Fighting Fraud
By Better Business Bureau Serving Greater Cleveland
A new study from Better Business Bureau® (BBB®) highlights alarming growth in online gambling-related scams and consumer complaints, exposing how inconsistent laws and a lack of oversight allow grey market and illegal operators to thrive.
From 2022 to mid-2025, BBB received nearly 200 scam reports and more than 10,000 business complaints tied to online gambling and gaming. While some scams involved outright theft, many complaints pointed to misleading terms, confusing agreements, and consumers losing thousands of dollars to questionable operators.
“Online gambling scams are becoming increasingly sophisticated, preying on individuals who are simply looking for entertainment or a chance at a little luck,” said Pamela Anson, President and CEO of BBB Serving Greater Cleveland. “Our study shows just how critical it is for consumers to recognize red flags and do their research before spending money on these platforms.”
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
What red flags should I look out for when 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
- Check for proper licensure
- Read the fine print
- Even legitimate websites may freeze winnings
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.
For more tips and resources, visit BBB.org/Cleveland. To read more about this study and others, visit BBB.org/scamstudies. And check out BBB Scam TrackerSM to report a scam. Have additional questions? Reach out to your BBB at 216.241.7678 or [email protected]. Have a scam to report? Report it to BBB.org/ScamTracker.
