Millions of people across North America wager money online every day, placing bets on sports, playing casino-style games and wagering in prediction markets. However, there’s a lot of confusion surrounding online gambling laws and regulations – making it possible for people with bad intentions to take advantage of the system.

A new BBB study found that a risky underbelly of pseudo-gambling, illegal gambling and fraud has developed alongside the online gambling and gaming industry. From 2022 to mid-2025, BBB received nearly 200 scam reports and over 10,000 business complaints related to online gambling and gaming.

In some cases, people lost tens of thousands of dollars – either because they were confused about the rules and their state’s laws, or because money was stolen from them by a scammer.

Laws and regulations in the gaming industry vary from state to state and can be confusing to navigate. And scammers use sophisticated tactics, making it hard to tell the difference between a legitimate company and someone seeking to deceive you.

In Missouri and Illinois, there are plenty of highly regulated and fully legal options for gambling and gaming, like state lotteries and in-person casinos, but online gaming is still limited. BBB recommends checking carefully to make sure the service you’re considering using is legal in your state.

What red flags should I look out for if using gambling or gaming services?

• Big promises around payouts
• Tempting ads without details
• Overseas business locations
• Sweepstakes-style games
• Payment through cryptocurrency
• Typos in names

How can I avoid issues with gambling or gaming companies?

• Read your state and provincial laws. There are many different laws for online gambling, depending on where you live. Make sure you understand your local laws before engaging with any gambling establishment or casino.
  • Missouri: Online gambling is not currently legal, but due to the passage of Amendment 2, online sports betting will be permitted starting on Dec. 1, 2025.
  • Illinois: Online gambling is not legal.
• Check for proper licensure. Even if your state allows gambling, it may have a limited list of allowed websites. After checking whether you are legally allowed to gamble, check with your state’s gaming regulatory agency to see who is licensed (the Missouri Gaming Commission or Illinois Gaming Board.)
• Read the fine print. The reality of how winning and withdrawal works may be different than your first impression on a website. Check out the details of a specific service and fully understand how they work before sending them any money.
• Even legitimate websites may freeze winnings. There are many reasons why a casino or sportsbook might freeze winnings, even if the money is rightfully yours. Understand the rules of a website and what might cause freezes to happen. Know what actions to take if your account is frozen