ILLEGAL OFFSHORE SPORTS WAGERING UNDER THE SCOPE: CONGRESSMAPS TAKE ACTION
Legislative Faction Appeals to Department of Justice for Collaboration in Combating Unlawful Offshore Gambling Establishments
Alright, here's the lowdown on that bipartisan crew from Capitol Hill causing a stir. They've put the smack down on the Department of Justice, demanding they ramp up the heat on illegal offshore sportsbooks. This comes as regulated sports wagering providers continue to conquer the U.S., sniffing out fresh territories.
Now, let's get to the heart of this issue. This group is no joke, hailing from 13 different states - from the seasoned sports wagering battlefields of Nevada and New Jersey to greenhorns like Ohio, set to launch in 2023, and holdouts like California and Texas. All in all, sports wagering, coupled with tribal gaming, ain't illegal in 35 states and Washington D.C.
You might wonder what's the big deal with these offshore sportsbooks. Well, they pose hazards to our wallets, data, and security. They don't have safeguards for money laundering, sports integrity, or age restrictions. Plus, they're sucking away tax revenue that could be funneled through legal sports betting routes.
Since the U.S. Supreme Court axed PASPA back in 2018, a whopping $135 billion has been wagered legally nationwide, with over $38.1 billion in the first half of this year alone. States are laughing all the way to the bank, with over $1.5 billion in tax revenues and nearly $530 million in 2022. Guess who's leading the pack? New York, thanks to their mobile operations that launched in January, raked in more than half of this year's total tax revenue and nearly 20% of the handle.
THE SINGLED-OUT SPORTS SINNERS
Representative Dina Titus sent Jeff Sessions a letter, urging him to take a swing at illegal offshore sportsbooks. The Justice Department, do your thing!
Nosy parkers have been noticing that despite the spread of legalized sports wagering, offshore betting's still a profitable gig. Seems that nationwide internet searches for offshore sportsbooks increased by almost 40 percent in 2021, and that's a worrying trend. Bovada Sportsbook has been singled out as the most popular offshore entity, while MyBookie and BetOnline have also been pointed out for developing savvy online platforms that walk like legal providers, talk like legal providers, but definitely ain't legal providers.
Online wagering is the way of the world now, and offshore books are no longer relegated to the dark web. These sites have the potential to dupe bettors into making illegal wagers, as they can be a confusing muddle for the unaware. The letter to Sessions also highlights that these illegal operators don't offer the protections that legal, regulated sportsbooks do. That includes responsible gaming functions, identity verification, and secure personal and financial data.
"Offshore sportsbooks don't give a damn about federal or state financial regulations," the letter warns. "Consumers never know if their information is secure or if they'll see their winnings. These operators ain't bound by age restrictions, meaning kiddos and young adults can be taken advantage of by these websites. Lastly, these illegal operators don't help boost the honesty of sports events by sharing info related to suspicious betting patterns or insider betting - something many regulated sportsbooks do."
SEEING RED: AMERICAN GAMING ASSOCIATION JOINS THE CALL
The American Gaming Association, a slick orchestrator of the gambling industry, showed its support for the congressional call. According to Bill Miller, the AGA president, "Offshore gambling websites are a menace to consumer protection and the economic benefits legal gaming provides for communities across the nation."
They're all in on clearing offshore gambling websites, illegal gaming, and busting those criminal gangs. The congressional group's pleading with the Justice Department to join forces with the gaming industry, sports leagues, and other players to flag those crooked operators, investigate 'em, and bring 'em to justice. They're requesting a response from the DOJ by September 6 - two days before the start of the NFL season, when wagering's gonna skyrocket - detailing any additional tools from Congress that will aid federal law enforcement action and ensure prosecutorial support to disrupt and dismantle these criminal operations.
So, there you have it - the drama unfolds as Capitol Hill takes aim at offshore sportsbooks. Hold on to your seats and your wallets, folks, because it's gonna be a wild ride. But remember, stay legal and keep your wits about you!
- Representative Dina Titus has urged Jeff Sessions to take action against illegal offshore sportsbooks.
- In 2021, nationwide internet searches for offshore sportsbooks increased by nearly 40 percent, and Bovada Sportsbook, MyBookie, and BetOnline are among those singled out for their online platforms.
- Offshore sportsbooks are not subject to the same regulations as legal, regulated sportsbooks, which includes responsibilities for consumer protection, data security, and age restrictions.
- The American Gaming Association agrees that offshore gambling websites are a threat to consumer protection and the economic benefits provided by legal gaming. The association is calling for increased federal action against these websites to ensure theirprosecution and dismantling.
