The Federal Bureau of Investigation has issued a public warning urging Americans to understand the risks associated with illegal gambling, even as sports betting continues to expand across the United States. In an alert dated December 17, 2025, the agency highlighted the ongoing presence of illegal sportsbooks and online gaming sites, despite legal betting options now operating in most states.
Sports wagering has gained legal approval in 39 states and the District of Columbia. However, federal authorities said illegal betting platforms continue to attract U.S. users, exposing them to financial loss and criminal exploitation. The FBI stressed that individuals who place bets carry personal responsibility to ensure they use licensed and regulated operators.
Illegal Betting Remains Widespread
According to estimates from the American Gaming Association as of August 2025, Americans wager approximately $673.6 billion each year in illegal and unregulated markets. This figure includes sports betting, online casino-style games, and unregulated gaming machines. Federal officials warned that many gambling websites operating legally in other countries still violate U.S. laws, depending on state-level regulations.
The FBI noted that offshore gambling sites often market themselves directly to U.S. consumers while concealing their overseas base of operations. This practice can create what the agency described as a misleading sense of security. Unlike licensed U.S. sportsbooks, offshore operators are not required to follow domestic consumer protection standards, increasing the likelihood of disputes, unpaid winnings, or outright fraud.
“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.,” the FBI’s Internet Crime Complaint Center said in a warning issued this week.
Links To Organized Crime
The FBI emphasized that illegal gambling operations frequently serve as revenue streams for organized crime groups. Through its Crime and Corruption in Sport and Gaming Program, the agency focuses on identifying and disrupting criminal networks that use betting platforms to fund other illicit activities.
Federal authorities said organized crime groups run illegal gambling operations to generate income for crimes such as human trafficking, drug trafficking, and weapons smuggling. Investigators prioritize dismantling these networks, particularly those operating illegal online sportsbooks targeting American users.
Financial And Legal Consequences For Bettors
Unregulated gambling also exposes participants to secondary legal risks. The FBI stated that illegal betting can draw individuals into other forms of criminal behavior, including money laundering and tax evasion, due to the unlawful nature of the proceeds involved. Offshore platforms may lack transparency in payment processing, further increasing vulnerability for U.S.-based users.
In its alert, the FBI reiterated that federal law enforcement continues to pursue criminal statutes related to illegal gambling and organized crime. At the same time, the agency underscored that prevention starts with individual decision-making.
“It is each bettor’s responsibility to play with a licensed and regulated sportsbook operator.”
The FBI’s warning comes as legal sports betting grows more visible nationwide, with advertisingand mobile apps becoming common in states where wagering is permitted. Federal officials cautioned that the presence of legal options does not eliminate illegal activity and urged bettors to verify that platforms comply with applicable state laws before placing wagers.
Source:
“Great Odds, High Risk: The FBI Encourages U.S. Bettors to Know the Risks of Illegal Gambling”, ic3.gov, December 17, 2025
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