A group of 50 attorneys general have signed a letter calling for the U.S. Department of Justice (DOJ) to block web access and payments to offshore gambling sites and seize their domain names, referencing 2011’s “Black Friday” for online poker as a model for the suggested crackdown.
The letter, addressed to U.S. Attorney General Pam Bondi, was signed by the attorneys general for 47 states — all but Texas, Kentucky, and Montana — alongside Washington, D.C., the U.S. Virgin Islands, and the Northern Mariana Islands. It was made public by the National Association of Attorneys General.
The signees said they needed federal help to “address the rampant spread of illegal offshore gaming operations across the United States.”
The letters continues, “Our States have heard reports concerning growth in the illicit offshore gambling markets that could be harming our citizens. While we as States do all we can to protect our citizens, such unlawful enterprises undermine the rule of law, threaten consumer protection, and deprive our States of significant tax revenues and economic benefits. We seek the USDOJ’s cooperation in ensuring these companies are brought to justice to the fullest extent available under state and federal law, both criminal and civil, for any potential violations.”
The bipartisan coalition of attorneys general didn’t mention specific offshore operators, but referred more broadly to “illegal online sports betting and gaming operations — largely run by massive, foreign-based companies.”
A number of states have sent cease-and-desist letters to major offshore gambling operators. In June, Louisiana and Mississippi sent out cease-and-desists to sites such as BetOnline and Bovada. The same sites were subject of Florida cease-and-desists in February.
Sweepstakes operators, prediction markets, and “DFS 2.0” fantasy operators have all also been the subject of cease-and-desist letters in certain states. However, the focus on “offshore” sites, the lack of mention of these specific verticals, and the large number of attorneys general who signed on suggests the letter is intended to deal with unlicensed sites offering straightforward gambling products.
‘Black Friday’ for offshore betting?
The letter referenced 2011’s “Black Friday,” when the DOJ shut down major offshore poker sites including PokerStars and Full Tilt Poker, seizing their websites, servers, and domain names.
“USDOJ has used its authority to seize online assets in analogous cases. On ‘Black Friday’ in
2011, it seized websites, servers, and domain names of companies that sold counterfeit
products,” the letter said.
“Those same mechanisms can and should be applied to illegal offshore gaming platforms.”
The letter also noted that credit card providers MasterCard and Visa “have already signaled their willingness” to cooperate with efforts to block payments to these sites.
The letter was co-sponsored by Attorneys General William Tong of Connecticut, Andrea Joy Campbell of Massachusetts, Mike Hilgers of Nebraska, and Derek Brown of Utah.
