The sports betting operator BetMGM agreed Thursday to pay the Maryland Lottery and Gaming Control Commission $146,000 for accepting wagers prior to the state’s official launch of digital betting.
BetMGM accepted 146 mobile sports bets on Nov. 16, five days prior to the start of controlled demonstrations in the state. The official, unrestricted mobile sports betting launch didn’t take place until Nov. 23.
The majority of users had their bets voided and money returned, although one customer withdrew their winnings before BetMGM fixed its mistake and took the platform offline.
“This has never occurred in any of BetMGM’s prior launches in any state, so this is an isolated occurrence for BetMGM,” Rhea Loney, BetMGM’s chief compliance officer, said during Thursday’s lottery commission meeting.
Online betting platform BetMGM hit with a fine by the Maryland Lottery and Gaming Commission today after being found in violation of the state's regulations on wagering. the website mistakenly accepted 146 wagers on November 16, an entire week before the official launch
— David Collins (@dcollinsWBAL) December 16, 2022
Largest penalty issued by Maryland lottery
The lottery fined BetMGM $1,000 per wager that was accepted outside the confines of Maryland’s mobile sports betting launch.
“This appears to be an inadvertent mistake,” said Randy Marriner, chairman of the Maryland Lottery and Gaming Control Commission. “It’s also the largest penalty that we’ve ever issued to anyone here at Maryland Lottery. It’s a serious mistake.”
The previous settlement record for the Maryland Lottery was $5,000, according to lottery officials.
One lottery commissioner, Harold Hodges, still wasn’t pleased with the penalty levied against the sports betting operator. Hodges argued that $146,000 could be considered just a “slap on the wrist,” rather than a fine that would deter other entities from violating lottery rules in the future.
“I frankly am opposed to it,” Hodges said of the settlement. “I think, if anything, they should have their license withdrawn until we look at it and think, ‘Well, what can we do system-wide so it doesn’t happen again?’”
Despite Hodges’ objections, lottery commissioners voted to apply the financial penalty rather than withdrawing BetMGM’s mobile sports wagering license in Maryland. Hodges voted against the motion.
