LAS VEGAS (KTNV) — Officials from at least seven states are asking the federal government to crack down on illegal, offshore sportsbooks and online casinos.
Gaming officials from Nevada, New Jersey, Michigan, Illinois, Colorado, Louisiana, and Mississippi sent a letter to U.S. Attorney General Merrick Garland on April 28.
"The dangers posed by these unlawful operations are well-known, including a lack of investment in Responsible Gaming programs, loss of state tax revenue that funds important initiatives, no age verification requirements to protect minors, no controls to prevent money laundering, an absence of guarantees that customers will receive fair payouts, and much more," the letter read in part.
According to a November report from the American Gaming Association, Americans bet over $510 billion a year with illegal and unregulated operations, which costs the legal industry $44.2 billion in gaming revenue and state governments lost $13.3 billion in lost tax revenue.
The report also said the amount of unregulated gaming machines continues to grow in the United States and it's taking advantage of gamblers. For example, the association said when looking at data from 2021 to 2022, slot machines in Nevada had a 7.16% win rate compared to an estimated 25% win rate for unregulated machines.
State gaming officials said part of their job is oversight to make sure strict rules are followed in order to prevent criminal activity and protect gamblers.
"The supervision we provide in these areas as well as others is critical to the operation of a legal, regulated gaming market that protects consumers," the letter reads. "Illegal offshore casinos and sportsbooks undergo none of these procedures - they often will simply disappear with their customers' funds and provide no resources to assist those who may need help."
According to the letter, state gaming officials are asking the Department of Justice to help address illegal gambling and to prosecute offshore sites.
The American Gaming Association said commercial or tribal casino gaming is legal in 42 states, iGaming is legal in six states, and sports betting is legal in 36 states and the District of Columbia.
