BetMGM is the latest gambling operator to confirm it will prevent its customers from using credit cards to fund player accounts for online wagering.
During a regulatory hearing in Pennsylvania this week concerning several issues, including its recent fine in the state, the MGM Resorts and Entain joint venture disclosed that it will soon stop allowing credit card usage across digital sports wagering and online casino gaming.
BetMGM will begin phasing out credit cards in markets where it is licensed to operate from March 31. The new policy will prohibit the use of existing credit cards linked to player accounts for funding, as well as prevent the linking of new credit cards to accounts.
SBC Americas reached out to BetMGM for comment on the new policy.
BetMGM joins competitors with a ban on credit cards
BetMGM will join other online gaming giants in the U.S. in prohibiting the use of credit cards for gambling.
Last August, DraftKings stopped accepting credit card deposits for its sportsbook and casino operations in its licensed U.S. markets. It initiated the new policy to help customers “avoid cash advance fees and higher interest rates” associated with credit card funding.
That came after the Massachusetts Gaming Commission (MGC) fined DraftKings $450,000 for allowing credit card deposits on three separate occasions in 2023 and 2024. The MGC bans licensed operators from accepting deposits or wagers via credit cards. The rule also applies to credit card deposits made outside of Massachusetts.
Earlier this month, FanDuel also stopped accepting credit cards as a deposit method in the U.S. Like DraftKings’ prohibition, FanDuel’s ban is effective nationwide but does not impact its operations in Canada.
US markets where credit cards are prohibited
In addition to Massachusetts, regulatory or legal bans on credit cards are also in effect in states including Iowa, Illinois, Oregon, New Hampshire, Rhode Island, Tennessee and Vermont.
Meanwhile, lawmakers in various states including New York, New Jersey and Maryland are considering bills that would prohibit credit card funding for online sports betting transactions. The Maryland House unanimously approved multi-point legislation to establish new consumer protection standards for online sports wagering by a 132-0 vote on March 18.
Meanwhile, two states have passed credit card bans for online gambling in recent weeks.
Virginia House and Senate members passed House Bill 515 to block credit card usage for sports betting, and it has been sent to Gov. Abigail Spanberger’s desk to be signed.
Most recently, Maine lawmakers gave final approval on Wednesday to a bill that would ban credit cards as a payment method for sports betting and online gambling. Less than three months after Gov. Janet Mills allowed Maine’s online casino legalization bill to become law in January, she will decide whether to do the same with the credit card prohibition legislation.
BetMGM slapped with a fine in Pennsylvania
BetMGM revealed its new credit card policy change after reaching an agreement with the Pennsylvania Gaming Control Board (PGCB) to pay a $100,000 regulatory fine.
BetMGM was penalized for a failure to “prevent fraudulent behavior” for allowing the creation and use of multiple player accounts by people using the identity of others. Some of the accounts were also funded “using stolen or fraudulently obtained payment devices”.
A probe by the PGCB found evidence of four individual fraud rings tied to the accounts. One of the fraud rings operated for 29 months until November 2023 and used 119 fraudulent accounts to wager $895,092.
