Key Moments:
- BetMGM self-reported 48 prohibited college player prop bets totaling $879.78 in stake
- Colorado’s regulator imposed a $50,000 settlement, with $25,000 suspended for two years
- Violations centered on wagers offered during women’s March Madness, men’s NIT basketball, and a college football game
Compliance Breach Surfaces at BetMGM
Colorado’s gaming regulator has sharpened its oversight of college sports wagering, placing focus on BetMGM after discovering that the operator accepted prohibited player prop bets. Although the monetary value of the issue was limited, the event underscores intensified regulatory scrutiny in the American college betting landscape.
How the Incident Unfolded
BetMGM notified the Colorado Limited Gaming Control Commission that it had unintentionally allowed 48 wagers on individual college athletes, violating the state ban on such prop bets. These occurred over an 18-month stretch, amounting to $879.78 in total bets. The majority of the bets involved well-known women’s March Madness contests, featuring players including Caitlin Clark, Angel Reese, and Paige Bueckers in April 2024 regional finals. Additional violations stemmed from men’s NIT basketball matchups in March 2023 and a UNLV vs Oregon State football game in October 2024.
All incidents were identified internally by BetMGM. The operator voluntarily reported each infraction, filed necessary documentation, and committed to extra staff education as a remedial measure.
Regulatory Action and Settlement Terms
At a session on 20 November, the commission approved a settlement totaling $50,000. BetMGM is required to pay $25,000 within ten days, while the remaining $25,000 is suspended for two years and will be waived if no similar violations occur during that period.
The commission’s decisive action was designed to reinforce the importance of compliant and transparent operations in college sports betting markets. Colorado previously imposed penalties for similar incidents involving other operators.
Wider Market Implications
Colorado’s enforcement aligns with growing efforts across the United States to regulate or eliminate player prop markets involving college athletes. The NCAA, led by president Charlie Baker, has encouraged tighter restrictions to safeguard student-athletes. Several states, such as Ohio, Maryland, Vermont, and Louisiana, have implemented enhanced controls over the past year.
The regulator emphasized the focus is not on wagering volume, but rather on any activity that could jeopardize market integrity. Operators are now facing rising expectations regarding real-time monitoring, rapid self-reporting, and strict adherence to regulatory requirements.
| Operator | Number of Bets | Total Stake | Settlement Amount | Timeline of Incidents |
|---|---|---|---|---|
| BetMGM | 48 | $879.78 | $50,000 (with $25,000 suspended for two years) | March 2023 – October 2024 |
Looking Ahead
Colorado continues to demonstrate that even minor violations within college wagering markets will be addressed promptly. The outcome with BetMGM serves as a benchmark for industry expectations moving forward, particularly as other states strengthen their own regulatory environments.
- Author
Daniel Williams
