The American public is being cautioned by the Federal Bureau of Investigation (FBI) to only place bets with authorized, regulated online operators.

The FBI states that "great odds come with high risk" in a notice dated Wednesday, December 17. According to the US government's domestic intelligence and security service, illegal online sports betting and casino websites and apps continue to spread throughout the US-facing internet, despite the fact that sports betting is now more common and sportsbooks are regulated in 39 states as well as Washington, DC.

The FBI explains that there are no consumer protections, such as fair play or the execution of account withdrawal requests, when using an unregulated gambling website. Customers' online funds are also more vulnerable to theft, according to the federal agency.

According to the FBI, criminal networks connected to terrorist groups and organized crime operate some illegal online gambling enterprises.

“Individuals engaged in illegal gambling risk funding organized crime activity and becoming vulnerable to violence, extortion, and fraud. As a federal law enforcement agency, the FBI enforces criminal statutes, including those involving organized crime and illegal gambling operations,” the alert read.

The FBI stressed that it is the duty of every individual who wants to bet online to make sure they are only interacting with legitimate, regulated operators.

FBI Observation 

The FBI has created a specific branch to counter the potential of influence from organized crime and other criminals looking to profit from illegal gambling and sports betting, given that gambling is more common than ever in the US.

The goal of the FBI criminal and Corruption in Sport and Gaming (CCSG) Program is to infiltrate organized criminal groups that operate illicit gambling businesses, including online sportsbooks, in order to get money for their unlawful activities, which include trafficking in people, drugs, and weapons. The CCSG was established to find, stop, and prevent illegal activity that compromises sports integrity and undermines public trust in athletics.

To find illicit behavior and prosecute corrupt actors, the CCSG collaborates with international law enforcement organizations, sports leagues, sports governing bodies, and independent watchdogs.

"Beyond the possible funding of organized crime activity, bettors who wager with illegal bookmakers put themselves at risk of extortion and violence if they are unable to repay debts. Furthermore, unregulated sportsbooks and offshore gambling websites put US consumers at risk of losing their money and earnings,” the FBI continued.

If they want to engage, the organization advises gamblers to keep up with state and federal regulations pertaining to online gaming. Examining state gaming regulatory websites, which frequently contain a list of authorized online sportsbooks and/or iGaming platforms, is advised by the FBI.

Public Assistance

Additionally, the FBI alerted the public to the fact that anyone with information on an illicit gambling business or online gambling activity can report it to the federal law enforcement agency by submitting an Internet Crime Complaint at www.ic3.gov.

Online gambling is still very common. The parent company of Facebook, Instagram, and WhatsApp, Meta, claimed to have made over $3 billion from China in 2024 from false ads pertaining to pornography, unlawful gambling, and frauds.