Key Moments:
- On December 17, the FBI publicly warned consumers about the risks of illegal gambling.
- As of August 2025, the American Gaming Association estimated that Americans wager $673.6 billion annually in illegal and unregulated markets.
- Additionally, the FBI confirmed direct links between illegal betting operations and organized crime.
FBI Raises Alarm Over Illegal Gaming Operations
The Federal Bureau of Investigation is warning the public about the growing risks of illegal gambling as sports betting becomes more accessible nationwide. Although 39 states and the District of Columbia now allow legal sports wagering, unregulated operators still control a large share of the market.
Moreover, the FBI stressed that these illicit platforms threaten not only individual bettors but also the U.S. economy and the integrity of legal sports betting. The agency stated that illegal sportsbooks harm the American public while funding organized crime and exposing users to fraud, extortion, and violence.
Scale and Scope of the Unregulated Market
To illustrate the scale of the problem, the FBI cited data from the American Gaming Association. As of August 2025, Americans wager an estimated $673.6 billion each year through illegal and unregulated channels, including sports betting, online gaming, and unlicensed gaming machines.
Furthermore, the agency clarified that platforms legal in other countries remain illegal in the U.S. unless state regulators approve them. Offshore operators continue to target American consumers aggressively. As a result, bettors may develop a false sense of security, since these sites lack U.S. consumer protections and regulatory oversight.
| Aspect | Detail |
|---|---|
| Estimate of Illegal Wagering | $673.6 billion (as of August 2025) |
| Number of U.S. States with Legal Sports Betting | 39 + District of Columbia |
Criminal Ties and Personal Risks
Importantly, the FBI highlighted strong connections between illegal betting and organized crime. Criminal groups actively run unlawful sportsbooks to generate revenue, which they then funnel into other illegal activities.
According to the FBI, these activities often support crimes such as human trafficking, drug distribution, and weapons trafficking. Consequently, the bureau’s Crime and Corruption in Sport and Gaming program focuses on disrupting and dismantling these criminal networks.
At the individual level, bettors face serious personal risks. The FBI warned that illegal bookmakers may threaten or extort users who fall into debt. In addition, bettors often have no recourse if platforms withhold deposits or winnings. Legal consequences may also follow, including exposure to charges related to tax evasion or money laundering.
Promoting Safe and Legal Betting Practices
To reduce these risks, the FBI emphasized personal responsibility when choosing where to wager. Bettors should only use licensed and regulated sportsbook operators approved in their state.
Before placing bets, consumers were urged to review applicable state laws and confirm licensing through official state gaming authority websites. Likewise, the FBI encouraged individuals to report suspected illegal gambling operations through the Internet Crime Complaint Center.
Industry Outlook and Regulatory Focus
Meanwhile, the alert arrives during a period of growing optimism within the U.S. gaming industry. In November, the American Gaming Association reported stronger executive confidence and increased consumer participation in casinos and regulated sportsbooks.
However, as legal gambling continues to expand, regulators and industry leaders are paying closer attention to consumer protection, advertising standards, and the integrity of sports betting nationwide.
- Author
Daniel Williams
