Key Highlights
Contents
- Starting March 31, BetMGM will discontinue credit card deposit options for both sports wagering and online casino gaming in every jurisdiction where it operates.
- This policy aligns BetMGM with industry leaders DraftKings and FanDuel, both of which previously implemented similar restrictions.
- Eight US jurisdictions currently have legislation prohibiting credit card funding for gambling activities, including Massachusetts, Iowa, and Illinois.
- Legislative proposals to ban credit card gambling deposits are progressing in New York, New Jersey, Maryland, Virginia, and Maine.
- Pennsylvania gaming authorities imposed a $100,000 penalty on BetMGM for inadequate verification procedures that enabled fraudulent activity on its platform.
During testimony at a Pennsylvania regulatory proceeding, BetMGM disclosed its decision to discontinue credit card deposits for both sports betting and online casino platforms.
The nationwide restriction becomes effective March 31 and encompasses all jurisdictions where the company maintains licensing. Previously connected credit cards will be deactivated, and the platform will reject any attempts to add new credit card payment methods.
As a collaborative enterprise between MGM Resorts and Entain, BetMGM operates among the nation’s most prominent online gambling services.
This strategic shift positions BetMGM alongside DraftKings and FanDuel. These competing operators previously enacted similar prohibitions on credit card funding methods.
DraftKings implemented its restriction last August. The organization stated this policy would protect players from cash advance charges and elevated interest rates associated with credit card gambling transactions.
The policy adjustment followed a $450,000 penalty imposed on DraftKings by the Massachusetts Gaming Commission. State regulations explicitly prohibit licensed gaming companies from processing deposits or bets through credit cards.
FanDuel established its countrywide prohibition during early March. The company’s operations in Canada continue accepting credit cards without restriction.
Industry’s Three Dominant Players Now Unified on Credit Card Restrictions
The simultaneous adoption of credit card prohibitions by the three leading operators signals a fundamental transformation in US online gambling funding practices. This industry-wide evolution stems from mounting pressure by regulatory agencies and state legislatures.
Eight states currently enforce statutory prohibitions on credit card gambling deposits. The list encompasses Massachusetts, Iowa, Illinois, Oregon, New Hampshire, Rhode Island, Tennessee, and Vermont.
Additional jurisdictions are pursuing comparable restrictions. Lawmakers in New York, New Jersey, and Maryland have proposed legislation specifically addressing credit card usage in digital sports wagering.
Maryland’s House of Delegates approved its proposal with unanimous support on March 18. Virginia’s legislative body passed House Bill 515, forwarding the measure to Governor Abigail Spanberger for executive action.
Maine’s legislature completed approval of legislation that would prohibit credit card transactions for sports betting and online casino activity. The measure now awaits Governor Janet Mills’ decision on enactment.
Pennsylvania Regulators Impose $100,000 Sanction on BetMGM for Security Lapses
The credit card policy announcement follows closely after Pennsylvania authorities issued a $100,000 sanction against BetMGM. State gaming board members approved the financial penalty during their March session.
Regulatory examination revealed inadequate identity authentication protocols within BetMGM’s systems. Criminal organizations capitalized on these vulnerabilities to establish fraudulent accounts utilizing stolen identity information.
These illegitimate accounts received funding through compromised financial instruments. Investigators identified four distinct criminal operations that continued operating for extended periods, spanning months to years.
Collectively, these fraudulent schemes produced over $2 million in illegal wagering activity. The Pennsylvania Gaming Control Board characterized these issues as indicators of systemic deficiencies in BetMGM’s oversight framework.
Officials emphasized that these failures represented not merely individual occurrences but evidence of pervasive vulnerabilities throughout the platform’s protective measures.
