5 Reasons Why Regulated Sportsbooks Benefit Customers

Safe, regulated sports betting is more accessible than ever across the United States.

Online sports betting is now legal in the majority of U.S. states, yet illegal operators still capture approximately $673 billion annually, according to the American Gaming Association (AGA).

These illegal operators function in the shadows where they dodge state taxes and neglect consumer protections.

Licensed sportsbooks, however, work under state regulations and provide safeguards around payment processing, data privacy, and responsible gaming.

Here are five ways regulated sportsbooks protect and empower bettors.

Reason 1: Verification Processes Keep Gaming Responsible

Regulated sportsbooks use age verification, identity checks, and built-in safeguards to ensure online eligible individuals can participate.

FanDuel has a Know Your Customer (KYC) process to verify every customer’s identity before they are able to wager. This includes safeguards such as Multi-Factor Authentication (MFA) and geolocators to confirm users are within legal state boundaries.

Reason 2: Secure Payment System Protects Funds

There were over 16,252 complaints filed across North America between 2023 and 2025 with the Better Business Bureau related to unlicensed casinos and sportsbooks.

Unregulated sites face no real obligation to pay customers, so if you bet there without legal protection, recovering your funds can be extremely difficult.

Just as bank accounts and government websites require verification and secure systems, licensed sportsbooks use specialized payment protection and adhere to strict financial standards.

Reason 3: Personal Data Stays Private

On unregulated gambling sites, your personal data—including your name, payment details, and identification—may not receive adequate protection. This leaves users vulnerable to identity theft and fraud.

Licensed sportsbooks follow stringent security and privacy standards to keep your information safe. Security measures include encryption, secure payment systems, anti-fraud technology, and regular security audits.

Reason 4: Mandatory Oversight Means Better Service

Offshore sportsbooks operate without oversight, which means they can offer subpar service with little to no accountability. In fact, the FBI issued a PSA explaining the risks associated with unregulated gambling in December 2025:

“These illegal sportsbooks and online gaming sites have significant consequences for the American public, the U.S. economy, and the integrity of sports betting in the U.S.,” the announcement reads. “Individuals engaged in illegal gambling risk funding organized crime activity and becoming vulnerable to violence, extortion, and fraud.”

Regulated sportsbooks are licensed and monitored, with regular audits ensuring game integrity. FanDuel also offers dedicated support agents who are always ready to assist customers.

Reason 5: RG Tools Put Users in Control

Unregulated sportsbooks don't need to follow responsible gaming regulations, which means they're free to use manipulative tactics designed to keep customers hooked and spending more.

Meanwhile, regulated platforms empower users with built-in tools to set healthy limits.

For example, FanDuel's My Spend dashboard lets users track their wagering habits to make informed decisions about their play. Customers can also set various limits and alerts so they're able to enjoy the game on their terms, in an environment built around what works for them.

These measures ensure compliance, protect customers, and deliver what matters most—a safe, worry-free gaming experience.

Visit fanduel.com/playwithaplan to learn more about our commitment to responsible gaming and consumer protection.