The California Gambling Control Commission issued an advisory in mid-January warning that a fraudulent gambling operation had been impersonating the agency to extract payments from players. The group, identified as California Scratch Card, used the Commission’s name and logo on social media platforms to claim that winnings required an administrative fee before being released. The activity appeared to target players in the Philippines rather than in the United States, and used materials designed to resemble state regulatory documentation.

Scam Structure and Use of Fake Credentials

According to the advisory, the operation used templates labeled as fee notices to justify the payments. The documents cited supposed compliance reviews, transaction settlements, and other procedural requirements under the pretense of California law. Amounts listed on the notices were denominated in Philippine pesos, with accompanying references to “Administrative Processing Fees.” The Commission stated that it had never issued licenses to California Scratch Card and had no connection to the operation. It stressed that fees described by the group did not exist within the Commission’s practices.

The advisory emphasized in a press release (pdf) that “The Commission does not issue, nor has it ever issued, licenses to California Scratch Card or any other similar illegal gambling operations.” It also stated that “The Commission does not require ‘Administrative Processing Fees’ or other such fees that these illegal gambling operations claim. The Commission is currently pursuing all available options to address this matter.” The Commission explained that the public could contact either the Bureau of Gambling Control at the Department of Justice or the Commission directly for verification of gaming-related inquiries.

Authorities highlighted that operations of this type often serve as fronts for theft and scams by charging fees upfront or refusing to release winnings altogether. The advisory noted that illegal gambling scams can keep player deposits, deny withdrawals, or request payments from winners and then withhold the funds. Officials described these practices as part of a broader pattern of social media–driven gambling fraud that exploits regulatory language and formatting to create the appearance of legitimacy.

Philippine Targeting and Broader Enforcement Context

Reporting and confirmations indicated that the fraudulent activity was taking place on Facebook and potentially other platforms. Pages linked to the operation featured Filipino language descriptions, listed a Philippine location, and hosted livestreams showing gambling using the forged scratch cards. The page included a U.S. phone number despite displaying a location in Mandaluyong City, a major metropolitan area near Manila. The Commission’s advisory specified that the operation appeared to be based in the Philippines and primarily targeting citizens in the country.

The warning surfaced as the Philippines continued to confront illegal gambling activity linked to entrenched networks and, in some cases, organized crime. Previous years saw extensive concerns over offshore gambling operations, while recent reforms sought to channel demand toward licensed products. Observers have noted progress in encouraging players and operators toward legal alternatives, though enforcement measures remain active and ongoing.

The advisory underscored that the Commission sought to safeguard both the state’s regulatory integrity and consumers associated with the fraudulent operation abroad. While the impersonation effort affected foreign users rather than Californians, the misuse of regulatory branding presented a risk of eroding public trust in legitimate licensing and oversight. The Commission reiterated that individuals with concerns about the legitimacy of gambling-related offers could contact relevant agencies for assistance.