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BetMGM Ends Credit Card Payments After Pennsylvania Fine

BetMGM Ends Credit Card Payments After Pennsylvania Fine – Fraud Cases Prompt Broader Shift in Online Betting Funding Methods

Key Takeaways

• BetMGM has stopped accepting credit card payments following a $100,000 fine from the Pennsylvania Gaming Control Board.
• The fine relates to failures in fraud prevention and identity verification procedures.
• Investigations identified hundreds of fraudulent accounts, including one case involving 119 accounts and nearly $900,000 in wagers.
• Several US states, including Massachusetts, already prohibit the use of credit cards for online betting.
• FanDuel and DraftKings have also moved away from credit card payments, citing high fees and regulatory issues.

BetMGM Ends Credit Card Transactions After Regulatory Settlement

BetMGM has ceased all credit card transactions after reaching a fraud-related settlement with the Pennsylvania Gaming Control Board, or PGCB. The regulator imposed a $100,000 fine on the operator, citing insufficient procedures to prevent fraudulent activity, particularly in the area of identity verification.

According to the PGCB, multiple cases showed that fraudulent users were able to open accounts, transfer funds, and withdraw money using stolen or fabricated identities over several years. The regulator concluded that the company had not implemented adequate controls to detect and stop such activity.

As part of the response to the enforcement action, BetMGM has decided to end credit card payments entirely. The decision applies to its online gaming operations and removes one of the most widely used traditional payment methods in US online betting.

Details of the Fraud Cases Identified by Regulators

The PGCB outlined several cases that formed the basis of the fine. In one instance, a single individual opened 119 accounts across BetMGM and Borgata. Through those accounts, the individual reportedly gambled nearly $900,000.

In a separate scheme that took place between 2021 and 2024, a fraud ring created 1,567 accounts. The group deposited more than $13,000 using stolen payment methods and withdrew more than $28,000. These activities were conducted using false or stolen identities.

Regulators determined that these cases reflected broader weaknesses in identity verification and payment monitoring systems. The enforcement action focused on the operator’s responsibility to maintain effective safeguards against fraud and misuse of payment instruments.

For users, these findings highlight how payment channels can become entry points for fraudulent activity if verification procedures are not sufficiently robust.

Part of a Wider Industry Move Away From Credit Cards

BetMGM is not the only major operator to discontinue credit card payments. FanDuel ended credit card funding earlier this year. The move followed public criticism from Senator Elizabeth Warren, who pointed out that nearly a quarter of bettors used credit cards and often faced fees of up to 50 percent of the original wager.

DraftKings stopped accepting credit cards last year, citing high transaction fees as a reason. However, the company was also fined $450,000 by the Massachusetts Gaming Commission for violating the state’s credit card ban. DraftKings stated that it had misunderstood the scope of the law, believing it applied only to users physically located in Massachusetts.

These developments show that both regulatory enforcement and cost considerations are influencing payment policies across the US online betting sector.

State-Level Restrictions on Credit Card Funding

Online sports betting is currently legal in 32 US states. Massachusetts and seven other states already prohibit the use of credit cards for wagering. These bans are designed to limit the use of borrowed funds for gambling activities.

Last week, lawmakers in Maine approved legislation that would also ban credit card funding for online betting. The proposed law would require operators to update all payment systems to automatically block credit card transactions. This includes digital wallets, mobile apps, websites, and in-person kiosks.

The Maine measure illustrates how states are not only prohibiting specific payment methods but also mandating technical safeguards to ensure compliance across all user interfaces.

For operators, this means adapting payment infrastructures to meet differing state requirements. For users, especially those who rely on credit-based funding, the available payment options may vary significantly depending on location.

Implications for Payment Choices in Online Betting

The removal of credit card payments by BetMGM reduces the number of funding options available on its platform. It also reflects a broader shift in how regulators and operators approach the risks associated with credit-based gambling.

As more states implement or consider bans, and as enforcement actions continue, payment policies are becoming a key compliance area in the US online betting market. Operators must ensure that identity verification, transaction monitoring, and payment processing systems align with state-level rules.

For users evaluating platforms, payment availability is increasingly shaped by regulatory decisions rather than operator preference alone.

Our Assessment

BetMGM’s decision to end credit card payments follows a $100,000 fine from the Pennsylvania Gaming Control Board related to fraud and identity verification failures. The case forms part of a broader pattern in which regulators and lawmakers are restricting or prohibiting credit card use for online betting. With several states already enforcing bans and others advancing similar measures, payment method compliance has become a central regulatory issue in the US online gambling market.