Xpoint has become the latest voice to oppose the expansion of offshore gambling in the United States at a time when the American Gaming Association (AGA) estimates that hundreds of millions are wagered on websites that are not regulated in the country.
Private sector backs measures by US attorneys general against offshore gambling
A compliance and geolocation technology provider and specialist, Xpoint, has joined a coalition of 50 US attorneys general, which has called on the Department of Justice (DoJ) to undertake more sweeping reforms in addressing the outstanding problem that offshore gambling platforms pose.
Xpoint Chief Compliance and Regulatory Officer Edward BedrosianJr. said this in a statement shared on the company’s LinkedIn page:
"The significance of this joint statement cannot be overstated - having 50 states and territories unite on this issue demonstrates the urgent need to protect American consumers and preserve the integrity of regulated gambling markets."
The coalition and private sector players, such as Xpoint, have called for tougher measures against operators and swifter enforcement actions. The coalition has already notified US Attorney General Pam Bondi about the need for more decisive action against the offshore sector at a time when Americans are spending an estimated $674bn outside of domestically regulated operators.
The losses are several-fold, with consumer protection measures usually failing players at offshore websites, and states losing billions worth of tax dollars that could have otherwise gone into improving public services, deficits, and securing retirements.
Bedrosian added that Xpoint has always advocated regulated and licensed gambling and, as such, it backed the latest initiative fully and urged the DoJ and AG Bondi to act swiftly in the matter.
Offshore market has a bigger reach than previously thought
Regulated markets globally are facing the same predicament, with the size of the offshore market likely far exceeding what was originally thought. In the Netherlands, the Dutch Gambling Authority has stated that its initial estimates were, in fact, wrong.
The regulator discovered that 50% of the market is probably dominated by the offshore gambling market in terms of spending. The watchdog similarly said that a plan to raise taxes was a mistake as it went against the grain of the regulator’s main purpose – player protection.
Yet, the fact that more regulated markets are becoming aware of the true reach of the offshore market allows them to adopt measures that can address these previously ignored issues.
