WASHINGTON — As football season kicks off, the Internal Revenue Service’s Criminal Investigation division (IRS‑CI) is stepping up enforcement against illegal sports betting and urging taxpayers to gamble only through legal, regulated channels.
Targeting Unlicensed and Offshore Operators
IRS‑CI investigates more than 30 illegal gambling cases each fiscal year, securing convictions in 92% of those that go to trial. Over the past five years, 96 people have been convicted of gambling‑related offenses, with prison sentences ranging from five to 33 months.
Chief Guy Ficco noted a rise in offshore cryptocurrency casinos offering sports betting without know‑your‑customer (KYC) safeguards, specifically to attract anonymous users — a practice that can facilitate illicit activity. “If you want to gamble, do it safely and legally,” Ficco said.
Guidance for Safe, Legal Betting
In its September 2 advisory, IRS‑CI urged bettors to:
- Use only state‑licensed gambling platforms legal in their jurisdiction.
- Avoid offshore and crypto‑based sites that bypass KYC protocols.
- Report all gambling winnings as taxable income to avoid civil or criminal penalties.
- Never place bets on behalf of others or use gambling to disguise the source of funds, which could lead to money laundering charges.
Tax Obligations Remain Clear
The agency reminded taxpayers that ignorance of the law is no defense. Those unsure about their obligations should consult a qualified tax professional or visit the IRS website for official guidance.
By reinforcing these rules, IRS‑CI aims to protect consumers, safeguard tax revenues, and curb the influence of unregulated betting markets during one of the busiest wagering periods of the year.
