FBI Issues Public Warning

The FBI is warning Americans about the dangers of using offshore sportsbooks. In a public service announcement released on Wednesday, the bureau warned that engaging in offshore gambling could jeopardize sports betting integrity and help fund organized crime.

The warning also noted that gamblers could possibly become vulnerable to violence, extortion, and fraud by illegal online gambling operators and sportsbooks.

“While sports betting has become more widespread in the US, with 39 states and the District of Columbia legalizing some form of sports betting, illegal sportsbooks and illegal online gaming sites are still prevalent,” the FBI noted in the announcement. “These illegal sportsbooks and online gaming sites have significant consequences for the American public, the US economy, and the integrity of sports betting in the US.”

Billions Wagered Offshore

The announcement pointed to a recent study by the American Gaming Association detailing how much money is wagered on offshore betting platforms.

According to the report, Americans wager $673.6 billion annually with unregulated gambling operators each year. Since the AGA’s last report in 2022, the use of unregulated online gambling sites grew 22%.

The FBI warning comes as the bureau continues to focus on organized crime. The bureau’s Crime and Corruption in Sport and Gaming Program combats threats of influence from criminals operating illegal gambling operations and attempting to undermine sports integrity, the public service announcement said.

“Organized crime groups run illegal gambling operations, including online sportsbooks, to generate revenue for other criminal activities, such as human, drug, and weapons trafficking,” the FBI said.

Those using illegal bookmakers put themselves at risk of extortion and violence, the announcement says, if they are unable to repay debts. Betting offshore could also lead bettors to other criminal activity like tax evasion and money laundering.

The FBI spearheaded several gambling investigations involving gambling in recent years. That included the recent bust of a major sports betting operation that used players to rig statistics to benefit bettors. The bureau is also looking into a case of suspicious betting in the UFC.

Attorneys General Seek Federal Action

A coalition of 50 attorneys general sent a letter in August to the Department of Justice seeking aggressive federal action against illegal, offshore gambling operators.

The AGs sent the letter to US Attorney General Pam Bondi. They outlined their concerns over illegal gambling operations. Most offshore sites operate outside the U.S. As a results, the AGs worried about their ability to enforce U.S. law against the operations.

The AGs said these sites pose particular risks to minors and vulnerable populations, and they lack protections found in regulated markets. They urged Justice to block access to these platforms in the US, seize assets when possible, and work with states to disrupt their financial infrastructure.