Michigan and New Jersey are among the states calling on federal regulators to launch a crackdown on offshore sportsbooks and casinos.
They were joined by Colorado, Illinois, Louisiana, Mississippi and Nevada in writing to Attorney General Merrick Garland to voice their concerns.
These states want combating offshore betting sites to become a priority for the US Department of Justice, arguing that they put bettors at risk.
“In Michigan, strict laws and rules govern internet gaming and sports betting and provide consumer protections, promote confidence and ensure fair and honest gaming,” said Henry Williams, executive director at the Michigan Gaming Control Board.
“We are willing to help the U.S. Department of Justice in any way we can as it pursues enforcement of U.S. laws against offshore illegal gaming enterprises that take advantage of our citizens.”
He stressed that offshore sites do not impose age verification checks to protect minors, they do not add any controls to prevent money laundering and they do not invest in responsible gambling programs.
Furthermore, bettors are never guaranteed a payout if they win. States also do not earn any tax income from offshore sportsbooks, which may try to undercut licensed, regulated online sportsbooks by offering reduced juice odds.
“State regulators like the MGCB ensure operators offer products that pass technical standards and testing, and we also require operators to comply with reporting requirements,” added Williams said. “Offshore operators flaunt state regulations and offer products that do not protect the public, which greatly concerns me and my fellow state regulators.”