State and federal attorneys general join forces to target and take legal action against sweepstakes and gambling websites operating offshore
In a bid to protect consumers and ensure regulatory compliance, the American Gaming Association (AGA) is actively lobbying for a federal crackdown on illegal offshore gambling sites. This push comes as states call on the U.S. Department of Justice (DOJ) to take stronger action against these operators that cater to American players without proper licensing.
The AGA's campaign is backed by research and a precedent set in 2011, when online poker sites were seized. Tres York, vice president of government relations at the AGA, recently discussed the data on a webinar hosted by the Indian Gaming Association.
The risk posed by illegal offshore gambling sites to Americans, particularly the young, and the lost tax revenue for states are key concerns. According to the AGA's estimates, states are losing approximately $4 billion in tax revenue due to offshore gambling.
The AGA's push is reinforced by state attorneys general, who are taking legislative and enforcement measures against unlicensed offshore and sweepstakes-based gambling platforms. For instance, Montana is moving to ban sweepstakes-based casinos outright, while New Jersey is enforcing bans on certain sweepstakes casino operations.
The AGA's survey suggests that sweepstakes is, in fact, gambling. A staggering 69% of participants describe sweepstakes casinos as places to wager real money. Moreover, 80% of sweepstakes players spend money monthly, and nearly half spend weekly, without the safety nets offered by regulated operators.
The sweepstakes operators' arguments have been deemed weak and without merit. Sweepstakes operators are aware that their activities are illegal, and states can target companies licensed in their states that are working with illegal operators, particularly in payment processing or technology supply.
Furthermore, states can target servers hosting the sites and work with search engines to combat misinformation. The new research on sweepstakes is being used as a tool to counter the nonsensical arguments presented by the operators.
90% of sweepstakes users dispute the notion that the sweepstakes is entertainment, not gambling. This further underscores the need for stricter regulation and enforcement against illegal online gambling venues, especially offshore sites that evade state control.
Recently, 50 state attorneys general released a letter asking U.S. Attorney General Pam Bondi to tackle offshore gambling. The AGA's proactive federal lobbying and advocacy campaign, coupled with the reinforcement from state attorneys general, mark a significant step towards combating illegal offshore gambling and the sweepstakes industry.
However, challenges remain. For instance, shutting down offshore sportsbooks has been a concern in the past. Nonetheless, York suggests that the federal government has the resources to conduct complex investigations and seize assets from offshore gambling sites.
The International Gaming Association (IGA) is scheduled to have a conference with regulators to use the gathered information to keep moving forward in addressing the issue. The battle against illegal gambling is a complex one, but with the AGA's relentless advocacy and the support of state attorneys general, progress is being made.
- The American Gaming Association (AGA) is not only pushing for a federal crackdown on illegal offshore gambling sites but also considering offshore sportsbooks as a significant concern, aiming to protect consumers from the risks associated with these venues.
- In their advocacy, the AGA, alongside state attorneys general, are challenging the stereotype that sweepstakes are purely entertainment, emphasizing the need for stricter regulation and enforcement against illegal online gambling sites, particularly offshore venues evading state control.
