BetMGM Is the Latest Gambling Platform to Move Away from Credit Cards

NotFinancialAdvice · 2026-03-30T17:33:26+00:00

BetMGM is eliminating credit card payments following a fraud settlement with Pennsylvania, where the company was fined for inadequate identity verification leading to account fraud. Other platforms like FanDuel and DraftKings have also stopped accepting credit cards due to similar issues. States are enacting bans on credit card funding for online sports betting, with Maine recently approving legislation for technical enforcement.

NotFinancialAdvice

2026-03-30 17:33:26

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As sports betting operators move away from credit cards, BetMGM is eliminating them entirely following a fraud-related settlement with Pennsylvania.

The Pennsylvania Gaming Control Board also fined BetMGM $100,000, alleging it “failed to have sufficient procedures to prevent the fraudulent behavior,” particularly in identity verification.

State regulators identified multiple cases in which fraudulent users opened accounts, moved money, and withdrew funds using stolen or fabricated identities—a pattern that persisted for several years. One individual opened 119 BetMGM and Borgata accounts and gambled nearly $900,000. In a separate scheme from 2021 to 2024, a fraud ring created 1,567 accounts, depositing more than $13,000 using stolen payment methods and withdrawing more than $28,000.

Following Other Platforms

BetMGM is the latest gambling platform to drop credit cards. FanDuel stopped accepting them earlier this year after Senator Elizabeth Warren noted that nearly a quarter of bettors used credit cards, often incurring fees as high as half of the original wager.

DraftKings cited those fees when it ended credit card payments last year. However, it was also fined $450,000 by the Massachusetts Gaming Commission for violating the state’s credit card ban on gambling. The company said it misunderstood the law, believing it applied only to users physically located in the state.

States Have Taken the Initiative

Online sports betting is now legal in 32 states, but Massachusetts and seven others already ban the credit card funding. Last week, Maine lawmakers approved a bill to do the same.

The Maine legislation also sets technical requirements to enforce the ban. Gambling operators would have to update all payment systems—including digital wallets, mobile apps, websites, and in-person kiosks—to automatically block credit card transactions.

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Tags: BetMGMDraftkingsFanDuelKnow Your CustomerPennsylvaniaSports Betting

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