Scammers Are Adding Risk to Online Sports Betting

From fake sites to sketchy handicappers, the odds may be against you

With the NFL playoffs and Super Bowl, the Winter Olympics, and college basketball’s March Madness tournament all on tap early this year, expect a surge in the number of people placing bets—and a similar increase in the number of people victimized by online sports betting scams.

Even if you don’t personally engage in online sports betting, you probably know someone who does. The global sports betting industry is worth $155 billion, with growth expected to reach $257 billion over the next five years, based on an analysis by Research and Markets. A large part of this growth is being driven by online sports betting platforms.

Ongoing legalization efforts have made the U.S. the prime market for this industry, with 38 U.S. states, as well as Washington, DC and Puerto Rico, currently offering legalized sports betting. You’ve probably encountered ads for major online sports betting platforms like DraftKings and FanDuel on TV, radio, websites, or social media.

The massive popularity of online sports betting makes it a particularly attractive vehicle for fraudsters who want a piece of the action. According to the Better Business Bureau (BBB), online gambling-related scam reports and complaints have more than doubled since 2023.

Here are some typical online betting scams, along with tips on how to protect your privacy, identity, and finances from malicious actors who prey on sports bettors.

Common types of online sports betting fraud

Scam sports betting sites
Fraudsters create counterfeit websites designed to look like legitimate online sports betting platforms. The sites are heavily promoted through ads on websites and social media; these ads often lure victims with too-good-to-be-true offers of huge bonuses or credits for placing bets. If you register for a fraudulent site like this and add funds to your account, you will be prevented from collecting a payout if you “win,” because the money will be gone.

Fraudulent handicappers
In the gambling world, many bettors rely on the advice of professional handicappers who analyze and predict the outcomes of sports contests. The BBB reports that scammers often present themselves, either on social media or in email messages, as handicapping experts with privileged insider information on upcoming games. They may even offer a money-back guarantee if you place a bet through them. However, their expertise is faked, as is their supposed insider information. Win or lose, you’ll likely never see your money again.

Risky offshore betting platforms
While some offshore gambling sites are legitimate operators, all are unlicensed in the U.S., which means that no domestic government agency regulates them. If you engage with these sites and you run into a problem—for example, you don’t receive a payout you’re due, or you’ve been charged a questionable fee—you’re essentially on your own.

How to avoid becoming victimized

Find out if it’s legal. If you’re a U.S. resident, check your state’s website or other official channels to verify whether online sports gambling is legal in your state. If it isn’t, and you choose to engage with an unregulated online sports gambling platform that allows you to place a bet, you’re putting yourself at risk, both legally and financially.

Find out if it’s licensed. If online gambling is legal in your state, make sure the site you’re using is licensed to operate in the state. Check the site for their state license number, then verify that number by checking it against your state’s database of legally licensed sports gambling operators.

Check their reputation. If you’re thinking about using a sports betting site that’s unfamiliar to you, first check to see if the site has user reviews, ratings, or complaints. Use BBB.org or other independent resources.

Check the authenticity of the site. If you come across a link to a website purporting to be a real site like FanDuel or BetMGM, carefully review the domain name to see if it matches the real site. Also make sure the site is secure, as indicated by a padlock icon in your browser window, along with “https” in the URL. If it’s a fake or non-secure site, don’t engage.

Steer clear of too-good-to-be-true offers. If you see an ad or email for a sports betting site promoting big payouts, guaranteed winning bets, or massive amounts of credits or bonuses, proceed with extreme caution—it’s likely a scam. Similarly, avoid placing bets with self-proclaimed handicapping experts, especially those who promise inside information and “can’t-lose” bets.

Avoid nontraditional payment methods. If a sports betting site or app insists that you use cryptocurrency, gift cards, wire transfers, or other unusual payment methods, that’s a major red flag. When adding funds or making payments, only use a credit card or other secure method offering fraud protection.

Don’t let gambling become a problem. Finally, regardless of whether you’ve become the victim of a scam, know that an ongoing gambling habit could potentially result in harm to your finances or wellbeing. If you or someone you know is experiencing problematic gambling behavior, help is available through organizations like the National Council on Problem Gambling. Its resources include the National Problem Gambling Helpline (800-522-4700).