Key Highlights
- Beginning March 31, BetMGM will discontinue credit card deposits for both sports wagering and iGaming products in every jurisdiction where it operates.
- This policy change aligns BetMGM with industry leaders DraftKings and FanDuel, both of which previously eliminated credit card funding options.
- Multiple jurisdictions, including Massachusetts, Iowa, and Illinois, have already enacted legislation banning credit card deposits for online gambling activities.
- Legislative efforts to restrict credit card usage for betting are currently advancing in New York, New Jersey, Maryland, Virginia, and Maine.
- Pennsylvania regulators recently imposed a $100,000 penalty on BetMGM following inadequate verification procedures that enabled fraudulent operations.
During a Pennsylvania regulatory proceeding, BetMGM officials announced the company will discontinue accepting credit card deposits for sports wagering and iGaming activities across its entire US footprint.
The policy change becomes effective March 31 and encompasses all jurisdictions where the operator maintains licensing. Existing credit cards connected to customer accounts will be deactivated, and the platform will reject any attempts to add new credit cards afterward.
Operating as a partnership between MGM Resorts International and Entain plc, BetMGM represents one of the nation’s most prominent online gambling platforms.
This strategic shift positions BetMGM alongside its primary competitors. Both DraftKings and FanDuel have previously implemented similar restrictions on credit card funding mechanisms.
DraftKings enacted its prohibition last August, citing concerns about protecting consumers from cash advance penalties and elevated interest rates associated with credit card gambling transactions.
The DraftKings policy followed a $450,000 enforcement action by the Massachusetts Gaming Commission. State regulations explicitly forbid licensed gambling operators from processing deposits or wagers through credit cards.
FanDuel implemented a comparable nationwide restriction in early March. The policy affects only US operations, leaving Canadian services unchanged.
Industry’s Three Dominant Operators Now Unified on Credit Card Restrictions
The alignment of all three leading operators on credit card restrictions marks a significant transformation in US online gambling payment practices. This industry-wide shift responds to intensifying regulatory scrutiny and legislative action.
Numerous jurisdictions have already codified credit card deposit bans into law. States with existing prohibitions include Massachusetts, Iowa, Illinois, Oregon, New Hampshire, Rhode Island, Tennessee, and Vermont.
Additional states are pursuing similar regulatory frameworks. Lawmakers in New York, New Jersey, and Maryland have submitted legislation specifically addressing credit card usage in online sports wagering.
Maryland’s House of Delegates approved its proposal with unanimous support on March 18. Virginia’s General Assembly passed House Bill 515, forwarding it to Governor Abigail Spanberger for final consideration.
Maine’s legislature also granted conclusive approval to legislation prohibiting credit card payments for sports wagering and online casino gaming. The measure now awaits Governor Janet Mills’ decision.
Pennsylvania Regulators Impose $100,000 Penalty on BetMGM for Security Deficiencies
BetMGM’s credit card announcement follows closely behind a $100,000 fine levied by Pennsylvania gambling authorities. The state gaming board ratified the penalty during its March proceedings.
Regulatory examination revealed that BetMGM maintained insufficient identity verification protocols on its platform. Criminal organizations capitalized on these vulnerabilities to establish fraudulent accounts using misappropriated personal data.
These illegitimate accounts received funding through stolen payment instruments. Investigators identified the activity as part of four distinct fraud operations that persisted for extended periods, spanning months to years.
Collectively, these criminal enterprises produced over $2 million in illegal wagering activity. The Pennsylvania Gaming Control Board characterized the issues as indicative of systemic deficiencies in BetMGM’s operational controls.
Officials emphasized that these failures represented not merely isolated occurrences but evidence of fundamental weaknesses in the platform’s security infrastructure.
