Great Odds, High Risk: The FBI Encourages U.S. Bettors to Know the Risks of Illegal Gambling

While sports betting has become more widespread in the U.S., with 39 states and the District of Columbia legalizing some form of sports betting, illegal sportsbooks and illegal online gaming sites are still prevalent. 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. 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 FBI emphasizes each bettor's individual responsibility to ensure they wager legally and responsibly.

As of August 2025, the American Gaming Association estimated Americans wager $673.6 billion annually in illegal and unregulated markets – which includes sports betting, online games, and unregulated machines.¹ While some online gaming websites are legal elsewhere in the world, they are still operating illegally in the United States dependent on state regulations. Many offshore gambling websites advertise towards U.S. consumers, obfuscating their overseas presence, and providing U.S. consumers with 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, increasing the risks for U.S.-based users.

The FBI Crime and Corruption in Sport and Gaming Program combats threats of influence from organized crime groups and other criminals who seek to operate illegal gambling operations and undermine the integrity of sport. Organized crime groups run illegal gambling operations, including online sportsbooks, to generate revenue for other criminal activities, such as human, drug, and weapons trafficking. One of the FBI's priorities is to investigate organized crime groups who operate illegal sportsbooks to disrupt and dismantle these operations. Beyond the possible funding of organized crime activity, bettors who wager with illegal bookmakers put themselves at risk of extortion and violence if they are unable to repay debts. Furthermore, unregulated sportsbooks and offshore gambling websites put U.S. consumers at risk of losing their money and earnings. Illegal betting can also lead bettors to other criminal activity, such as tax evasion and money laundering, due to the illicit nature of the financial gains. It is each bettor's responsibility to play with a licensed and regulated sportsbook operator.