BetMGM Drops Credit Card Payments After Pennsylvania Fraud Case

Online operator BetMGM is the latest sportsbook to stop accepting credit card payments, after a fraud-related settlement with regulators in Pennsylvania. 

The state’s gambling regulator, the Pennsylvania Gaming Control Board (PGCB), fined the company $100,000, stating it failed to implement adequate safeguards to prevent fraudulent activity, particularly in identity verification processes.  

The PGCB says it identified repeated cases in which users created accounts using stolen or fabricated identities, allowing them to deposit, transfer, and withdraw funds undetected for an extended period. The Board oversees the Pennsylvania sports betting and Pennsylvania online casino markets.

According to the findings, one individual created 119 accounts across the BetMGM and Borgata platforms and wagered nearly $900,000. In another case, fraudsters set up 1,567 accounts, depositing more than $13,000 using stolen payment methods and withdrawing over $28,000. 

The decision brings BetMGM in line with other sportsbook operators that have already banned credit cards. FanDuel stopped credit card payments earlier this year after concerns were raised about high fees and consumer debt, with some bettors reportedly incurring charges reaching up to half the value of their wagers.  

DraftKings ended credit card payments last year, citing similar issues, but was later fined $450,000 by the Massachusetts Gaming Commission for breaching state rules.  

Massachusetts and seven other states have already banned credit card use for gambling transactions, while lawmakers in Maine recently approved a bill to introduce a similar ban, including requirements that operators update payment systems across digital platforms and physical kiosks to automatically block such transactions. 

BetMGM also received a $282,205 fine from the PGCB last year for 152 violations of the state’s self-exclusion list.  

BetMGM updates terms to ban harassment of athletes 

In a separate development, BetMGM has also said it will revise its terms of service to explicitly prohibit customers from harassing athletes, coaches, and other sports personnel, and will introduce stricter enforcement measures, such as account suspensions. 

The operator stated that while its previous terms allowed account suspensions for any lawful reason, including abusive behaviour, the updated policy is intended to clarify standards. Under the revised terms, confirmed harassment will lead to immediate action against users.  

The changes apply across all markets where BetMGM operates, including the Ontario sports betting market, and are part of a wider focus on sports integrity and player safety, according to the company. 

The move comes amid increasing scrutiny of abuse directed at athletes by bettors. A 2024 report found that almost half of abusive social media messages aimed at tennis players were linked to gambling. Several high-profile athletes have reported harassment and threats after matches.  

Despite the new terms, Ontario Senator Marty Deacon said it does not address wider concerns around gambling-related harm, warning that the rules may not be enough to prevent abuse, particularly during major international events involving younger or amateur athletes.