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Attorneys general

Maryland Joins 50-State Coalition Urging DOJ to Clamp Down on Illegal Online Sports Betting

Strategic Insights

— 1 min read

Maryland Attorney General Anthony G. Brown has joined a bipartisan coalition of 50 attorneys general in calling for increased enforcement actions by the U.S. Department of Justice (DOJ) against illegal offshore gaming operations. The coalition's letter to U.S. Attorney General Pam Bondi highlights the harm caused by these unlawful platforms, including exposure to fraudulent schemes, problem gambling, money laundering, human trafficking, and lost tax revenue for states. The estimated annual volume of illegal online gaming exceeds $400 billion, leading to over $4 billion in lost tax revenue for states.

Key Takeaways:

  • The 50-state coalition is urging the DOJ to assist in addressing the spread of illegal offshore gaming operations, citing harm to the rule of law, consumers, and the economy.
  • Illegal online sports betting and gaming operations are largely operated by foreign-based companies that operate without proper licensure, offer limited or non-existent consumer protections, and evade tax obligations.
  • The coalition asserts that illegal gaming operations expose users to fraudulent schemes and encourage problem gambling without any oversight or accountability; undercut state-regulated markets; and have been linked to money laundering, human trafficking, and other illegal conduct.
  • The estimated annual volume of illegal online gaming exceeds $400 billion, leading to over $4 billion in lost tax revenue for states.
  • The coalition is urging the DOJ to pursue injunctive relief under the Unlawful Internet Gambling Enforcement Act to block access to illegal websites and payment processing mechanisms related to illicit gaming operations.
  • The coalition is also urging the DOJ to seize assets, including servers, websites, domains, and proceeds, used by gaming operators that violate state and federal law.

Statistics:

  • Estimated annual volume of illegal online gaming: over $400 billion
  • Lost tax revenue for states: over $4 billion
  • Number of attorneys general joining the coalition: 50
  • Time period since DOJ has limited enforcement actions: 2013

Sources:

  • [Maryland Attorney General's Office]
  • [Coalition Letter to U.S. Attorney General Pam Bondi]
  • [U.S. Department of Justice]

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