Joining forces with counterparts from 49 states and territories, Missouri Attorney General Andrew Bailey is taking a stand against the illegal offshore online gambling industry, which is estimated to be worth a staggering $400 billion. These operations, typically based outside of U.S. jurisdiction, fly in the face of state laws, offering no consumer protections, disregarding age verification, and sidestepping tax obligations. According to a recent statement obtained by Missouri Attorney General's Office, the coalition is urging the Department of Justice (DOJ) to crush this vast network of unregulated gambling sites.
"Illegal offshore gambling platforms are siphoning billions of dollars away from American communities, exploiting vulnerable consumers, and fueling transnational crime," Bailey stated. This form of illegal online gaming not only evades state-operated gambling revenue streams but also poses a risk of connecting individuals to other forms of criminal activity such as money laundering, human trafficking, and organized crime. These sites' refusal to adhere to state boundaries, and legal frameworks, allow them to operate in defiance of state law, and policy, as per Missouri Attorney General's Office.
The economic impact is severe, with these offshore businesses avoiding state and federal taxes, leading to a loss of over $4 billion in annual tax revenue for state governments. On the practical side, the attorneys general are pushing for the DOJ to use existing legislative tools like the Unlawful Internet Gambling Enforcement Act to obtain injunctive relief and confiscate associated domain names. They are also calling for a partnership between the DOJ, financial institutions, and payment processors to stymie illegal transactions and upend the financial backbone that supports these illegal enterprises.
This would not be the DOJ's first rodeo dealing with digital delinquency; past strategies employed include the infamous 2011 "Black Friday" operation against fraudulent websites, and more recently, the 2024 seizure of domain names linked to a Russian cybercrime syndicate. Using a similar playbook could prove effective against the unauthorized, and unregulated gambling sites that ignore consumer safety and evade taxes.
"Missourians deserve better than a system that allows bad actors to profit off of addiction, lawlessness, and fraud," Bailey emphasized, indicating a readiness from his office to ally with federal authorities to dismantle these offshore gambling rings. With calls for immediate federal action, the Missouri Attorney General is leading a charge to protect consumers and reestablish legal order in the face of rampant online gambling crime.
