Thirty-nine states plus the District of Columbia offer legalized sports betting in some form. The list of legal jurisdictions now includes Missouri following the December 1 launch of online and retail sports wagering. However, earlier this week, the FBI issued a PSA to U.S. bettors about the potential risks that come with illegal gambling activities. It highlights that illegal sportsbooks and gaming sites remain prevalent across the U.S.
Besides having significant consequences for the American public and economy, the message goes on to highlight how individuals engaged in illegal gambling risk funding organized crime activity. Additionally, they can become vulnerable to violence, extortion, and fraud.
The FBI continues to emphasize that bettors have the individual responsibility to ensure they wager legally and responsibly.
The FBI PSA includes several tips for betting legally and responsibly, including encouraging gamblers to stay informed about federal, state, and local laws. The Michigan Gaming Control Board and New Jersey Division of Gaming Enforcement, for example, have a list of approved and licensed sports betting sites.
Unregulated sportsbooks such as Bovada, MyBookie, and BetUs put American gamblers at risk of losing money and earnings. Additionally, the platforms do not include the same safety features as regulated sites do.
Individuals are encouraged to file a report through the Internet Crime Complaint Center if they have relevant information tied to illegal sportsbook operations or criminal activity.
There is a link to the FBI’s Crime and Corruption in Sport and Gaming Program. It helps “combat the threats of influence from organized crime groups and other criminals who seek to operate illegal gambling operations and undermine the integrity of sport.” One of the FBI’s priorities is to investigate organized crime groups who operate illegal sportsbooks to disrupt and dismantle the illegal operations.
Illegal sports gambling activities have certainly been in the national spotlight this year. In October, the FBI arrested 31 people, including Portland Trail Blazers head coach Chauncey Billups and associates of organized crime families, for allegedly rigging illegal poker games.
Terry Rozier, who plays guard for the NBA’s Miami Heat, was arrested as well for alleged illegal betting schemes. Rozier has pleaded not guilty to charges of wire fraud and conspiracy to commit money laundering.
In a separate case, Emmanuel Chase and Luis Ortiz, both pitchers for MLB’s Cleveland Guardians, were federally charged for an alleged connection to an illegal sports betting scheme. They are being accused of accepting bribes to manipulate in-game outcomes.
In November, 14 people were arrested and charged for an alleged connection to an illegal NJ sports betting ring with ties to organized crime. Between 2022 and 2024, the enterprise reportedly transferred approximately $2 million in suspected gambling transactions.
The FBI PSA also attributes an August report released by the American Gaming Association that found Americans wager a total of $673.6 billion annually with illegal and unregulated gambling operators. The figure was driven by the sharp rise in illegal iGaming, expanding use of unregulated skill machines, and persistent illegal sports betting.
While some of the offerings on these illegal sites might look similar to those offered by regulated brands and use advertising that targets U.S. customers, they are not being monitored. The FBI said the illegal offshore sites are “providing U.S.consumers with a false sense of comfort.”
More importantly, illegal betting can potentially lead bettors to criminal activity such as tax evasion and money laundering due to the illicit nature of the financial gains.
The FBI highlighted the AGA’s Play Smart from the Start consumer hub as a great educational resource that supports responsible gambling.
