FTC warns about rogue online casinos

11 November 2026

The Federal Trade Commission has issued a warning to consumers about deceptive practices by rogue online casinos that are masking their lack of authorization as state-licensed gambling sites. It is targeting websites that use misleading advertising, fake mobile apps, and cloned sites to dupe players into depositing money and divulging personal financial information.

The warning is part of the FTC's ongoing efforts to combat online gambling fraud and deceptive advertising practices that prey on consumer trust. In a landmark 2017 case, the agency settled its first-ever complaint against individual social media influencers for failing to disclose their ownership stake in an online gambling venture. That case underscored the FTC's commitment to policing deceptive practices in the rapidly evolving landscape of digital promotion.

So what makes an online casino a "rogue" operation in the eyes of the FTC?

There are several telltale signs:

• Lack of proper authorization and licensing to operate in the jurisdiction.
• Misleading claims of affiliation with state-licensed gambling interests.
• Deceptive advertising, including gratuitous use of the term "casino."
• Glossing over an important detail: material connections between the site operator and its endorsers.
• Illegitimate or "grey market" status, rendering them unprotected by consumer laws.

The risks to consumers who fall victim to these rogue operations are substantial. In a 2023 enforcement action, the Michigan Gaming Control Board urged players to avoid unlicensed online casinos that it said could expose them to withholding of winnings, onerous withdrawal conditions, and theft of sensitive information.

South Dakota's gambling regulator issued a similar fraud alert in 2023, noting that internet casino gaming remains illegal in that state. Scammers there have targeted unsuspecting residents with imposter websites that mimic legitimate businesses.

The Michigan and South Dakota enforcement actions add momentum to the FTC's war on deceptive online gambling promotion. That campaign dates to the agency's 2017 settlement with YouTube stars Trevor "TmarTn" Martin and Thomas "Syndicate" Cassell. The FTC charged that the famed esports figures deceived audiences by failing to disclose their financial interest in CSGO Lotto, an online gambling site. The commission also alleged the influencers paid other YouTubers, Twitch streamers, and social media personalities as much as $55,000 each to promote the site, with a catch: they prohibited those promoters from uttering anything negative.

The FTC ultimately adopted an order prohibiting further deceptive advertising practices. That order required Cassell and Martin—and their promoters—to include "clear and conspicuous" disclosures about any material connection between an endorser and the product or service being promoted. Recidivists must pay a $42,000 penalty if caught.

The CSGO Lotto settlement remains a key reference point for the protection of online gamers. Notably, the Unlawful Internet Gambling Enforcement Act of 2006 barred gambling businesses that enjoy a relationship with a bank or other financial service from knowingly accepting certain types of financial instruments to settle unlawful bets. The FTC advises that the Treasury Department, along with the Federal Reserve, is working on regulations that payment systems will need to follow to fulfill that mandate.

The "rogue" online casinos that misuse promotional sites like YouTube and Twitter operate aggressively, offering players reason to believe they belong in a grey area and may be safe. The FTC's latest warning, meanwhile, makes clear its position: only trust a casino if a reputable regulator has licensed it, and warn the public of any connection to the game, good or bad. Lina Khan, chair of the FTC, has stated that "proper licensing remains the only guarantee of legal and transparent operation."