BetMGM fined $100K after fraud rings exploit weak KYC safeguards
BetMGM has been fined $100,000 by the Pennsylvania Gaming Control Board (PGCB) after failing to prevent fraud on its platforms. An investigation uncovered four fraudulent gambling rings that exploited weak safeguards on the company's Borgata and BetMGM sites.
The PGCB found that BetMGM lacked proper know-your-customer (KYC) checks, allowing fraudsters to open multiple accounts using stolen identities. Four separate rings took advantage of these gaps, wagering over $2 million across hundreds of fraudulent accounts.
The largest ring operated for nearly 29 months, creating 119 accounts and placing bets worth $895,092. A second group ran for 19 months, opening 304 accounts and wagering $867,910. Another ring, active for 25 months, set up 1,567 accounts but wagered a smaller total of $229,580. Pennsylvania's enforcement action marks the first such penalty against BetMGM for KYC and anti-fraud violations since 2023. No other US state has taken similar regulatory steps against the company in that time.
The fine follows a PGCB ruling that BetMGM's platforms had insufficient protections against fraudulent activity. The company must now strengthen its KYC protocols to prevent further breaches. No additional penalties have been announced in other states.
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