Pennsylvania Gaming Control Board has issued a $100,000 fine to BetMGM after identifying weaknesses in its know-your-customer procedures. The regulator said the gaps allowed individuals to create multiple betting accounts using stolen identities and payment methods.
The board 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.”
Fraud rings operated across hundreds of accounts
Investigations uncovered four separate fraud rings that had been active for extended periods. Each group used stolen personal data to create and operate multiple accounts without detection.
One ring created 1,567 betting accounts and wagered more than $229,000 through BetMGM platforms. Two other groups recorded wagering totals of $895,092 and $867,910, using 119 and 304 accounts respectively.
The final group operated 34 accounts and wagered $14,598, but remained active for around 34 months before being shut down.
Additional enforcement actions and BetMGM updated policies
During its March 25 meeting, the regulator also placed 16 individuals on involuntary exclusion lists. Those listed are now barred from accessing casinos, online betting platforms and video gaming terminals across Pennsylvania.
Aside from the enforcement action, BetMGM updated its terms of service. The company now “explicitly prohibit” athlete harassment across its platforms. Therefore, the operator can suspend betting accounts involved in abusive behaviour directed at athletes.
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