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- The FBI has issued strong warnings to US sports bettors to avoid illegal sportsbooks and online casinos, highlighting the serious risks involved with unregulated gambling platforms.
- Despite widespread legalization, with legal betting now active in 39 states, illegal and offshore gambling remains a significant threat to both players and the overall sports betting ecosystem in the US.
Sports wagering is legal in 39 states plus Washington, D.C., and real-money online casinos are legal in seven. Despite that, illegal sportsbooks and offshore gaming sites still attract huge volumes of US betting activity.
The FBI estimates that Americans wager around $673.6 billion annually on unregulated platforms, including sports bets and online casino games. These illegal operations often mislead users by concealing their true offshore nature, falsely suggesting they are legitimate and protected under US law.
In a federal release, the FBI stressed the broad consequences of illegal gambling, including funding organized crime and exposing bettors to violence, extortion, and fraud. Their specialized Crime and Corruption in Sport and Gaming Program targets criminal networks exploiting illegal sports betting to fund activities like human trafficking, drug distribution, and weapons smuggling.
Bettors using illegal sites risk losing funds with no recourse and may unknowingly commit tax or legal violations tied to illicit winnings. Illegal sites also lack responsible gambling tools to protect bettors.
Bettors could get in legal trouble
The FBI’s warnings underscore the need for vigilance in choosing only state-licensed and regulated sportsbooks and online casinos. Illegal platforms lack consumer protections, putting bettors’ deposits and winnings at risk and potentially exposing them to scams or criminal retaliation.
Players could also face legal ramifications from unknowingly engaging with illicit markets, including money laundering or tax evasion charges.
The FBI encourages bettors to verify licensing through state gaming regulators, who publish official lists and regulatory seals to help identify authorized operators.
On the industry side, expanded federal monitoring and cooperation with sports leagues and international agencies aim to detect and dismantle illegal betting rings, protecting the integrity of both betting markets and sports themselves.
Based on reporting by Vanja Mitic World Casino News.
