The Pennsylvania Gaming Control Board (PGCB) has imposed a $100,000 penalty on BetMGM after determining that the operator’s know‑your‑customer (KYC) controls were inadequate. It allowed for sustained fraudulent activity across its online wagering platforms, the board said.
The regulatory body revealed on Wednesday that these weaknesses had enabled multiple accounts to be created using stolen or fraudulently obtained personal information and payment methods.
Investigations found that over $2 million in wagering was linked to four distinct fraud operations spanning from between 25 to 34 months. One organised fraud ring generated 1,567 fraudulent accounts during this period. Others produced hundreds of accounts and significant wagering volume.
The PGCB emphasised that ongoing enforcement aims to uphold responsible gaming practices within Pennsylvania’s regulated sector. This comes as PGCB announced a 11.6% year-on-year increase in gambling revenue for January.
Verification gaps enable systemic exploitation
The board’s findings pointed to systemic deficiencies in BetMGM’s customer verification and payment validation processes. Lapses allowed repeated account access without sufficient identity checks, facilitating prolonged exploitation by fraudsters.
The PGCB attributed these losses to broader operational shortcomings rather than isolated human error.
This recent fine adds to earlier disciplinary actions focused on BetMGM’s regulatory compliance. Earlier in 2025, the board approved a separate consent agreement fining BetMGM $260,905 for allowing self-excluded individuals to place bets online. The PGCB confirmed that affected fraudulent accounts were closed promptly.
The operator declined to comment on the latest sanction.
Enforcement actions include new exclusion orders
The PGCB also updated its involuntary exclusion lists. It added 16 individuals banned from Pennsylvania casinos, online wagering platforms, and video gaming terminal locations. Four cases involved adults who left children unattended while gambling.
The board reiterated its “Don’t Gamble with Kids” campaign, stressing that such behaviour creates unsafe environments for minors.
The regulator’s next public meeting is set for 29 April in Harrisburg.
Original article: https://igamingbusiness.com/legal-compliance/compliance/pennsylvania-regulator-fines-betmgm-100000-over-kyc-failures/
