Justice Department under pressure: Prosecutes urged to intensify crackdown on unlawful internet gambling platforms
In an effort to curb the growing issue of illegal online gambling in the United States, a group of 50 state and territorial attorneys general have collaborated with the Department of Justice (DOJ) to enforce federal laws against offshore operators.
Historically, enforcement actions against illegal offshore gambling sites have been limited since 2013. However, recent efforts, such as the letter from the attorneys general, have sought to amplify enforcement efforts using federal laws like the UIGEA and Illegal Gambling Business Act.
The collaboration has shown some progress in emphasizing the need for stronger enforcement. State agencies, such as Connecticut and Nebraska, have issued cease-and-desist letters targeting offshore operators. Visa and Mastercard have also expressed readiness to cooperate in the fight against illegal online casinos and offshore gambling operators.
However, the sheer volume of illegal online gaming, estimated at over $400 billion annually, continues to pose significant challenges. The lack of effective consumer protections and tax evasion by these operators remain major concerns.
One potential side effect of the crackdown on traditional offshore gambling could be the growth of crypto casinos. These platforms often operate outside traditional financial systems and offer users a level of anonymity, making it difficult for regulators to track transactions. This increase in anonymity and the complications in tracking financial flows are potential side effects of the growth of crypto casinos.
The evasion of tax obligations by offshore operators also leads to significant lost revenue for states, potentially impacting public services and economic development. The attorneys general are requesting tracking and blocking of financial flows supporting these operations, and are calling for the seizure of assets of companies and individuals involved in organizing gambling.
Critics of the initiative to suppress illegal online gambling warn that tightening regulations and blocking traditional payment channels could push players towards alternative payment methods, primarily cryptocurrencies. This could lead to an increase in problem gambling among vulnerable populations, as these platforms often do not provide adequate resources or safeguards for users.
Despite these challenges, the attorneys general are urging the Department of Justice to use all federal powers to suppress the activities of offshore online gambling operators. While the actions suggested by the attorneys general are advisory in nature, they are a significant step towards addressing the issue of illegal online gambling in the United States.
In comparison, legal and regulated online sportsbooks in the U.S. generated $23 billion in revenue during the same period, highlighting the potential economic benefits of a regulated market. However, until effective measures are in place to combat illegal gambling, the issue will continue to pose significant challenges to public safety and state revenues.
What about the potential increase in crypto casinos due to crackdown on traditional offshore gambling? Education and self-development are necessary to address the issue of problem gambling among vulnerable populations as they shift to alternative payment methods like cryptocurrencies, ensuring regulation and protections are in place.
