Wager Mage
Wager Mage
Photo: Furkan Tumer
More than half of gamblers say they still wager using offshore sites like Bovada, MyBookie and BetOnline, according to a survey by the association. “There are hundreds of illegal or unregulated operators who are taking sports bets every single day.
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Read More »American casinos, gaming companies and lawmakers are calling on federal prosecutors to crack down on illegal offshore gambling sites that they say are evading consumer protection regulations. The push comes as sports gambling has quickly expanded in the U.S. in recent years, with more than 30 states and Washington, D.C., allowing it. "What maybe at one point in time was a relative nuisance, is now becoming a serious threat to the legal, licensed gaming industry," Bill Miller, CEO of the American Gaming Association, told CNBC in a recent interview. In a letter to Attorney General Merrick Garland this spring, the AGA asked the Justice Department to investigate well-known offshore gambling sites, which it said are openly violating federal and state laws and brazenly paying for advertising that targets U.S. gamblers. Then on June 29, more than two dozen members of Congress also sent a letter calling on the Justice Department to investigate and prosecute illegal offshore sportsbooks. The Justice Department has not yet responded to the AGA's letter or to CNBC's request for comment. The challenge for the gaming industry has escalated as online searches for offshore sportsbooks last year rose faster than searches for the regulated operators, according to the AGA. More than half of gamblers say they still wager using offshore sites like Bovada, MyBookie and BetOnline, according to a survey by the association. "There are hundreds of illegal or unregulated operators who are taking sports bets every single day. We estimate there's potentially $15 billion going through some of these offshore operators," FanDuel CEO Amy Howe told CNBC. Legal operators including FanDuel, owned by Flutter, DraftKings , Caesars and BetMGM, co-owned by MGM Resorts and Entain , spend billions of dollars on licensing, marketing and lobbying for the legalization of sports betting in new states. The companies say offshore operators compete for customers without having to invest in licensing or lobbying or paying state and local taxes. "It gives them an unfair competitive advantage. They can offer better odds to the consumer," Howe said. She added that many players don't even know when they're using illegal betting sites. Some gamblers used offshore bookies for years before the Supreme Court overturned the Professional and Amateur Sports Protection Act in 2018 and cleared the way for states to legalize sports betting.
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