BBB Report Highlights Confusion Among North American Gaming Consumers
BBB warns that confusing regulations, scams, and offshore operators leave North American gambling consumers at risk.
Key Facts:
- BBB study warns of rising consumer confusion in North America’s $118B gaming market
- Over 10,000 consumer complaints and 200 scam reports filed since 2020
- Offshore operators like Bovada cited as high-risk for US and Canadian players
The Better Business Bureau (BBB) was out this week with a rather detailed look at the North American gaming market, and voicing serious concerns that consumers remain deeply confused by the patchwork of regulations, offshore websites and a prolific number of scams.
This report notes that while legal iGaming is booming in seven US states and Ontario, consumer protections for the tens of millions of customers simply can not keep pace, as Canada expects to see more than $15 billion, and US markets account for another $103 billion.
Complaints on the Rise
The BBB reports a rising litany of complaints, more than 10,000 since 2020, along with over 200 scam reports. We are shocked that the number isn’t higher, but we understand their concern.
These mainly fall into the same categories of withholding winnings and frozen accounts that many online players have had to deal with. The usual examples are players locked out of accounts after big wins, or payouts delayed or denied for “technical error”.
Offshore Operators Introduce Increased Risk
Bovada is singled out in this report in particular because of its incredible advertising spend to recruit players in jurisdictions where it remains unlicensed and unregulated. When disputes arise and they are sent to the BBB, they have little recourse to reach out to state or federal regulators, as they have no sway.
The BBB carefully notes that many, if not most, players remain unaware that these offshore sites are unregulated and basically untouchable. This lack of transparency and huge advertising spend on social and media sites adds to the confusion.
Wreck of a Regulatory Patchwork
Another issue for consumer uncertainty remains the frustrating patchwork of laws and regulations around online gaming. In some states, you may be able to bet on sports but not poker. Or in seventeen states, neither. Moreover, Canada has equally confusing laws by province.
This inconsistent legal framework creates opportunities for unscrupulous and unlicensed operators to target players in restricted markets and blur the line between what the player believes to be legal and what actually is.
Recommendations for Safer Play
Some precautions that the BBB feels might best help consumers stay safe before signing up with that casino or sportsbook being so heavily promoted on their social media include ensuring that they are in fact licensed and regulated in your state or province.
Carefully going over the terms and conditions, printing them out, and making sure they don’t change down the road. Consulting a tool like the BBB’s own Scam Tracker to report and scan for scammy sites. Or use other third-party resources like Get Safe Online or Scam Advisor to ensure the online casino you are considering isn’t a total swindle.
And they also point out that a coalition between regulators, actual licensed operators, and consumer interest groups like the BBB can create much clearer messaging so that players can feel more secure and comfortable about finding a safe and licensed place to play.
Conclusion
The study paints a rather sordid picture of a rapidly growing industry where consumer awareness simply hasn’t kept pace. With billions wagered and tens of thousands of complaints already filed, the BBB warns that consumer education must be prioritized to prevent further losses.
For now, players should double-check online licenses, be wary of offshore operators, and quickly report suspicious activity. With nearly $120 billion in the pot, even slight improvements in consumer protection should pay big dividends.
