The first two weeks of September brings fans the kickoff of the college football season and the NFL season., And the baseball playoff races. Seems like a good time for the authorities—such as the Department of Justice (DOJ)—to show a little muscle in its attempt to crack down on illegal sportsbooks.
The DOJ responded to a letter from the Nevada Gaming Control Board (NGCB) that urged more action.
In its correspondence, the DOJ said it continues to pursue investigations. When violations have been substantiated, the FBI will forward the allegations to federal prosecutors to pursue charges.
“The Department takes seriously the issue of illegal gambling, including illegal online gambling, and continues to successfully investigate and prosecute illegal internet gambling,” the letter said. “The FBI works hard to establish and maintain strong partnerships with both public and private entities to combat illegal gaming. The Department appreciates the adverse illegal gaming has on individuals and communities and will continue to use all available tools to detect, investigate, and prosecute illegal activity.”
In November, the American Gaming Association (AGA) released a report that said illegal gambling is estimated to be a $511 billion-per-year market, taking $44 billion away from legal operators.
“We’re encouraged to see this response from the Department of Justice, indicating they are continuing to pursue investigations into illegal gambling activity,” said Chris Cylke, the AGA’s senior vice president of government relations, in a statement to CDC Gaming Reports. “Offshore gambling websites are a major threat to consumers and the legal gaming industry, and we are glad the Department is giving this issue the attention it deserves. The AGA will continue to engage with various levels of policymakers and law enforcement on the need to combat these bad actors.”
Nevada, Michigan, Colorado, Illinois, Louisiana, Mississippi and New Jersey were among a coalition of states urging the DOJ to prioritize illegal offshore sportsbooks and online casinos. The letter asked Attorney General Merrick Garland to address the threats illegal gambling poses that state regulators can’t tackle alone.
In addition, offshore operators don’t undergo or comply with strict licensing requirements imposed on legal, regulated operators. Those illegal operators also aren’t subject to the scrutiny of state regulators who conduct thorough suitability.
Casino consultant Brendan Bussmann, managing director of B Global who tracks sports betting in the U.S., said the federal government should devote more resources to cracking down on illegal gambling.
“This is something that needs to be dealt with in a meaningful way,” Bussmann said, per CDC. “It’s good for the industry and consumers. The problem is there’s a limited amount of resources to do this and the feds have turned a blind eye for some time.”
Bussmann said other countries such as the United Arab Emirates block the offshore websites and suggested the U.S. should do the same.
“It’s about time the feds step up to the plate and deal with this issue. We know that regulated gaming is the best form out there; it puts all operators on a level playing field and offers consumer protections.”
According to CDC, Bussmann also suggested states that offer only retail sports betting should add mobile wagering. That would encourage more people to bet legally, as has already been the case, and eliminate a need for bookies and offshore books.
“In my home state of Nebraska, you have legalized sports betting at two facilities now in Lincoln and Grand Island and guess what? You’ve done nothing for the bookie at the frat house and nothing for all the people who two Saturdays from now will bet off Bovada while they sit in the (Nebraska Cornhusker) stadium.”
