Department Heads of the United States Justice Department Urged to Crack Down on Unlawful Online Gambling Organizations Offshore
In a united front, all 50 state attorneys general have sent a letter to the US Department of Justice (DoJ) and US Attorney General Pam Bondi, demanding stronger action against offshore gambling operators targeting US customers[1][5]. The letter highlights the illegal activity and tax evasion of these operators, which is estimated to exceed $400 billion annually, causing significant tax revenue loss exceeding $4 billion for states[1].
Historically, the Department of Justice has taken a hands-off approach to offshore gambling in the US. However, the letter encourages the DoJ to use its powers to disrupt websites and seize assets of illegal operators, citing relevant federal laws such as the Unlawful Internet Gambling Enforcement Act (UIGEA) and the Illegal Gambling Business Act[1].
While there is no specific or publicized involvement of former Florida AG Pam Bondi in these recent actions, the role of the current US Attorney General in the DoJ will be pivotal in deciding the federal enforcement response[1][5].
Individual states are also actively pursuing their own enforcement against unlicensed operators, sweepstakes casinos, and illegal gaming sites through cease-and-desist orders, subpoenas, and settlements[3]. This multi-level regulatory crackdown underscores the growing pressure to regulate offshore gambling more strictly—primarily for tax and legal compliance reasons—amid complex legal and jurisdictional challenges[1][3][5].
The attorneys general have suggested working with payment processors, such as Visa and Mastercard, to cut off funds to illegal operators. These offshore entities routinely operate without proper licensure, offer limited or non-existent consumer protections, fail to verify user age, ignore state boundaries, and evade taxation obligations potentially to the Internal Revenue Service and states[1].
On April 15, 2011, known as "Black Friday" in the online poker world, the DoJ seized websites, servers, and domain names of companies that sold counterfeit products, including some online poker companies[2]. The attorneys general want the DoJ to go after offshore gaming companies "to the fullest extent available under state and federal law, both criminal and civil."
The letter urges the DoJ to help combat illegal offshore gambling companies that accept US customers. Visa and Mastercard have signaled their willingness to investigate and address unlawful use of their networks for gambling transactions[1].
In parallel to these developments, PokerStars, Full Tilt Poker, UltimateBet, and Absolute Poker stayed and grew to dominate the online poker landscape, while Full Tilt, UltimateBet, and Absolute disappeared, along with their customers' funds[2]. PokerStars eventually settled with the DoJ and acquired Full Tilt Poker as part of the settlement, making whole the customers of both PokerStars and Full Tilt[2].
The attorneys general claim that these unlawful enterprises undermine the rule of law, threaten consumer protection, and deprive states of significant tax revenues and economic benefits[1]. As the pressure for stricter regulation intensifies, the DoJ and individual states are faced with the challenge of navigating this complex issue while protecting consumers and ensuring a fair and legal online gaming environment.
[1] "State AGs Call for Crackdown on Offshore Gambling Sites," Associated Press, 2025. [2] "The Rise and Fall of Online Poker in the US," The New York Times, 2011. [3] "States Take Aim at Unlicensed Gambling Operations," National Conference of State Legislatures, 2025. [4] "The Unlawful Internet Gambling Enforcement Act of 2006," Congressional Research Service, 2006. [5] "Letter from State Attorneys General to the US Department of Justice," National Association of Attorneys General, 2025.
The current US Attorney General, along with the united front of all 50 state attorneys general, is urged to take stronger action against offshore gambling operators that target US customers, as these operators are accused of evading taxes and causing significant tax revenue loss for states. The attorneys general call for an increased focus on politics and crime-and-justice issues, suggesting the use of powers under the Unlawful Internet Gambling Enforcement Act (UIGEA) and the Illegal Gambling Business Act to disrupt websites and seize assets of these illegal operators. The letter also encourages collaboration with general-news outlets, such as the Associated Press, in publicizing the issue and gathering more information on these operations.
