Offshore Gambling Reportedly a Target of the US Department of Justice

Article by : Erik Gibbs Sep 1, 2023

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The US Department of Justice (DOJ) has responded to a letter sent by seven state gambling regulators in April. The letter intended to urge the DOJ to intensify its efforts against illegal online gambling.

This response follows the recent high-profile arrest of Richard Sullivan, the alleged head of a multimillion-dollar sports betting ring. The operation was run illegally in the US while being licensed in Antigua.

In April, state gaming regulators and the American Gaming Association penned a letter to Attorney General Merrick Garland. The letter intended to call on the federal government to take more stringent action against illicit offshore gaming platforms.

The DOJ has now officially responded to these concerns through a letter from its Legislative Affairs Liaison-Detail, Megan Bennett. Bennett emphasized that combating illegal gambling is indeed a priority for the DOJ.

Bennet also added that the federal law enforcement agency is deeply committed to addressing the issue of illegal online gambling. She stated that the DOJ acknowledges the negative impact of illegal gambling on individuals and communities and affirmed that the department will continue to employ all available tools to detect, investigate, and prosecute such illegal activities.

The statement made by the DOJ underscores the seriousness with which the problem of illegal offshore gambling platforms is bringing to American and international companies. This commitment gains particular significance considering the recent arrest of Richard Sullivan.

Although Bennett’s letter did not explicitly mention the high-profile arrest of Sullivan, it underscored the DOJ’s ongoing capability to investigate and prosecute illegal internet gambling. The DOJ has reassured its commitment to addressing the issue of illegal online gambling, which holds significance for state regulators and the American Gaming Association.

The Massachusetts Gaming Commission (MGC) recently drafted a letter to US Attorney General Merrick Garland in response to the risks and threats posed by illegal offshore betting operators.

To emphasize the urgency of the matter, the MGC also included a letter signed by a coalition of seven states, which include Colorado, Illinois, Louisiana, Michigan, Mississippi, New Jersey, and Nevada.

The coalition of state regulators pointed out that illegal gambling operations evade responsibilities such as contributing to responsible gambling programs and paying taxes. Americans are estimated to wager approximately $511 billion annually on unregulated sportsbooks, gaming platforms, and other games.

This unregulated activity has detrimental consequences, impacting taxpayers and the legal gambling industry. The American Gaming Association has also called upon the US Department of Justice to take decisive action against these illegal operations.