US Congress calls for action on “thriving and unfettered” offshore sportsbook market
Twenty-eight congressmen and women slam “nearly indistinguishable” operators including Bovada and MyBookie
More than two dozen members of the US Congress have written to the US Attorney General calling for a federal crackdown on illegal offshore sportsbooks targeting the US market.
The 28-member group includes representatives of the Congressional Gaming Caucus including co-chair and Nevada congresswoman Dina Titus, as well as Pennsylvania congressman Guy Reschenthaler.
The group calls on Attorney General Merrick Garland to make a “concerted effort” to prosecute illegal online sportsbooks including high profile names like Bovada, MyBookie and BetOnline, who all target the US market despite not having licenses to operate in any US state.
“As this nascent legal market continues to expand, we cannot turn a blind eye to the fact that the illegal market is thriving and operating unfettered,” the group wrote.
“These illegal operations also offer generous promotions and favorable odds to entice US customers and are frequently cited in reputable sports media channels.
The letter continues: “Internet searches nationwide for offshore sportsbooks increased by almost 40% in 2021, outpacing searches for legal ones, with Bovada constituting half of all sportsbook brand searches.
“These dangerous operators are not relegated to the dark web, but instead are easily accessed through any computer or smart phone. This creates confusion for many consumers who may not even know they are wagering illegally,” it adds.
The group questioned Federal government inaction on this issue, citing the lack of responsible gambling practices being employed by illegal operators, things which are being utilized extensively by the legal sportsbook market.
“These predatory operations expose our constituents to financial and cyber vulnerabilities; do not have protocols to address money laundering, sports integrity, or age restrictions; and undermine states’ efforts to capture much needed tax revenue through legal sports betting channels,” the group wrote.
The letter calls for cooperation between the US Department of Justice and the gaming industry to identify the “worst actors” investigating and prosecuting them, while providing further education to American punters on the dangers of illegal wagering.
In a nod to the immediate nature of the problem and with the aim of facilitating immediate DOJ action, the group have asked for a detailed response and potential outline of tools needing congressional approval aimed at “disrupting and dismantling” these illegal firms.
The American Gaming Association (AGA) has welcomed the move by the congressional group and pointed to the “significant threat” to the legal sportsbook market as a top priority for the AGA.
The AGA has previously called for DOJ intervention on the issue but noted the congressional letter as indicating the broad interest in addressing illegal gaming.
“Our country’s leaders are clearly and appropriately alarmed by the prevalence of offshore sportsbooks and law enforcement must act to identify the worst actors, investigate and prosecute them,” AGA president and CEO Bill Miller said.
“We look forward to continuing to work with allies on the Hill, sports leagues and the Department of Justice to prioritize robust enforcement that will protect Americans from the predatory illegal marketplace,” he added.
Miller was joined in his applaud for the congressional letter by the NFL.
“We appreciate Congress’s continued engagement and join in urging the Department of Justice to address problems posed by illegal offshore gambling operators, an issue that affects all who care about the integrity of sports,” NFL VP and chief compliance officer Sabrina Perel said.