BBB Gaming Study. High Stakes Hidden Risks

From 2022 to mid-2025, Better Business Bureau® received nearly 200 scam reports and over 10,000 business complaints related to online gambling and gaming. Some scam reports involved outright theft, while business complaints showed a pattern of unclear terms and consumer misunderstandings. In some cases, consumers lost tens of thousands of dollars.

With billions of dollars flowing through this global industry, a risky underbelly of pseudo-gambling, illegal gambling and scams has developed. Laws and regulations in the gaming industry vary from state to state and can be confusing to navigate. Furthermore, impostors, bad actors and scammers use sophisticated tactics, making it hard for consumers to tell the difference between a legitimate company and those seeking to deceive them.

There is highly regulated and fully legal gambling across the United States and Canada in the form of state lotteries and in-person casinos. This study and the problems mentioned do not relate to these entities but instead focus on the online operators emerging in our new legal landscape.

In “Grey markets and illegal gambling: BBB study finds consumers confused and upset, amid hundreds of unlicensed and unverified online casinos and sportsbooks” BBB’s International Investigations Initiative examines patterns of complaints and reports, reviews the amount of money lost and shares stories to avoid common issues.

Key findings:

• Online grey market and illegal gambling operations are widespread, and legal protections are few and far between on these sites
• Consumers report confusion, misleading terms and claim unfair losses as the industry has exploded in popularity
• A complicated mix of laws and regulations across North America means consumers must do their homework to find legitimate options

Key stats:

• • $103 billion – Estimated size of the online gambling and gaming industry, according to Researchandmarkets.com

• $402 billion – One estimate of the size of the illegal online gambling market, according to the American Gaming Association

Numbers across North America (2023-2024): 

• 10,189 – Business complaints made to BBB
  • 216% increase between 2022 and 2023
• 174 – BBB Scam Tracker reports
  • More than 100% increase over the last two full years

What red flags should I look out for if using gambling or gaming services?

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

How can I avoid issues with gambling or gaming companies?

• Read your state and provincial laws. There are many different laws for online gambling, depending on where you live. Make sure you understand your local laws before engaging with any gambling establishment or casino.

• Check for proper licensure. Even if your state allows gambling, it may have a limited list of allowed websites. After checking whether you are legally allowed to gamble, check with your state’s gaming regulatory agency to see who is licensed.

• Read the fine print. The reality of how winning and withdrawal works may be different than your first impression on a website. Check out the details of a specific service and fully understand how they work before sending them any money.

• Legitimate websites may freeze winnings. There are many reasons why a casino or sportsbook might freeze winnings, even if the money is rightfully yours. Understand the rules of a website and what might cause freezes to happen. Know what actions to take if your account is frozen.

For over a decade, BBB’s International Investigations Initiative has advocated for an ethical marketplace by conducting deep-dive research on the riskiest and most common scams reported across North America.

Visit BBB.org/scamstudies for more information on theft and other scams. Visit BBB.org to check out a business or register a complaint and BBB Scam TrackerSM to report a scam.

About BBB: BBB is a nonprofit, business-supported organization that sets and upholds high standards for fair and honest business behavior. Most BBB services to consumers are free of charge. BBB provides objective advice, free BBB Business Profiles on more than 5.3 million companies, 11,000 charity reviews, dispute resolution services, alerts and educational information on topics affecting marketplace trust. Visit bbb.org for more information. BBB Serving Central East Texas was founded in 1985 and serves 19 counties.