The Pennsylvania Gaming Control Board has issued a fine for sportsbook and casino platform BetMGM for allowing individuals who have already self-excluded to gamble. The PGCB's fine, which is for a total of $260,905, is for 152 times or instances in which BetMGM let people on the self-excluded list to engage in gambling activities from 2021 to 2023.

The Pennsylvania Gaming Control Board has imposed a $260,905 fine on BetMGM after uncovering 152 instances where individuals on the state's self-exclusion list were able to gamble on the company's platforms between 2021 and 2023.

A Consent Agreement obtained by SBC Americas revealed that an internal audit conducted in March of 2021 flagged significant lapses in both Borgata Pennsylvania and BetMGM's player database. The audit found 148 player accounts exhibiting gambling activity while the account holders were on the online gaming self-exclusion list. In these cases, no less than $82,460.30 was withdrawn and $252,035.55 was deposited, resulting in a net difference totaling $169,575.25.

More than $430K from self-excluded players in a span of three years

Beyond the initial audit findings, two unconnected incidents were self-reported by BetMGM. In April of 2021, one self-excluded individual accessed their Borgata account and deposited $580, without making any withdrawals. A similar breach occurred in July of 2022, when another self-excluded player deposited $700 and withdrew $100.

The most significant breach occurred in July of 2023, when a review revealed that two self-excluded individuals had accessed their accounts due to manual human error. One of the accounts saw deposits totaling $183,065.45 and withdrawals amounting to $92,916.59, leaving a net difference amounting to $90,148.86. All in all, $436,381 was deposited and a total of $175,476.89 withdrawn by persons on the self-exclusion list at the Borgata and BetMGM platforms over the three-year period.

Self-exclusion program and company response

Pennsylvania's self-exclusion program allows individuals struggling with problem gambling to voluntarily ban themselves from casinos, video gaming terminals, internet-based gambling, and fantasy sports wagering. Participants can select the duration of their self-imposed ban from various options.

In response to these violations, the PGCB noted that BetMGM had taken corrective actions, including closing the affected accounts and initiating internal investigations and procedural reviews. In addition to the civil penalty, BetMGM was also required to pay a $2,500 fee to cover investigative costs and a $260,905 civil penalty. The company also donated $20,000 to the Pennsylvania Council on Problem Gambling voluntarily.

"BetMGM takes full responsibility for the 2021 Pennsylvania self-exclusion violations and has taken significant steps to enhance practices to prevent future incidents," stated a spokesperson for BetMGM. "BetMGM remains committed to responsible gambling, including substantial investments in training, research, education programs, and telehealth services."

Members of the board scrutinize $183,000 in total deposits

During a PGCB board meeting on Wednesday, where the Consent Agreement was unanimously approved, the significant deposits made by self-excluded users drew sharp criticism from board members. Commissioner Shawn Dillon voiced concerns over the large sums involved, particularly the $183,000 deposited by two self-excluded individuals in July of 2023. "Who's got that kind of money to deposit $183,000?" Dillon questioned. "Doesn't that raise a red flag if somebody puts that big a deposit into an account? Doesn't somebody look at that?"

In response, Senior Director of Compliance for BetMGM, Sarah Brennan, explained that the company does evaluate player behavior for inconsistencies. However, she noted that BetMGM caters to a wide range of players. "Based only on deposit amount, it wouldn't necessarily raise a flag if there weren't other issues that would have been flagged by fraud risk or AML [anti-money laundering protocols]," Brennan added.

This latest enforcement action demonstrates the PGCB's commitment to ensuring strict adherence to responsible gambling measures and the importance of robust internal controls within the gaming industry.