State gaming regulators want federal crackdown on illegal sites

FILE - In this Nov. 21, 2013 file picture, Joseph Brennen of Ventnor N.J., go to a Harrah's online casino on his laptop computer from a highway rest location in Egg Harbor Township, N.J. New Jersey, in addition to Delaware, Pennsylvania, Michigan and West Virginia, are the only states with legal online gambling establishment gambling. (AP Photo/Wayne Parry).
Nevada has actually joined 6 other states in pushing the federal government to crack down on illegal overseas internet gaming casinos.

Nevada Gaming Control Board Chairman Kirk Hendrick sent a letter recently to U.S. Attorney General Merrick Garland advising a larger push to combat illegal gambling.

Kendrick's April 28 letter also was signed by leaders of 6 other video gaming regulative bodies in Michigan, Colorado, Illinois, Louisiana, Mississippi and New Jersey.

" As the primary regulators of the legal gaming industry in our 7 states, we compose today to prompt the Department of Justice to prioritize combating illegal, online casinos and overseas sportsbooks," Kendrick's letter stated.

" The dangers postured by these unlawful operations are well known, including a lack of investment in responsible video gaming programs, loss of state tax profits that funds important efforts, no age verification requirements to safeguard minors, no controls to avoid money laundering, an absence of guarantees that consumers will receive fair payments and a lot more," he stated.

The American Gaming Association issued a report in November that approximated the uncontrolled and unlawful video gaming market at $510.9 billion a year, costing the legal regulated markets in the United States an approximated $44.2 billion, preventing states from collecting an estimated $13.3 billion in tax earnings.

" This is a battle we're in for the long haul to safeguard customers, support neighborhoods and safeguard the law-abiding members of our market," AGA President Bill Miller said at the time the report was released.

Online gambling establishment gaming is just legal in New Jersey, Delaware, Pennsylvania, Michigan and West Virginia, with online poker play licensed in Nevada. The matter is confusing to some customers since online sports wagering with making use of mobile devices is legal in several more states, consisting of Nevada.

The letter was signed by David Rebuck, director of the New Jersey Division of Gaming Enforcement; Henry Williams, executive director of the Michigan Gaming Control Board; Marcus Fruchter, administrator of the Illinois Gaming Board; Dan Hartman, director of the Colorado Division of Gaming; Ronnie Johns, chairman of the Louisiana Gaming Control Board; and Jay McDaniel, executive director of the Mississippi Gaming Commission.

The regulators stated they are worried that earnings generated by prohibited sites might be utilized to bankroll other unlawful activities such as human trafficking and the drug trade.

" We understand and appreciate the truth that the Department of Justice's jurisdictional responsibilities are broad and, consequently, priorities vary with time. The lots of significant dangers positioned by offshore illegal betting can not be addressed by states alone and, for that reason, need heightened federal attention and engagement," Kendrick's letter said. "We highly encourage the Department of Justice to focus on investigation and prosecution of these overseas sites, and stand all set to provide any support that we can as state video gaming regulators.".

Contact Richard N. Velotta at rvelotta@reviewjournal.com or 702-477-3893. Follow @RickVelotta on Twitter.