States' Attorneys General Unite to Target and Disrupt Sweepstakes and Overseas Gambling Platforms
In a coordinated effort to protect consumers and uphold the integrity of regulated gaming markets, the American Gaming Association (AGA) and numerous state attorneys general are taking a firm stance against illegal offshore gambling and unregulated sweepstakes operations.
The AGA, an organisation representing the $261 billion U.S. casino industry, consistently emphasises the risks posed by these unscrupulous operators, including the lack of consumer safeguards, potential for fraud, and involvement in money laundering.
The AGA is not only advocating for stronger enforcement against these illegal operators but is also calling for enhanced federal and state collaboration to safeguard consumers and support the regulated gaming industry. This collaboration extends to working with gaming operators, regulators, and law enforcement agencies to identify and combat illegal operators, as well as promoting legal alternatives.
State attorneys general, too, view illegal offshore gambling and sweepstakes as threats to state-regulated markets and a source of consumer harm. Several states have launched investigations, litigation, and enforcement actions against these operators, while some have supported or proposed legislation aimed at strengthening their ability to crack down on illegal operators.
These efforts include blocking payment processing and internet access to unauthorized gambling sites, a strategy that some state attorneys general believe could significantly impact the revenue these sites generate. Furthermore, state AG offices often issue consumer warnings to educate the public about the risks of illegal offshore gambling and sweepstakes.
Tres York, vice president of government relations at the AGA, recently discussed data gathered on the sweepstakes industry during an Indian Gaming Association webinar. The data suggests that 90% of sweepstakes users dispute the notion that it is merely entertainment, rather than gambling.
Moreover, the AGA survey found that 69% describe sweepstakes casinos as places to wager real money, 80% of sweepstakes players spend money monthly, nearly half spend weekly, and the number of monthly sweepstakes players is twice as high in states lacking sweepstakes bans.
York also highlighted the prevalence of online ads for offshore or sweepstakes casinos, with large companies spending hundreds of millions of dollars a year targeting Americans in states like California and Texas.
However, concerns have been raised about the response from Indian Country in this matter, with Tres York expressing concern about its anemic nature and lack of significant weight.
The AGA's pursuit of the sweepstakes industry, as well as the state attorneys general's calls for a crackdown on illegal offshore gambling sites, have gained momentum in recent months. In a letter to U.S. Attorney General Pam Bondi, 50 state attorneys general asked for action against these sites, claiming they pose a risk to Americans, especially the young, and cost states $4 billion in lost tax revenue.
York suggests that states could target companies licensed in their states for payment processing or technology supply to these illegal operators, servers hosting the sites, and search engines to combat misinformation.
The debate over illegal gambling operations continues, with some questioning the success of past efforts to shut down offshore sportsbooks and asking what can be done differently this time. Despite these challenges, the AGA and state attorneys general remain committed to their mission of protecting consumers and preserving the integrity of regulated gaming markets.
The American Gaming Association (AGA) is not only advocating for stronger enforcement against illegal offshore gambling and unregulated sweepstakes operations, but also calling for enhanced federal and state collaboration to safeguard consumers and support the regulated gaming industry. Furthermore, the AGA views the unscrupulous operators of these illegal platforms as posing risks such as lack of consumer safeguards, potential for fraud, and involvement in money laundering, which are commonly associated with sports events.
