Better Business Bureau Releases Study on North American Gambling Confusion

Understanding Consumer Confusion in North American Gambling

The Better Business Bureau (BBB) recently published a study investigating the complexities of the gambling landscape in North America. The report highlights that many players find it difficult to navigate the industry due to varying regulations across regions and the rise of offshore gambling sites.

Varied Gambling Regulations Across States and Provinces

The BBB’s research points out that gambling laws differ widely across North America. Some U.S. states fully permit gambling activities, others have strict bans, and certain areas allow only specific types of gaming. As debates over the ethical and legal aspects of gambling continue, the industry itself is rapidly expanding.

Market forecasts estimate that the U.S. online gaming sector will reach $103 billion by 2025, while Canada’s emerging online casino market is expected to hit $15 billion due to its recent legalization of such services. Despite this growth, unlicensed operators and scams present ongoing risks to consumers, many of whom struggle to distinguish between authorized providers, offshore sites, and fraudulent operations.

Since 2022, the BBB has recorded roughly 200 reports of gambling-related scams alongside 10,000 complaints concerning online gaming businesses. This data underscores the need for increased consumer education on the industry’s specifics.

Growth of Legal Gambling and the Persistent Black Market

While most people understand that gambling is restricted to adults (21+ in the U.S. and 18+ in Canada), many are unaware of the detailed regulations governing online gambling in these countries. Seventeen U.S. states continue to ban all forms of online gaming, and only a handful permit online casinos. Meanwhile, many states have embraced online sports betting following the repeal of the Professional and Amateur Sports Protection Act (PASPA).

Canada legalized online gambling in 2021, allowing individual provinces to oversee regulation. Additionally, lottery games remain popular, available in nearly all U.S. states except for five.

The BBB advises consumers to familiarize themselves with their local gambling laws before participating online. It warns against offshore operators who often lack crucial consumer protections, including payout guarantees.

Despite these warnings, offshore gambling platforms like Bovada continue to operate and grow due to their ambiguous legal standing in certain states, complicating consumer understanding of the regulatory environment.

The BBB highlighted cases exemplifying the risks involved. For instance, one player was unknowingly charged $25,000 due to a site malfunction and was subsequently banned when seeking assistance, leaving her without legal options because the operator was unlicensed. In another case, a winning player could not cash out a check missing essential banking details.

The report stresses that betting without legal safeguards severely limits the chances of recovering lost funds.

BBB’s Efforts to Protect Consumers from Gambling Scams

To empower consumers, the BBB has compiled resources detailing lawful gambling options in both the U.S. and Canada. According to their findings, sports betting is now available in 33 U.S. states and all Canadian provinces, whereas online casino gaming remains confined to only seven states in the U.S. This restriction fuels the persistent illegal online gaming market.

Social gaming and sweepstakes platforms have also seen rapid growth but face ongoing scrutiny. The BBB encourages vigilance as scams and cyber threats become more frequent, pointing out that Canada’s gaming industry remains especially vulnerable, with payment providers actively working to address security concerns.

Players are encouraged to utilize tools such as the BBB Scam Tracker, Get Safe Online, and ScamAdviser to verify the legitimacy of gaming websites before engaging.

The full study and additional information are accessible through the BBB’s official channels for those interested in learning more.