FBI Warns US Players on Risks of Illegal Gambling

The FBI has released a public warning urging US players to avoid illegal gambling platforms, highlighting the risks associated with the country’s sizeable black-market betting sector.

Published by the Internet Crime Complaint Center (IC3), the advisory stresses that unregulated gambling sites offer little to no consumer protection and are frequently connected to broader criminal activity, including threats to sports integrity.

According to the FBI, illegal sportsbooks and online gaming platforms pose serious risks to individuals and the wider US economy. The agency warned that participation in such markets can expose players to fraud, extortion and violence, while also indirectly financing organised crime networks.

The bureau stated that criminal groups often operate illicit gambling businesses, including offshore online sportsbooks, using the proceeds to fund activities such as human trafficking, drug distribution and weapons smuggling.

The FBI also underscored that responsibility ultimately lies with consumers to ensure they place bets only through licensed and regulated operators. It referenced estimates from the American Gaming Association suggesting that Americans wager as much as $673.6bn each year through unregulated channels.

Gambling regulation in the United States remains fragmented, with individual states determining which forms of betting are permitted within their borders. To date, 39 states have legalised sports betting in some capacity, whether retail, online or both, while seven states allow regulated online casino gaming.

Despite this progress, regulatory complexity persists due to products operating in legal grey areas. Sweepstakes-style casinos, which use virtual currencies instead of real money, have historically dominated this space. Throughout 2025, however, several states have passed legislation explicitly banning such models.

More recently, prediction market platforms such as Kalshi have emerged as alternative betting-style products, particularly in states without regulated online sports betting. Even as state regulators question their legality, major operators including DraftKings and FanDuel have entered the space with their own prediction market offerings.

Given the potential for confusion, the FBI advised players to familiarise themselves with applicable federal, state and local gambling laws to ensure they are using lawful services.

The agency also cautioned that many offshore gambling websites actively target US customers while concealing their overseas status, creating a misleading impression of legitimacy. These operators are not subject to US regulatory standards and may lack essential safeguards for consumers.

Finally, the FBI noted that it has established a dedicated Crime and Corruption in Sport and Gaming Program to address organised crime involvement in gambling, disrupt illegal betting operations and safeguard the integrity of sporting competitions.