By WVUA 23 Digital Reporter Rachel Seale

TUSCALOOSA, Ala. – As the upcoming NFL season approaches, the Internal Revenue Service Criminal Investigation Atlanta Field Office says illegal sports gambling is still a criminal offense, which can result in criminal charges including tax evasion and money laundering.

According to a press release, IRS-CI Atlanta Field Office Special Agent In Charge Demetrius Hardeman said many sports fan may think that illegal gambling is harmless and doesn’t affect anyone.

“However, illegal gambling activities provide criminal organizations money to finance violent and illicit activities,” Hardeman said.

Thirty-eight states allow sports gambling through authorized licensed sports betting operators. Alabama is not one of those states.

The U.S. illegal sports gambling market is estimated to return an annual revenue of more than $700 million, according to the same press release.

Within the past four years, the IRS-CI opened 151 investigations involving illegal sports betting. These investigations totaled more than $178.8 million and led to 71 prison sentences that averaged serving more than two years.

Last year, a Birmingham federal grand jury indicted 11 people across the country with 114 charges in a multi-million dollar illegal sports gambling tax evasion scheme.

According to the indictment, the defendants “accepted hundreds of millions of dollars in wagers” from 2019 to 2021 and made a profit of nearly $15 million.

Fans who participate in sports betting are required to report any winnings to the IRS on their annual tax return. The IRS also encourages those who place bets to “keep detailed records of all gambling transactions,” including bets placed and the total of winnings and losses.

According to the IRS, ignorance of tax laws does not exempt you from your responsibility to correctly report your gambling income. If you have questions regarding reporting your winnings, contact a tax professional or visit the IRS website.