BetMGM has been fined $100,000 by the Pennsylvania Gaming Control Board after an investigation found failures in its systems to prevent fraudulent activity. The violations relate to incidents that took place across 2023 and 2024 on both the BetMGM and Borgata online gaming platforms.
Fraud rings exposed across multiple accounts
The regulator’s Office of Enforcement Counsel found that BetMGM failed to stop users from creating and operating multiple accounts using stolen or false identities. Some of these accounts were funded using stolen or fraudulently obtained payment methods.
The investigation identified four separate fraud rings operating over extended periods.
One ring ran for 29 months until November 2023. It used 119 fraudulent accounts and placed wagers totalling $895,092.
Another group operated 304 illicit accounts for 19 months until December 2023. This group wagered $867,910 during that period.
A third ring created 1,567 fraudulent accounts and wagered $229,580 over roughly 25 months, continuing until January 2024.
The fourth case involved a smaller operation, where an individual used 34 accounts under false identities. This activity lasted for 34 months until November 2024, with wagers of $14,598.
The regulator said these cases reflected “insufficient” know-your-customer procedures within the operator’s systems.
Regulator takes action against individuals
Alongside the fine, the Pennsylvania Gaming Control Board also took action against individuals involved in violations.
Sixteen people had their gambling privileges revoked. Four individuals were placed on the Involuntary Casino Exclusion list after leaving minors unattended while gambling at a retail casino.
The remaining individuals were added to either or both the Involuntary Casino Exclusion list and the Involuntary Interactive Exclusion list. The regulator did not disclose the specific reasons for all placements.
Earlier penalties linked to KYC failures
This is not the first penalty issued to BetMGM by the Pennsylvania regulator in recent months.
In January, the operator was fined $260,905 after it allowed individuals on the state’s self-exclusion list to access its platform. The violations occurred between 2021 and 2023 and involved 152 separate incidents.
BetMGM self-reported two of these cases, while the rest were identified through an internal audit. Following the findings, the company closed the affected accounts and launched internal reviews of its procedures and systems.
Additional fines in Massachusetts
BetMGM has also faced regulatory action in Massachusetts during the same period.
Earlier this month, the Massachusetts Gaming Commission fined the operator $6,500 for accepting a prohibited college football player prop bet in 2024. State rules do not allow betting on individual college athlete performance.
The operator was also fined $15,000 for offering improper betting markets linked to two UFC bouts in 2024 and 2025.
In addition, a commission report found that BetMGM allegedly sent Major League Baseball promotional emails to nearly 4,000 individuals below the legal gambling age of 21. The regulator is planning to hold an adjudicatory hearing to review the matter.
Ongoing scrutiny on compliance systems
The series of penalties highlights continued regulatory scrutiny on BetMGM’s compliance systems across multiple states. Authorities have focused on issues related to fraud prevention, customer verification processes and adherence to betting rules.
Regulators in both Pennsylvania and Massachusetts have taken enforcement action in recent months, indicating a broader push to ensure operators meet strict licensing and consumer protection standards.
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