A recent Better Business Bureau (BBB) study has spotlighted the growing confusion and consumer losses tied to the explosion of online gambling and gaming platforms, many of which operate without licenses or oversight. With billions of dollars now flowing through the industry, the risk of falling victim to unregulated or deceptive sites is on the rise.
Surge in Complaints Reflects Industry’s Grey Areas
Between 2022 and mid-2025, the BBB recorded nearly 200 scam reports and over 10,000 business complaints related to online gambling. These included both outright fraud and cases where vague or misleading terms left players unable to claim winnings.
One man recounted winning $1,900 on a slots-style game, only to be denied payout because the game wasn’t legal in his state – despite the site still accepting users from that region without warning. Similarly, a woman in California said a gaming site refused to release her $300 prize from free spins unless she deposited additional funds, a term never disclosed beforehand.
According to the BBB, this pattern reflects widespread confusion about legality, lack of transparency, and questionable tactics used by operators targeting unsuspecting players.
A Rapidly Growing, Loosely Regulated Industry
The online gambling sector in the U.S. is projected to hit $103 billion in 2025, with forecasts predicting a rise to nearly $170 billion within five years. Yet alongside the legal market, an illegal or “grey” market—now estimated at $400 billion by the American Gaming Association – has flourished, exploiting regulatory loopholes and vague laws.
“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 noted that consumers often engage with these sites late at night or when pressed for time, making them more susceptible to sketchy offers or misleading ads. “You don’t have to travel or go anywhere. It just seems easier,” she added.
What to Watch For: Common Red Flags
To help consumers navigate this increasingly murky landscape, the BBB outlined several warning signs to avoid:
- Overly generous payout promises
- Vague or hard-to-find terms and conditions
- Sites with poor grammar or typos in company names
- Requests for payment in cryptocurrency
- Ads for “sweepstakes-style” games
- Operations based overseas
- Lack of clear licensing information
The BBB urges users to verify site legitimacy before gambling. This includes checking for secure site connections (look for “https” and a padlock icon), reading independent reviews, especially on BBB.org, and closely reviewing fine print on bonuses and withdrawal rules.
Protecting Yourself in a Risky Market
To minimize risk, the BBB recommends understanding your state’s gambling laws, avoiding pop-up ads or suspicious links, and setting strict personal limits on spending.
For those struggling with gambling issues, the BBB reminds individuals they can contact the National Problem Gambling Hotline at 1-800-GAMBLER for confidential help.
As Wheeler noted, “You’re dealing with people who are trying to make a buck… maybe they’re not as discerning as they should be.” In an industry expanding faster than regulations can keep up, staying informed is the first line of defense.
Source:
“BBB Investigation: Consumers confused, upset amid hundreds of unlicensed and unverified online gambling and gaming sites”, bbb.org, August 19, 2025
The post BBB Sounds Alarm Over Rise in Online Gambling Scams first appeared on RealMoneyAction.com.