BBB Raises Alarm Over Increase in Online Gambling Scams

A new report from the Better Business Bureau (BBB) has drawn attention to the increasing number of scams and consumer losses associated with the rapid expansion of online gambling platforms, many of which operate without proper licensing or oversight. As billions of dollars pour into this booming industry, unregulated and deceptive websites are increasingly targeting unsuspecting players across the U.S.

Between 2022 and mid-2025, the BBB received nearly 200 scam reports and over10,000 complaints related to online gambling businesses. These cases range from outright fraud to disputes stemming from unclear or misleading terms that leave players unable to claim their winnings.

One player reported winning $1,900 from a slots-style game only to have the site refuse payment because online gambling was not legal in his state, despite the platform accepting users there without warning. Another player, a California woman, shared that she was denied a $300 payout from free spins unless she deposited additional funds, a requirement that had never been disclosed.

According to the BBB, these examples underscore widespread confusion about the legal status of platforms and a lack of transparency in operator practices, leaving many players vulnerable to predatory tactics.

The online gambling market in the U.S. continues to expand at a staggering pace, with revenues expected to reach $103 billion by the end of 2025 and climb to nearly $170 billion within five years. However, the American Gaming Association estimates that the illegal or “grey” market now accounts for about $400 billion, thriving in regulatory gaps and exploiting unclear legal frameworks.

“Losses related to online gaming are way underreported,” said Julie Wheeler, president of the BBB serving Western Virginia. “People may not report it because they feel they lost it gambling anyway, or they don’t realize they’ve been scammed.”

Wheeler added that consumers often engage with these platforms in vulnerable situations, such as late at night or when pressed for time, making them more likely to fall for misleading promotions. “You don’t have to travel or go anywhere. It just seems easier,” she noted.

To help consumers protect themselves, the BBB has shared key red flags that may indicate a risky or unlicensed platform. These include:

• Promises of unrealistic or overly generous payouts
• Unclear or hidden terms and conditions
• Websites with grammar errors or misspelled company names
• Requests for cryptocurrency payments
• Advertisements for sweepstakes-style games
• Operators based overseas
• Missing or unverifiable licensing details

The BBB urges players to verify a site’s legitimacy before engaging, ensuring secure connections marked by “https” and a padlock icon, reviewing independent ratings on platforms such as BBB.org, and reading bonus and withdrawal terms thoroughly.

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As the industry evolves faster than regulations can adapt, consumer vigilance is more critical than ever. The BBB recommends that players familiarize themselves with their state’s gambling laws, avoid clicking on pop-up ads or suspicious links, and set firm personal limits on spending to minimize financial risk.

For anyone experiencing gambling-related issues, the BBB reminds consumers that confidential assistance is available through the National Problem Gambling Hotline at 1-800-GAMBLER.

“You’re dealing with people who are trying to make a buck… maybe they’re not as discerning as they should be,” Wheeler cautioned, emphasizing that informed players are better equipped to avoid becoming victims in this complex and rapidly changing environment.

Source:

BBB Sounds Alarm Over Rise in Online Gambling Scams, realmoneyaction.com, August 26, 2025.