Don't Let Scammers 'Game Your Gamble' AG Warns Before Super Bowl

NEW YORK, NY — The Super Bowl is the first major sporting event in which New Yorkers can gamble online on, and while that is a plus to some, not so much to Attorney General Letitia James who is warning that deceptive online sports betting companies could be out to take advantage of the public this weekend.

Residents have been bombarded with misleading social media ads and streaming sites claiming risk-free bets and $1,000 welcome offers — sounding like free money, though really coming with strings attached — since online sports gambling became legal in the state last month, James said.

She urged fans watching the Super Bowl and betting online for the first time to be careful and not "let scammers game your gamble."

“Before placing a bet, do your research into the platform, read the fine print of the offer, and follow our other tips to avoid any red flags and keep the odds in your favor," she said. "Online sports betting companies that fumble their advertising to mislead New Yorkers can expect to hear from my office.”

James offered the following tips to protect consumers from predatory and misleading sports betting platforms:

1. Learn what other users are saying about the platform by reading the consumer reviews on sites like the Better Business Bureau and Trust Pilot. BBB complaints can be detailed and include responses from the platforms. Avoid reviews from sites that may be connected to the sports betting industry.

2. Read the fine print on bonuses and other promotions because platforms sometimes require users to gamble their own money before accessing the bonus advertised. One platform advertises enrollment bonuses up to $1,000, yet receive that, users have to play through $25,000 first.

She warned that consumers need to be aware not all bets count toward accessing promotions, noting that one platform excludes bets “placed at tournaments … or at play money areas” from counting toward some promotions, while other platforms have even more conditions.

Risk-free bets may not always be what they seem, James said. Some platforms are offering “risk-free bets” of $1,000 or more, depending on how much a user deposits. But if a user loses their bets, they don’t get their money back — instead, it becomes a credit that can only be used to gamble on the platform, James noted.

Online gamblers might be penalized for behaving strategically, also, said James, adding, "many users sign up for gambling platforms because they want to take advantage of a good deal — the advertised bonus — without spending too much money."

"It’s a common way to shop, and most regular businesses accept the behavior," she said, explaining that it's like when "a local bakery that leaves out free samples." At least one gambling platform treats “exploiting bonuses as an offense, and it has a long list of activities it considers suspicious, and if you engage in them, it may prevent users from cashing out account funds and/or withhold any winnings derived from the gambler's use of the bonus,” James said.

3. Beware of unexpected restrictions on accessing your account, according to James. "Platforms reserve the right to restrict a user’s activity without warning — not just for suspicion of illegal conduct, but also for seeming to have an unfair advantage or irregular playing patterns," she said. "Platforms exercise this right. Users have posted complaints online about their accounts being frozen when they’re doing well or when they’re trying to withdraw winnings."

An example is hedging strategies where online gamblers might see them recommended by someone online and they involve placing bets on opposite sides of the same game, James said, adding that "at least one platform treats hedging as a violation of its policies, and it will block users from withdrawing their funds as a penalty."

Users report battling red tape or simply being ignored when they want to withdraw funds from their account — even if the funds are just their original deposit, with no winnings or bonuses involved.

Gambling Can Lead To Addiction
The ease of online betting may cause consumers to forget they are gambling with real money and they can suffer devastating financial losses if it becomes problematic. The state's Office of Addiction Services and Supports recommends setting limits on gambling time, money spent, and the use of alcohol or other substances. If gambling is a problem for you or someone in your life, James urges you to get some help.

Here are some resources:

• New York Council on Problem Gambling
• 24-Hour Problem Gambling Helpline
• 1-877-846-7369, TEXT: HOPENY (467369)
• Gamblers Anonymous