There's a renewed push against illegal offshore gambling in the United States.
Senators Katie Britt and Richard Blumenthal, along with a bipartisan group of Senate Judiciary Committee members, sent a letter to Attorney General Pam Bondi and the U.S. Department of Justice (DOJ) urging them to take strong action against illegal offshore gaming operations that are harming American youth.
The Senators expressed serious concerns about minors accessing these illegal offshore platforms, which allow unregulated sports betting and gaming without oversight, age verification, or resources for gambling addiction.
These operators allegedly permit gambling on credit and prey on young people for profit. This differs from the sweepstakes casino ban that is about to take effect in California.
What Did the Letter Cite?
The letter, led by Britt and Blumenthal, was signed by 11 other Senators from both parties. It also cited a prior letter from 50 state attorneys general urging the DOJ to use authority under the Unlawful Internet Gambling Enforcement Act to block access to these illegal operations.
The Senators requested from the DOJ:
- An assessment of illegal offshore gaming operations successfully targeted by DOJ.
- A report on ongoing and planned DOJ efforts to restrict access to illegal offshore gaming.
- Any unclassified information regarding how these operations explicitly target American youth.
- Identification of legal authorities or resources that the DOJ may lack, which could help combat these illegal operators.
In a recent Senate Judiciary Committee hearing, Senator Britt questioned Attorney General Bondi about protecting minors from illegal offshore gaming and received a commitment from Bondi to work with her on this issue.
How Gaming Sites Bypass Age Verification Controls
The Senators emphasized that while sports betting is legal in many states, the limited number of legal online casino jurisdictions leaves openings for offshore operators to exploit.
Offshore gaming sites bypass U.S. age verification and payment controls through several common methods, exploiting weaknesses in regulatory enforcement and technological safeguards:
Simplistic or Fraudulent Age Verification: Many offshore sites rely on weak age verification processes such as simple self-declaration forms ("Are you 21+? Yes/No"), which minors can easily bypass. More sophisticated biometric or document verifications used in regulated U.S. platforms are often absent or not enforced offshore, allowing underage users unrestricted access. Ethical hackers have demonstrated that even robust age verification systems on some websites can be bypassed in seconds using common tools, showing the general vulnerability of these controls.
Use of Virtual Private Networks (VPNs) and Proxy Servers: Offshore sites and users often use VPNs to mask their true geographic location. This allows users to appear as if they are accessing the site from regions without age restrictions or U.S. jurisdictions where the site is blocked. VPNs effectively circumvent location-based payment and age controls by routing traffic through intermediary servers in less regulated areas.
Lack of Payment Processing Controls: Offshore operators often utilize payment systems that fail to comply with the U.S. Unlawful Internet Gambling Enforcement Act (UIGEA). They may use alternative payment methods, such as cryptocurrencies or unregulated offshore financial institutions, which do not enforce strict age or identity checks at the transaction level. This allows users, including minors, to fund accounts and place bets without the checks typical for regulated U.S. operators.
Minimal or No KYC and AML Compliance: U.S.-regulated platforms employ robust Know Your Customer (KYC) procedures that verify identity and age through government databases. Offshore sites often skip or provide minimal KYC, sometimes accepting fake or stolen documents, enabling minors and unverified users to gamble freely.
Lack of Regulatory Enforcement: Because these offshore sites are outside U.S. jurisdiction and enforcement reach, they operate with impunity, knowing U.S. authorities cannot easily shut them down. This regulatory gap allows them to maintain lax verification controls compared to those of tightly regulated domestic operators.
These factors combine to create significant risks for underage gambling and consumer protection violations that U.S. lawmakers and regulators are actively seeking to address.
This bipartisan effort highlights growing congressional concern about illegal offshore gaming targeting minors. It reflects a push for stronger enforcement and legislative clarity to protect consumers and youth from unregulated gambling risks.
