The South Dakota Commission on Gaming has issued a public safety alert in response to a growing number of deceptive online casino operations fraudulently claiming ties to licensed gaming facilities in the state. These unauthorized websites and apps are tricking users with misleading advertising and cloned branding, prompting serious concerns over financial fraud and personal data security.
According to the Commission, these platforms frequently impersonate branding from established Tribal and Deadwood-based casinos, luring users through targeted social media promotions and digital ads. In many cases, they dangle offers of “guaranteed winnings” and outsized bonuses to create a false sense of legitimacy.
However, these sites are illegal. As per South Dakota’s gaming laws, no form of online gambling involving slots, table games, sports betting, or digital card games is permitted.
Deceptive Tactics and Potential Dangers
The Commission’s alert outlined several deceptive techniques used by these scams, including directing users to unofficial websites or fraudulent apps designed to mimic real operators. In addition to draining user funds through fake or manipulated games, these sites often harvest sensitive information such as banking credentials and Social Security numbers.
Consumers engaging with these illegal platforms expose themselves to serious risks, including financial loss and identity theft. The Commission advises the public to remain vigilant against ads that promise risk-free gaming or guaranteed payouts.
To stay safe, users should avoid gambling online, scrutinize website addresses for slight misspellings or unofficial domains (like “.net” instead of “.com”), and never share sensitive personal or financial details with unverified platforms.
Meta’s New Ad Policies Face Limitations
The Commission’s warning follows recent efforts by tech giant Meta to tighten its advertising rules for gambling-related content across Facebook and Instagram. The updated policy mandates that advertisers submit verification through Meta’s Business Suite Permissions and Verifications portal.
Advertisers must disclose their legal names, licensing information, and targeted jurisdictions. Additionally, they are prohibited from targeting users under the age of 18. Influencers promoting gambling content are also now required to register as affiliates.
However, loopholes remain. Advertisements for social casinos and free-to-play games are still allowed without prior approval, and Meta’s policy does not specifically address online sweepstakes.
“The South Dakota Commission on Gaming is not aware of an impact from Meta’s advertising changes on unlicensed operators within the state,” a Commission spokesperson stated.
Broader Regulatory Concern Across States
South Dakota’s announcement follows similar action in Arizona, where the Department of Gaming earlier this year issued a PSA alerting consumers to the dangers of unauthorized online casinos and sweepstakes. While Arizona permits certain free-to-play games, state law mandates that such games involve “no consideration or purchase” and impose “no added requirements or limitations on free participation.”
In its statement, the South Dakota Commission on Gaming reaffirmed its dedication to ensuring a secure gaming environment for residents. “The South Dakota Commission on Gaming remains committed to protecting the integrity of legal gaming in our state and safeguarding consumers from fraud and abuse.”
Source:
“Beware of Fraudulent Online Casinos Targeting Individuals”, dor.sd.gov. Aug 4, 2025
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