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BetMGM will pay a $260,905 fine after reaching an agreement with Pennsylvania gaming regulators over an investigation into allowing more than 150 self-excluded players to wager on the platform.
The consent agreement between the MGM-Entain joint venture and the Pennsylvania Gaming Control Board (PGCB) was approved by the board on Wednesday (January 29).
According to the agreement, a March 2021 BetMGM audit of the company’s player database against the state's self-exclusion list determined that 148 accounts had wagering activity while self-excluded.
In total, those players deposited more than $252,000 while only withdrawing around $82,000.
However, the company also self-reported three separate subsequent incidents whereby a self-excluded player was permitted to deposit money on the platform; one in April 2021, one in July 2022, and the final reported instance in July 2023.
In the April 2021 and July 2022 incidents, individual players deposited $580 and $700, with only the second player making a $100 withdrawal.
In the July 2023 incident, two additional accounts combined to deposit more than $183,000, withdrawing a little over half of that at just under $93,000.
“We’ve worked closely through these issues with the board, first by self-reporting when they were identified, and then carefully through the mediation measures that were implemented as a result,” said Sarah Brennan, senior director of compliance for BetMGM, during Wednesday’s hearing.
“BetMGM is committed to the protection of patrons in the commonwealth, and regrets and apologizes that these four issues have occurred,” Brennan said.
Commissioner Shawn Dillon noted the high deposit amount from the players in the July 2023 incident and asked why that alone did not trigger a closer look from the company.
“Doesn’t that raise a red flag if someone puts that kind of money into account?” Dillon asked.
“We do evaluate players for any inconsistency in play behavior, we have an anti-money laundering team, but we have players of all value who wager on our platform,” Brennan responded.
“You have recreational players, you have players who deposit more than others, so based only on the deposit amount, it wouldn’t necessarily raise a flag if there weren’t other issues that would have been flagged by fraud, risk, or (anti-money laundering).”
In addition to the monetary penalty, BetMGM agreed to make a $20,000 donation to the Pennsylvania Council on Problem Gambling.
The PGCB also voted Wednesday to fine Rush Street Gaming $13,800 for failing to file a principal license renewal application for its chief financial officer, and Live! Casino Pittsburgh $7,500 for using revoked software in 11 of its slot machines.
