Better Business Bureau Study Finds Consumers Frustrated, Confused by Unlicensed Gambling Sites

^{The Better Business Bureau study is part of a growing effort for regulators and consumers for the federal government to take stronger measures against unlicensed gambling operators. (Photo:  Ievgen Chabanov / Alamy)}

The Better Business Bureau (BBB) is the latest organization to publish its findings on unlicensed gaming. The consumer advocacy group released a study on Aug. 19 sharing reports and complaints it has received from users related to online gambling sites.

According to the BBB, it received over 10,000 complaints related to online gambling and gaming from consumers in North America between 2022 and mid-2025, including nearly 200 “Scam Tracker” reports.

AGA, Attorney Generals Call for Crackdown on Unlicensed Operators

Much of the report focuses on sites that users may mistakenly believe are regulated in their state or province, but which actually operate offshore. 

As an example, the BBB shared the story of one woman from Carrollton, Texas who reported running into issues with Bovada, which operates out of Curacao. She reported to the BBB that she was unable to receive help after she reported a malfunction that she claimed had increased her bet size without ay action on her part. According to the woman, instead of getting a response from customer support, they closed and banned her account instead.

“I contacted Bovada, and they didn’t want to resolve the issue or refund me my money,” the BBB quoted the woman as saying.

The American Gaming Association (AGA) has recently released its own reports on unregulated gambling as well as sweepstakes casinos in the United States. It also weighed in on the BBB’s research.

“These predatory websites -- which rely on cryptocurrency and employ no safeguards -- pose the most significant risk of gambling-related financial crimes,” AGA Vice President Alex Costello said. “The federal government must prioritize enforcement against these bad actors to protect American consumers and the US financial system.”

There has been a concerted effort in recent weeks to get the US government to pay closer attention to unregulated gambling. Along with the studies from the AGA and BBB, a coalition of 50 attorneys general has also called for the Department of Justice to take stronger enforcement actions against illegal and unregulated operators.

States, Provinces Lead the Way in iGaming Enforcement

For now, however, the task of cracking down on sites operating outside of regulations has fallen on state governments. The level of enforcement has varied, with some regulators, like the Michigan Gaming Control Board (MGCB), being especially aggressive towards unregulated operators. 

“Illegal gambling operators pose a serious threat to Michigan residents by offering games that are neither regulated nor fair, and by providing no assurances of data security, responsible gaming tools, or guaranteed payouts,” MGCB Executive Director Henry Williams said in a statement to the BBB.

The BBB offered a number of tips to consumers who want to gamble while avoiding scams or unregulated sites, pointing out red flags like big promises about payouts and reminding users to check for a valid license at iGaming websites. It also noted that some things that users may not like, like the freezing of winnings, can also be done by regulated websites for legitimate reasons – though in those cases, there should be a process to complete a withdrawal or dispute the site’s findings. 

“Illegal gambling websites and other great market gambling offerings can pose serious risks to consumers because they operate outside the protections of regulated markets,” the North American Association of State and Provincial Lotteries said in a statement to the BBB. “These unlicensed operators are not subject to the same standards for fairness, transparency, or responsible gaming, and they offer no guarantees when it comes to safeguarding personal data or paying out winnings.”