The IRS Criminal Investigation (IRS-CI) division is warning football fans about the risks of illegal sports betting ahead of the 2026 season. The agency says unlicensed gambling operations can be tied to financial crimes including money laundering, tax evasion, and wire fraud. They also expose bettors to fewer consumer protections than regulated sportsbooks. The goal in issuing this warning is to deter users from playing at illegal offshore sportsbooks as the NFL season approaches, which is the busiest time on the sports betting calendar.
The IRS warning focuses on the financial crime risks associated with illegal gambling operations rather than sports betting itself.
Over the past year, IRS-CI opened 54 illegal gambling investigations involving $11.5 million and connected to an estimated $126 million in laundered funds. The agency also reported an 84% conviction rate in prosecuted illegal gambling cases, with an average prison sentence of 37 months.
This warning reinforces the difference between regulated sportsbooks and illegal operators. Licensed sportsbooks are subject to state oversight, identity verification, financial reporting requirements, and consumer protection standards. On the other hand, illegal and unlicensed offshore platforms don’t have these safeguards in place.
The IRS warning comes as federal authorities continue to investigate and prosecute illegal gambling operations across the United States.
In June 2026, a California man was sentenced to 27 months in prison for tax evasion, operating an illegal gambling business, and money laundering. According to the IRS, Jason Noah Feinman operated a Costa Rica-based business that provided websites used by unlicensed gambling operators to accept bets.
Another case involved an illegal gambling conspiracy operating at six locations in Missouri. In May 2026, Georgia resident Tushar R. Patel pleaded guilty to conspiracy charges involving wire fraud, illegal gambling, and money laundering. Patel admitted that he and his co-conspirators generated approximately $9.5 million in gross proceeds through illegal gambling businesses.
The cases demonstrate that illegal gambling remains an active enforcement issue in the US, with operations potentially carrying additional risks involving money laundering, tax violations, and other financial crimes.
The timing of the IRS warning is notable, with the 2026 NFL season approaching. Football season is the busiest period on the US sports betting calendar, bringing a significant increase in wagering activity from both experienced bettors and more casual users.
That makes the start of the NFL season an important time for regulators and law enforcement agencies to remind bettors about the risks of using illegal offshore sportsbooks. These operators can attract customers with large bonuses or markets that may not be available through regulated sportsbooks. Their lack of consumer protection puts players at risk.
By issuing the warning before football betting activity increases, IRS-CI is attempting to deter bettors from using illegal platforms while also drawing attention to the broader financial crimes that can be connected to those operations.
