The Pennsylvania Gaming Control Board recently approved a $100,000 fine against BetMGM, finding that the operator failed to establish sufficient safeguards to prevent fraudulent activities on its online gambling platform. The regulatory body pointed out that BetMGM's KYC process had flaws, allowing criminals to use other people's identity information to create and operate multiple accounts, some of which were funded with stolen or fraudulently obtained payment methods. In plain terms, the identity verification was not strict enough, allowing scammers to exploit loopholes.
Four major fraud gangs took turns committing crimes, betting over $2 million
The investigation found that BetMGM and Borgata platforms had long been plagued by four independent fraudulent operations. These gangs created thousands of accounts, generating a huge volume of bets. One operation lasted about 25 months, involving 1,567 fraudulent accounts, with bets totaling $229,580; another lasted about 34 months, using 34 accounts, with bets exceeding $14,598; a third lasted 29 months, creating 119 accounts, with bets totaling $895,092; the fourth was active for 19 months, with 304 accounts betting $867,910. The total betting amount of the four cases exceeded $2 million, all relying on stolen identities and fraudulent payment methods, exposing significant vulnerabilities in BetMGM's verification system.
Regulatory crackdown: 16 people banned, including those who left minors unattended while gambling
In addition to the fine, the commission also placed 16 people on various mandatory exclusion lists, prohibiting them from entering Pennsylvania casinos, online gambling platforms, or video gaming terminals. Among the four cases, adults gambled while leaving minors alone in cars for periods ranging from 17 minutes to one hour, at locations including Hollywood York Casino, Philadelphia Riverside Casino, and Parx Casino. The regulatory body emphasized that such behavior creates an unsafe environment for minors, violating state regulations. The total number of people on the commission's exclusion list has now reached 1,515.
BetMGM faces ongoing regulatory pressure, with multiple penalties in different locations
This enforcement action is one of a series of penalties BetMGM has faced in recent months. Earlier this year, the operator was fined $260,905 by Pennsylvania for allowing individuals on the self-exclusion list to gamble. The Massachusetts regulatory body also fined it for offering restricted betting markets (including college player options and UFC event betting) and is investigating the situation of sending promotional emails to underage individuals. BetMGM has closed the relevant accounts, conducted internal reviews, and checked operating systems, but has not commented on the latest fine. Interested in the latest updates on U.S. gambling regulation? PASA's official website continues to track.
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