Since 2023, complaints regarding internet gambling and sports betting have more than doubled, according to the Better Business Bureau (BBB).
The public is somewhat confused and agitated as a result of the legal online sports betting industry's explosive growth in recent years, as well as the numerous offshore sportsbooks and illicit online casino websites that have appeared alongside the regulated sector. According to a recent BBB report, many customers aren't aware that the online gaming company they're using isn't trustworthy.
Since 2022, the BBB claims to have received over 10,000 company complaints on online gaming. From 1,104 complaints in 2022 to 3,759 last year, the number of these concerns is still rising.
Americans bet more than $500 billion a year on illegal, unregulated gambling websites, according to a new report released earlier this month by the American Gaming Association (AGA).
"Consumer reports to BBB expressed frustration with unclear terms and confusing rules. While many of these complaints ultimately fall short of deception, the pattern of repeated issues related to withdrawals, account closures, freezing of funds, and similar issues shows a disconnect between players and purveyors,” the BBB said.
Connecticut, Delaware, Michigan, New Jersey, Pennsylvania, Rhode Island, and West Virginia are the only seven iGaming jurisdictions that allow online slot machines and table games. Most of the nation has access to offshore and social casinos, the latter of which advertise themselves as sweepstakes sites but let users wager real money.
Thirty-three states, as well as Washington, DC, regulate online sports betting. Once more, internet sports betting is available to almost the whole nation through offshore, illicit websites.
BBB's Capabilities
The BBB is a nonprofit organization dedicated to consumer education and industry self-regulation that was established in 1912 with the goal of promoting marketplace trust. The BBB helps resolve disputes but has no legal enforcement authority and is not connected to any government body.
The BBB cautions customers in its "2025 Gambling Study" that using an online casino and/or sports betting site has a number of risks, including the potential for financial loss.
The group identifies warning signs of illegal online gambling companies, including as advertisements that make extravagant claims about payouts, enticing sign-up deals, a company location abroad, cryptocurrency availability, and typos. Sweepstakes-style casinos should be avoided, according to the BBB.
Ratings for Lawfulness
Numerous well-known social sweeps casinos have low BBB ratings, according to a search conducted by Casino.org. Many players express dissatisfaction with the lack of information on terms and conditions, such as the need that their bonuses and deposits be wagered a specific number of times before they may be withdrawn.
Online sportsbooks and legal iGaming also have lower BBB ratings.
According to the BBB, DraftKings has a "F" rating because it has not addressed 225 complaints.
"DraftKings locked my account and closed it with $780 in there. This has been horrible,” wrote Alex D. in his DraftKings complaint filed with the BBB.
The company that runs the Hollywood and ESPN Bet iGaming and sportsbook brands, Penn Entertainment, likewise keeps its "F" rating. Bally's, BetMGM, and Golden Nugget Online Casino are also rated "F."
No legitimate iGaming site or online sportsbook has applied for BBB accreditation.