Regulators from seven of the largest gaming states want the U.S. Department of Justice to prioritize combating illegal, offshore sportsbooks and online casinos.

The letter sent to U.S. Attorney General Merrick Garland on April 28 was authored by Nevada Gaming Control Board Chairman Kirk Hendrick and signed by the top gaming regulators from New Jersey, Colorado, Illinois, Louisiana, Michigan and Mississippi.

The move follows a similar request to the Justice Department made by the American Gaming Association. The Washington, D.C., trade organization released a study last year that found Americans gamble an estimated $511 billion annually with illegal online sportsbooks, internet casinos and unregulated slot machines.

In the letter, gaming regulators cited numerous dangers posed by illegal offshore sites, including the loss of state tax revenue, zero guarantees of fair payouts, lack of anti-money laundering controls and age verification requirements, and the absence of responsible gaming programs.

“States with legalized gaming have gone to great lengths, through robust gaming laws and regulations, to ensure that each state can protect its citizens and regulate gaming in an efficient, effective manner,” Hendrick and the others wrote. “As regulators charged with enforcing those laws and regulations, we require all gaming companies to undergo and comply with robust licensing, strict suitability standards and operational certifications to promote confidence among consumers and prevent potential criminal activity within the industry.”

The AGA study found that state governments lose out on $13.3 billion in yearly tax revenue from illegal gaming — almost $2 billion more than states collected in 2021.

“Offshore operators who offer their products into these highly regulated state jurisdictions are doing so in contravention of not only state laws, but federal law,” the letter stated. “Gaming regulators are also responsible for ensuring that U.S. licensed mobile sportsbooks and online casinos, in states where allowed, follow strict rules, including adherence with product technical standards, which includes utilizing appropriate hardware and software, independent product testing and certification, and complying with reporting requirements.”

The regulators said state oversight “safeguards consumers so that they receive fair odds and guaranteed payouts.”

Legal online casino gaming is only available in six states — New Jersey, Michigan, Connecticut, Delaware, West Virginia and Pennsylvania. Nevada has only legalized online poker.