FBI issues new warning on illegal gambling amid betting boom

WASHINGTON, D.C. — As legal sports betting expands across the U.S., the FBI is sounding the alarm about a growing, often overlooked threat tied to illegal gambling operations that continue to thrive in the shadows.

Illegal sportsbooks and offshore sites remain widespread

Although 39 states and Washington, D.C., now allow some form of legal sports wagering, federal officials said illegal sportsbooks and offshore gaming websites remain widespread, and carry serious risks for bettors, the U.S. economy and the integrity of sports itself.

Hundreds of billions wagered on unregulated platforms

According to the American Gaming Association, Americans wager an estimated $673.6 billion each year on illegal or unregulated platforms, including sports betting, online casino-style games and unlicensed gaming machines. Despite appearing legitimate, many offshore websites operate outside U.S. law while marketing directly to American consumers, creating what the FBI described as a dangerous illusion of safety.

Lack of protections and links to organized crime

The illegal platforms lack the consumer protections required of U.S.-licensed operators, leaving bettors vulnerable to financial loss, fraud, extortion, or violence, the FBI said. The FBI noted that illegal gambling profits frequently support organized crime groups involved in human trafficking, drug distribution and weapons smuggling.

Ongoing investigations and role of bettors

The FBI’s Crime and Corruption in Sport and Gaming Program continues to investigate and disrupt criminal networks running illegal sportsbooks and online gambling ventures. But the agency stressed that bettors themselves play a critical role in protecting both their finances and the integrity of U.S. sports.

Potential for additional criminal activity

Beyond safety concerns, bettors who use unregulated platforms may unknowingly engage in additional criminal activity, including tax evasion or money laundering, because the profits stem from illicit markets, according to the FBI.

FBI guidance for consumers

The FBI is urging consumers to verify state laws, use only licensed sportsbook operators and report suspected illegal gambling activity through the Internet Crime Complaint Center.