The Michigan Gaming Control Board announced that a group of seven US gaming regulators had sent a letter US Department of Justice, urging it to prioritize the fight against illegal offshore operators.
The letter, dated April 28, was sent by Nevada Gaming Control Board Chairman Kirk D Hendrick, and included signatures of MGCB Executive director Henry Williams, as well as regulators from Colorado, Illinois Louisiana, Michigan Mississippi, New Jersey, and Nevada.
Garland was asked in the letter to discuss offshore illegal gambling, and the threats they pose since state regulators cannot eliminate the problem on their own. They hope that the DoJ will take the lead in enforcing the laws to address the concerns raised.
Williams said: “In Michigan strict laws and regulations govern internet gambling and sports betting, and provide consumer protections and promote confidence, as well as ensuring fair and honest gaming.
We are ready to assist the US Department of Justice as it enforces US laws against illegal offshore gaming enterprises that exploit our citizens.
Regulators have highlighted the threats illegal operators pose for the industry, including the lack of investment in responsible gaming programmes, the absence of age verification requirements for minors to be protected, the lack of anti-money laundering, the lack of fair payout guarantees to customers, and the loss of funds from state tax revenues for important initiatives.
The letter stated that offshore operators do not have to comply with state regulations or licensing requirements, as they are not accountable to a government authority.
Regulators also stated that their procedures and requirements protect the public, while illegal operators may “simply disappear” with customers’ funds and provide no support or resources to those who need it.
Williams stated that “state regulators such as the MGCB make sure operators are offering products that meet technical standards and tests, and also require them to comply with reporting obligations.”
“I am deeply concerned that offshore operators flout state regulations, and provide products which do not protect consumers. This is a concern to me and my colleagues in state regulation.”