Harrisburg, PA – A bipartisan coalition of 50 state attorneys general, including Pennsylvania’s top law enforcement official, is calling on the U.S. Department of Justice to take aggressive action against illegal offshore gambling operations draining billions in potential tax revenue and putting consumers at risk.
Attorney General Dave Sunday joined the effort Wednesday, urging federal authorities to block access to unlawful gambling websites, seize assets tied to these operations, and prevent financial transactions through platforms like VISA and MasterCard that support the illegal gaming economy.
In a letter addressed to U.S. Attorney General Pam Bondi, the coalition warned that foreign gambling platforms often fail to verify users’ ages, skirt tax laws, and ignore regulations designed to protect players — all while targeting vulnerable populations, including minors.
“Illegal offshore gaming and gambling companies circumvent all state and federal laws with one mission — to increase players and maximize profits,” Sunday said in a statement, noting that such operations potentially cost Pennsylvania tens of millions annually in lost tax income.
Online gaming remains legal in Pennsylvania but is strictly regulated through the Pennsylvania Gaming Control Board. The state reported nearly $6.4 billion in legal gaming revenue during the 2024–2025 fiscal year, with online casinos contributing almost $2.5 billion. In contrast, the coalition estimates illegal online gambling nationwide may top $400 billion each year, translating to over $4 billion in lost taxes for state governments.
The letter, spearheaded by AGs from Connecticut, Massachusetts, Nebraska, and Utah, calls for a crackdown under the Unlawful Internet Gambling Enforcement Act. It proposes blocking access to illegal gaming websites, freezing payment channels, and seizing assets like servers, domains, and proceeds tied to illicit gambling operations.
The attorneys general also want the DOJ to work directly with states, banks, and payment processors to dismantle financial networks that support these offshore operators.
Consumers are urged to verify the legitimacy of any online gambling site they use, and to watch for red flags like unrealistic promotions, hidden withdrawal limits, and misleading “free play” offers — all tactics often deployed by unlicensed gambling sites.
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Key Points
- AG Dave Sunday joined 49 other state attorneys general in asking DOJ to crack down on illegal offshore gambling
- Coalition says unlicensed online gambling costs states billions in lost tax revenue
- Letter calls for federal enforcement to block sites, seize assets, and disrupt payment systems
