AGA: DoJ Should Crack the Whip on Illegal Gambling Sites

The American Gaming Association (AGA), USA’s gaming industry trade body, has finally taken steps to officially call on the Department of Justice to take action on the widespread Illegal gambling sites.

In a strongly worded letter to Attorney General Merrick Garland, the AGA more specifically mentioned the need to crack down on illegal online sportsbooks and casinos and “unregulated skill game machines.” It was a hard-hitting letter that took a no holds barred format. The association even mentioned names like Bovada, MyBookie, and BetOnline as some of the companies that openly violate federal and state laws.

Following his strongest indication that he would go after illegal gambling sites back in February, AGA President and CEO Bill Miller, who signed off on the letter, wrote:

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“While the challenge of illegal gambling is not new, the brazen and coordinated manner in which it occurs- both online and in communities- has elevated this problem to a level that requires significant federal attention. We urge the department to make it a priority to act to protect American consumers, crackdown on illegal operators, and enforce federal regulations.”

On top of siphoning revenue that local governments would have otherwise taxed, these illegal sites have been a thorn in the gambling industry’s flesh for some time now as they are putting American gamblers at risk. In addition, illegal offshore sites may not necessarily be secure enough for players as they could get scammed out of their hard-earned money, while some may be fronts for laundering money. Part of the letter reads:

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“Illegal operators have been put on notice: their days as a scourge on our nation are numbered. These bad actors prey on vulnerable customers, offer no consumer protections, do not ensure integrity or fair play, and generate no economic benefit for states or tribal nations.”

Solutions AGA Offered the DoJ for Curbing Illegal Gambling

The letter wasn’t only a letter of complaint, so to say. It was an insightful piece that offered solutions for the troubled happenings in the industry. After all, if there is an association best placed to know the solutions to the gambling industry’s troubles, then the AGA would take a front-row seat. Here are some of the recommendations it gave to the Department of Justice;

• That the department continues to educate consumers on the legal gaming options available to them and the dangers of using the illegal gaming options
• Investigating and indicting the largest offshore operations. It is at this point that MyBookie, Bovada, and BetOnline were mentioned as being some of the companies that glaringly violate state and federal laws. While addressing this point, President Miller noted that there might be difficulty in pursuing prosecutions and convictions for offshore operations (Of course, due to the murky waters of foreign policy). However, he further stated, reasonably so, that investigating these accounts would likely deter Americans from using them.
• Clarifying that skill-based machine operators must follow the strict anti-money laundering regulations that are in place.

Pushback on the Letter

It wouldn’t be called the land of the free without the expected pushback, would it? Indeed, some Twitter users found fault in the heavy-hitting letter from the AGA. For instance, some Twitter users felt that the policies the American Gaming Association had put in place were too strict and had contributed to the rise of illegal gambling in the country due to their stifling nature.

Also, there is a grey area that is the skill-based machines. These machines are spread all over stores across the country. The major bone of contention between their owners and the AGA always stems from their owners’ advocating that they are not gambling machines. On the other hand, the AGA considers them gambling machines, which has sparked fierce debate because they share quite a lot with regular slot machines. They remain unregulated, which means that the states miss out on revenue generated from the machines.

Miller, on his part, argues that skill machines may offer confusion to consumers as to the difference between regulated and unregulated machines. A section of the letter to the DoJ outlines the nature and danger of these unregulated gaming machines as follows:

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“While regulated gaming machines undergo rigorous testing to ensure game integrity and fairness, there is no such oversight for these illegal or unregulated games. Nor do the machines comply with anti-money laundering or cybersecurity standards established by relevant governing bodies. Further, while the regulated gaming industry invests hundreds of millions of dollars annually to support responsible gambling and works every day to ensure that regulated gaming is enjoyed responsibly, illegal and unregulated machines can prey on the most vulnerable consumers – including minors. These machines are also often tied to criminal activity, including money laundering, drug trafficking, violent crime, and more.”

The Wait for a Response from the DoJ Begins

It remains to be seen whether the DoJ will respond to the letter and how exactly the response will be worded. However, one thing for sure is that the message has clearly been conveyed, formally putting the ball in the DoJ’s court.

This AGA call for action comes on the back of the widespread legalization of sports betting across the country. As we speak, 33 states have legalized sports betting already. And according to the Washington Post, more than 157 Million Americans either have or will soon have the ability to bet on sports in their state legally.

Still, the problem of illegal gambling persists in the country. According to Mr. Miller, the alarm bells are ringing even louder, and the situation could be getting worse by the day. According to Miller, searches for illegal betting sites increased by 38% this year, a rate faster than the search for legal betting sites. However, since the federal legalization of sports betting in 2018, significant strides have been made on the legal front when it comes to gambling. Nevertheless, there’s still a lot of ground to cover when it comes to eradicating illegal gambling sites and ushering in safe, regulated markets across the country. Either way, this letter may ultimately be looked at further along in history as having played a key role in that goal.