A federal government agency is asking sports bettors to adhere to rules and regulations ahead of a new NFL season.
The Internal Revenue Service (IRS) has delivered a letter to taxpayers through its Criminal Investigation Unit that encourages sports bettors across the country to wager through licensed sportsbooks amid the prevalence of illicit gambling operations. The IRS is reminding taxpayers of the importance of adhering to gaming rules ahead of a new NFL season as the league saw 68 million people wagering on Super Bowl LVIII, a 35% increase compared to 2023, according to the American Gaming Association.
“Sports betting has grown exponentially in the past five years and is more common than ever. While online gambling is easily accessible, it’s not always legal,” said IRS-CI Chief Guy Ficco. “As this year’s football season kicks off, IRS-CI special agents are continuing to monitor trends and using our expertise to root out criminal activity related to illegal gambling like money laundering and tax evasion.”
The IRS has sent a public notice as illegal gambling operations have been a hot topic.
Earlier this year, the former interpreter of MLB superstar Shohei Ohtani pleaded guilty to federal charges after allegedly participating in an illegal gambling operation run by former bookie Matthew Bowyer. The former interpreter, Ippei Mizuhara, siphoned at least $16 million from Ohtani’s bank account to Bowyer to cover gambling losses. Mizuhara placed approximately 19,000 wagers with the illegal sportsbook with losses at roughly $40 million.
Bowyer has also been shrouded in controversy for running an illegal gambling operation.
The former bookie pleaded guilty in a federal court in August to operating an unlawful gambling business, money laundering and subscribing to a false tax return. Bowyer received the money laundering charges for siphoning some of the funds from his illegal operation to Resorts World Casino in Las Vegas through a market account. Bowyer used the funds to withdraw chips to gamble with. Former Resorts World President Scott Sibella was sentenced to one year of probation for allowing Bowyer to launder the gambling funds.
Bowyer faces up to 18 years in prison for his role while Mizuhara faces up to 33 years.
IRS issue reaches NBA
Illegal gambling operations also found a way to infiltrate the NBA.
Former NBA forward Jontay Porter pled guilty in a New York federal court to conspiracy to commit wire fraud by providing insider information to a group of co-conspirators to pay back illegal gambling debts. According to court documents, Porter notified the co-conspirators of his intention to exit two NBA games in 2024 early due to injury and illness.
The co-conspirators placed wagers on the “under” player prop markets for Porter and collectively netted a profit of more than $1.2 million from the wagering that was eventually flagged for suspicious activity. As a result of Porter’s actions, the 24-year-old received a lifetime ban from the NBA. He faces up to 20 years in prison for his role in the scheme.
