Since 2023, complaints regarding sports betting and internet gambling have more than doubled, according to the Better Business Bureau (BBB).

The public has experienced a great deal of confusion and anxiety due to the quick expansion of legal online sports betting in recent years, as well as the numerous offshore sportsbooks and illicit online casino websites that have emerged alongside the regulated business.  According to a recent BBB report, many customers are unaware that the online gambling company they are using is fraudulent.

Since 2022, the BBB claims to have handled more than 10,000 company complaints against online gaming.  From 1,104 complaints in 2022 to 3,759 last year, the frequency of these issues keeps rising.

According to a new report released earlier this month by the American Gaming Association (AGA), Americans gamble over $500 billion a year on unregulated, illicit gaming websites.

"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.

Only seven iGaming states—Connecticut, Delaware, Michigan, New Jersey, Pennsylvania, Rhode Island, and West Virginia—allow online slot machines and table games.  Most of the country has access to offshore and social casinos, the latter of which market themselves as sweepstakes platforms but let users wager real money.

In addition to Washington, DC, 33 states have laws governing online sports betting.  Once more, almost the entire nation has access to internet sports betting through offshore, illicit websites.

The BBB's Authority

The BBB is a nonprofit organization that was established in 1912 with the goal of promoting consumer education and industry self-regulation.  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 or sports betting company includes a lot of risk, including losing money.

Red flags about illegal online gaming companies, according to the organization, include advertisements with large payout guarantees, alluring sign-up offers, a foreign corporate location, the availability of bitcoin, and typos.  Sweepstakes-style casinos should be avoided, according to the BBB.

Ratings in Law 

Many of the top social sweep casinos have low ratings, according to Casino.org's BBB search.  Many players express dissatisfaction with not being informed of terms and conditions, such as the need that their deposits and bonuses be wagered a predetermined number of times before they can be withdrawn.

Online sportsbooks and legitimate iGaming don't have the finest 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 Hollywood and ESPN Bet iGaming and sportsbook brands are run by Penn Entertainment, which likewise has a "F" rating.  Bally's, Golden Nugget Online Casino, and BetMGM all have "F" ratings.

No legitimate iGaming platform or online sportsbook has applied for BBB accreditation.