The US Federal Bureau of Investigation (FBI) has issued a public warning urging bettors to understand the risks of illegal gambling, as sports betting continues to expand across the country, but unregulated markets remain widespread.
In a Public Service Announcement dated 17 December, the FBI said that while “39 states and the District of Columbia” have legalised some form of sports betting, illegal sportsbooks and online gaming sites are still operating at scale. The agency warned that these platforms pose risks not only to individual bettors but also to the broader economy and the integrity of sport.
“Illegal sportsbooks and online gaming sites have consequences for the American public, the U.S. economy, and the integrity of sports betting in the U.S.,” the FBI said, adding that individuals who use them risk “funding organised crime activity and becoming vulnerable to violence, extortion, and fraud.”
The FBI cited estimates from the American Gaming Association (AGA) showing the size of the unregulated market. As of August 2025, the AGA estimated that Americans wager about $673.6 billion each year in illegal and unregulated gambling markets, covering sports betting, online games, and unregulated machines.
The bureau noted that while some iGaming platforms may be legal in other jurisdictions, “they are still operating illegally in the United States, dependent on state regulations”. It added that many offshore gambling sites actively target U.S. consumers while hiding their overseas base, creating what the FBI described as “a false sense of comfort.”
“These offshore sportsbooks are not held to the same legal standards as U.S. licensed sportsbooks and may lack consumer protections,” the agency said, warning that this “increases the risks for U.S.-based users.”
A central concern outlined in the alert is the link between illegal gambling and organised crime. The FBI said that criminal groups use unlawful betting operations, including online sportsbooks, to generate revenue that can be diverted into other activities.
“Organised crime groups run illegal gambling operations, including online sportsbooks, to generate revenue for other criminal activities, such as human, drug, and weapons trafficking,” the statement said.
The FBI’s Crime and Corruption in Sport and Gaming Program focuses on disrupting this activity. According to the bureau, “one of the FBI’s priorities is to investigate organised crime groups who operate illegal sportsbooks to disrupt and dismantle these operations.”
Beyond the broader criminal impact, the bureau warned of direct personal risks. The FBI said American bettors using illegal bookmakers may face extortion and violence if they are unable to repay debts, while unregulated platforms can result in players losing deposits or winnings with little recourse.
The FBI also cautioned that illegal betting could expose users to further legal trouble, noting that it “can also lead bettors to other criminal activity, such as tax evasion and money laundering, due to the illicit nature of the financial gains.”
The agency stressed that responsibility ultimately lies with individual bettors. “It is each bettor’s responsibility to play with a licensed and regulated sportsbook operator,” the FBI said.
As part of the announcement, the bureau encouraged consumers to stay informed about the laws that apply in their state and to check out official state gaming agency websites before placing bets. It also urged members of the public with information about illegal gambling operations to report it through the Internet Crime Complaint Centre.
“The FBI encourages individuals with information on illegal sportsbook operations or other relevant criminal activity to file a report through the Internet Crime Complaint Centre,” the FBI statement said.
The warning comes at a time when the legal U.S. gaming industry is reporting improved business confidence. In November, the AGA published research indicating stronger executive sentiment and rising consumer participation across casinos and regulated betting.
However, optimism sits alongside growing public and political scrutiny of sports betting. As legal wagering becomes more visible, concerns around consumer protection, advertising, and the integrity of sport have become more prominent in policy debates.
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