As legal sports betting continues to spread across the United States, federal authorities are warning that illegal gambling operations remain widespread and continue to expose bettors to serious risks. The Federal Bureau of Investigation has issued multiple public warnings stressing that the responsibility to gamble legally rests with individuals, even as unregulated sportsbooks and online casino platforms aggressively market to U.S. consumers.

Organized Crime and Financial Exposure

Sports wagering is now legal in 39 states and Washington, D.C., yet illegal sportsbooks and offshore gaming sites still attract large volumes of American money. According to estimates cited by the federal Bureau of Investigation (FBI), Americans wager approximately $673.6 billion each year through illegal or unregulated platforms. These figures include sports betting, online casino-style games, and unauthorized gaming machines, underscoring the scale of activity taking place outside licensed systems.

The FBI has warned that many offshore gambling websites deliberately obscure their overseas operations while presenting themselves as legitimate to U.S. users. This approach, officials say, creates a false sense of security for bettors who may assume they are protected by U.S. laws and regulations when they are not.

“These illegal sportsbooks and online gaming sites have significant consequences for the American public, the U.S. economy, and the integrity of sports betting in the U.S.,” one FBI release stated. “Individuals engaged in illegal gambling risk funding organized crime activity and becoming vulnerable to violence, extortion, and fraud.”

Federal officials have repeatedly highlighted the connection between illegal gambling and organized crime. The FBI’s Crime and Corruption in Sport and Gaming Program focuses on identifying and dismantling criminal networks that use illegal sportsbooks and online gambling operations as revenue sources. Authorities say these operations often funnel money into other criminal activities, including human trafficking, drug distribution, and weapons smuggling.

“As a federal law enforcement agency, the FBI enforces criminal statutes, including those involving organized crime and illegal gambling operations. The FBI emphasizes each bettor’s individual responsibility to ensure they wager legally and responsibly,” the agency said.

Beyond the broader criminal implications, the FBI cautioned that bettors who use illegal platforms face direct personal risks. These include the possibility of extortion or violence if gambling debts go unpaid, as well as the loss of deposited funds or winnings with no legal path to recovery. Unregulated sites are not required to honor withdrawals, provide fair play protections, or safeguard customer funds.

Federal authorities also warned that profits earned through illegal gambling may expose bettors to further legal trouble. Because such winnings originate from illicit markets, participants may unknowingly engage in offenses such as tax evasion or money laundering.

Public Alerts and Consumer Responsibility

The FBI reinforced its message in a public alert dated Wednesday, December 17, cautioning that “great odds come with high risk.” The agency noted that illegal sports betting and online casino websites continue to proliferate across the U.S.-facing internet, despite the growth of regulated sportsbooks at the state level.

“Individuals engaged in illegal gambling risk funding organized crime activity and becoming vulnerable to violence, extortion, and fraud. As a federal law enforcement agency, the FBI enforces criminal statutes, including those involving organized crime and illegal gambling operations,” the alert read.

Officials stressed that even though some gambling websites may be legal in other countries, they remain illegal in the United States unless authorized by individual states. Offshore operators are not subject to U.S. consumer protection standards, increasing the likelihood of fraud, withheld payouts, or stolen funds.

The FBI emphasized that bettors must take active steps to confirm whether online gambling is permitted in their state. State gaming regulators typically publish lists of licensed operators and approved domains. In some cases, legal platforms also display regulatory seals that verify their authorization.

To counter illegal gambling activity, the FBI has expanded its monitoring efforts through the Crime and Corruption in Sport and Gaming Program. The unit works alongside sports leagues, governing bodies, international law enforcement partners, and independent watchdog organizations to detect suspicious activity and bring charges against those involved in illegal betting schemes.

Illegal gambling remains a persistent issue across digital platforms. In 2024, Meta reported generating more than $3 billion from China through advertisements linked to scams, illegal gambling, and pornography across Facebook, Instagram, and WhatsApp. Federal officials view this as further evidence of how illegal operators exploit mainstream platforms to reach unsuspecting users.