The IRS has delivered a friendly warning to bettors ahead of the NFL season.
The IRS sent out a press release reminding bettors to bet legally during this football season. The release focused on promoting regulated sportsbooks and encouraging the public to avoid offshore or illegal options. The federal department also shared that its agents will closely monitor for evidence of illegal betting.
The US illegal sports betting market is believed to be worth over $700 million.
Unregulated sportsbooks are able to tempt bettors with the promise of tax-free betting and unique odds and promotions. However, they do not have to follow US regulations. That includes rules around odds, promotions, payouts, and much more.
Many bettors have chosen an offshore book only to face issues. They are left without legal recourse if they run into problems with the operators, including their bankroll. That puts bettors in a vulnerable position, which the IRS and other regulators warn against.
The IRS's press release is the latest in many actions against unregulated operators. In the last few months, a flurry of states have issued cease-and-desist letters to sportsbooks, forcing them to shut down their platforms in their markets. That includes operators like Bovada, which has been successful in the US.
In addition to online platforms, states have also been targeting illegal offline sportsbook operations. Some of the biggest sports betting scandals over the last few years have involved these kinds of sportsbooks, which allow athletes to avoid using regulated and monitored sportsbooks.
In addition to putting customers at risk, unregulated operators also take tax revenue from the state. That has given regulators and legislatures plenty of reason to crack down on these operators.
The American Gaming Association, which supports the sports betting industry, released projections for the upcoming NFL season. They expect around $35 billion to be wagered, an increase of over 30% from the prior year.
The increase is expected due to more states offering sports betting, expanded markets, and the crackdown on unregulated operators.
The AGA’s projections are one reason the IRS has decided to issue a statement.
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