AG Letter to DOJ Assumes Offshore Sportsbooks Rely Heavily on US Banking Sector... They Don't

Submitted by C Costigan on

Written by :

C Costigan

Published on :

50 US attorney generals sent a joint letter to U.S. Attorney General Pam Bondi asking for the U.S. Department of Justice to shut down illegal gaming outlets, seize related assets and block unlawful transactions.

Their efforts center on having the U.S. Justice Department block access to illegal websites and associated payment systems.

Gamblng industry analyst Joe Brennan, Jr, who was instrumental in efforts to have the U.S. Supreme Court overturn Professional and Amateur Sports Protection Act of 1992 (PASPA), questioned how this is possible. 

He tweeted immediately following news of the letter: 

"Were the A-Gs advised that offshore sportsbooks over the last 20 years devised a system where they don’t use US banks, processors or TLDs, so there’s not much the DOJ can do?"

Over the last ten years, offshore gambling sites rely more heavily on cryptocurrency processing.  An entire cottage industry of "Bitcoin" and other crypto gambling sites have emerged as a result of this trend. 

Offshore sportsbooks have operated since the 1990s with a number of today's companies in existence now for over 20 years.  

The Attorney Generals also requested that the DOJ seize assets—including servers, domains, and financial proceeds—used in connection with unlawful gaming operations.  Most of these, however, are based offshore in jurisdictions where the activity is legal. 

The letter was co-sponsored by Attorneys General William Tong (Connecticut), Andrea Joy Campbell (Massachusetts), Mike Hilgers (Nebraska), and Derek Brown (Utah).

Interestingly, neither Nebraska nor Utah offer Internet sports betting.  Nebraska does regulate retail sports betting.  Utah does not regulate any forms of gambling. 

Attorneys general of the following states and territories joined the bipartisan coalition: Alabama, Alaska, American Samoa, Arizona, Arkansas, California, Colorado, Delaware, District of Columbia, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Louisiana, Maine, Maryland, Michigan, Minnesota, Mississippi, Missouri, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Northern Mariana Islands, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Vermont, Virginia, U.S. Virgin Islands, Washington, West Virginia, Wyoming.

In recent months, a handful of state regulators have mostly focused their attention on prediction markets and sweepstakes casinos, the latter of which advertise heavily throughout the U.S.  Sweepstakes casinos, while claiming to be "free-to-play", tend to rely more on the U.S. banking system through their extended model that involves real money purchases. 

- Chris Costigan, Gambling911.com Publisher 

Related Content

Alaska Senate Race Slight Tick in Favor of Mary Peltola Following Justice Dept Lawsuit News

Alaska Senate Race Slight Tick in Favor of Mary Peltola Following Justice Dept Lawsuit News

BetOnline on Friday shifted Alaska Democratic Senate candidate Mary Peltola odds from -325 to -350 while GOP incumbent Senator Dan Sullivan promises a payout of $275 for every $100 bet.
Has the Vivek Ramaswamy Universally Panned Ad Impacted the Odds of Other Ohio GOP Candidates?

Has the Vivek Ramaswamy Universally Panned Ad Impacted the Odds of Other Ohio GOP Candidates?

There are now margin of victory odds available for the Ohio governor's race with Amy Acton winning by 7.5% or more the favorite paying out $205 for every $100 bet.
Arsenal v Everton Goalscorer Betting Markets Payout Odds: Kai Havertz, Viktor Gyokeres, Noni Madueke

Arsenal v Everton Goalscorer Betting Markets Payout Odds: Kai Havertz, Viktor Gyokeres, Noni Madueke

Kai Havertz pays $145 for every $100 bet to score an anytime goal in this match.