Key Moments:
- The Pennsylvania Gaming Control Board has fined BetMGM $100,000 for failures related to customer verification and fraud prevention during 2023 and 2024.
- Four separate fraud rings conducted illicit activities involving over 2,000 accounts and placed wagers totaling over $2 million across BetMGM and Borgata platforms.
- BetMGM has also faced recent penalties in Massachusetts for regulatory violations involving unauthorized betting markets and promotional issues.
Regulators Uncover Extensive Fraud Activity
The Pennsylvania Gaming Control Board imposed a $100,000 fine on BetMGM following an investigation that identified significant shortcomings in its ability to prevent fraudulent account activity. The violations occurred in both 2023 and 2024, spanning BetMGM’s core online platform as well as its Borgata online brand.
Details of Fraudulent Operations
The board’s Office of Enforcement Counsel reported that BetMGM’s systems did not adequately detect or prevent the use of stolen and false identities to create multiple user accounts. These accounts were sometimes funded with stolen or misappropriated payment methods. Authorities uncovered four distinct fraud operations that employed a range of tactics and scope:
| Fraud Ring | Duration | Fraudulent Accounts | Total Wagers | End Date |
|---|---|---|---|---|
| Ring 1 | 29 months | 119 | $895,092 | November 2023 |
| Ring 2 | 19 months | 304 | $867,910 | December 2023 |
| Ring 3 | ~25 months | 1,567 | $229,580 | January 2024 |
| Ring 4 | 34 months | 34 | $14,598 | November 2024 |
The regulator stated that these cases revealed “insufficient” know-your-customer protocols within BetMGM’s operations.
Enforcement Measures Against Individuals
In addition to levying the fine, the Pennsylvania Gaming Control Board imposed sanctions on individuals associated with the violations. Sixteen people lost their gambling privileges based on the investigation’s findings. Four individuals were placed on the Involuntary Casino Exclusion list for leaving minors unattended while gambling at a retail casino. Other individuals were also included on the Involuntary Casino Exclusion and/or the Involuntary Interactive Exclusion lists, though the board did not specify detailed reasons for each placement.
Prior Regulatory Actions in Pennsylvania
Earlier this year, BetMGM received a $260,905 penalty from the same regulator for allowing self-excluded players to access its platform. The board documented 152 incidents occurring between 2021 and 2023. While two cases were reported to regulators directly by BetMGM, the remaining violations were uncovered during an internal review. In response, BetMGM closed the relevant accounts and initiated an overhaul of its compliance processes.
Recent Fines in Massachusetts
BetMGM has also faced regulatory discipline in Massachusetts during the same period. The Massachusetts Gaming Commission fined the operator $6,500 for offering a prohibited college football player prop bet in 2024, which state rules do not permit. Additional fines included $15,000 for allowing bets related to two UFC bouts in 2024 and 2025. Furthermore, regulatory reports allege that BetMGM sent promotional Major League Baseball emails to nearly 4,000 recipients under the legal gambling age of 21. The commission has announced plans for an adjudicatory hearing regarding this matter.
Regulatory Scrutiny Intensifies Compliance Efforts
The accumulation of penalties in Pennsylvania and Massachusetts underscores ongoing attention from regulators on BetMGM’s compliance infrastructure. Authorities have specifically highlighted the need for robust anti-fraud systems, thorough customer identity checks, and strict adherence to wagering regulations. Recent enforcement actions illustrate a broader commitment to upholding the standards required for licensed gambling operators.
- Author
Daniel Williams
