BetMGM added to its recent regulatory penalties with a hefty fine levied by the Pennsylvania Gaming Control Board (PGCB) for violations from over two years ago.
On Wednesday, the PGCB announced an agreement with BetMGM to fine the operator $100,000 for a failure to “prevent fraudulent behavior.” The fraudulent behavior took place while players used both the BetMGM and Borgata online gaming brands in 2023 and 2024.
The illicit activity included the creation and use of multiple player accounts by people using the identity of other individuals. A portion of the player accounts was also funded “using stolen or fraudulently obtained payment devices”.
The PGCB’s Office of Enforcement Counsel investigation into BetMGM’s “insufficient” know-your-customer protocols discovered the operator hosted four individual fraud rings:
- One of the fraud rings operated for 29 months until November 2023 and used 119 fraudulent accounts to wager $895,092.
- The PGCB’s probe identified 304 illicit accounts that operated until December 2023, with the group wagering $867,910 over 19 months.
- One group created 1,567 fraudulent accounts, with the accounts wagering $229,580 over roughly 25 months until January 2024.
- An individual fraud ring facilitated 34 accounts using the identities of other people and wagered $14,598 over 34 months until November 2024.
SBC Americas reached out to BetMGM for comment on the PGCB’s penalty. The company decline to comment on the matter.
PA regulator adds residents to exclusion lists
In addition to levying a fine on BetMGM, the PGCB also revoked the gambling privileges of 16 individuals. Four of the individuals were placed on the regulator’s Involuntary Casino Exclusion list for leaving minors unattended while gambling at a retail casino property.
The remainder of the individuals were either or both placed on the Involuntary Casino Exclusion list and Involuntary Interactive Exclusion list for undisclosed reasons.
Previous PGCB penalty against BetMGM
The PGCB penalized BetMGM for KYC shortcomings after fining the operator $260,905 in January for allowing individuals on the board’s self-exclusion list to gamble.
The activity occurred between 2021 and 2023 with 152 separate violations. BetMGM self-reported two of the incidents, while an internal audit found the other violations.
In response to the violations, BetMGM closed the relevant accounts and launched internal investigations while reviewing procedures and systems.
An expensive month of fines for BetMGM
BetMGM also recently faced a civil penalty in Massachusetts.
Earlier this month, BetMGM was fined $6,500 by the Massachusetts Gaming Commission (MGC) for accepting a $10 player prop wager in 2024 on a college football player prop market. The wager violated the MGC’s prohibition of college player props.
BetMGM was also fined $15,000 by the gaming regulator for improper betting markets related to two separate UFC bouts in 2024 and 2025.
The operator is also in hot water in the Bay State after a MGC report found that it allegedly sent MLB promotional emails to nearly 4,000 people who were under the state’s legal gambling age of 21. The MGC plans to hold an adjudicatory hearing on the matter.
