Study raises concern over free-to-play marketing

    An influx of marketing material from unlicensed operators has left consumers “confused and angered” according to a new report in North America.

    It follows a report by Better Business Bureau (BBB), which revealed a significant number of complaints from North American consumers falling victim to gambling scam sites.

    Titled The 2025 BBB Gambling Study, it’s a report that seeks to provide authorities and stakeholders with a deeper understanding of consumer sentiment in nascent online gambling markets launched in US states and Canadian provinces.

    Brian Edwards, International Investigations Specialist at the BBB, underlined the purpose of the study: “Through an analysis of reports, BBB studies are intended to give the public, businesses, news media, researchers and regulatory agencies an in-depth understanding of what issues are present, how to avoid them, and what can be done to curb fraud.”

    He concluded by warning that “The protection of consumers from industry deception requires responsible conduct by businesses, greater public awareness, and stronger enforcement measures.”

    Though legislation remains fragmented across US states and Canadian provinces, authorities are advised to pursue the common goal of helping consumers to understand the legality and risks of online gambling and to recognise scams.

    Consumer awareness is critical as the “scale of the market amplifies the risks”, with the US online gambling market projected to grow from a gambling yield of $103bn in 2025 to $170bn by 2030. Meanwhile, Canada’s online market is forecast to reach $15bn in 2025 alone.

    Confusion is further extended by a patchwork of rules. In the US, sports betting is legal in 33 states, banned in 17, while only seven states allow iGaming (casino-style play). In Canada, gambling is federally legal but left to provincial regulators, with many provinces operating their own platforms.

    Grey market threats persist

    The study shows that Bovada/Bodog and other offshore operators continue to maintain large player bases despite multiple cease-and-desist orders from authorities. Players have lost substantial sums due to game malfunctions, withdrawal restrictions and bounced cheques, all without any legal protection.

    One consumer quoted in the report told the BBB: “This appears retaliatory and unprofessional. Because the site is not licensed in the United States, I have no legal recourse.”

    Another complainant, after attempting to cash out, reported:“I contacted Bovada, and they didn’t want to resolve this issue or refund me my money.”

    The North American Association of State and Provincial Lotteries issued this warning to consumers: “Illegal gambling websites and grey market gambling services create major dangers for players because they operate beyond regulated market protections.”

    Free-to-play confusions 

    The report also raises concerns about social casinos and sweepstakes games, which use gambling-style features while presenting themselves as free entertainment.

    “While marketed as entertainment, these games often mirror the same risks as gambling. Consumers are spending money on in-game currencies with little transparency, and in several cases, courts have found them to constitute illegal gambling,” the BBB study stated.

    This year, High 5 Casino was hit with a $25 million federal jury verdict, while Huuuge Casino settled deceptive advertising lawsuits in California and Illinois.

    Industry voices sound the alarm

    According to the American Gaming Association (AGA), offshore operators pose the biggest threat of gambling-related financial crimes, as they rely on cryptocurrency and lack responsible gambling safeguards.

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

    Meanwhile, TransUnion Canada has identified online gambling as one of the leading sectors for fraud, citing some of the highest rates of “man-in-the-middle” attacks and phishing scams – “In Canada, gaming is an incredibly vulnerable industry when it comes to scams, with one of the highest fraud rates of any type measured by TransUnion.”

    Bureau recommends 

    The BBB study concludes with recommendations to combat scams and restore consumer confidence:

    • Transparent enforcement: Clearer rules and enforcement against unlicensed operators.
    • Better education: Improved public awareness of warning signs, such as outsized bonus offers, cryptocurrency-only transactions, and offshore operations.
    • Accessible licensing: States and provinces should maintain open licensing databases so that consumers can easily verify legal operators.
    • Cross-border cooperation: US and Canadian regulators should coordinate to close gaps exploited by offshore brands.