Better Business Bureau (BBB) data shows there has been an unprecedented number of complaints and cases of online gambling-related scams since 2022, most of which targeted U.S. citizens.
Key Takeaways
- Online gambling-related complaints and scams to the BBB have more than doubled since 2022.
- Offshore operators remain accessible to many U.S. consumers despite regulatory orders.
- Consumers report being denied withdrawals, misled by promotions, and locked out of accounts.
The BBB's scam tracker concerning online gambling doubled between 2022 and 2024, while business complaints surged by 216% year-on-year, according to an August update. Nearly 200 scam cases and more than 10,000 business complaints were filed during that time.
Most cases involved issues with withdrawals, misleading bonuses, and websites disappearing after users attempted to claim winnings.
Last year, more than 74% of gross gaming revenue was derived from illegal online gambling operators.
One Texas gambler claimed to lose $25,000 when a slot malfunctioned and raised her stake automatically. Another reported that a payout check lacked routing details, leaving her unable to deposit it.
Similar complaints have surfaced about unlicensed fantasy sports and sports betting sites. The BBB said unregulated platforms pose significant risks, offering no legal protection or recourse for consumers. Despite the growth of licensed online gambling across the U.S., offshore sites remain accessible and may even be growing in use amid tighter state restrictions on legal markets.
Lawmakers urge federal action
Following the U.S. Attorney General's call in August to crack down on illegal sports betting operations, lawmakers have pressed for federal intervention. In a letter to Attorney General Pam Bondi, Congress encouraged the Justice Department to take action in accordance with the Unlawful Internet Gambling Enforcement Act to limit access to illegal gambling sites targeting U.S. citizens.
The letter pointed out the vulnerability of minors to unregulated gambling, specifically referring to the fact that offshore gambling sites offer betting on credit, do not require age verification, and offer no assistance to gamblers with problems. The lawmakers pointed to increasing data about direct marketing to children by gambling sites on the internet.
Fifty state attorneys general have joined in urging the DOJ to use its authority to block access to these platforms. They requested details on enforcement actions, current efforts to restrict access, and any data on the targeting of American youth.
The letter also asked the DOJ to identify any gaps in legal authority or resources that could hinder its ability to combat illegal online gambling.
