Massachusetts Joins States in Battle Against illegal offshore gambling Sites
In a move that underscores the growing concern over illegal offshore gambling, Massachusetts has taken a significant step by formally requesting the federal government’s intervention. This initiative positions the Bay State alongside a coalition of states that are rallying against offshore gambling operations, which are believed to be diverting billions from the legal US gambling market annually.
The Massachusetts Gaming Commission’s decision to pen a letter to the Department of Justice (DOJ) is a bold appeal for the federal agency to “prioritize investigation of these offshore sites.” This action aligns Massachusetts with other states like Colorado, Illinois, Louisiana, Michigan, Mississippi, Nevada, and New Jersey, who had previously reached out to the DOJ with a similar plea.
On August 5, 2025, a bipartisan coalition of 50 attorneys general, co-sponsored by Massachusetts AG Andrea Joy Campbell, sent a letter to U.S. Attorney General Pam Bondi urging the DOJ to prioritize enforcement against illegal offshore gambling under the Unlawful Internet Gambling Enforcement Act, including seizing assets and blocking access to sites.
The High Stakes of Illegal Offshore Betting
The Massachusetts Gaming Commission approved a separate letter on an unspecified date in 2023 or later to U.S. Attorney General Merrick Garland, joining Colorado, Illinois, Louisiana, Michigan, Mississippi, Nevada, and New Jersey in requesting federal crackdown on offshore sites that exploit legalized markets.
According to a report by the American Gaming Association, Americans gamble approximately $511 billion yearly through illegal and unregulated sportsbooks, online casinos, and other platforms. This illicit activity is not only a significant loss to legal operators but also deprives state governments of around $13.3 billion in tax revenue annually. The states’ collective message to US Attorney General Merrick Garland emphasizes the willingness to assist in addressing the threats posed by illegal gambling entities.
The coalition of attorneys general estimated illegal online gaming exceeds $400 billion annually, leading to over $4 billion in lost state tax revenue, while highlighting risks like money laundering, fraud, and lack of consumer protections.
But the impact of illegal offshore gambling extends beyond financial losses. The original letter to Garland highlighted broader concerns, including consumer protection, gaming integrity, and state revenue. A darker aspect also came to light: the potential for human trafficking and illegal drug trade financing through the massive earnings of these illicit operations. This multifaceted threat underscores the necessity for federal engagement and heightened attention.
Federal Response and the Need for Collaboration
While the federal government’s stance or actions against illegal offshore operations remains unclear, the urgency for a collaborative effort between state and federal authorities is palpable. Cathy Judd-Stein, Chair of the Massachusetts Gaming Commission, expressed hope for ongoing efforts that may not yet be public knowledge. The unity among states in seeking federal assistance speaks volumes about the severity of the issue and the complexities involved in combating these offshore sites.
Protecting the Vulnerable: A Core Concern
A recent NCAA survey shedding light on young adult sports wagering behavior has added another layer of concern. With 58 percent of 18- to 22-year-olds engaged in sports betting, and a notable percentage using offshore platforms, the need for stringent regulation becomes even more evident. Massachusetts has been at the forefront of advocating for consumer and minor protections, especially concerning sports betting advertisements. Illegal operations, according to Judd-Stein, complicate regulatory efforts and necessitate a balanced approach to policymaking that prioritizes the well-being of all residents.
As states like Massachusetts spearhead discussions on consumer protection and the eradication of illegal gambling markets, the call for federal intervention is a crucial step towards safeguarding the integrity of the US gambling industry. The united front presented by the states sends a strong message about the importance of addressing the challenges posed by offshore gambling sites head-on.