During this football season, the IRS is warning sports gamblers to exclusively use authorized, regulated sportsbooks, both online and in-person.

Since football attracts more sports betting interest than any other sport, it is the busiest time of year for oddsmakers.  Additionally, it is the busiest time of year for local bookmakers and illicit sports gambling websites.

In 20 field offices across the United States and 14 foreign countries, IRS Criminal Investigation Chief Guy Ficco is in charge of 2,300 special agents.  According to Ficco, who spoke with ABC News, the public should only deal with sportsbooks that have state-issued sports wagering permits.

"If you gamble with a site that is not reputable, your funds, winnings included, may be at risk,” Ficco explained. “I would also say that fraudsters have looked for ways to compromise the financial system in many ways, including online casinos, and we have seen an influx of identity theft-based crimes.”

The majority of states that allow sports betting identify the regulated sportsbook brands.  For example, the Division of Gaming Enforcement (DGE) in the state of New Jersey lists the sportsbooks that are allowed.

Protections for Offshore Consumers 

Ficco claims that the betting public has few options when they are having issues getting their winning bets paid, attempting to make a withdrawal, or closing their wagering account, even though the numerous unregulated online sportsbooks that target US consumers claim to be regulated in their host nations, including Malta, the Isle of Man, Anjouan, Gibraltar, Curacao, and the Philippines.

Opponents of offshore gambling websites claim that foreign regulators primarily check the companies to make sure they aren't hurting their own interests by breaking foreign gambling laws or neglecting to offer customers standard protections like fair odds, prompt withdrawals, and responsible gaming options.

To trick customers into believing the business is respectable, a lot of illicit casino websites and sports betting platforms even imitate real land-based casinos in the US.

On their 1040 (1040-SR) annual income tax return, taxpayers are required by the IRS to disclose all of their gambling earnings, whether they originate from legal or illicit gaming.

Crypto-Casino

According to Ficco, a lot of illicit gambling websites trade in cryptocurrency, which adds even more layers of worry.

“None of us, or the majority of us, know all the inner workings of crypto, and don’t know all of the inner workings of how things are transferred from blockchains and such. It creates more vulnerabilities. So, I would just ask the prospective gamblers out there to do some due diligence before they place their wagers,” Ficco added.

Yield Sec, a gaming consultant, revealed in April that illicit online gambling sites brought in an estimated $67 billion in revenue the previous year.  74% of the US iGaming and online sports gambling business was made up of unregulated gambling, which grew by 36%.

According to the Yield Sec study, almost 90% of US consumers have encountered unlawful gambling content in the media they watch.