Treasury Department May Move Against Illegal Sports Betting

Reuters reports that the U.S. Treasury Department is planning to ask U.S. casinos to watch for illegal sports wagers. The goal is to keep billions in wagers form unidentified sources from moving through U.S. banks.

The U.S. Treasury Department’s anti-money laundering unit is planning to ask casinos to keep an eye out for illegal sports wagers, Reuters reports citing two unnamed sources familiar with the matter.

The Treasury wants to stop betting that lets billions of dollars—most from unknown origins—into the country’s banking system.

The Treasury’s Financial Crimes Enforcement Network is expected to outline “red flags” for casinos to look out for and report. One example might be unusually large wagers, a sign that bets are being pooled, the news service reported.

The Internal Revenue Service’s criminal investigation division has also been focused on the money laundering risks associated with illegal sports betting. The agencies are concerned that some of the money involved in these transactions could be linked to corruption and other types of crimes, Bloomberg reported.

The IRS has said that money laundered by illegal sports betting is now exceeding money laundered by drug traffickers. Officials have warned of a crackdown on U.S. casinos that allow illegal sports book operations around the world, including online outfits, to balance their bets by placing casino wagers, the news service reported.