Offshore sportsbooks are a problem according to the American Gaming Association. The trade group representing American casinos and sportsbooks has sent a letter to United States Attorney General Merrick Garland asking the Justice Department to crackdown on their unregulated operation.
The AGA initially sent its letter at the end of last month. Now, the group is getting some backing from members of Congress. Twenty-four members sent a letter of their own to Garland encouraging prosecutions.
On top of that, individual members of the trade group have begun speaking to CNBC about the toll offshore books are taking on their business. That includes FanDuel CEO Amy Howe, who estimates as much as $15 billion has been lost to offshore competition that doesn’t have to pay state or local taxes or spend money on lobbying lawmakers.
“It gives them an unfair competitive advantage. They can offer better odds to the consumer,” Howe said.
She added that she wonders how many players even know those books are illegal. That is something AGA CEO Bill Miller says requires action.
“Educating the public that is generally unaware of whether they’re betting on illegal sites or illegal sites is a job for all of us.”
Fifteen billion dollars is no insignificant amount of money. Miller says when that large of a share of the market disappears to illegal operators, it cannot be ignored by those that enforce the law.
“What maybe at one point in time was a relative nuisance, is now becoming a serious threat to the legal, licensed gaming industry.”
