BetMGM Maryland had been doing great business up until recently, when a software glitch resulted in a massive $146,000 fine from the Maryland Lottery and Gaming Control Commission. This is a huge jump from the previous highest fine of just $5,000, showing exactly how seriously the issue was taken by regulating authorities.
Sources at BetMGM Maryland have said that they have already fixed the issue and restored compliance with the regulations; however, this latest slip-up serves as an important reminder for all companies in the gaming industry about the importance of vigilantly maintaining compliance protocols so that problems like this can be avoided going forward.
BetMGM Agrees To Pay Maryland Fine For Allowing Unauthorized Wagers
On Thursday, BetMGM agreed to pay the Maryland fine as part of a consent agreement with the state regulatory authority. It had acknowledged that an error led to the acceptance of 146 live sports bets amounting to more than $2,000 over three hours during a pre-launch test.
This occurred the week before the operator’s mobile license on November 23 for sports betting in Maryland was granted and it was held liable for allowing wagers without authorization. Although this posed some difficulty for all parties involved, it also serves as an important reminder regarding regulator compliance for all entities engaged in gaming and sports betting activities.
BetMGM’s Chief Compliance Officer Addresses Software Flaw
Rhea Loney, BetMGM’s chief compliance officer, recently released a statement to the Commission during a video call. In it, she explained that a software flaw in the app had mistakenly allowed users to place bets even after completing their registration.
This was contrary to how it was supposed to work – the app should have directed them to another page explaining that online betting wouldn’t be available for a while yet. Once BetMGM discovered the anomaly, it quickly blocked further wagers and began working with Maryland regulators to identify and fix the problem as quickly as possible. It is unclear at this time if any individuals were able to take advantage of the issue before BetMGM’s intervention.
Maryland Sports Betting Huge Success Despite $146,000 Fine
The immense success of mobile sports wagering in Maryland is sure to remain unchanged by the news of the $146,000 fine. During the first eight days after Maryland Sports Betting was introduced, it collected more than $186 million in bets, while retail outlets saw only $33 million in profits the entire month of November prior.
This is a strong sign indicating the great desire that exists for MD online sports betting across the state – an urge that even Gov. Larry Hogan’s disapproval could not suppress and slow down when handled by SWARC. Although there may be room for improvement within regulatory proceedings, it cannot be denied that once given a chance, bettors doubled their efforts to support mobile sports wagering in Maryland.
