BBB Warns of Fake Sportsbook Scams as Online Betting Surges

Consumer advocates share red flags to help sports fans bet safely amid industry growth.

Published on Feb. 24, 2026

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As online sports betting continues to grow in popularity, with over 37 million Americans expected to wager this year, consumer experts are warning about a rise in fraudulent sportsbook operations targeting fans with deceptive promises. The Better Business Bureau's Sheri Sword provides guidance on how to spot the red flags of fake sportsbooks and bet safely.

Why it matters

The expansion of legal sports betting has also enabled scammers to prey on unsuspecting sports fans, costing people thousands through fake sportsbook sites and apps that fail to pay out winnings. Educating the public on the warning signs of these scams is crucial to protecting consumers as the industry continues to grow rapidly.

The details

Sheri Sword from the Better Business Bureau says fraudulent sportsbooks often make overly enticing promises, such as guaranteed winnings or huge sign-up bonuses, in an effort to lure in bettors. These scams can result in people losing thousands of dollars when the sportsbook fails to pay out their winnings as promised.

  • Sports betting is expected to see over 37 million American participants in 2026.

The players

Sheri Sword

A representative from the Better Business Bureau who provides guidance on identifying and avoiding fake sportsbook scams.

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What’s next

Consumers should research any sportsbook they are considering using, check for a valid license, and be wary of promises that seem too good to be true.

The takeaway

As the online sports betting industry continues its rapid growth, it is crucial for consumers to be vigilant about the warning signs of fraudulent sportsbook operations in order to protect themselves from losing thousands of dollars to these scams.