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A 2025 gambling and gaming study published by the Better Business Bureau (BBB) has uncovered an alarming problem: too many unlicensed and unregulated online operators are confusing and frustrating players. Considering the risks already involved in online gambling, these rogue operators pose a serious problem.
So, how bad is it? And more importantly, what can be done about it?
The growing threat of rogue online casinos and illegal iGaming sites
US commercial gaming revenue reached about $72.4 billion in 2024 and is expected to continue growing, especially with rapid expansion in sports betting and iGaming. According to projections by SCCG Management, the broader North America casino gambling market (which includes the US as its largest share) is estimated to grow from $96.85 billion in 2025 to about $133.62 billion by 2030.
With such massive cash flow, the industry is bound to attract rogue operators. Indeed, there are hundreds of unlicensed and unverified online gambling platforms. Many are highly sophisticated, making them difficult to distinguish from legitimate sites. As a result, players often end up confused and frustrated after falling prey to scammers.
Between 2022 and 2025, the BBB received more than 200 scam reports against various online casinos. The number of business complaints is much higher, exceeding 10,000. Many of these accuse casinos of financial scams, while others cite misleading terms and conditions.
The real impact of unlicensed iGaming operators
The rise of rogue operators should concern everyone involved in the legal gambling industry—from players to licensed operators, regulators and beyond.
How rogue online casinos exploit players
Rogue operators harm players the most. The biggest impacts on unsuspecting players include:
- Financial loss — Players lose money in multiple ways, from betting on rigged games to having winnings withheld.
- Data loss — Rogue casinos may sell players’ personal information to third parties, increasing risks like identity theft.
- Problem gambling — The absence of player-protection tools, such as spending limits, increases the risk of addiction.
Financial loss is the most common harm. For example, the BBB report cites a woman from Carrollton, Texas, who lost $25,000 to Bovada, an offshore sportsbook and casino.
The ripple effect of unregulated iGaming on the legal market
The negative effects extend beyond individual players:
- Unfair competition — Rogue casinos gain an advantage because they don’t pay licensing fees or follow advertising rules.
- Erosion of trust — After being scammed, players may lose confidence not only in rogue operators but also in legitimate casinos and regulators.
- Regulatory burden — Authorities must spend additional resources cracking down on illegal operators.
The US and Canada also lose millions of dollars annually to these unregulated platforms. If left unchecked, rogue operators could undermine the entire legal industry.
How regulators and players can tackle illegal online casinos
Fortunately, regulators, legal operators and players aren’t powerless. Several measures can help combat rogue platforms:
- Consumer education — Players should learn how to verify whether a site is licensed and understand their state’s gambling laws. Educated consumers are less likely to fall victim to scams.
- Stricter regulations — States should enforce stronger online gambling laws. The Department of Justice and other authorities should have greater power to prosecute individuals and organizations behind rogue platforms. International cooperation is also critical, since many operators are based offshore.
- Superior products — Licensed online casinos can gain an edge by offering better games, bonuses and player protections than rogue operators.
For now, illegal gambling remains a major problem across North America. But authorities have begun cracking down, signaling progress in the fight against rogue operators.
