The Federal Bureau of Investigation (FBI) has released a stark public service advisory warning Americans about the severe financial and personal risks associated with unregulated sports wagering.
In a statement issued on December 17, federal agents emphasized that while legal betting markets have expanded to 39 states and D.C., a massive volume of activity, estimated at over $673 billion annually, remains within the black market.
The Hidden Cost of Unregulated Play
The agency’s primary message focuses on the deceptive nature of offshore sites. These platforms often market themselves directly to U.S. consumers, creating a façade of legitimacy. However, because they lack state-issued licenses, they operate outside U.S. consumer protection laws.
The FBI highlighted that this lack of oversight leaves bettors vulnerable to fraud. Unlike regulated sportsbooks, illegal operators have no legal obligation to pay out winnings or secure user funds. If a site shuts down or refuses a withdrawal, the user has zero recourse.
Funding Criminal Enterprises
Beyond individual financial loss, the advisory draws a direct line between illegal bookmaking and violent organized crime. The FBI’s “Crime and Corruption in Sport and Gaming Program” notes that profits from illegal wagers are frequently laundered to bankroll other illicit activities, including human trafficking, narcotics distribution, and weapons smuggling.
A Call for Diligence
To combat this, the FBI is urging all bettors to exercise due diligence. The bureau advises checking state gaming regulator websites to confirm a sportsbook’s legal status before placing a bet. They also encouraged the public to report suspicious or illegal gambling operations through the Internet Crime Complaint Center (IC3), positioning responsible betting as a matter of both personal safety and national integrity.
