State attorneys general team up to target organized sweepstakes and offshore gaming platforms
In the United States, the crackdown on illegal offshore gambling sites is intensifying, with state attorneys general (AGs) coordinating their efforts to urge the Department of Justice (DOJ) to take decisive action against the extensive illegal offshore gambling industry.
State-Level Enforcement
Several states, such as Michigan and Arizona, are actively issuing cease-and-desist letters and taking enforcement actions against unlicensed offshore gambling operators. For instance, the Michigan Gaming Control Board recently targeted 15 illegal operators, ordering them to cease operations under state criminal and gaming laws, with follow-up involvement planned by the attorney general’s office if compliance is not met. New York and other states have also issued similar orders, reflecting a broader pattern of state-level crackdowns on these sites indulging in illegal online gambling and sweepstakes operations.
Role of the American Gaming Association (AGA)
While the American Gaming Association (AGA) is not explicitly mentioned in the latest reports, it is known from broader industry knowledge that the AGA actively supports enforcement efforts and advocates for coordinated federal and state action to protect regulated markets and consumers from illegal offshore operators. The AGA regularly collaborates with state regulators and attorneys general to highlight the threat posed by offshore sites to legal state-regulated gaming markets, tax revenue, and consumer safety.
Coordinated Push by State Attorneys General
In August 2025, Missouri Attorney General Andrew Bailey, representing a coalition of 50 state and territorial AGs, publicly called on U.S. Attorney General Pam Bondi and the DOJ to use all available tools to shut down illegal offshore gambling platforms. These platforms are described as operating without licenses, consumer protections, or jurisdictional compliance, and linked to serious crimes such as money laundering and human trafficking. The AGs emphasize the significant economic harm and the public safety risks caused by these illegal sites and are pressuring the federal government for a firmer stance and increased enforcement resources.
Summary
The current status is that the crackdown is active both locally at state regulatory and legal levels and increasingly calls for broader federal enforcement support to effectively dismantle illegal offshore gambling operations impacting U.S. markets and communities. States can also target servers that host the offshore gambling sites and work with search engines to combat misinformation. The American Gaming Association (AGA) is pursuing the sweepstakes industry, with a recent survey showing that 90% of sweepstakes users dispute the notion that the sweepstakes is entertainment, rather than gambling. The arguments presented by sweepstakes operators are considered weak and lacking substance.
Sports Regulation in the Context
Considering the ongoing crackdown on offshore gambling sites, one might argue that sports regulatory bodies within these states could also play a role in preventing illegal sports betting activities hosted by these platforms. The lack of licensing and compliance with state laws equates to the failure of these sites to adhere to sports-specific regulations, thus creating a necessary concern for sports governing bodies.
Interconnectedness of Illegal Gambling and Black Market Activities
Remembering the appalling associations of criminal activities like money laundering and human trafficking linked to illegal offshore gambling platforms, it is crucial to recognize that such operations provide an ideal ground for other illicit activities to thrive. As states and federal authorities intensify their efforts to stop these criminal elements, they may find interconnections with organized crime networks that extend beyond the scope of gambling.
