PGCB issues $100,000 fine to BetMGM for ‘insufficient’ KYC protocols

The Pennsylvania Gaming Control Board (PGCB) has issued a $100,000 fine to BetMGM for failing to provide sufficient know-your-customer (KYC) protocols, allowing individuals to create multiple betting accounts using stolen personal information and payment devices. 

The regulator stated: “In its approval of the consent agreement, the Board agreed that BetMGM failed to have sufficient procedures to prevent fraudulent behavior on its BetMGM and Borgata wagering platforms.

“This includes insufficient KYC protocols that allows for the creation, access and use of multiple accounts by individuals using personal identifying information of other individuals and the funding of those accounts using stolen or fraudulently obtained payment devices.”

As a result of the KYC protocol failures, four individual fraud rings were identified by the PGCB, each of which had been operational for at least 19 months. One fraud ring launched 1,567 different betting accounts using stolen information and eventually wagered over $229,000 through BetMGM platforms. 

Two additional rings would total $895,092 and $867,910 of combined wagering, respectively, having used 119 and 304 different betting accounts with fraudulent personal information. 

While the final fraud ring identified by the PGCB used 34 different betting accounts and wagered a combined $14,598, the accounts remained active for approximately 34 months before being shut down. 

As part of its monthly meeting on March 25, the PGCB also placed 16 individuals on its various involuntary exclusion lists, preventing those included from gaming in a Pennsylvania casino, through a regulated online betting site or on a video gaming terminal.

BetMGM recently updated its terms of service to "explicitly prohibit” athlete harassment, including abusive language sent to players, coaches or additional team and league personnel.

Looking to provide “even more clarity” around its anti-harassment policy, BetMGM stated it will now be able to suspend betting accounts found to be directing harassing language towards athletes.