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BetMGM is ending credit card transactions entirely after reaching a fraud-related settlement with the Pennsylvania Gaming Control Board (PGCB).
The move follows a $100,000 fine imposed on the operator for failing to implement sufficient procedures to prevent fraudulent activity, particularly in identity verification, the Payments Journal reported.
According to the PGCB, multiple cases were identified in which fraudulent users opened accounts, moved money, and withdrew funds using stolen or fabricated identities over several years.
In one case, an individual opened 119 accounts across BetMGM and Borgata, gambling nearly $900,000. A separate scheme between 2021 and 2024 involved a fraud ring creating 1,567 accounts, depositing over $13,000 with stolen payment methods, and withdrawing more than $28,000.
BetMGM joins a growing list of gambling operators moving away from credit cards. FanDuel ended credit card payments earlier this year after Senator Elizabeth Warren highlighted that nearly a quarter of bettors used credit cards, often incurring fees of up to 50% of the original wager.
DraftKings similarly cited high fees when it stopped accepting credit cards last year, though it was also fined $450,000 by the Massachusetts Gaming Commission for violating the state’s credit card ban. The company claimed it misunderstood the law, believing it applied only to users physically located in Massachusetts.
Online sports betting is currently legal in 32 states, with Massachusetts and seven other states already prohibiting using credit cards for wagering. Last week, Maine lawmakers approved legislation that would ban credit card funding for online betting and require operators to update all payment systems, including digital wallets, mobile apps, websites, and in-person kiosks, to automatically block such transactions.