PGCB Imposes Fine on BetMGM and Enforces Gambling Restrictions on 16 Individuals

PGCB Imposes Penalty on BetMGM for Weak Anti-Fraud Measures

The Pennsylvania Gaming Control Board (PGCB) has imposed a fine on BetMGM due to inadequate anti-fraud and know-your-customer (KYC) controls across its betting platforms. Additionally, the PGCB announced that 16 individuals have been placed on involuntary exclusion lists for various violations, including cases of leaving children unattended while gambling.

Fraud Rings Exploit BetMGM’s Insufficient KYC Systems

The PGCB approved a consent agreement from its Office of Enforcement Counsel, resulting in a $100,000 fine to BetMGM. This penalty stems from the company’s failure to effectively combat fraudulent activities on its BetMGM and Borgata platforms.

The board highlighted lapses in KYC procedures that allowed some individuals to create multiple accounts using others’ personal details. These fraudulent accounts often operated with stolen or illegally obtained funds.

The agreement revealed four distinct fraud rings that operated for extended periods, collectively placing close to $2 million in wagers. Details of these schemes include:

• One ring operated for about 25 months until January 2024, creating 1,567 accounts with stolen identities and wagering $229,580.
• A second ring was active for around 34 months until November 2024, forming 34 accounts and wagering $14,598.
• The third operated approximately 29 months until November 2023, using 119 fraudulent accounts to place $895,092 in bets.
• The fourth ran for about 19 months until December 2023, generating 304 accounts and wagering $867,910.

PGCB Bars Four Adults from Gambling for Leaving Minors Unattended

Besides the fine, the PGCB placed 16 individuals on various exclusion registers, barring them from gambling activities within Pennsylvania. Four of these individuals were specifically banned for leaving children unattended while gambling.

Incidents reported include a man who left an 11-year-old child in a car at Hollywood Casino York for nearly an hour, and another who left a 5-year-old in a vehicle at Rivers Casino Philadelphia for 17 minutes.

Additionally, a man was found leaving a 9-year-old alone in a parking lot at Rivers Casino Philadelphia for more than an hour. The final case involved an individual who left two children, aged 7 and 12, unattended in a vehicle at Parx Casino for over 30 minutes.

The PGCB emphasized that leaving minors unattended is prohibited due to safety concerns. To raise public awareness, the board continues to support its campaign titled “Don’t Gamble with Kids.”