BetMGM fined $100k over KYC failures in Pennsylvania
Table of contents
- The Pennsylvania Gaming Control Board fined BetMGM $100,000 following a consent agreement over insufficient know-your-customer controls on its online platforms.
- Four separate fraud rings exploited the gaps, generating more than $2 million in wagering across BetMGM and Borgata accounts using stolen identities and fraudulent payment methods.
- The penalty adds to a $260,905 fine issued to the operator in January 2025 for self-exclusion violations in the same state.
Pennsylvania’s gaming regulator has fined BetMGM $100,000 after finding the operator failed to maintain adequate controls to prevent organised fraud on its online betting platforms.
The Pennsylvania Gaming Control Board (PGCB) approved the penalty this week on 25 March via a consent agreement submitted by its Office of Enforcement Counsel.
KYC gaps exploited
The board determined that BetMGM failed to have sufficient procedures to prevent fraudulent behavior on its BetMGM and Borgata wagering platforms.
Investigators found the operator’s know-your-customer (KYC) protocols were insufficient, allowing individuals to create, access and use multiple accounts using the personal identifying information of other people, with those accounts funded through stolen or fraudulently obtained payment methods.
The PGCB identified four individual fraud rings. Combined, the four rings generated $2,007,180 in fraudulent wagering activity.
- The first operated for approximately 25 months until January 2024, producing 1,567 accounts and $229,580 in combined wagering.
- The second ran for approximately 34 months until November 2024, involving 34 accounts and over $14,598 in wagering.
- The third was active for approximately 29 months until November 2023, using 119 accounts to generate $895,092 in wagers.
- The fourth operated for approximately 19 months until December 2023, with 304 accounts responsible for $867,910 in wagering.
The board’s findings pointed to systemic deficiencies in BetMGM’s processes. Lapses allowed repeated account access without sufficient identity checks. The PGCB attributed the failures to broader operational shortcomings rather than isolated human error.
In a statement included in the consent agreement, BetMGM said:
“BetMGM has committed significant investment into its fraud tools, policies, and fraud prevention to address and stay ahead of the sophisticated bad actors. BetMGM has, and will continue, to commit time, expenses, and resources to preventing fraud and upholding the integrity of gaming in the Commonwealth of Pennsylvania.”
In addition to the $100,000 fine, the PGCB required BetMGM to pay $2,500 for costs incurred and immediately institute policies and procedures to prevent similar incidents from occurring in the future.
Exclusions and prior penalties
At the same meeting, the board placed 16 individuals on its various involuntary exclusion lists, which bar them from gambling at casinos, online platforms and video gaming terminal locations in Pennsylvania. Four were added for leaving minors unattended at casino properties. These actions bring the total number of individuals on the board’s exclusion lists to 1,515.
The latest enforcement action comes months after a heavier penalty from the same regulator. In January 2025, the PGCB fined BetMGM $260,905 for allowing individuals on the state’s self-exclusion list to gamble, with 152 violations occurring between 2021 and 2023.
BetMGM self-reported two of the incidents, with an internal audit uncovering the remainder. In response, the operator closed the relevant accounts and launched internal investigations while reviewing its procedures and systems.
BetMGM has also faced regulatory action in Massachusetts. The Massachusetts Gaming Commission fined the operator $6,500 for offering a prohibited college football player prop bet in 2024.
Additional fines included $15,000 for allowing bets related to two UFC bouts in 2024 and 2025. Regulatory reports also allege that BetMGM sent promotional Major League Baseball emails to nearly 4,000 recipients under the legal gambling age of 21.
The accumulation of penalties across multiple states puts BetMGM’s compliance infrastructure under sustained scrutiny. As US regulators tighten their oversight of online operators, the PGCB’s consecutive view of the situation shows a growing intolerance for systemic mistakes, especially around identity verification.
The PGCB is scheduled to hold its next public meeting on 29 April 2026 in Harrisburg.
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