Federal Tax Authority Intensifies Action Against Unlawful Sports Betting With Approaching Football Season
The Internal Revenue Service's Criminal Investigation (IRS-CI) unit has stepped up its efforts to combat illegal gambling, particularly in the realm of online sports betting. In the last five fiscal years, over 96 individuals have been convicted for illegal gambling-related crimes, according to the IRS-CI.
The unit has launched over 30 investigations each year, targeting both domestic and offshore gambling sites that often bypass know-your-customer (KYC) protocols. Many of these sites are cryptocurrency-based, making them difficult to track and regulate.
Prison sentences for convicted individuals have ranged from five to 33 months. However, the IRS-CI has not provided new information on the specific prison sentences for those convicted in the last five fiscal years.
IRS-CI Chief Guy Ficco has emphasized the growing number of online crypto casinos offering sports betting options, highlighting the potential risks associated with these platforms. He urges taxpayers to use only state-licensed gambling platforms that are legal within their jurisdiction.
The IRS-CI also reminds bettors of the potential offenses related to illegal gambling. These include placing bets on behalf of others or gambling with the intent to conceal the source of funds, which could potentially implicate individuals in money laundering schemes.
The IRS-CI has a 92% conviction rate for cases that go to court regarding illegal gambling. Despite this high conviction rate, no information is available about the states affected by gambling fraud or the specific individuals convicted.
The IRS-CI also emphasizes the importance of reporting all gambling winnings as taxable income. Failure to do so can result in both civil and criminal penalties. Taxpayers with questions about their tax obligations related to gambling income should seek guidance from qualified tax professionals or consult the official IRS website.
Chief Ficco also emphasized the importance of gambling safely and legally. He reiterated that a lack of awareness about tax laws does not absolve individuals of their legal responsibilities. The IRS-CI continues to remind the public of the potential legal and financial consequences of engaging in illegal gambling activities.
