLAHOMA CITY – Attorney General Gentner Drummond is urging the U.S. Department of Justice (DOJ) to help address the rampant spread of illegal offshore gaming that is threatening the country from coast to coast.
Drummond and a coalition of 50 attorneys general sent a letter to U.S. Attorney General Pam Bondi yesterday, underscoring the need for action to combat harm to the rule of law, consumers and the economy from an unprecedented spike in illicit online gambling.
“The growth of illegal offshore gambling markets poses a threat to Oklahomans and to hardworking people across the country,” Drummond said. “These companies deserve to be brought to justice under the fullest extent of the law.”
Illegal online sports betting and gaming operations are largely operated by foreign-based companies that routinely operate without proper licensure, offer limited or non-existent consumer protections, fail to effectively verify the age of users, ignore state boundaries and evade tax obligations.
In the letter, Drummond and the coalition highlight the significant harm caused to states and residents by such unlawful platforms, particularly to young people, vulnerable adults and state economies. Specifically, the coalition asserts that illegal gaming operations expose users to fraudulent schemes and encourage problem gambling without any oversight or accountability; undercut state-regulated markets; and have been linked to money laundering, human trafficking and other illegal conduct.
The coalition noted that illegal online gaming is estimated to exceed more than $400 billion in volume annually, leading to more than $4 billion in lost tax revenue for states. The coalition urges the DOJ to assist and coordinate with states in deploying robust legal tools and enforcement actions against illegal offshore gaming operations, especially as such actions by the DOJ have been extremely limited since 2013.
Particularly, the coalition urges the DOJ to help curb illegal offshore gaming operations by:
- Pursuing injunctive relief under the Unlawful Internet Gambling Enforcement Act to block access to illegal websites and payment processing mechanisms related to illicit gaming operations;
- Seizing assets – including servers, websites, domains, and proceeds – used by gaming operators that violate state and federal law; and
- Coordinating with states, financial institutions and payment processors to block unlawful transactions and dismantle financial infrastructure related to illegal gaming operations.
In addition to Oklahoma, states and territories joining the letter include Connecticut, Massachusetts, Nebraska, Utah, Alabama, Alaska, American Samoa, Arizona, Arkansas, California, Colorado, Delaware, District of Columbia, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Louisiana, Maine, Maryland, Michigan, Minnesota, Mississippi, Missouri, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Northern Mariana Islands, Ohio, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Vermont, Virginia, U.S. Virgin Islands, Washington, West Virginia. and Wyoming.
Read the letter.
