Share 
Pennsylvania Attorney General Dave Sunday has joined a bipartisan coalition of state AGs aimed at eliminating illegal gambling across the US.
The coalition’s letter to US AG Pam Bondi earlier this week noted that states are losing out on around $4 billion in tax revenue every year.
Like in other states, regulated Pennsylvania online casinos and sports betting operators do not get a cut of the earnings, which results in less money for the state.
AGs seek help from DOJ
Sunday spoke about the harms of illegal gambling in Pennsylvania.
“Illegal offshore gaming and gambling companies circumvent all state and federal laws with one mission – to increase players and maximize profits – exposing children and other vulnerable Pennsylvanians to gambling without protections offered by legitimate outlets.
“Gambling and gaming remains legal in Pennsylvania, and online gamblers should look for the official Pennsylvania Gaming Control Board logo on licensed operators’ websites to ensure their gaming and gambling experience is safe and regulated.”
The coalition is co-led by Sunday and AGs from Connecticut, Massachusetts, Nebraska, and Utah.
The letter asks the US Department of Justice (DOJ) for aid and more resources.
“We seek USDOJ’s cooperation and coordination to deploy robust legal tools to curb these unlawful enterprises. For instance, under the Unlawful Internet Gambling Enforcement Act, USDOJ can pursue injunctive relief to block access to illegal websites and payment processing mechanisms. See 31 U.S.C. § 5365(b).
“Additionally, under 18 U.S.C. §1955(d), USDOJ has the authority to seize assets – including servers, domains, and proceeds – that illegal gambling operations use.
“Because the websites owned by unlawful offshore operations violate federal law, USDOJ can and should seize the websites and domain names of operators and retain any proceeds recovered as part of the seizure.”
The letter also pointed out several times when the DOJ has seized online assets in similar cases.
PA’s history of illegal gambling
The Pennsylvania Gaming Control Board (PGCB) has issued 18 cease-and-desist orders to sweepstakes casinos operating in the state. These companies conduct business all over the world, including in Pennsylvania, without a gaming license.
PGCB Chief Counsel Steve Cook suggested that an easy fix could be changing the Gaming Act.
In April, Cook criticized The Commonwealth Court’s ruling on skill games, saying it tied the board’s hands in dealing with unlicensed operators.
“What the Commonwealth Court held, with very similar language in the skill games debate, was that this language wasn’t nonsensical, which I think it is.
“This language serves to prohibit and make clear that the gaming board only has control and authority over people licensed by it, not outside entities doing something, which is arguably illegal.”
There isn’t much the PGCB can do to stop or regulate unlicensed operators, other than send cease-and-desist orders.
The PGCB hopes the AG coalition can help it shut down illegal gambling operators in Pennsylvania and throughout the US.
