Better Business Bureau Reports Surge in Online Gaming Complaints
Posted on: August 25, 2025, 09:51h.
Last updated on: August 25, 2025, 10:08h.
- 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) reports that complaints about online gambling and sports betting have more than doubled since 2023.
The rapid growth of legal online sports betting in recent years, and the countless offshore sportsbooks and illegal internet casino websites that have popped up alongside the regulated industry, have caused much confusion and angst among the public. That’s according to a new report from the BBB, which says many consumers are unaware that the online gaming operation they’re utilizing isn’t legitimate.
The BBB says it’s fielded over 10K business complaints related to online gambling since 2022. The frequency of such complaints continues to escalate, from 1,104 complaints in 2022 to 3,759 last year.
Earlier this month, the American Gaming Association (AGA) published a new analysis concluding that Americans wager more than $500 billion annually with illegal, unregulated gambling 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.
Online slot machines and table games are legal in only seven iGaming states — Connecticut, Delaware, Michigan, New Jersey, Pennsylvania, Rhode Island, and West Virginia. Offshore and social casinos, the latter of which bill their operations as sweepstakes platforms but allow people to gamble with real money, are accessible in most of the country.
Online sports betting is regulated in 33 states, plus Washington, DC. Again, offshore, illegal websites offer online sports betting to nearly all of the country.
BBB’s Powers
Founded in 1912 with the mission of advancing marketplace trust, the BBB is a nonprofit focused on consumer education and industry self-regulation. The BBB isn’t affiliated with any government agency and lacks legal enforcement power, but does assist in dispute resolution.
In its “2025 Gambling Study,” the BBB warns consumers that engaging an online casino and/or sports betting outfit carries much risk, including the loss of funds.
The organization says red flags about illicit internet gaming businesses, including ads with big promises about payouts, tempting sign-up offers, an overseas business location, the availability of cryptocurrency, and typos. The BBB also says sweepstakes-style casinos should be avoided.
Legal Ratings
Casino.org searched the BBB and found that many leading social sweeps casinos have poor ratings. Many users complain about not being made aware of terms and conditions, such as the fact that their deposits and bonuses must be gambled a certain number of times before becoming eligible for withdrawal.
Legal iGaming and online sportsbooks also don’t have the best BBB ratings.
DraftKings has an “F” rating, with the BBB saying the company has failed to respond to 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.
Penn Entertainment, which operates the Hollywood and ESPN Bet iGaming and sportsbook brands, also maintains an “F” rating. BetMGM, Golden Nugget Online Casino, and Bally’s have “F” ratings, too.
No legal online sportsbook or iGaming platform has sought BBB accreditation.
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