LITTLE ROCK, Ark. (KAIT/Edited News Release) – Attorney General Tim Griffin issued the following statement after he joined a letter from a bipartisan coalition of 50 attorneys general to U.S. Attorney General Pam Bondi urging the U.S. Department of Justice to assist in addressing the rampant spread of illegal offshore gaming across the country.
The attorneys general stressed the need for action to protect the rule of law, combat consumer harm, and curb the unprecedented growth of the illicit online gambling market:
“Illegal offshore gaming operations disregard the law, exploit vulnerable individuals, and allow underage gambling without proper safeguards. Some of these illegal entities impersonate Arkansas casinos online and on social media, misleading users with familiar visuals while including fictitious links. Once the link is selected, the user is redirected to the illegal offshore gaming platform.”
Illegal online sports betting and gaming operations are largely operated by foreign-based companies that routinely operate without proper licensure, offer intentionally insufficient consumer protections, fail to effectively verify the age of users, ignore state boundaries, and evade tax obligations.
In the letter, Griffin and the coalition highlight the significant harm caused to states and residents by these unlawful platforms, particularly to young people, vulnerable adults, and state and local economies.
Specifically, illegal gaming operations expose users to fraudulent schemes and encourage gambling addictions without any oversight or accountability; undercut state-regulated markets; and have been linked to money laundering, human trafficking, and other illegal conduct.
Illegal online gaming is estimated to exceed $400 billion in volume annually, leading to more than $4 billion in lost tax revenue for states.
The attorneys general argue the DOJ should assist and coordinate with states in deploying robust legal tools and enforcement actions against illegal offshore gaming operations, especially because of the DOJ’s extremely limited action 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.
- Coordinating with states, financial institutions, and payment processors to block unlawful transactions and dismantle financial infrastructure related to illegal gaming operations.
Read the letter to the DOJ..
The letter was co-led by the attorneys general of Connecticut, Massachusetts, Nebraska, and Utah.
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