FBI issues warning about illegal gambling in USA
THE Federal Bureau of Investigation has issued a warning to the USA about illegal gambling on the internet and in-person.
The latest statistics show Americans still pump over $670 billion into illegal offshore gambling websites each year, despite 39 states and the District of Columbia now having legalised some form of wagering.
In an advisory, the Federal Bureau of Investigation said illegal sportsbooks and online casinos remain widespread and pose serious risks to consumers, the wider economy and the integrity of US sport. While regulated betting options have expanded, authorities warned that unlicensed operators continue to target American players.
“Individuals engaged in illegal gambling risk funding organised crime activity and becoming vulnerable to violence, extortion, and fraud,” the FBI said.
Data from the American Gaming Association estimates Americans wagered $673.6 billion annually in illegal and unregulated markets as of August 2025, spanning sports betting, online casino-style games and unregulated machines.
The FBI said many offshore gambling websites disguise their overseas operations while advertising directly to US consumers, creating a “false sense of comfort” despite lacking US consumer protections.
The USA has long been a main target of offshore gambling websites with the Professional and Amateur Sports Protection Act (PASPA) stopping legal sports betting until 2018, when it was repealed.
Some of the key benefactors of the illegal market have been brands like BetOnline and Bovada, which became household names with Americans, despite legally being banned.
Through its Crime and Corruption in Sport and Gaming Program, the FBI said it is targeting organised crime groups that use illegal gambling to fund activities including drug, human and weapons trafficking, while warning bettors they also risk fraud, unpaid winnings and exposure to money laundering and tax offences.
