The surge and growth of online gaming have led online sports betting to be a “special focus” for money laundering, according to the U.S. Department of Treasury. The executive department highlighted these issues in the recent National Money Laundering Risk Assessment.

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The report said that “particular illicit finance concerns are the emergent money laundering risks associated with sports betting, offshore sports betting, and virtual asset gambling.”

The U.S. Treasury reported that $220 billion has been legally wagered in America since PASPA was overturned in 2018. Sports betting is now legal in 38 U.S. states.

There are Anti-Money Laundering and Combating of the Financing of Terrorism compliance concerns because of sports betting operators’ partnerships with land-based casinos and licenses with different states.