Public service announcement highlights links to organised crime, consumer harm and threats to sports integrity amid a fragmented regulatory landscape
The Federal Bureau of Investigation has issued a public service announcement cautioning Americans against engaging with illegal and unregulated gambling platforms, warning that the risks extend far beyond a lack of consumer protections. The notice, released by the FBI’s Internet Crime Complaint Center (IC3), underscores concerns about organised crime, financial fraud and the integrity of sport within the US betting ecosystem.
According to the FBI, illegal sportsbooks and unlicensed online gaming sites pose serious consequences for consumers, the broader US economy and the legitimacy of regulated sports betting markets. The agency stressed that players who participate in black market gambling may unknowingly fund organised criminal activity and expose themselves to violence, extortion and financial exploitation.
The FBI warned that organised crime groups frequently operate illegal gambling networks, including offshore online sportsbooks, as a means of generating revenue for other illicit activities. These can include human trafficking, drug distribution and weapons smuggling, reinforcing the wider societal impact of unregulated gambling participation.
While acknowledging the growth of legal wagering across the country, the bureau emphasised that responsibility ultimately rests with individual players to ensure they are betting with properly licensed operators. The American Gaming Association estimates that Americans wager approximately $673.6bn each year through unregulated channels, highlighting the scale of the issue despite expanding legal markets.
The warning comes against the backdrop of a highly fragmented regulatory framework in the United States, where gambling legality is determined on a state-by-state basis. To date, 39 states have legalised some form of sports betting, whether retail, online or both, while only seven states permit fully regulated online casino gaming.
Complicating matters further is the continued presence of gambling verticals that operate in legal grey areas. For several years, sweepstakes casinos have offered casino-style games using virtual currencies rather than real money, allowing them to function outside traditional regulatory structures. Throughout 2025, however, a growing number of states have moved to pass legislation explicitly banning these operations.
More recently, prediction market platforms such as Kalshi have emerged as an alternative to traditional sports betting, particularly in states where online wagering remains illegal. Despite objections from state gaming regulators questioning the legality of these products, major operators including DraftKings and FanDuel have launched their own prediction market offerings.
The FBI warned that this evolving and often confusing landscape may mislead consumers into believing certain platforms are legal when they are not. It urged players to stay informed about applicable federal, state and local laws before placing bets.
The agency also cautioned that many offshore gambling websites deliberately market themselves to US consumers while disguising their overseas status, creating a false sense of security. Unlike US-licensed operators, these platforms are not subject to the same regulatory standards and often lack basic consumer protections.
To address these threats, the FBI highlighted the establishment of its Crime and Corruption in Sport and Gaming Program, aimed at targeting illegal gambling operations, disrupting organised crime involvement and safeguarding the integrity of sports across the United States.
1 Comment