(AsiaGameHub) –   The Pennsylvania Gaming Control Board (PGCB) has issued a $100,000 fine to BetMGM after finding the operator’s know-your-customer (KYC) protocols to be insufficient. The regulator stated that these shortcomings permitted ongoing fraudulent behavior across its digital wagering sites. 

On Wednesday, the board explained that these security gaps allowed for the establishment of multiple accounts using stolen or fraudulent personal details and payment options.

Inquiries revealed that more than $2 million in betting activity was tied to four distinct fraud rings operating over periods of 25 to 34 months. One specific group created 1,567 illicit accounts, while others were responsible for hundreds of accounts and substantial wagering volumes. 

The PGCB noted that its persistent enforcement actions are intended to uphold responsible gambling standards within the state’s regulated industry. This development follows the PGCB’s report of an 11.6% year-on-year growth in gambling revenue for the month of January.

Systemic exploitation facilitated by verification flaws

Findings from the board highlighted systemic weaknesses in BetMGM’s processes for customer identification and payment verification. These failures allowed for recurring account access without proper identity checks, leading to extended exploitation by fraudsters. 

The PGCB concluded that these issues stemmed from general operational deficiencies rather than isolated instances of human error.

This fine follows previous disciplinary measures regarding BetMGM’s compliance. In early 2025, the board finalized a consent agreement requiring BetMGM to pay $260,905 for allowing individuals on the self-exclusion list to gamble online. The PGCB confirmed that the fraudulent accounts involved in the latest case were closed immediately. 

The operator chose not to comment on the most recent penalty.

Exclusion orders expanded as part of enforcement

The PGCB also revised its involuntary exclusion lists, adding 16 individuals who are now prohibited from entering Pennsylvania casinos, using online betting platforms, or visiting video gaming terminal sites. Four of these cases involved adults leaving children unattended to gamble. 

The board reiterated the goals of its “Don’t Gamble with Kids” initiative, highlighting that such behavior jeopardizes the safety of minors. 

The regulator is scheduled to hold its next public meeting on 29 April in Harrisburg.