According to a recent Better Business Bureau (BBB) study, online gaming and gambling is a quickly growing industry that is worth $103 billion and expected to grow to $170 billion within five years. However, the increase in online gaming has reportedly led to increased concerns about scams and illegal gambling.
The BBB says, “Millions of people across North America wager money online every day, placing bets on sporting events, taking part in casino-type games and wagering in prediction markets, even as online gambling and gaming straddles the line of ethics and legality across the country.”
Between 2022 and mid-2025, the BBB received almost 200 scam reports and over 10,000 business complaints related to online gaming. Consumers have reported theft, unclear terms and conditions, and confusion between legitimate betting companies and sophisticated scammers.
One consumer reported to BBB that Bovada, an online sportsbook and casino, increased her bet amounts without her input and said she lost $25,000. Another consumer told BBB that the sports betting website he used changed where he placed his wagers after the fact, causing him to lose money when he would’ve won.
According to BBB, one reason for the high number of scam reports is the difference in laws between jurisdictions. Sports betting and gambling is banned in some U.S. states, like Utah, but is allowed in others.
The difference in regional laws mean that consumers may not have any legal recourse if they are scammed. Illegal and offshore gaming sites often lack safeguards to protect consumers’ finances and, with the variety in legal requirements, typically remain unregulated. The BBB study says, “Many illicit casinos and sportsbooks operate in this grey area and offer no protection or customer support if something goes wrong.”
The Better Business Bureau notes that a federal crackdown against illicit gambling sites means they may be found liable and face charges if they are unlicensed, but individuals who are participating in online gaming and gambling do so at their own risk.
Individuals can report business scams and find out more information about commonly reported scams here.
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