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BBB-Cited Sports Betting Scam Complaints Top 10,000 in Warning on Offshore, Unregulated Sites

A KOMO News segment says sports betting scams often mimic legitimate sportsbooks, with victims running into frozen accounts and withdrawal demands after depositing money.
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  • A recent television broadcast highlighted thousands of formal consumer complaints regarding unregulated offshore sports betting platforms actively deceiving their users.
  • Unsuspecting victims frequently deposit funds into seemingly sophisticated betting applications, only to encounter frozen accounts when attempting initial withdrawal transactions.

A KOMO News report published Sept. 26 warned that sports betting scams are often built to look legitimate, citing Better Business Bureau data showing more than 10,000 complaints and nearly 200 scam reports tied to offshore or unregulated betting from 2022 to 2025.

The consumer-protection alert matters because the scams can appear to function like real sportsbooks at first, despite lacking the responsible gaming safeguards found in regulated markets. According to the report, some sites or apps accept deposits and display supposed winnings, only for users to face problems when they try to cash out.

Cameron Nakashima said in the segment that the scams “often begin with a professional-looking website, app or maybe a social media post that you find.” He also said, “A sports betting scam can look real, accept deposits and even show supposed winnings.”

How the scams are described

According to KOMO News, the reported pattern is that bettors can deposit funds and see what looks like account activity or winnings, but run into trouble at withdrawal. The segment said some victims are then told to send additional money before they can access their balances, while others find their accounts frozen.

That alleged sequence mirrors a common red flag in financial scams: a platform appears operational until a user tries to remove funds. In this case, the report tied the issue specifically to offshore or unregulated sports betting and online casino platforms, which have generated a massive volume of consumer grievances.

Nakashima said the BBB’s review of reports from 2022 to 2025 found “more than 10,000 complaints and nearly 200 scam reports.”

What bettors were told to do

The report said sports betting rules vary by state, which can make it harder for consumers to know whether a platform is legal. In Washington, KOMO said the only legal sportsbooks are available at specific tribal casinos.

Viewers were advised to research any betting company before sending money, understand where their funds are going, and be wary of guarantees or requests for extra payments. The segment also advised people who believe they were scammed to report the matter to the BBB, the Federal Trade Commission, and their bank or credit card provider.

The source did not name specific scam sites or apps, and it did not identify the exact BBB report behind the figures cited in the segment. But the warning offered a clear takeaway for bettors: a polished website, app, or social media ad is not proof that a sportsbook is legal or trustworthy.

Source: As reported by KOMO News.

About the Author
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Joe Boozell is the Content Lead at Bonus.com. He specializes in online casino and sportsbook bonus strategy, sweepstakes casinos, and U.S. gambling legislation, with a focus on evaluating real player value. Over the past decade, he has managed and produced iGaming content across national and state-level brands, including PlayUSA and several regional Play markets. He also spent five years as a Lead Writer for NCAA.com covering college basketball. Find more of Joe’s work at Bonus.com and across the Play network of gambling sites.

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