Virginia Attorney General Jason Miyares has joined a bipartisan coalition of attorneys general from all 50 states and several U.S. territories in calling on the U.S. Department of Justice (DOJ) to take action against illegal offshore gambling operations.
In a letter sent to the DOJ, the group emphasized the growing problem of illegal online sports betting and gaming platforms, many of which are operated by foreign-based companies that lack proper licenses, provide few or no consumer protections, do not verify users’ ages effectively, ignore state boundaries, and avoid paying taxes.
The attorneys general expressed concern about the harm these illicit platforms cause to both consumers and state economies. The letter notes that such 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 highlighted that illegal online gambling is estimated to surpass $400 billion in annual volume, resulting in more than $4 billion in lost tax revenue for states each year.
“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,” according to the letter.
Attorney General Miyares joined his counterparts from every U.S. state as well as American Samoa, District of Columbia, Northern Mariana Islands, U.S. Virgin Islands in signing the letter.
The coalition is urging the DOJ to coordinate with states and use available legal tools to enforce actions against these offshore operators. They note that federal enforcement efforts have been limited since 2013.
“As such, the coalition urges the DOJ to assist and coordinate with states in deploying robust legal tools and enforcement actions against illegal offshore gambling operations, especially as such actions by the DOJ have been extremely limited since 2013,” reads part of their statement.
A copy of their letter can be read here.
