By Jonathan Eberle |

Arizona residents could collectively lose millions of dollars to fake gambling websites this fall, according to a new study analyzing Federal Trade Commission (FTC) scam reports. The report, conducted by online gaming marketplace Chicks Gold, found that Arizona consumers reported $7.9 million in losses between April and June of this year from scams linked to fake gambling and gaming sites. Analysts warn those numbers could rise sharply as the NFL season, the most bet-on sport in the United States, fuels a wave of online wagering.

“Scammers know there’s likely to be a surge in inexperienced bettors searching online for wagering platforms,” said Al Alof, CEO of Chicks Gold and spokesperson for the study. “That makes them especially vulnerable to fake sportsbooks or offers that appear too good to be true.”

The study examined scams across five FTC subcategories connected to fraudulent gambling platforms: malware and exploits, online shopping, tech support, social networking, and prizes, sweepstakes, and lotteries. Nationally, 106,531 reports were filed in Q2, totaling nearly $192 million in losses, or an average of $1,965 per report. Arizona’s losses were significantly higher: 2,830 reports led to nearly $7.95 million stolen, averaging $2,811 per report—43% higher than the national average.

The most damaging category for Arizona residents was prizes, sweepstakes, and lotteries, which accounted for $4.1 million lost across just 408 reports, averaging more than $10,000 per incident. That placed Arizona sixth in the nation for per-report losses linked to these types of scams, behind Montana, Maine, South Dakota, Wyoming, and North Dakota.

According to the study, fraudulent gambling and gaming operations exploit consumers in several ways:

• Malware and exploits: Fake casino sites that prompt users to download spyware disguised as “mods” or “cheat tools.”
• Online shopping scams: Fake sites selling in-game items, currency, or memberships that never arrive.
• Tech support fraud: Pop-ups or sham help desks convincing players to share sensitive information.
• Social networking scams: Fake or hijacked profiles distributing phishing links in gaming communities.
• Prizes, sweepstakes, and lotteries: Lures promising jackpots or loot boxes that require upfront payment or personal data.

“These scams thrive on community and urgency,” Alof said. “Gamers searching for new releases or fans eager to place bets can be tricked into handing over money or sensitive information.” The rise in gambling scams has also been noted by the Better Business Bureau (BBB), which reports that complaints about online gambling platforms more than doubled since 2023. Users described problems ranging from malfunctioning slot games and altered wagers to deceptive ads and phishing attempts.

To protect themselves, Alof urged consumers to:

• Verify licensing and URLs: Legitimate sportsbooks are licensed by state regulators. Misspelled domains or unofficial app stores are red flags.
• Avoid unrealistic offers: “Guaranteed wins” or oversized bonuses are often bait for scams.
• Use secure payments: Credit cards or PayPal provide better protection than wire transfers or gift cards. Enabling two-factor authentication also reduces risk.

Analysts caution that both sports bettors and traditional gamers face exposure. Beyond the NFL betting surge, Alof noted that the release of popular video games creates another avenue for fraud. When legitimate gaming sites crash under demand, players may turn to unverified download links, which scammers exploit. With Arizona already posting losses above the national average, experts warn vigilance will be crucial in the months ahead.

Jonathan Eberle is a reporter for AZ Free News. You can send him news tips using this link.