Consumer

Better Business Bureau: How to avoid sports betting scams

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today at 9:31 AM

Published April 1, 2026 10:41 AM

YUMA, Ariz. (KYMA) - From 2022 to mid-2025, BBB received nearly 200 Scam Tracker℠ reports and over 10,000 business complaints related to online gambling and gaming.

Some scam reports involved outright theft, while complaints showed a pattern of unclear terms and consumer misunderstandings. In some cases, consumers lost tens of thousands of dollars.

This nascent industry's growth is expected to explode in the coming years. At least one estimate for 2025 puts the size of the online gaming industry in the US at $103 billion. That number is expected to increase to nearly $170 billion within five years.

With billions of dollars flowing through this global industry, a risky underbelly of pseudo-gambling, illegal gambling and scams has developed.

Because of the sophistication of these impostors, bad actors and scammers, it can be hard for consumers to tell the difference between a legitimate bookkeeper, casino or betting company and those seeking to deceive or steal from the public.

To help protect the public, BBB's International Investigations Initiative put together a new study: "Grey markets and illegal gambling: BBB study finds consumers confused and upset, amid hundreds of unlicensed and unverified online casinos and sportsbooks."

This study is intended to give the public, news media, researchers and regulatory agencies an in-depth understanding of:

The web of gaming and gambling laws and regulations
The types of online gaming
Red flags to look out for when choosing an online casino

One man said he was playing an online slots game where he paid in for the chance to win money. When he won $1,900 and went to withdraw the funds, he was told by the company that the game wasn't allowed in his state, and the payout could not be made.

When he looked at the website, however, they still were allowing people located in the state to sign up and play, and there was no mention of the game being banned when he deposited funds.

Meanwhile, a woman in California said she was playing a slots game with free spins. It was a site she used often, and she had previously deposited money to play. While using her free spins, she won $300. The website pivoted, saying she needed to deposit funds to get her winnings, despite those terms not being listed anywhere on the website.

Red flags: Learn these signs

Big promises around payouts
Tempting ads without details
Overseas business locations
Sweepstakes-style games
Payment through cryptocurrency
Typos in names

BBB's tips

Read your state's or province's laws
Check to see if the casino or sportsbook is licensed
Read reviews and complaints, especially on BBB.org
Check out the fine print, especially around incentives and rules
Even legitimate websites may freeze winnings, be prepared
Be sure websites are secure – look for a lock icon and "https" in the URL – and disclose privacy policies
If you believe you have a problem with gambling, contact the National Problem Gambling Hotline (1-800-GAMBLER)