The FBI has issued a public service announcement about the risks of engaging with the US black market.
Issued by the bureau’s Internet Crime Complaint Centre, the notice warned players to stay away from unregulated gaming primarily due to a lack of protection for consumers. However, it also highlighted the sector’s links to wider criminality and concerns surrounding the integrity of sport.
“These illegal sportsbooks and online gaming sites have significant consequences for the American public, the U.S. economy, and the integrity of sports betting in the US,” read the notice.
“Individuals engaged in illegal gambling risk funding organised crime activity and becoming vulnerable to violence, extortion, and fraud. Organised crime groups run illegal gambling operations, including online sportsbooks, to generate revenue for other criminal activities, such as human, drug, and weapons trafficking.”
The FBI emphasised it is the responsibility of players to ensure that their wagering activity is done via regulated operators, while noting that the American Gaming Association estimates that Americans wager $673.6bn annually in unregulated markets.
The US’s gambling framework remains somewhat fragmented, as decisions over the legality of verticals are taken on a state-by-state basis.
So far, 39 states have legalised some form of sports betting, be it retail, online or both. Meanwhile, seven states also allow fully regulated online casino.
However, the US market is continuing to be complicated by verticals that operate in the grey area between unregulated and regulated.
For a long time, this area was dominated by sweepstakes casinos, which offer online casino-style games using virtual currencies rather than real money. However, throughout 2025, many US states have moved to implement legislation that explicitly outlaws these operations.
More recently, prediction market platforms like Kalshi have hit the headlines as an alternative form of sports betting, especially in states where online sports betting is not currently regulated.
Despite similar protests from state gaming regulators over the legality of the sector, notable names such as DraftKings and FanDuel have moved to launch their own prediction market platforms.
Given the confusion this may cause for players, the FBI urged players to stay informed of applicable federal, state and local laws to ensure they are betting through a legal operator.
The organisation added: “While some online gaming websites are legal elsewhere in the world, they are still operating illegally in the United States dependent on state regulations.
“Many offshore gambling websites advertise towards U.S. consumers, obfuscating their overseas presence, and providing U.S. consumers with a false sense of comfort. These offshore sportsbooks are not held to the same legal standards as US-licensed sportsbooks and may lack consumer protections, increasing the risks for US-based users.”
The FBI noted that it has set up the Crime and Corruption in Sport and Gaming Program to combat the threat and influence from organised crime groups, target illegal gambling operations and protect the integrity of sport.
