Better Business Bureau Reports Surge in Online Gaming Complaints
Better Business Bureau Reports Surge in Online Gaming Complaints
Table of Contents
The Better Business Bureau (BBB) is seeing a rise in online gaming complaints
- Online casinos are legal in only seven states
- The BBB encourages the public to bet only with regulated operators
The Better Business Bureau (BBB) has issued a warning as complaints regarding online gambling and sports betting have surged dramatically, doubling in just a short span since 2023. This increase in complaints reflects the growing concerns among consumers about the legitimacy of online gaming platforms.
The rapid growth of legal online sports betting has unfortunately paralleled the emergence of countless offshore sportsbooks and illegal internet casinos. This duality has led to considerable confusion within the public, many of whom are unaware that the platform they are using may not be legitimate, according to a new report from the BBB.
Since 2022, the BBB has reported over 10,000 complaints related to online gambling—rising from 1,104 complaints in 2022 to an alarming 3,759 complaints just the previous year. The American Gaming Association (AGA) further supports these concerns, estimating that Americans wager more than USD 500 billion annually with illegal, unregulated gambling entities.
Consumer reports indicate frustration stemming from unclear terms and confusing rules on these platforms. Although many of these complaints do not indicate outright deception, a consistent pattern of difficulty with withdrawals, account closures, and freezing of funds indicates a disconnect between players and the operators.
Legal online slot machines and table games are the preserve of only seven iGaming states: Connecticut, Delaware, Michigan, New Jersey, Pennsylvania, Rhode Island, and West Virginia. In contrast, offshore and social casinos, which often mislabel themselves as sweepstakes platforms, are accessible in nearly every corner of the country. Furthermore, online sports betting is regulated in 33 states, along with Washington, DC; however, illegal sites still offer such services broadly.
BBB’s Powers
The BBB, established in 1912 with the intent of advancing trust in the marketplace, operates as a nonprofit focused on consumer education and industry self-regulation. Importantly, the BBB is not a government entity and does not wield legal enforcement power, but it does assist in resolving disputes.
In its “2025 Gambling Study,” the BBB has cautioned consumers that engaging with any online casino or betting platform carries significant risks including the potential loss of funds. They advise vigilance and highlight several red flags that may indicate a fraudulent operation: suspicious ads promising large payouts, attractive sign-up bonuses, businesses located overseas, acceptance of cryptocurrencies, and instances of typos in communications.
The BBB also calls into question the safety of sweepstakes-style casinos, urging consumers to avoid such platforms.
Legal Ratings
Analysis conducted by Casino.org found concerning ratings for many leading social sweepstakes casinos through the BBB. Numerous complaints have emerged about the lack of transparency regarding terms and conditions, including the stipulation that deposits and bonuses must be wagered a specific number of times before they can be withdrawn.
Legal iGaming and online sportsbooks have not fared well in terms of BBB ratings either. DraftKings currently holds an “F” rating after reportedly failing to address a staggering 225 complaints. A customer, Alex D., reported, “DraftKings locked my account and closed it while having $780 in there. This has been horrible.”
Penn Entertainment, which operates popular brands like Hollywood and ESPN Bet, also has an “F” rating, while other platforms such as BetMGM, Golden Nugget Online Casino, and Bally’s share similar disappointing ratings.
Currently, no legal online sportsbook or iGaming platform has sought BBB accreditation.
Given the variety of complaints and issues, it is imperative for consumers to select regulated operators when engaging with online gambling platforms and to stay informed about their rights and risks.
Summary
The surge in online gambling complaints reported by the BBB sheds light on a troubling aspect of the gaming industry, as consumers grapple with unregulated operators. This article highlighted the cookie-cutter nature of complaints, urging players to remain cautious and to engage only with legal and regulated platforms. The BBB continues to advocate for consumer education to help mitigate risks associated with online gaming.
