Regulators in Massachusetts are joining the chorus of state watchdogs howling for a federal crackdown on sports betting sites that operate outside U.S. law.
Members of the Massachusetts Gaming Commission (MGC) met Tuesday and unanimously voted to send a letter to U.S. Attorney General Merrick Garland that asks law enforcement to prioritize investigations of offshore sites.
“I think that the goal should be zero, zero bad actors in the regulated market,” Commissioner Jordan Maynard said during Tuesday’s meeting.
Taking action against 'bad actors'
The MGC's letter cites and refers to a similar message sent by seven other state regulators of legal sports betting near the end of April, which pushed for federal action against offshore and illegal operators.
Like their peers, the Massachusetts sports betting regulators say they are worried about the "dangers" of those offshore operators and that they are committed to prioritizing consumer protection.
“Illegal, offshore gambling operators are not held to these same standards by any regulatory authority, and often take advantage of the legalized landscape in jurisdictions such as Massachusetts to attract customers to their products,” the MGC’s letter states. “We join with the jurisdictions that were signatories to the attached letter in asking that the Department of Justice and your colleagues in the federal government prioritize investigation of these offshore sites. We echo the offer to be of assistance as you consider the impact of these bad actors.”
The campaign continues
The letter from the MGC comes just months after the commonwealth launched its legal sports betting market. Brick-and-mortar casinos began offering sports betting on their properties near the end of January, while online wagering officially began in March. Although there have been bumps in the road, regulated event wagering in Massachusetts has already provided millions in tax revenue to the state it previously would not have received.
Furthermore, the MGC’s letter comes as the legal gaming industry has been pushing the federal government to take action against illegal operators. Even with sports betting now legal in more than half of all U.S. states, the American Gaming Association has warned there is still significant black and gray market activity. Those operators compete with the legal market, which has irked regulators.
“The dangers posed by these unlawful operations are well known, including a lack of investment in Responsible Gaming programs, loss of state tax revenue that funds important initiatives, no age verification requirements to protect minors, no controls to prevent money laundering, an absence of guarantees that customers will receive fair payouts, and much more,” the seven other state regulators wrote in their April 28 letter to Garland.
