Quick Summary
- Effective March 31, BetMGM will discontinue acceptance of credit card deposits for all sports wagering and online casino activities in every jurisdiction where it operates.
- This policy change aligns BetMGM with industry leaders DraftKings and FanDuel, both of which previously implemented similar restrictions.
- Multiple jurisdictions, including Massachusetts, Iowa, and Illinois, have enacted legislation prohibiting credit card funding for gambling activities.
- Lawmakers in New York, New Jersey, Maryland, Virginia, and Maine are progressing bills aimed at limiting credit card usage in online wagering.
- Pennsylvania regulators recently imposed a $100,000 penalty on BetMGM following an investigation that revealed inadequate identity verification protocols enabling fraudulent activity.
BetMGM has announced it will cease accepting credit card deposits for both sports wagering and online casino play. The disclosure came during testimony at a Pennsylvania regulatory proceeding.
The prohibition becomes effective March 31 and covers all jurisdictions where BetMGM maintains an active license. Previously linked cards will be disabled, and the platform will reject any attempts to add new credit cards.
As a collaborative venture between MGM Resorts and Entain, BetMGM operates among the nation’s most prominent online gambling platforms.
This strategic shift places BetMGM alongside DraftKings and FanDuel. These competing operators have already enacted comparable prohibitions on credit card funding.
DraftKings implemented its restriction last August. The organization stated the policy would assist customers in avoiding cash advance penalties and elevated interest rates associated with card-based funding.
DraftKings’ decision followed a $450,000 penalty from the Massachusetts Gaming Commission. State regulations explicitly forbid licensed operators from processing deposits or wagers through credit cards.
FanDuel announced its own comprehensive ban in early March. The restriction does not extend to FanDuel’s operations in Canada.
Top Three Operators Unite on Credit Card Restrictions
The alignment of all three dominant operators in blocking credit card funding marks a significant transformation in US online gambling practices. This evolution reflects mounting pressure from regulatory bodies and legislative authorities.
Numerous jurisdictions have established legal prohibitions against credit card deposits for gambling purposes. The list encompasses Massachusetts, Iowa, Illinois, Oregon, New Hampshire, Rhode Island, Tennessee, and Vermont.
Additional states are pursuing similar regulatory frameworks. Legislative bodies in New York, New Jersey, and Maryland have drafted proposals addressing credit card utilization in online sports wagering.
Maryland’s House of Delegates approved its legislation by unanimous vote on March 18. Virginia’s General Assembly passed House Bill 515, forwarding it to Governor Abigail Spanberger for final approval.
Maine’s legislature has also granted final passage to legislation prohibiting credit card transactions for both sports wagering and online casino gaming. The measure awaits Governor Janet Mills’ decision on enactment.
Pennsylvania Imposes $100,000 Penalty on BetMGM for Security Deficiencies
The announcement regarding credit card restrictions arrives shortly after Pennsylvania authorities levied a $100,000 fine against BetMGM. The state gaming board ratified the penalty during its March session.
Regulatory investigators determined that BetMGM maintained insufficient identity verification protocols. Criminal organizations capitalized on these vulnerabilities to establish fraudulent accounts using misappropriated personal data.
These illegitimate accounts received funding through stolen payment instruments. Officials identified four distinct fraud operations that persisted for extended periods, ranging from several months to multiple years.
Collectively, these criminal enterprises generated over $2 million in illegal wagering activity. The Pennsylvania Gaming Control Board characterized the issues as indicative of systemic deficiencies in BetMGM’s oversight mechanisms.
Regulatory officials emphasized that these failures represented not merely isolated occurrences but evidence of substantial vulnerabilities in the platform’s security infrastructure.
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