Better Business Bureau Warned of Sports Betting Scams

The BBB issued a new consumer alert regarding fraudulent online gambling platforms across the United States.

Updated on Sept. 27, 2026 in Gambling

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The Better Business Bureau issued a consumer alert regarding fraudulent online betting platforms that steal deposits and withhold winnings from unsuspecting users. AI Illustration. Upload story photo >

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The Better Business Bureau recently issued a warning to consumers about the rise of online sports betting scams. The alert follows a study that identified thousands of complaints and reports of fraudulent activity involving digital gambling sites.

Why it matters

Confusing regulations across different state lines and aggressive marketing tactics have made it easier for scammers to defraud unsuspecting users. These fraudulent platforms often exploit legal ambiguity to steal money under the guise of legitimate betting operations.

A study by the Better Business Bureau analyzed more than 10,000 complaints and nearly 200 Scam Tracker reports concerning online gambling and gaming from 2022 through mid-2025.

The players

Better Business Bureau

This private, non-profit organization focuses on advancing marketplace trust by providing information on businesses and charities.

The details

Fake betting platforms lure users by displaying fraudulent winnings, only to demand additional payments before releasing funds. In some cases, these sites freeze accounts entirely once a deposit has been made, leaving consumers with no way to recover their capital.

Timeline

  1. The Better Business Bureau study collected data from 2022 through mid-2025.

  2. The official warning for consumers was issued in September 2026.

Culture Shift

The rise in sports betting fraud follows the Better Business Bureau Scam Tracker reporting trend observed across the digital marketplace. This warning updates the figures previously established by the organization regarding the prevalence of online gambling fraud.

Consumers should verify the legality of sportsbooks in their specific state, as rules like those in Washington—where betting is limited to tribal casinos—vary widely. Users must exercise extreme caution when platforms request additional payments to unlock alleged winnings.

The takeaway

Always research the legitimacy of an online gambling site through verified sources before depositing any money. If a platform demands extra fees to release funds, treat it as a red flag for potential fraud.

Further reading

For additional context on digital security within the industry, visit the Gambling section.

More information

For detailed information on current fraud alerts, visit the BBB business research and scam reporting portal.

Source note: This article includes information reported by KOMO.

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