BetMGM has been fined $25,000 in New Jersey for allowing bets on in-state college sports last March.
BetMGM agreed to the fine in a settlement signed with the New Jersey Division of Gaming Enforcement that was made public earlier this week. The rule-breaking bets were placed due to human and technical errors made by MGM’s partner Entain, which provides all technical support for BetMGM. Both companies, MGM and Entain own a 50 percent state in BetMGM.
According to the settlement BetMGM allowed bets on New Jersey college sports on two occasions in March, 2021.
The first took place on March 10, 2021 when BetMGM took two bets on a MAAC game between Niagara University and Marist College. The problem was that it was a neutral site game scheduled to be played in Atlantic City.
An Entain traded correctly listed the game as a neutral site contest, but these games are supposed to be checked either manually or by an automated system. At the time the automated system was not working and the trader failed to do a manual check. The game was live and available to be wagered on in New Jersey for about 40 minutes before it was taken down.
The second incident took place on March 20, 2021. This time an Entain trader working in Australia was at fault. The trader created a premade parlay that included Rutgers University which is located in New Jersey.
The trader did not recognize Rutgers as being located in New Jersey and made the parlay live in the state. The parlay was live on BetMGM and Borgata for around eight hours before being removed. All bets were voided.
The New Jersey in-state college betting ban has received criticism from bettors and the industry, especially with Saint Peter’s handing out upsets in March Madness, but appears to be here to stay at least for now. New Jersey voters had the chance to remove the rule as part of a ballot question in November, but the support was not there. Nearly 57 percent of voters voted to keep the college betting ban in place.