Regulators from seven US states have jointly penned a letter to Attorney General Merrick Garland, urging the US Department of Justice to prioritize the fight against illegal offshore sportsbooks and online casinos. The regulators from Colorado, Illinois, Louisiana, Michigan, Mississippi, New Jersey, and Nevada assert that illegal offshore gambling poses several risks and challenges, from the lack of responsible gaming measures to revenue loss for state initiatives.
Challenges Posed by Illegal Offshore Gambling:
The regulators underscore several pressing concerns associated with illegal offshore gambling:
Absence of Responsible Gaming Measures: Illegal offshore sites often lack responsible gaming programs, putting players at risk and failing to provide necessary safeguards for those struggling with gambling issues.
Inadequate Age Verification: These sites may not require age verification, raising concerns about minors gaining access to gambling, which is not only unethical but illegal.
Money Laundering Vulnerability: The absence of stringent financial controls increases the risk of money laundering activities, undermining the broader efforts to combat illicit financial transactions.
Lack of Fair Payout Guarantees: Unlike legal, regulated platforms, illegal offshore operators may not ensure fair payouts, potentially cheating customers of their winnings.
State Revenue Impact: The proliferation of offshore gambling sites can lead to substantial revenue loss for states, affecting critical initiatives like education and public welfare programs.
Regulatory Oversight: State regulators are committed to ensuring the integrity of the gaming industry, whereas offshore operators often evade scrutiny, conducting their operations without facing rigorous suitability and background investigations.
State Regulators’ Commitment:
The letter emphasizes the commitment of state regulators in maintaining the integrity of the gaming industry, including:
Enforcing payout requirements to safeguard players.
Providing dispute resolution procedures to address customer concerns.
Closing Remarks:
The collaborative effort of these seven state regulators highlights the urgency of tackling illegal offshore gambling operations. Their appeal to the US Department of Justice is a call for collective action to protect consumers, uphold responsible gaming standards, and ensure the fair operation of the gaming industry. By addressing the challenges posed by offshore operators, they aim to create a safer and more regulated gambling environment for all.