Attorney General Bailey calls on DOJ to crackdown on $400 billion illegal offshore gambling industry

JEFFERSON CITY, Mo. – Missouri Attorney General Andrew Bailey has joined 49 other state and territorial attorneys general in calling on United States Attorney General Pam Bondi and the Department of Justice (DOJ) to take immediate and decisive action against the rampant spread of illegal offshore online gambling operations throughout the nation.

“Illegal offshore gambling platforms are siphoning billions of dollars away from American communities, exploiting vulnerable consumers, and fueling transnational crime,” said Attorney General Bailey. “These foreign-based operations function entirely outside the bounds of the law, no licensing, no consumer protections, no age verification, and no tax compliance. That ends now. I’m calling on the DOJ to use every tool at its disposal to shut them down.”

These unregulated offshore gambling sites, largely operated by foreign-owned entities, pose a serious threat to vulnerable individuals and the integrity of state economies. Operating outside the jurisdiction of the United States, these companies deliberately ignore state licensing laws and provide no meaningful consumer safeguards. They fail to verify the age of users, leaving children exposed to predatory gambling practices. Additionally, they routinely bypass state boundaries and legal frameworks, allowing them to operate in defiance of state law and policy.

Because these operations are based overseas, they also avoid paying state and federal taxes, resulting in staggering financial losses for American communities. Recent estimates show that the volume of illegal online gaming exceeds $400 billion annually, leading to more than $4 billion in lost tax revenue for state governments. Beyond the economic damage, these illegal platforms undermine legitimate, state-regulated gaming markets and have been linked to more serious criminal conduct, including money laundering, human trafficking, and organized crime.

In response, a coalition of attorneys general is calling on the Department of Justice to take immediate federal action. Specifically, the letter urges the DOJ to seek injunctive relief and seize domain names under the Unlawful Internet Gambling Enforcement Act. The attorneys general also request that the DOJ use its authority under 18 U.S.C. § 1955(d) to seize assets, servers, and proceeds associated with these illegal gambling sites. Finally, they are asking the DOJ to partner with financial institutions and payment processors to block unlawful transactions and dismantle the financial infrastructure that enables these criminal enterprises to thrive.

The DOJ has successfully employed similar strategies before, including the 2011 “Black Friday” crackdown on counterfeit websites and the 2024 seizure of domains tied to a major Russian cybercrime ring. Attorneys general argue that the same approach must now be applied to illegal gambling.

“Missourians deserve better than a system that allows bad actors to profit off of addiction, lawlessness, and fraud,” concluded Attorney General Bailey. “My Office stands ready to partner with federal authorities to shut down these offshore gambling rings, protect consumers, and restore the rule of law.”

The full letter can be read:

 

ATTY GEN LETTER