09/05/2024 | Press release | Distributed by Public on 09/05/2024 09:37
Date: Sept. 5, 2024
Contact: [email protected]v
WASHINGTON - The 2024-2025 football season is here, and fans are betting on NFL and college football more than ever. With nearly 50% of Americans having bet on sports at some point in time, IRS Criminal Investigation (IRS-CI) reminds U.S. taxpayers to wager safely and legally this football season. Illegal gambling activities can result in criminal charges ranging from money laundering to tax evasion.
According to the American Gaming Association, nearly 68 million Americans, a 35% increase from 2023, wagered an estimated $23.1 million on last year's Super Bowl. The annual revenue from the illegal sports betting market in the United States is estimated at more than $700 million. Between fiscal years 2020 and June 2024, IRS-CI initiated 151 investigations into illegal gambling activity totaling more than $178.8 million and resulting in 71 sentencings with an average prison term of over two years.
"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 Criminal Investigation Chief Guy Ficco. "As this year's football season kicks off, 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."
Earlier this year, IRS-CI and Homeland Security Investigations special agents uncovered that Major League Baseball (MLB) player Shohei Ohtani's former interpreter Ippei Mizuhara had engaged in gambling activity with an illegal bookmaking operation for several years. Mizuhara illegally transferred almost $17 million from Ohtani's bank account - without the player's knowledge or permission - to pay off his substantial gambling debts. From November 2021 to March 2024, Mizuhara used Ohtani's password to successfully sign into the bank account and change the account's security protocols, the registered email address and telephone number on the account so bank employees would call him - not Ohtani - when attempting verification. In furtherance of the scheme, Mizuhara impersonated Ohtani and used his personal identifying information to deceive the bank's employees into authorizing wire transfers from the bank account. In total, Mizuhara called the bank and impersonated Ohtani on approximately 24 occasions.
In June 2023, several individuals were charged with owning or running illegal gambling businesses in Ohio, along with tax and other offenses such as money laundering. Two of the primary business owners, Christos Karasarides Jr. and Ronald DiPietro, tried to conceal their ownership of the illegal gambling businesses by using nominee owners and sham contracts. Additionally, their businesses made millions of dollars, but they had not reported any of the earnings on their tax returns. This summer, the pair was sentenced to 21 and more than nine years in prison, respectively, and ordered to pay millions of dollars in restitution for their roles in the illegal gambling operation.
Individuals who engage in sports betting activities are required to report their winnings on their annual tax return. Additionally, the IRS encourages individuals to keep detailed records of all gambling transactions, including bets placed, winnings received, and losses incurred.
Sports enthusiasts who are unsure about their tax obligations or have questions about reporting gambling income are encouraged to consult tax professionals or visit the official IRS website for guidance. Ignorance of the tax law does not exempt individuals from their responsibilities.
For more information on reporting gambling income and other tax-related inquiries, please visit IRS.gov.
IRS-CI is the criminal investigative arm of the IRS, responsible for conducting financial crime investigations, including tax fraud, narcotics trafficking, money-laundering, public corruption, healthcare fraud, identity theft and more. IRS-CI special agents are the only federal law enforcement agents with investigative jurisdiction over violations of the Internal Revenue Code, obtaining a more than a 90 percent federal conviction rate. The agency has 20 field offices located across the U.S. and 12 attaché posts abroad.